Arabian Centres, the largest owner,
developer and operator of contemporary lifestyle centres in Saudi Arabia, has launched
its next-generation retail experience, brought to life through two new locations
Jawharat Al-Riyadh and Jawharat Jeddah malls, collectively bringing more than 235.6
thousand square metres (sqm) of GLA.
The company has signed two agreements with Riyad Capital, the investment arm of Riyad
Bank, to establish two real estate investment funds worth SAR6.2 billion for the
projects. Under the agreement, Arabian Centres will handle the development and
management in both cities, while the investment funds will secure funding for the
projects.
Fully immersive lifestyle destinations Jawharat Al-Riyadh and Jawharat Jeddah Malls will
offer all-inclusive, modern experiences, bringing together luxury retail brands, a broad
range of dining concepts and vast entertainment offerings, including cinemas and
arcades. The malls will be home to some of the world's leading fashion brands, with many
opening their branches in the Middle East or Saudi Arabia for the first time. With both
closed and open spaces, landscaped green areas, an artificial lake, and a walkway the
sites will bring a truly unique visitor experience to the Kingdom.
Located near the intersection of King Khalid Road with Al-Orouba Road, Jawharat
Al-Riyadh Mall will encompass an area of nearly 623.4 thousand sqm with a market value
of about SAR2.1 billion. Meanwhile, Jawharat Jeddah Mall is currently under construction
in the Al Muhammadiyah district at the intersection of King Abdulaziz Road with Al-Salam
Road, covering an area of 170.7 thousand sqm, with a market value of nearly SAR1.2
billion.
Riyad Capital will oversee and provide coverage for the funds, while the units of both
funds will be fully owned by Arabian Centres. Arabian Centres will retain the right of
management and operation of the developed malls associated with these two CMA-licensed
funds, and according to the terms and conditions of the two funds. They later might be
traded publicly as Real Estate Investment Traded Funds (REITs).
On the announcement, Managing Director of Arabian Centres, Mohamad Mourad, reiterated
the company’s continued dedication to its ambitious development plans: “These are two
truly unique concepts that Arabian Centres is bringing to the Kingdom, offering fully
integrated retail and leisure locations that cater to residents of Riyadh and Jeddah
inclusively. We have set out an impressive growth strategy, with the inherent aim of
uplifting the standard of services, products, and experiences to our customers.
Simultaneously, we aim to deliver consistent added value to both our tenants that
support their own growth in the country, fully supportive and in line with the
objectives of Saudi Vision 2030.”
Sabty Al-Sabty, Riyad Capital’s CEO, expressed great excitement regarding the launch of
the funds as well as the partnership with Arabian Centres, highlighting the important
role the financial market plays in the development of the real estate sector and
strengthening the relationship between the private sector and investment companies. He
also added that the institutional framework contributes by increasing efficiency and
growth of businesses [SP1] [RA2] as well as creating opportunities for high-quality real
estate projects.
Construction work of Jawharat Al-Riyadh Mall began in August 2021 and is currently
approaching 15% completion, a total investment of nearly SAR1.8 billion. The mall is
strategically located near several key capital city landmarks, including the Diplomatic
Quarter and Diriyah Gate. The fund is expected to accelerate development progress, with
the mall projected to open in the first half of 2025.
Given the project’s excellent location, the company’s leasing department has already
received expression of interest from brands, accounting for around 70% of the
approximate 148.4 thousand sqm leasable area. Once operational, the mall is expected to
create around 7,000 jobs.
In parallel, Jawharat Jeddah Mall’s construction currently stands at 14% completion,
with an equally advantageous location near King Abdulaziz International Airport and the
Jeddah Yacht Club, located on the Jeddah Corniche.