RIYADH: Saudi mall operator and owner Arabian Centres Co. and National Housing Co. have signed an agreement to establish a SR600 million ($160 million) commercial mall in the Murcia residential project in northern Riyadh.
Spread over a land area of around 180,000 square meters, the integrated mall with 45,000 square meters of gross leasable area, or GLA, will include 150 shops, hosting a range of international and local brands across fashion, casual dining, cinema and entertainment.
Under the deal, a new company will be established with a capital of SR130 million, to be paid up equally by both parties, according to a bourse filing.
The newly established company will lease the land from NHC for the purpose of developing the mall, with a total lease amounting to SR340 million, which will be paid in annual payments, it said.
The development cost of the mall is estimated at SR260 million, where ACC will finance its share of it through its internal resources. The company expects the mall’s revenue to surpass SR50 million once it stabilizes.
ACC plans to begin the construction of this mall during the second half of 2022 after the structure’s design gets approval. It is expected to open during the first half of 2025.
Founded in 2016, NHC is one of the largest developers and enablers within the real estate system, promoting quality projects that enrich the market. Its Murcia residential project will include more than 5,000 homes and 570 apartments.