Arabian Centres inks financing deal with Quara Finance for SMEs

Arabian Centres Co. building

Arabian Centres Co. (ACC) signed, on Jan. 28, 2021, an agreement with Quara Finance Co. to support and provide financing facilities for small and medium enterprises (SMEs) operating businesses in its commercial centers, according to a bourse filing.

The step will help ACC’s tenants running small and medium businesses obtain credit facilities, under “Kafalah SME Loan Guarantee Program”, in line with their needs, including easy procedures, shorter credit study period, and lower financing costs.

The deal also helps cutting receivables in ACC balance sheet in the short and medium term, as business owners would pay ACC's dues.

The agreement will further boost occupancy rates in shopping centers, while providing financing for the targeted SMEs, which occupy up to 45% of ACC’s gross leasable area (GLA). This will additionally maintain cost of rent as well as the working capital during high seasons, and will further boost capital expansions, and improve the capital management efficiency.

The agreement targets more than 500 SMEs, located in 21 shopping centers, owned and managed by ACC across the Kingdom, CEO Faisal Aljedaie said.

It aims at boosting ACC’s financial position as well as future expansion plans, in addition to boosting occupancy rates in shopping centres, rendering the company more attractive for clients