The company aims to raise SAR 2 billion on completion of the non-core asset strategy
Cenomi Centers, one of the largest owners’ operators, and developers of shopping malls in Saudi Arabia, has sold Sahara Plaza under its non-core asset sale programme. The 12,540 square metre shopping centre, located in the King Fahd district of Riyadh, was sold for SAR 200 million ($53.33 million), the Saudi-listed company said in a statement. This is the fourth asset sale, with the strategy aiming to raise nearly SAR 2 billion on completion.
Sahara Plaza, opened in 2002, was the first of 22 operating assets of Cenomi Centers. “A single tenant department store, the asset is no longer aligned with the strategic direction of the company,” the company said. The revenue impact of the sale will be marginal at SAR 5 million per year.
Based on the fair value of the property as of September 30, 2023, profits from the sale total SAR 79 million and will be recognised in Q1 24 reported results. The programme has generated a total of SAR 1.14 billion to date. This has been achieved through the sale of a 17,700 square metres plot in the Olaya district, Riyadh, for SAR 230.5 million, the sale of a 115,000 square metres plot in the Al-Raed District of Riyadh for SAR 644.5 million, and the sale of a 29,000 square metres plot in downtown Al Ahsa city for SAR 62.5 million.
“The sale of Sahara Plaza represents another landmark moment in our strategic non-core asset sale programme,” said Alison Rehill-Erguven, CEO of Cenomi Centers. He stated that the company expects a further SAR 800 million in sales proceeds.