Cenomi Centers signs SAR 825M contract for Madinah Downtown project

Arabian Centres Co. (Cenomi Centers) signed a design-and-build contract with Lynx Contracting Co. for the mall and office components of Saudi Downtown Co.’s Madinah Downtown project at a total value of SAR 825 million, excluding VAT.

Saudi Downtown Co. is a subsidiary of the Public Investment Fund (PIF).

According to a statement to Tadawul, the 30-month contract covers the design and construction of the mall and office components, including related engineering, construction, supply, installation, testing, commissioning and handover works, in accordance with the agreed contractual terms.

The company stated that the contract comprises a related-party transaction, as Chairman Fawaz Alhokair and Vice Chairman Salman Alhokair have direct interests in Lynx Contracting, while Managing Director Kamil Al-Qalam has an indirect interest in the transaction. The contract was entered into in the ordinary course of business, on prevailing market terms and without preferential treatment.

The company added that the interested board members did not participate in the deliberations or vote on the relevant board resolution. They will also abstain from voting when the transaction is presented to the general assembly. The transaction will be submitted to the general meeting for the required regulatory approval in accordance with applicable laws and regulations.

The financial impact of the contract is expected to appear during the project execution period.