Mousa Al-Mousa to Sell Royal Mall as Occupancy Hits 90%
The group's CEO said the sale is part of a 2026-2028 strategy to redeploy capital into Jeddah Auto Park, logistics, and hotel projects, after mall occupancy hit 90%.
Mousa Al-Mousa Group is offering its stake in Royal Mall for sale as part of a capital redeployment strategy, CEO Abdullah Al-Bakr told Argaam. The decision follows a sharp improvement in leasing: occupancy based on retail outlets rose from 68% in 2024 to 87% in 2025 and then to 90% in 2026, the CEO said. The number of leased showrooms increased from 217 to 285 over the same period, out of a total of 317 outlets.
Al-Bakr said the timing of the offering is linked to the group’s 2026–2028 strategy, which focuses on diversifying investments and pursuing new opportunities. 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.
The CEO stressed that the sale is part of a capital recycling strategy and is not separate from an assessment of the asset’s performance. Recycling investments and redirecting liquidity toward priority projects are interconnected aspects of the group’s strategy, he said. Offering the stake 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, through its partnership with Jeddah Development and Urban Development Co. via Development Automotive Co., in addition to projects in Riyadh, according to Al-Bakr.
He added that the group is moving from a company focused primarily on real estate activities toward a diversified investment group, aiming to diversify income sources, enter new sectors, and build a portfolio that supports sustainable long-term growth.
Regarding Royal Mall’s valuation, Al-Bakr said the group prefers not to announce a target price or minimum return before the auction. Bids will be evaluated based on their value, terms, and suitability. 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 less than 800 meters from the stc station on the Riyadh Metro, which connects the Blue and Red lines. The proximity to the metro network, central location, and land area provide opportunities to explore future development options, including transit-oriented development frameworks and urban guidelines for Riyadh’s central commercial spine, subject to applicable approvals, the CEO continued.
On the Riyadh real estate market, Al-Bakr said the group has a positive outlook on the Saudi real estate sector amid reforms aimed at improving market efficiency, balance, and sustainable growth. Valuations, liquidity, and investor appetite in Riyadh vary depending on an asset’s location, quality, cash flows, and development requirements. 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 capital redeployment opportunities, he said.
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