The Board of Directors of Arabian Centres Company, the largest owner, operator and developer of shopping centres and complexes in Saudi Arabia, has approved a programme to sell an identified portfolio of non-core landbank assets. The total book value is ~SAR 1.2 billion, with a market valuation estimated at more than SAR 2 billion.
The first sale from this portfolio has also been agreed, a 17,732.95 sqm asset in the Olaya district of Riyadh is being sold for SAR13,000 per sqm, with a final price of ~SAR230.5 million, a ~SAR75.5 million total profit. The transaction will be reflected in Arabian Centres’ financial results for the second quarter of its fiscal year 2023.
Alison Rehill-Erguven, CEO, Arabian Centres, said: “This is a positive step to now move forward with Board approval for this strategic commitment to sell the non-core landbank assets. The proceeds of the sale programme will contribute to our growth priorities, including plans already underway to add more than 600 thousand sqm of state-of-the-art lifestyle destinations to our portfolio in the upcoming four years”
Arabian Centres identified a portfolio of non-core landbank assets for sale, following studies that indicated these spaces were best suited for residential or office developments and did not support Arabian Centres’ strategic priorities of developing best-in-class lifestyle destinations. The sales will further strengthen the company’s financial position and reinforce its future growth plans.