Cenomi Centers sells Sahara Plaza for SAR 200M

Logo of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co. (Cenomi Centers) completed a sale deal for the Sahara Plaza Center, which spans a total area of 12,540 square meters, for approximately SAR 200 million. The deal value excludes the real estate transaction tax and brokerage fees.

Sahara Plaza is located in King Fahd district, on King Abdullah Road, Riyadh.

In a statement to Tadawul, Cenomi Centers pointed out that Sahara Plaza is the fourth asset sold by the company as part of its program to sell a portfolio of non-core assets, the total market value of which is estimated at nearly SAR 2 billion.

The deal terms stipulate for transferring the title deed within 45 days from the date of signing. The period may be extended by 30 days upon mutual agreement.

According to the contract, the title deed shall not be subject to any mortgage, legal or financial liability, nor lease contracts.

Sahara Plaza was purchased by Alistithmar Capital. The sale took place as a single-tenant multi-department store is no longer in line with Cenomi Center’s strategic plan, which aims to consolidate the leading position of the company as a premier developer and operator of modern malls in the Kingdom, the statement added.

According to Cenomi Center’s financial statements, the book value of Sahara Plaza amounted to SAR 99 million as of September 30, 2023, the developer noted, pointing out that the total profit from the sale stood at SAR 79 million based on the fair value of the asset as of September 30, 2023.

The impact on revenues will be marginal at SAR 5 million annually.

The company expected the financial impact of the deal to appear starting Q1 2024, indicating that the sale proceeds will be used to pump liquidity and strengthen the company’s financial position.

There are no related parties to the deal, the statement highlighted.

In October 2022, the company’s board of directors approved a program to sell non-core assets with a book value of SAR 1.2 billion and a market value estimated at more than SAR 2 billion, according to data available on Argaam.