Riyadh – Mubasher: Sport Clubs Company has officially announced the signing of a building lease agreement with Panda Retail Company to establish and operate a new fitness center in the capital city.
The contract, valued at SAR 20.82 million excluding Value Added Tax, involves the development of a facility under the Body Masters Premium brand as part of the company’s ongoing efforts to broaden its geographical footprint within the Kingdom of Saudi Arabia.
The agreement was finalized on 29 June 2026, following the announcement of the project’s award on the same date.
Under the terms of the contract, Sport Clubs Company will lease an existing commercial unit located on Al Uruba Road in Riyadh. The facility spans a total area of 2,075 square meters, providing the necessary space for the company to fit out and manage a high-end athletic club under its premium branding tier.
The contractual timeline includes a structured transition period designed to facilitate the preparation of the site. A six-month rent-free grace period is scheduled to commence on 1 July 2026, which will be utilized for obtaining the required regulatory licenses and completing the necessary interior fit-out and equipment installation.
Following the conclusion of this preparatory phase, the formal paid lease period will begin on 1 January 2027. The long-term commitment is set to remain in effect until 11 May 2036.
From a financial perspective, Sport Clubs anticipates that the project will yield a positive impact on its fiscal performance once the construction and licensing phases are concluded and full commercial operations begin.
The company has committed to providing further updates to shareholders and the market regarding any material developments as the project progresses toward its operational launch.
This latest move is a central component of the company’s overarching expansion strategy, which focuses on securing strategic locations in high-traffic, vital areas.
By establishing a presence on Al Uruba Road, one of Riyadh’s prominent thoroughfares, the company aims to grow its active subscriber base and drive sustainable revenue growth.
Furthermore, the initiative is intended to increase the accessibility of physical fitness services to a wider segment of the community, supporting the firm’s corporate objectives regarding public health and activity levels.
The disclosure confirmed that there are no related parties involved in this transaction, ensuring that the contract was established through standard commercial channels.
The partnership with Panda Retail, a major player in the regional retail sector, highlights a trend of integrating health and wellness facilities within established commercial hubs to maximize convenience for consumers.
The investment in the Body Masters Premium brand reflects the company’s focus on the higher-end segment of the fitness market.
By securing a decade-long lease, Sport Clubs is positioning itself for long-term operational stability in a competitive urban market. The project remains subject to the completion of all technical and administrative requirements before the facility opens its doors to the public in early 2027.
In June, the listed company secured a Shariah-compliant financing facility totaling SAR 70 million from the Saudi Awwal Bank (SAB) to support the company’s strategic expansion initiatives.
