Taleem REIT Fund announces expansion of Riyadh building capacity for SAR 33.3 mln

Logo of Taleem REIT Fund

Saudi Fransi Capital (SFC), in its capacity as the fund manager of Taleem REIT Fund, announced that Al Tarbiyah Al Islamiyah Schools (TIS) management undertook the expansion of the student capacity through developing a new ‘boys section building’, with a built-up area of 12,900 square meters (sqm), at a total cost of SAR 33.3 million.

In a statement to Tadawul, the fund manager added that the expansion will add 28 classrooms and support areas, including gym, auditorium and swimming pool.

The expansion will be carried out on the school’s existing land plot.

The pending works will likely be completed by August 2022, SFC said, adding that the lease addendum will start from Sept. 1, 2022, and the terms and conditions of the lease addendum are in line with TIS’ existing lease agreement.

The expansion will be financed through a Shariah-compliant credit facility.

In line with the fund’s strategy to increase its real estate portfolio, the fund entered into agreements, whereby construction works completed to date will be transferred to the fund at cost.

Further, the remaining construction works will be undertaken by the fund.

One of the agreements awarded to the fund was concluded with a related party, and the relevant terms and conditions were set at arm's length.

Once expansion is completed, it will likely have a positive impact on the fund.

Established in 1964, TIS is among the premier K12 schools in Riyadh. The school is located in AR Rahmaneyah district over 45.67 million sqm and a built-up area of 30.12 sqm.