Cenomi Centers, a leading owner, operator, and developer of retail and lifestyle destinations in Saudi Arabia, announced a strategic partnership with GIB Capital (GIBC), a prominent financial and investment services firm, to establish a closed-end Shariah-compliant real estate investment fund with an initial capital of SAR 1 billion. This fund will support the Qassim land sale program and facilitate the development of the U Walk Qassim mall, part of the 1 million sqm mixed-use Tijan scheme in Buraidah, Qassim region, Saudi Arabia.
The fund will focus on developing and marketing adjacent lands for residential, office, and leisure use, in line with its ambitious investment vision for the region. It may also establish partnership agreements with leading real estate developers to enhance the development of lands within the master plan. The site benefits from its strategic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of Buraidah and is attracting significant 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.
Upon establishment of the fund, pending approval from the Capital Market Authority, GIBC will take on the role of fund manager to facilitate the sale of Qassim land and assist in securing the necessary funds for the U Walk Qassim development. Cenomi Centers will be the sole unit holder of the fund, contributing assets in-kind along with any incurred hard and soft costs. Construction of the mall is expected to resume in December 2024, with completion slated for Q4 2026. Once completed, Cenomi Centers will manage and operate the 60,000 sqm Gross Leasable Area (GLA) U Walk Qassim, which will feature 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.”
