Cenomi Centers awards $345m contract for Al Khobar mall

Cenomi Centers, Saudi Arabia’s leading mall developer and operator, is set to start construction of Al Khobar Downtown Mall and Boulevard in the kingdom’s Eastern Province.

A design-and-build contract valued at SAR1.3 billion ($345 million) was awarded to Riyadh-based Lynx Contracting, the company said in a statement to the Saudi Exchange (Tadawul).

The work includes design, engineering, construction, supply, installation, testing, commissioning, obtaining required regulatory approvals and all related activity up to the final handover and full operation of the project.

Construction is set to be completed in 36 months. Further details were not given.

In May, Cenomi Centers reported revenue fell 1 percent year on year to SAR583 million in the first three months of the year, leading to a 9 percent annual decline in net profit to SAR203 million.

By 2029 the company’s gross leasing area is set to grow by more than 50 percent to nearly 2 million square metres, driven by the development of Westfield Riyadh, Westfield Jeddah, and SDC Al Khobar, plus three lifestyle centres.

Cenomi Centers has 4,250 stores across nine Saudi cities.

The company’s shares closed at SAR17.09 on Sunday, down 0.2 percent. The stock has fallen more than 9 percent so far this year.

Further reading:

• Cenomi Centers profit falls despite ‘negligible’ impact of war
• Cenomi Centers net profit rises on cost control
• Cenomi Centers gets $1.4bn to support growth plans