Cenomi Centers has partnered with GIB Capital (GIBC), a financial and investment services provider, to launch a closed-end Shariah-compliant real estate investment fund with initial capital of SAR 1 billion ($266 million).
The fund will support the Qassim land sale program and develop the U Walk Qassim mall, which comes as part of a one million sqm mixed-use Tijan scheme located in Buraidah, in the Qassim region of Saudi Arabia.
Aligning with its ambitious investment vision, the fund will develop and market the surrounding lands for residential, offices and leisure. Additionally, the fund may forge partnership with key players in real estate sector for developing lands within the masterplan.
The land also benefits from its strategic location at the intersection of prime routes. The land sale is part of Cenomi Centers’ strategic SAR 2 billion ($533.08 million) non-core assets sale program initiated in 2022 to enhance the company’s financial position and fund its growth pipeline.
The estimated cost to complete U Walk Qassim mall development is SAR 400 million ($106.71 million). The projected annual revenue from the mall, once stabilized, is around SAR 80 million ($21.36 million).
Following the establishment of the fund, which is subject to Capital Market Authority approval, GIBC will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development.
Cenomi Centers will be the sole unit holder of the fund and will contribute to the fund with assets in-kind, along with any hard and soft costs incurred to date. The mall construction is expected to resume in December 2024 and complete in Q4 2026. Cenomi Centers will manage and operate the 60,000 sqm GLA U Walk Qassim on completion, which will include more than 135 retail stores.
Alison Rehill-Erguven CEO – Cenomi Centers
“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, stated that, “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.”
