The board of Arabian Centres Company (ACC) has approved a programme to sell an identified portfolio of non-core landbank assets with a market valuation exceeding SAR 2 billion.

The book value of the assets is estimated at SAR 1.20 billion, according to a press release.

Furthermore, the first sale from this portfolio is in Riyadh and has been agreed for a final value of SAR 230.50 million. Located in the Olaya district, the 17,732 square metres asset is being sold at SAR13,000 per square metre, with expected gains worth SAR 75.50 million.

Meanwhile, the transaction will reflect on the Saudi company’s income statements during the second quarter (Q2) of fiscal year (FY) 2023/2024.

Alison Rehill-Erguven, CEO of Arabian Centres, said: “The proceeds of the sale programme will contribute to our growth priorities, including plans already underway to add more than 600,000 square metres of state-of-the-art lifestyle destinations to our portfolio in the upcoming four years”.

In the first three months (3M) of FY22/23, the net profits after Zakat and tax of Arabian Centres edged up by 1.11% to SAR 127.70 million, versus SAR 126.30 million during the same period in the previous FY.