Saudi developer secures funding for $3.5 bln mega Riyadh project

Saudi Arabia’s Shomoul Holding Co. has secured bank funding of SAR 5.6 billion ($1.49 billion) for its SAR 13 billion ‘The Avenues – Riyadh’ project, CEO Waleed Khalid Alsharian told Argaam in an exclusive interview.

The funding has been obtained from nine GCC banks, he said, adding other options such as sukuk and bonds are being explored.

The Avenues - Riyadh is a mega mall, which houses more than 1,300 stores and consists of diverse districts designed with different themes that bring several cities into one. It also includes five multi-purpose towers consisting of hotels, exhibition, conference halls, residential apartments, offices, and medical facilities, making it one of the largest commercial complexes in the Middle East.

In March, the company signed an agreement with Hilton to develop and operate four hotels in the mega project.

Read: Saudi's Shomoul inks deal with Hilton to operate hotels in Riyadh

While the excavation work has commenced on the project, Alsharian said the main construction work is slated to start soon.

“The contractor has been selected and we are in the final stages of preparing the contract and we will announce the name during the signing,” he revealed.

The shopping mall is slated for completion in 2023, followed shortly by the office tower and the Waldorf Astoria hotel tower and the remaining three towers. 

“Once the project is completed, it will be a prime destination for those seeking an experience that goes beyond shopping from around the Kingdom, the Gulf and the world,” Alsharian asserted.

However, the biggest challenge was to work on a design that combined the latest technology and eco-friendly design elements in order to create the best experience for the customers, the CEO said.

“We are working with the best companies in the world in design and we will be providing a one of a kind design that only can be seen, and experienced in The Avenues – Riyadh.”

Meanwhile, Alsharian informed that the final cost of The Avenues - Khobar project will be determined only after the design stage is completed.

"We will announce the program for this development at a later stage," he stated.

Shomoul Holding is a Saudi limited liability company established in 2014 as a joint venture between the Kuwait-based Mabanee Co. and Saudi-based Alfozan Holding Group and Mohammed Hamoud Alshaya.

Write to Parag Deulgaonkar at parag.d@argaamplus.com