Mousa Al-Mousa offers Royal Mall to redeploy capital, occupancy hits 90%: CEO

Abdullah Al-Bakr, CEO of Mousa Al-Mousa Group

Abdullah Al-Bakr, CEO of Mousa Al-Mousa Group, said the decision to offer the group’s stake in Royal Mall for sale is part of its strategy to redeploy capital, in line with its 2026–2028 strategy, which focuses on diversifying its investments and pursuing new opportunities.

He told Argaam that the timing of the offering is linked to the group’s priorities and projects in the coming period, noting that the exit decision takes into account the merits of retaining the asset and its expected return compared with opportunities to redeploy capital, as well as the investment holding period.

He pointed out that Royal Mall has recorded an improvement in leasing indicators in recent years, with occupancy, based on the number of retail outlets, rising from around 68% in 2024 to 87% in 2025 and then to 90% in 2026.

The number of leased showrooms increased from 217 to 285 over the same period, out of a total of 317 outlets, said Al-Bakr. He stressed that the decision to sell is part of the group’s capital recycling strategy and is not separate from an assessment of the asset’s performance and available investment opportunities.

Al-Bakr explained that recycling investments and redirecting liquidity toward priority projects are interconnected aspects of the group’s strategy. He noted that offering its stake in Royal Mall supports greater flexibility in capital deployment and allows the group to focus on future projects.

The group’s priorities include Jeddah Auto Park and Jeddah Logistics Station, as part of its partnership with Jeddah Development and Urban Development Co. through Development Automotive Co., in addition to the group’s projects in Riyadh, according to the top executive.

He also explained that the group is moving from a company focused primarily on real estate activities toward a diversified investment group, with the aim of diversifying income sources, entering new sectors, and building a portfolio that supports sustainable long-term growth and returns.

“We are also expanding our presence in the hospitality and hotel sector through work on the opening of the Holiday Inn Rose Yard in Riyadh and the Crowne Plaza in Khobar as part of The Podium project, alongside residential and administrative projects, including towers and residential complexes,” he said.

Regarding Royal Mall’s valuation, he said the group prefers not to announce a target price or minimum return before the auction, with bids to be evaluated based on their value, terms, and suitability for the group.

He added that the asset’s valuation is not limited to comparing it with its acquisition cost in 2023, but also takes into account its performance, location, and future development potential.

The mall is located on King Fahd Road near King Abdullah Road, on a plot of approximately 29,700 square meters. It is also less than 800 meters from the stc station on the Riyadh Metro, which connects the Blue and Red lines, the CEO continued.

He explained that the asset’s proximity to the metro network, its central location, and its land area provide opportunities to explore future development options, including benefiting from transit-oriented development frameworks and the urban guidelines for Riyadh’s central commercial spine, subject to applicable requirements and approvals.

The combination of these factors makes Royal Mall an existing commercial asset with multiple investment and development options, said Al-Bakr, noting that improved occupancy rates further enhance its investment appeal.

Regarding the Riyadh real estate market, Al-Bakr said the group has a positive outlook on the prospects of the Saudi real estate sector, amid reforms aimed at improving market efficiency, enhancing its balance and sustainable growth, and increasing supply.

Moreover, the valuations, liquidity, and investor appetite in Riyadh vary depending on an asset’s location and quality, cash flows, and development requirements. Accordingly, the decision to exit is assessed on an asset-by-asset basis, based on available offers and the merits of retaining the asset compared with opportunities to redeploy capital, according to the top executive.

Al-Bakr further stressed that offering the group’s stake in Royal Mall is consistent with its 2026–2028 strategy, which aims to direct capital toward investments and projects that diversify its portfolio and enhance its returns.