Cenomi Centers and GIB kick off SAR 1 bn real estate fund: Our friends at Cenomi Centers and Riyadh-based investment bank GIB Capital are launching a closed-ended Shariah-compliant real estate investment fund with an initial capital of SAR 1 bn, according to a press release (pdf). The fund will “facilitate” Cenomi’s land sale program, which comes as part of a bid to offload SAR 2 bn in non-core assets, the release said. The fund will also develop the U Walk Qassim mall, part of a larger 1 mn sqm mixed-use project in Buraidah, as well as develop and market surrounding lands for residential, office, and leisure use

Who’s doing what: Cenomi Centers will be the fund’s sole unit holder of assets in-kind, while GIB Capital will manage the fund and handle the Qassim land sale while securing the necessary funds for the completion of U Walk Qassim mall.

Cenomi Centers is looking at some SAR 400 mn in costs to complete the U Walk Qassim mall, which is expected to bring in SAR 80 mn in annual revenue once it’s up and running, according to the press release. Construction at the site is set to restart this December and is slated for completion in 4Q 2026. Post launch, Cenomi Centers will manage and operate the 60k sqm gross leasable area venue that will host upwards of 135 retail outlets.

Cenomi Centers is on a buildout spree: U Walk Qassim represents the firm’s third major ongoing construction project this year, alongside flagship projects Jawharat Riyadh and Jawharat Jeddah, putting the developer on track to hit 2 mn sqm of GLA by 2027, Cenomi Centers CEO Alison Rehill-Erguven said.

ALSO- Cenomi retail set a world record by opening 12 Subway branches across the Kingdom in a single day, it said in a separate press release (pdf). The branches are located in Riyadh and Dammam and include a mix of traditional and non-traditional venues and cloud kitchens. The new outlets are expected to generate an estimated SAR 13 bn per year and cover their investment cost in about 2.5 years. Cenomi Retail has opened 31 F&B outlets to date, and targets 50 by the end of 2024.

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