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Arabian Centers Company (Cenomi Centers) Announces the handover of the First Phase for Dhahran Mall in the Eastern Region
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| Announcement Detail | Arabian Centers Company ("Cenomi Centers") announces that on February 9, 2025 the company will handover the first phase of "Dhahran Mall" in the Eastern Province. This is in accordance with the agreed-upon contract terms, the land and building will be handed over to the landlord upon the lease expiry date, which is February 9, 2025, while the contract of the second phase of the mall is set to expire in April 2026. The company opened the first phase of "Dhahran Mall" in 2005 under a lease agreement for 20 Hijri years, with a leasable area of approximately 82 thousand square meters. The second phase, which was leased under a separate lease agreement, was opened in 2006 with a leasable area of approximately 80 thousand square meters. Expected Financial Impact Based on initial estimates, the company expects the financial impact of the lease expiry for the first phase of Dhahran Mall to be as follows: Total Revenue: The company estimates a revenue decline of approximately SAR 139 million compared to 2024. Net Income: The company anticipates an improvement in the company net income by approximately SAR 49 million, driven by a reduction in fair value revaluation losses for Dhahran Mall compared to 2024. This financial impact is expected to materialize starting from the first quarter of the fiscal year 2025. The company would like to emphasize that, according to the 2025 plan, the financial impact resulting from the expiration of the lease for the first phase of "Dhahran Mall" is expected to be offset through several initiatives. These include the growth of the "U Walk Jeddah" project, which was inaugurated in February 2024 and is expected to reach operational stability by 2025. Additionally, the company aims to enhance the operational performance of its centers by increasing average occupancy rates and boosting revenues from non-leasable spaces, including advertising sales, kiosks, and other sources of income. Company Strategic Direction in the Eastern Region As part of its expansion strategy, which aims to strengthen its presence across various regions of the Kingdom in line with the latest standards and the evolving needs of consumers and retail businesses, Cenomi Centers previously announced the signing of a lease and investment agreement for a 300,000 square meter plot of land in North Khobar, Corniche District, for a period of 30 years. This project aims to develop "Jawharat al- Khobar", alongside multi-purpose commercial facilities. The development is expected to add more than 100,000 square meters of leasable area. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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