Saudi’s Cenomi Centers, GIB Capital unveil SAR1bn real estate fund

Cenomi Centers, the leading owner, operator, and developer of retail and lifestyle destinations in Saudi Arabia, has announced a strategic partnership with GIB Capital (GIBC) to launch a closed-end Shariah-compliant real estate investment fund with an initial capital of SAR1bn.

The fund aims to accelerate new development in the Qassim region, including the facilitation of a land sale programme and the development of the U Walk Qassim Mall, which is part of the larger Tijan mixed-use scheme in Buraidah.

The retail giant‘s strategic land sale programme is part of a broader SAR2bn initiative initiated in 2022 to bolster the company’s financial position.

Fund aligns with Cenomi Centers’ overall growth plans

The establishment of this fund aligns with Cenomi Centers’ ambitious growth strategy, which aims to increase its gross leasable area (GLA) by 44 per cent by 2027.

The fund will not only focus on the development of the U Walk Qassim Mall, which requires approximately SAR400m to complete, but will also market surrounding lands for residential, office, and leisure purposes.

The project is well-positioned geographically, located at the intersection of major routes, including King Abdulaziz Road, which enhances connectivity within Buraidah and attracts significant investment and urban development.

Once stabilised, the U Walk Qassim Mall is projected to generate annual revenue of around SAR80m.

Following Capital Market Authority approval, GIBC will manage the fund, facilitating land sales and securing necessary funding for development. Cenomi Centers will act as the sole unit holder, contributing assets and associated costs.

Alison Rehill-Erguven, CEO of Cenomi Centers, remarked, “Partnering with GIB Capital to create this fund underscores our success in forming strategic financing solutions that drive future growth.

“With several projects under construction, including Jawharat Riyadh and Jawharat Jeddah, we are on track to achieve two million square metres of total GLA by the end of 2027.”

Osamah Shaker, CEO of GIB Capital, added, “This partnership marks a significant step in financing Cenomi’s strategic projects. It reflects our commitment to providing innovative financial solutions that support sustainable growth in the Qassim region and enhance the business landscape in Saudi Arabia.”

Construction of the U Walk Qassim Mall is expected to resume in December 2024, with completion targeted for the fourth quarter of 2026.

The development will feature over 135 retail stores within its 60,000 square metres GLA.