The largest owner-operator of retail and leisure destinations in Saudi Arabia has partnered with GIB Capital (GIBC) to create a real estate investment fund that complies with Sharia law. It will have an initial capital of SR1 billion.
The fund will support the construction of U Walk Qassim mall, which is a component of the 1 million square meter mixed-use Tijan scheme situated in Buraidah, in the Qassim region of Saudi Arabia, as well as the land sale program for Qassim.
The recently established fund will develop and market the nearby properties for use as homes, workplaces, and recreational areas. It’may’ also enter into joint venture agreements with top real estate developers to develop land inside the master plan.
“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,” said a statement.
The land sale is part of Cenomi Centers’ SR2 billion non-core asset sale, which began in 2022 to strengthen the company’s financial position and fund a growth pipeline.
It will take about SR400 million to finish the U Walk Qassim mall project. Once “stabilized,” the mall is expected to bring in about SR80 million annually.
Regulator approval
GIB Capital will take on the role of fund manager to facilitate the sale of the Qassim land bank and in securing the funds necessary for the U Walk Qassim development once the fund has received clearance from the Saudi Capital Market Authority.
The only unit holder in the fund will be Cenomi Centers, which will also provide “any hard and soft costs incurred to date” in addition to in-kind contributions.
The mall’s construction might start up again in December and be finished in Q4 of 2026. The 60,000 square meter gross leasable area (GLA) mall, which will house more than 135 retail establishments, will be overseen and run by Cenomi Centers.
“Cenomi Centers is maximizing the opportunities of operating in the attractive KSA market,” said Alison Rehill-Erguven, CEO. “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 square meter total GLA by end of 2027.”
