United Properties Company will complete the first four of 14 retail developments, worth more than SAR 4 billion (US$1 billion) in Saudi Arabia in the next year.

These four malls, together with the recently completed Azizia Mall in Riyadh, will increase the area under management by United Properties to 180 000m² of gross lettable area (GLA). The company is aiming to have 750 000m² GLA under its management by 2009.

United Properties is a joint venture by the Savola Group, one of the kingdom’s leading industrial businesses, with Old Mutual Properties, a part of the Old Mutual international financial services group. It  manages the projects and assets of the Saudi shareholders as well as projects and portfolios of non-shareholder entities. It also addresses the wider Middle East market.

In line with its third party approach, says Mark Ruffley, United Properties’ chief executive, concepts are being developed on behalf of the PMDC construction group for its SAR 100 million (US$ 27 million) retail complex in Khamees Mushait. He says a 15 000 m² hypermarket will serve as an anchor tenant.

“The first of the projects to be completed – in the last quarter of this year – will be the Jamea Mall of 23 000m² GLA in Jeddah, “ he says. The Jamea Mall, in a densely populated quarter, southeast of the city centre, and close to the only university (KAAU) in Jeddah, will house a 7 000 m² HyperPanda , 75 line shops, 15 outlets in a food court and two restaurants.

“Also under construction is Rimal Centre, in Riyadh, which will have a gross lettable area of 103 000m², and Roshan Mall in Jeddah with a gross lettable area of 35 600m². These are due to open in the first half of 2006. “

The Rimal Centre development  will be anchored by a HyperPanda and an IKEA store. The Roshan Mall, located on a promising axis of future retail, residential and other mixed use development north of the Jeddah CBD, will have a 9 950m² Panda hypermarket. 

Ruffley says United Properties is also managing the development of two Royal Commission sites for retail projects.  A start is to be made soon on building a development in Jubail, north of Dammam.   It is due for completion in October 2006.

The larger Royal Commission development in Yanbu, 350km north of Jeddah, will have a gross lettable area of 40 000m² .  Construction is expected to start in February 2006.

A 52 000m² centre  for Dammam Corniche, a seaside city, is now at sketch plan stage. A start is scheduled for next January with completion due in March 2007. 

Concepts are also being developed for the Al Salam Mall development in Mecca, with a gross lettable area of 27 560m²,  and planning for the Central Junction, Dammam project has started The first phase  is expected to cost SAR 500 million (US$133 million) and a potential retail area of 150 000m² is anticipated. Also in the final planning stages is a Savola retail distribution centre of more than 100 000 m² in Riyadh.  .

Phased construction of the Central Park  development in Medina is due to start before the year end and is expected to be completed within 18 months.  The anchor tenant for this development which will grow to 75 000 m² , will be a 12 000 m² Panda hypermarket.

Ruffley says consultants have also been appointed for two developments, the Aqaria and Salboukh Malls, in new areas of Riyadh. 

”All these projects will serve as springboards for United Properties for other projects in Saudi Arabia and the Middle East.”

Ends

ISSUED FOR United Properties

BY Michael Kerkhoff & Associates

INQUIRIES  Mark Ruffley +966 265 75260

                    Mike Kerkhoff   +27 21 4245280