Opening ceremony of Jeddah Park Centre
Arabian Centres Co. announced the opening of Jeddah Park Centre, located on Prince Mohammed bin Abdulaziz Road in Jeddah, on Sept. 9.
The company said in a bourse filing that Jeddah Park is the 22nd in the firm’s commercial centers portfolio.
The centre has a gross leasable area (GLA) of 126,500 square meters (sqm), and it contains over 350 stores that include the finest international and local brands in the fields of fashion, cosmetics, food and beverages.
Arabian Centres will lease, manage, operate and carry out maintenance works of the center, pursuant to the management and operation agreement signed with the owner, announced on Saudi Exchange (Tadawul) on Oct. 25, 2020.
This will be in line with the company’s strategy of utilizing an asset light model that will contribute to enhancing its financial flexibility in order to expand its operations.
The financial impact of the center will appear on the company's financial statements starting Q2 FY2021/22, ending on Sept. 30, 2021.
According to data compiled by Argaam, Arabian Centres successfully ended, on Oct. 22, the negotiations with Sheikh Muhammad Sairafy, Jeddah Park’s owner and landlord, with regards to signing a new management, operation and maintenance agreement to replace the first 10 years of the initial lease contract for the property.
Under the contract, Arabian Centres will lease, manage, operate and carry out maintenance works at Jeddah Park Shopping Centre on behalf of its owner and landlord and to his account, in accordance with the professional standards in this field, in return for a percentage of the center's net annual revenue.
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