Cenomi Centers raises Westfield Riyadh project financing to SAR 2.7B

Logo of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co. (Cenomi Centers) announced the successful financial close of a Murabaha financing facility for the Westfield Riyadh project. The company increased the total financing from SAR 1 billion to SAR 2.7 billion by adding SAR 1.7 billion to the existing facility to complete the project's development.

The financing was provided by Riyad Bank for a term of 9.5 years, including a two-year grace period followed by a 7.5-year scheduled repayment period, the company said in a statement to Tadawul today, July 16.

The facility also includes a principal repayment grace period covering the completion of construction works and the project's phased operational ramp-up, with an option to increase the financing by up to SAR 200 million, bringing the total potential facility to SAR 2.9 billion.

Cenomi Centers said the financing will be used to complete the remaining development costs of the project, including the construction of a VIP lounge, a dedicated luxury retail wing to be delivered in a later phase of the project, as well as supporting tenant fit-out works.

The company added that the financing was arranged through Durra Al Raed Investment Co. Ltd., a special purpose vehicle (SPV) established to develop the project under the Riyad Real Estate Development Fund, which is managed by Riyad Capital. Cenomi Centers is the sole unitholder of the fund.

The financing is secured by a package of customary project finance guarantees, including a mortgage over the project asset, pledged accounts, and assignment of rights related to lease agreements. In addition, Cenomi Centers has pledged its units in the fund in favor of the security agent, as the sole unitholder of the fund through which the project company was established.

The company added that the financing package also includes personal guarantees provided by Chairman Fawaz Al Hokair, Vice Chairman Salman Al Hokair, and Abdulmajeed Al Hokair, as well as corporate guarantees from Lynx Contracting Company (CJSC) and FAS Real Estate Co., both wholly owned by them.

It noted that the guarantors are considered related parties, as Fawaz Al Hokair, Salman Salman Al Hokair, and Abdulmajeed Al Hokair are major shareholders in Cenomi Centers.

According to the company, Westfield Riyadh will offer 220,000 square meters of gross leasable area (GLA) and is expected to attract 24 million visitors annually and generate more than SAR 5 billion in annual retail spending once operations stabilize.

The company also noted that the project's pre-leasing rate has exceeded 92%, based on agreed key commercial terms, letters of intent, and executed lease agreements.