Saudi Arabian mall operator Arabian Centres is planning to build an outdoor shopping centre to expand its lifestyle offering.
“Boulevard U Walk” will be the second addition to the company’s portfolio of shopping centres in the Islamic holy city of Medinah (Al-Madinah Al-Munawwarah) and it is expected to deliver about 57,000 square metres of additional gross leasable area (GLA), the firm said in a bourse filing on Monday.
The Saudi-listed firm, which operates 21 malls across Saudi Arabia, also confirmed that it has secured a long-term lease for a vacant plot on which the new mall will be built.
Under the rental and investment agreement with the plot owner, Madinah Regional Municipality, Arabian Centres will be paying an annual rent of more than 1 million Saudi riyals ($266,000) to develop and use the land for a period of 25 years.
The firm’s total investment for leasing the land alone will amount to more than 26.6 million riyals by the end of the lease term.
“This project comes in line with the company’s broad strategy, which aims to expand within the lifestyle shopping centres that include various entertainment destinations such as cinemas, luxurious restaurants and cafes, in addition to retail stores,” the firm said.
The company also pointed out that the Madinah Regional Municipality is keen to develop the area around the proposed project site as it is considered one of the most populous regions in the kingdom. However, the mall operator, did not confirm the investments that would go into building the new shopping destination.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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