Alkhaleej Training inks 20-year lease contract for educational, residential complexes in Riyadh

Logo of Alkhaleej Training and Education Co.

Alkhaleej Training and Education Co. signed a lease contract for an educational complex and a residential complex in the Qurtuba neighborhood, Riyadh, extending for 236 months (nearly 20 years) starting from Q1 2024 with Multinational Educational Co.

In a statement to Tadawul, the company said the annual rent for the first year will be SAR 17.97 million (excluding VAT). Annual increments will apply to future payments.

The subject property is leased to the tenant, Multinational Educational, under the terms and conditions entailed under the lease contract.

Alkhaleej Training is committed to ensuring the safety and readiness of the property as requested by the tenant. The latter is required to use the property as an educational complex.

The transaction is intended to optimize the use of the subject property by optimizing the company's real estate portfolio, the statement added.

Alkhaleej Training expects the deal to create increased utilization of the property, which will positively impact the rental income. This contract is expected to have a positive financial impact on the company’s revenues and earnings, it noted.

Meanwhile, the statement indicated that the contract is a potential related party deal due to the potential merging with Adhwaa Al Hedaya National Schools’ shareholders.