Al-Maather REIT inks deal to buy Al Nokhba Schools for SAR 31 mln

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, Osool and Bakheet Investment Co., the fund manager said in a bourse filing.

The deal will be funded through Sharia-compliant credit facilities. It is subject to the approval of the current mortgagee and the completion of the required regulatory procedures.

The seller, a non-related party, is planning to lease the property for a total value of SAR 2.63 million annually. The 15-year lease will be binding on both parties, starting from the date of ownership transfer to the fund.

The property will be guaranteed by three-year promissory notes, which will be renewed annually until the end of the contract term.

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

The acquisition is expected to reflect positively on the fund, as it will boost net revenue after deducting fund fees, and expand the weighted average lease expiry (WALE).