ARABIAN CENTRES’ BOARD APPROVES SAR 2 BILLION NON-CORE LAND SALE PROGRAMME

• Sale of 17,733 sqm of land, located in the Olaya district in Riyadh, is the first asset to be sold off as part of the programme
• Company will sell land for a total price of ~SAR230.5 million
• The sale is part of the company’s Board of Directors’ approved programme for the sale of non-core land assets with an estimated market value north of SAR 2 billion

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.