Riyadh - Mubasher: Durrat Al Raed for Real Estate Investment, a special purpose vehicle of Arabian Centres Company (Cenomi Centers), has signed a Sharia-compliant Murabaha financing agreement with Riyad Bank.
The facility increases existing financing from SAR 1 billion to SAR 2.70 billion through an additional SAR 1.70 billion allocation, according to a bourse disclosure.
The agreement includes an option to further increase the facility by SAR 200 million, potentially bringing the total to SAR 2.90 billion.
The financing carries a 9.5-year term, featuring a two-year grace period followed by a 7.5-year scheduled repayment phase.
Proceeds will fund remaining construction costs for the Westfield Riyadh project, including a VIP lounge, a luxury retail wing, and tenant fit-out support.
The project, which has reached a pre-leasing rate of 92%, spans 220,000 square meters of gross leasable area and is expected to attract 24 million visitors annually.
Collateral for the loan includes real estate mortgages, pledges on project accounts, and Cenomi Centers' units in the Riyadh Real Estate Development Fund.
Personal guarantees were provided by major shareholders Fawaz Alhokair, Salman Alhokair, and Abdul Majeed Alhokair, alongside corporate guarantees from Lynx Contracting and FAS Real Estate.
Westfield Riyadh is projected to generate over SAR 5 billion in annual retail spending upon reaching operational stability.
Fitch Ratings has revised Cenomi Centers’ credit outlook to stable from negative, affirming the company’s long-term credit rating at "BB."
