The Arabian Centers Company (Sinom Centers) announced the completion of the financial closure for a Murabaha financing facility for the "Westfield Riyadh" project, after raising the value of the financing facilities from 1 billion riyals to 2.7 billion riyals, with an option to increase it to 2.9 billion riyals, through an agreement signed with Riyad Bank.

The company stated in a statement on "Saudi Tadawul" on Thursday that the financing was obtained by Dorat Al Raed for Investment Limited, a special purpose company established to develop the project under the Riyadh Real Estate Development Fund managed by Riyad Capital, while "Sinom Centers" is the sole owner of the fund's units.

It added that the increase in financing, amounting to 1.7 billion riyals, will be used to complete the project execution, including the establishment of a VIP Lounge, a wing dedicated to luxury retail stores at a later stage, in addition to supporting the fit-out works for tenant units.

The company pointed out that the financing facility has a term of 9.5 years, including a grace period of two years, followed by 7.5 years for repayment from the date of financial closure, with a grace period for repaying the principal of the financing covering the period of completing construction works and the gradual operation phase of the project.

It stated that the financing is secured by a package of typical guarantees for real estate project financing, including a mortgage on the asset, pledge of accounts and assignment of rights related to lease contracts, in addition to Sinom Centers pledging its units in the fund in favor of the security agent, as the sole owner of the fund's units through which the project company was established.

The financing facility was further strengthened by personal guarantees from Fawaz Al Hokair, Salman Al Hokair, and Abdul Majeed Al Hokair, each in his personal capacity, in addition to corporate guarantees from Lynx for Contracting (a closed joint stock company) and Fas Real Estate Limited, both fully owned by the aforementioned three individuals. The three individuals are major shareholders of Sinom Centers, and the guarantees provided by them reflect their continued personal commitment and confidence in the company's growth strategy and the successful execution of the "Westfield Riyadh" project.

The company confirmed that the "Westfield Riyadh" project will be a major destination for the retail and lifestyle sector in the Kingdom, spanning 220,000 square meters of leasable area, expected to attract 24 million visitors annually and generate over 5 billion riyals in annual retail spending after operations stabilize.

It added that the pre-leasing rate for the project exceeded 92% based on agreed key terms, letters of intent, and signed contracts. The project includes over 300 stores, more than 70 anchor stores, and nearly 30 brands entering the Saudi market for the first time, along with various entertainment, sports, and cultural facilities, and holds a LEED Gold certification for sustainability.

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