Arabian Centres seeks to build new malls; continue expansion

Saudi Arabia’s Arabian Centres Co. plans to build new shopping malls and expand the existing commercial centres in line with its retail segment expansion plan, the company said in its IPO prospectus.

The mall operator currently plans to build three new shopping malls and expand an existing commercial centre.

Accordingly, the company’s total number of commercial centres will rise from 19 at the end of 2018 to 22 by year-end.

It also has upgrade plans for four new shopping centres in addition to the second phase of Al Nakheel Mall expansion project over the coming five years.

*Expected

Additionally, the Saudi firm is seeking to boost the commercial space for rent from 1.08 million square meters (sq m) to 1.25 million sq m (excluding Jeddah Park).

In March, the company inked a master lease agreement for the under-construction Jeddah Park, which will open its doors to the public in Q2 2020. The new park is expected to add 128,700 sq m to the company’s retail space for rent.

The occupancy rate of the company’s total retail space for rent stood at 92.8 percent as on December 31, 2018.

The company is set to launch cinema screens in four of its shopping centres; Mall of Arabia, Mall of Dhahran, Al Nakheel Mall and University Boulevard by year-end, and in another eleven commercial centres in the medium term.

Arabian Centres was established in 2002 as a closed joint stock company. It is a subsidiary of Fawaz Alhokair Group and specializes in mall management, tenant relations and leasing.

Arabian Centres has a portfolio of 19 assets strategically located in ten major Saudi cities. The company operates Mall of Arabia, Mall of Dhahran, and Nakheel Mall.

The company will launch its initial public offering (IPO) for retail investors today, Thursday, May 9. The offering will extend today only until 11:59 PM.

Retail investors will subscribe to 9.5 million shares, at SAR 26 per share.

The Capital Market Authority (CMA) approved on April 15 the company’s request to float 95 million shares, or 20 percent of its capital in a public offering.