Cenomi Centres has signed a promise-to-lease agreement with Saudi Downtown Company, a wholly-owned subsidiary of the Kingdom’s sovereign wealth fund PIF, for the leasing and operation of a new flagship destination in the city of Al Khobar.

As Cenomi Centres’ largest shopping mall in the Eastern Province will contribute to enhancing economic activity, improving quality of life, and creating employment opportunities across the region. It will also set new benchmarks in the retail and lifestyle sectors within the city.

This agreement holds no contract value, as it constitutes a promise to lease and operate, stated Cenomi Centres in its filing to Saudi bourse Tadawul.

The agreement has a term of 3 years and may be extended for an additional 2 years if both parties mutually agree, it added.

On the lease agreement, CEO Alison Rehill Erguven said, “Today’s announcement of our strategic partnership with Saudi Downtown Company reflects our commitment to our asset-light growth strategy, and further reinforces Cenomi Centers’ position as a key partner in delivering Vision 2030 objectives across the retail, F&B, and entertainment sectors.”

“The promise to lease agreement is for 3-years, concluding when Cenomi Centers takes possession of the shopping mall. After the handover, a lease and operation agreement for the mall will be established for a duration of 25 years,” he continued.

As a key PIF unit, Saudi Downtown focuses on developing urban destinations and city centres that deliver sustainable economic and social impact across targeted cities in the Kingdom.

These developments contribute to enhancing quality of life, stimulating economic activity, and creating new opportunities across various sectors, including hospitality, tourism, retail, entertainment, office spaces and residential developments.