Saudi Fransi Capital Announces a Material Development for Taleem REIT Fund - New development for an existing school
| Element List | Explanation |
|---|---|
| Introduction | Saudi Fransi Capital in its capacity as the Fund Manager of Taleem REIT announces new development within AlTarbiya Islamya Schools premises located in the city of Riyadh |
| Description of the Event | - AlTarbiya Islamya Schools was established in 1964 and it is one of the premier K12 schools in the city of Riyadh. The School is located in Ar-Rahmaniya district on a land size spanning 45,666.94 m2 with a built-up area of 30,122 m2.
- AlTarbiya Islamya Schools management has undertaken to expand student capacity by developing a new ‘boys section building’ with a built-up area of 12,900 m2. The expansion will add 28 classrooms and support areas including gym, auditorium and swimming pool. For clarification, this expansion is being done on School’s existing land parcel.
-In line with Fund’s strategy to increase real estate portfolio, the Fund has entered into agreements whereby construction works completed to date will be transferred to the Fund at cost. Further, remaining construction will be undertaken by the Fund. One of the agreements novated to the Fund is with a related party, the terms of the contract were set at arm's length.
-Total estimated cost of TIS expansion is SR 33.3 million and pending works are expected to be completed by August 2022. This expansion will be financed through Shariah-compliant loan facility.
- The lease addendum starts from 1 September 2022 and the terms of the lease addendum are in line with the existing lease agreement with TIS. |
| The Impact Caused by the Event | The Fund Manager emphasizes that once expansion has been completed, it is expected to have a positive impact on the Fund. |
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