Al-Maather REIT completes Al Nokhba Schools acquisition for SAR 32.6 mln

Osool and Bakheet Investment Co., fund manager of Al-Maather REIT Fund, announced the completion of acquisition of Al Nokhba Educational Schools in Unaizah, from Creative Knowledge Company for Educational Purposes for SAR 32.6 million.

The fund manager said in a bourse filing on Sunday that the seller signed a binding lease contract for a period of 15 years with an annual rental value of SAR 2.63 million, and an annual return of 8.5%.

The property is guaranteed by 3-year promissory notes, which will be renewed annually until the end of the contract term, in addition to a payment of 2 years rent in advance.

The fund manager further clarified that there are no transactions with related parties or any involving conflicts of interest.

The asset is located in Unaizah city and spans on a building area of 10,522 square meters (sqm) and a total land area of 6,694 sqm.

According to data compiled by Argaam, Al-Maather REIT Fund entered into an agreement on Jan. 22 to acquire Al Nokhba Educational Schools from Creative Knowledge Company for Educational Purposes for SAR 31 million.