Logo of Arabian Centres Co.
Arabian Centres Co.’s (ACC) strategy aims to maximize the investment returns from the existing portfolio of projects by improving the utilization of leasable spaces as well as increasing leasable spaces for recreational facilities, in addition to diversifying tenants, according to the board of directors’ report.
The company seeks to sign partnerships with international brands with the aim of occupying the untapped leasable areas to reach the target occupancy rate between 94%-95%.
It also targets to enhance its market share in major cities through eight projects under construction, which will add around 637,000 square meters (sqm) of leasable areas during 2024.
Meanwhile, two projects - Jeddah Park and Al Khaleej Mall - will be opened in September 2021, and will add about 180,000 sqm to the leasable areas, representing 15% of the total leasable areas.
The following table shows the projects that are expected to be completed and will be opened during 2021:
|
Projects Expected to be Opened in 2021 |
|||||
|
Project |
City |
GLA (’000 sqm) |
Number of shops |
Expected opening date |
Notes |
|
Jeddah Park |
Jeddah |
129 |
350 |
September 2021 |
The project is 89% complete and pre-leasing rate reached about 68% of the gross leasable area (GLA). |
|
Khaleej Mall |
Riyadh |
51 |
160 |
The project is 88.1% complete and pre-leasing rate reached nearly 75% of the GLA. |
|
|
Total |
|
180 |
510 |
|
|
The Saudi-listed firm has six projects under implementation that will raise the rental areas by about 457,000 sqm by 2024, at an estimated cost of about SAR 6.497 billion, as the following table shows:
|
Future Projects |
||||||
|
Project |
City |
GLA (’000 sqm) |
Estimated Cost (SAR mln) |
Status |
Number of Shops |
Expected Opening Date |
|
Jeddah |
80.4 |
2180 |
Full ownership |
190 |
H2 2024 |
|
|
Riyadh |
158.9 |
2980 |
Full ownership |
370 |
||
|
Al Madinah |
57.2 |
320 |
Leasehold |
95 |
||
|
Qassim |
65.1 |
507 |
Full ownership |
135 |
||
|
Najd Mall |
Riyadh |
35.3 |
170 |
Leasehold |
80 |
|
|
Jeddah |
60 |
340 |
Leasehold |
180 |
||
|
Total |
|
457 |
6497 |
|
1050 |
|
Accordingly, the number of centers under the company’s management and operation will grow to 29 by 2024, with a GLA of 1.85 million sqm, a change of 52% compared to 2020, as shown in the following table:
|
Number of Centers, GLA by 2024-end |
||||||
|
Period |
Number of Centers |
GLA (’000 sqm) |
Annual Change (%) |
Variation 2020/2024 |
||
|
GLA |
Expected in 2021 |
Expected in 2024 |
||||
|
March 2019 |
19 |
1,085.9 |
-- |
-- |
-- |
-- |
|
March 2020 |
21 |
1,214.1 |
-- |
-- |
12% |
-- |
|
2021 |
23 |
1,393.8 |
179.7 |
-- |
15% |
-- |
|
2024 |
29 |
1,850.7 |
-- |
456.9 |
33% |
52% |
Key achievements in the fiscal year ending in March 2021:
- Entering the e-commerce field after the acquisition of the electronic fashion trading platform, VogaCloset.
- The number of visitors to its shopping centers declined to 63 million from 110 million in 2020. The company's total market share in the Kingdom stabilized at 16%, while its market share in Riyadh and Jeddah reached 15% and 27%, respectively.
- Adding 237 new brands to expand availability in its centers.
- Waiver of contractual rents and service fees for all tenants for a period of six weeks as of March 16, 2020, in addition to non-recurring discounts to support tenants amounting to SAR 241.2 million.
- Renewal of 1,767 lease contracts that expired during the year.
- Exiting non-core investments in Aswaq Al Mustaqbal Trading Ltd. and Amlak International for Real Estate Finance at a value of SAR 96 million.
- Collection of SAR 131.1 million from the amounts owed by FAS Holding Company for Hotels through cash and in-kind settlement (real estates).
- Establishing new cinemas in 11 commercial centers. Also, ACC aims to launch cinemas in eight centers in the near term.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}