Arabian Centers Company (Cenomi Centers), a leading Saudi developer of lifestyle destinations, has signed a promise-to-lease agreement with Saudi Downtown Company, a Public Investment Fund (PIF) company, for a premium shopping mall within the Al Madinah Downtown project for 25 years.

This agreement builds on the growing strategic partnership between Cenomi Centers and Saudi Downtown Company, extending the collaboration established through the Al Khobar Downtown project to the city of Madinah and reinforcing a shared vision to develop integrated urban destinations across the kingdom, said Arabian Centers said in its filing to Saudi bourse Tadawul.

The Promise to Lease Agreement has a term of 3 years, following which a 25-year lease and operation agreement for the shopping mall will be executed upon completion of the project.

On the financial impact, Arabian Centers said there is currently no financial impact as the agreement constitutes a Promise to Lease and Operation Agreement.

Saudi Downtown, a PIF company within the Urban Development & Livability ecosystem, develops and builds vibrant urban destinations and mixed‑use centers that generate sustainable economic and social value across cities in the kingdom. 

The company’s projects are designed to stimulate local economic activity, enhance quality of life, and expand the range of choices across multiple sectors, including retail, entertainment, hospitality, tourism, office spaces, and residential offerings.

This agreement supports Cenomi Centers’ asset-light strategy and leverages its leading expertise in operating and managing shopping malls and lifestyle destinations, it added.-TradeArabia News Service