The establishment of the fund is part of Cenomi Centers’ strategic financing model to deliver on its ambitious growth pipeline with plans to increase gross leasable area by 44% by 2027.

Riyadh, Saudi Arabia, 8 October 2024  Cenomi Centers, the leading owner, operator and developer of retail and lifestyle destinations in Saudi Arabia, today announces a strategic partnership with GIB Capital (GIBC), a prominent player in the financial and investment services sector, to establish a closed-end Shariah-compliant real estate investment fund with initial capital of SAR 1 billion. The fund will facilitate the Qassim land sale programme and develop the U Walk Qassim mall which is part of a 1 million sqm mixed-use Tijan scheme located in Buraidah, in the Qassim region of Saudi Arabia.

The fund will develop and market the surrounding lands for residential, offices and leisure, aligning with its ambitious investment vision for the region. The fund may also sign partnership agreements with leading real estate developers for the purpose of developing lands within the masterplan. The land benefits from its geographic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of the city of Buraidah, which is attracting significant wider investment and urban development.

The land sale is part of Cenomi Centers’ strategic SAR 2 billion non-core assets sale program initiated in 2022 to strengthen the company’s financial position and fund its growth pipeline. Approximately SAR 400 million is estimated to complete the U Walk Qassim mall development. The projected annual revenue from the mall, once stabilized, is around SAR 80 million.

Following the establishment of the fund which is subject to Capital Market Authority approval, GIBC will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development. Cenomi Centers will be the sole unit holder of the fund and will contribute to the fund with assets in-kind, along with any hard and soft costs incurred to date. Construction of the mall is anticipated to resume in December 2024 and complete in Q4 2026. Cenomi Centers will manage and operate the 60,000 sqm GLA U Walk Qassim on completion, which will include over 135 retail stores.

Alison Rehill-Erguven, CEO of Cenomi Centers said :” Partnering with GIB Capital to create a new fund to bring forward U Walk Qassim and deliver on our SAR 2 billion non-core asset sales program, demonstrates the company’s continued success at forming strategic financing solutions to drive our company’s future growth. Cenomi Centers is maximizing the opportunities of operating in the attractive KSA market. 2024 will see three projects under construction including the flagship developments Jawharat Riyadh and Jawharat Jeddah, along with U Walk Qassim, ensuring we are on track to reach 2 million sqm total GLA by end of 2027.”

Osamah Shaker, CEO of GIB Capital said : “Our partnership with Cenomi Centers in the U-Walk Qassim Fund represents an important step towards achieving the company’s goals in financing its strategic projects. This fund also reflects our capabilities in providing innovative financial solutions. This investment supports sustainable growth in the Qassim region and reinforces our commitment to improving the business landscape in the Kingdom of Saudi Arabia.”