Cenomi Centers inks SAR 1.33B contract for Al Khobar Downtown Mall, Boulevard

Arabian Centers Co. (Cenomi Centers) signed today, June 28, a design and build contract for the Al Khobar Downtown Mall and Boulevard project with Lynx Contracting Co., at a value of SAR 1.33 billion (excluding VAT).

According to a Tadawul statement, the scope of the contract includes design, engineering, construction, supply, installation, testing, commissioning, obtaining all required regulatory approvals, and all related works up to the final handover and full operation of the project.

The project duration is 36 months from the date of the commencement notice, it noted.

The contract also includes provisions relating to performance guarantees, insurances, delay damages, and variation and claims management in accordance with the agreed contractual terms.

Cenomi Centers further said that the financial impact of the project is expected to be reflected in its results during the project execution period.

It indicated that the contract constitutes a related party transaction, as its Chairman Fawaz Alhokair, Vice Chairman Salman bin Abdulaziz Alhokair and Executive Managing Director Kamel Alqalam have a direct and indirect interest in Lynx Contracting Co.

The contract was concluded within the ordinary course of business and on commercial terms prevailing in the market without any preferential benefits. The related Board members abstained from participating in voting on the relevant board resolution.

The contract will also be presented to the company’s general assembly for obtaining the required regulatory approvals.