Cenomi Centers (4321) plans to establish a closed-end Shariah-compliant real estate investment fund, with an initial capital of SAR one billion.
An aspirational fund
Cenomi Centers, known for developing and managing shopping complexes in Saudi Arabia, has announced a strategic partnership with Riyadh-based investment company “GIB Capital”.
The fund will facilitate a land sale program in Qassim per the new partnership.
Additionally, it will develop the “U Walk Qassim” shopping mall — part of the multi-use “Tijan” project, which spans one million square meters in the city of Buraidah in the Qassim region.
The fund will also develop lands adjacent to the project for residential, office, and recreational purposes.
Agreements may also be signed with major real estate developers to develop land within the master plan.
So what
The land sale is part of Cenomi Centers’ strategy to sell non-core assets worth nearly SAR two billion. The sell-off program kicked off in October 2022 with a target to enhance the company’s financial position and fund its development projects.
Now what
U Walk’s estimated investment ticket hovers at around SAR 400 million. Its annual revenue is anticipated to reach approximately SAR 80 million once finalized.
Cenomi Centers, which will manage and operate U Walk, expects to resume construction on the shopping center in December 2024 and to complete the project during the fourth quarter of 2026.
Upon completion, U Walk will span a gross leasable area of 60,000 square meters, featuring more than 135 retail stores.
