Al Khaleej Training inks SAR 47 mln leasing deal

Al Khaleej Training and Education Co. has signed an investment and leasing agreement with Mohammed Abdul-Aziz Al Rajhi & Sons Holding Co. worth SAR 47.4 million.

Under the agreement, a school in Dammam owned by Al Rajhi would be leased to Al Khaleej for 20 years.

Al Rajhi paid SAR 27 million for land and buildings, while Al Khaleej spent SAR 5 million on related assets, licenses and goodwill value.

Al Rajhi will receive SAR 2.2 million of annual rent, which will be paid in semi-annual installments. The leasing value will increase every five years at a fixed rate of 5 percent.