Arabian Centres Signs Agreement to manage and operate Marina Mall Jubail

Arabian Centres Company (“Arabian Centres” or “the Company”) announced on Thursday 21 April 2022 the signing of a Management and Operation Agreement for Marina Mall Jubail, a newly developed mall at Dareen International Marina project in the city of Industrial Jubail.

It added that this two floors mall, with a built-up area of 93 thousand square meters, will bring online c.30 thousand square meters of additional GLA to the Company’s growing portfolio. Furthermore, the mall has been designed to cope up with the utmost modern lifestyle patterns; where 65% of the mall’s GLA has been allocated to entertainment (cinema & gaming), food & beverage, and services categories. While the remaining 35% has been allocated to fashion and beauty. The Company is currently working on hosting world-class range of brands specialized in these categories under the roof of this upcoming lifestyle destination.

It also added that Marina Mall Jubail, located in Jubail Industrial city, is part of Dareen International Marina project which has been developed by “Alghanim International Company” under the supervision of the Royal Commission of Jubail and Yanbu. The project is considered as a modern integrated mixed-use project surrounding the Dareen International Marina Basin with the capacity of 306 yacht berths. It also includes residential and commercial plots, hotel facilities, and an extensive marina walk surrounding the marina basin. Dareen International Marina is considered as an extension of the waterfront in Jubail Industrial City and represents a major tourist dimension at the Gulf region level, as the second marina in the governorate.

The Company’s Management continues to view management and operating agreements, such as this one, as an important mean of developing the Company’s pioneering asset-light model. This model enables the Company to continue expanding its operational presence across the Kingdom of Saudi Arabia while optimizing costs and maintaining the financial flexibility to scale operations and quickly launch new locations. As the Company continues to develop a replicable plug-and-play model for operating and managing shopping centres, it enhances its ability to militate against business risks.

Arabian Centres Company undertakes to lease, manage, operate and carry out maintenance works at the Mall on behalf of its developer and main contractor “Alghanim International Company” and to its account, in accordance with the generally accepted professional standards in this field, in return for a percentage of the mall’s annual revenues.

Arabian Centres Company undertakes to lease, manage, operate and carry out maintenance works at the Mall on behalf of its developer and main contractor “Alghanim International Company” and to its account, in accordance with the generally accepted professional standards in this field, in return for a percentage of the mall’s annual revenues. The Company shall select and employ the administrative and technical staff necessary to manage and operate the mall, and shall appoint maintenance, cleaning and security contractors. Arabian Centres is further committed to preparing a marketing and leasing plan for the mall’s entire GLA.

The duration of this agreement is 11 Gregorian years starting from the signing date, and it is extendable to another term upon the parties’ consent.

It concluded that the Agreement is expected to have a positive impact on the Company’s financials upon the mall’s opening expected to be during the second half of FY2023.