Saudi Arabia's largest mall operator Arabian Centres Company has signed an agreement with Adeer Real Estate for the sale of noncore assets worth 2 billion Saudi riyals ($532.1 million).
The pact follows recent approval of the programme from the company’s board of directors to sell an identified portfolio of non-core landbank assets, with a book value of about 1.2bn riyals and a market valuation estimated at more than 2bn riyals, Arabian Centres said in a statement on Monday.
The assets were identified by a study that showed they were best suited for residential or office space development and did not support the mall operator's strategic priorities of developing lifestyle destinations.
The first sale from the programme, announced last month, was for 17,733 square metres of land located in the Olaya district in Riyadh.
“This is a strategically important programme for Arabian Centres, as we further align our future growth priorities with our overarching business initiatives,” Alison Rehill-Erguven, chief executive of Arabian Centres, said.
“Adeer Real Estate is a leader in the sale of large-scale land and developments and intrinsically understands both the monetary and locational value of these assets … this agreement will support the continued success of this programme.”
Founded in 2002, Arabian Centres is one of the largest owners, operators and developers of contemporary lifestyle centres in Saudi Arabia.
The company currently owns, operates and manages 21 commercial centres and complexes, with more than 4,300 stores, located across 10 cities in the kingdom.
With a total gross leasable area of nearly 1.34 million square metres, Arabian Centres' malls provide Saudi shoppers with a range of international, regional and local retail brands.
“Arabian Centres’ portfolio of assets in this programme is high quality and we are confident of a positive reception from the market,” Suleiman Al Harbi, deputy chief executive of Adeer Real Estate, said.
In 2021, Arabian Centres Company raised 2.47bn riyals in an initial public offering on the Tadawul Stock Exchange.