Alkhaleej Company for Training & education announces signing a lease contract for an educational & residential complexes with Multinational Educational Company.
| Element List | Explanation |
|---|---|
| Introduction | Al-Khaleej Company for Education and Training announces the signing of a lease contract for an educational complex and a residential complex in the Qurtuba neighborhood in the city of Riyadh for a period of (19.8) nineteen years and eight months between Al-Khaleej Company for Education and Training and a multi-national education company. |
| Date of Announcement of the Award | 2024-03-28 Corresponding to 1445-09-18 |
| Contract Subject Matter | signing with the Multinational Educational Company a (19.8) nineteen-year and eight-month lease contract for an educational & Residential complex located in the Qurtoba district of Riyadh. The annual rent for the first year will be seventeen million, nine hundred seventy-four thousand and six hundred eighty-two Saudi Riyals only (17,974,682) Excluding VAT, and then annual increments will be applied to future payments. |
| The Entity with Which the Contract was Signed | Multinational Educational Company |
| Date of Signing the Contract | 2024-03-28 Corresponding to 1445-09-18 |
| Contract Value | (379,625,283) Three hundred and seventy-nine Million, six hundred twenty-five thousand, and two hundred eighty-three Saudi Riyals, Excluding value-added tax (VAT). |
| Contract Details | The subject property is leased to the tenant (Multinational Educational Company) under the terms and conditions regulated between the two parties in the lease contract. AlKhaleej Company for Training & Education is obliged to ensure the safety and readiness of the property as requested by the tenant, and the tenant is required to use the property as an educational complex. |
| Contract Duration | (19.8) nineteen years and eight months |
| Financial Impact and the Relevant Period | first quarter of the fiscal year 2024 And beyond |
| Related Parties | Potential Related party duo to the potential merging with Adwaa Hedaya Schools for boys and girls shareholders. |
| Additional Information | Transaction reasons:The transaction's purpose is to optimize the use of the subject property by optimizing the company's real estate portfolio.
Expected Impact of the Transaction on the Company and Its Operations:Increased utilization of the property will positively impact the rental income of the subject property. This contract is expected to have a positive financial impact on the company’s revenues and results. |
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