Riyadh – Mubasher: Taleem Real Estate Investment Traded Fund (Taleem REIT Fund) signed a memorandum of understanding (MoU) with Al Rajhi United to take over an educational property.

The educational building is located in Al Nuzha district in Riyadh.

The purchase transaction will be implemented through issuing 22.5 million new units of Taleem REIT Fund to the seller, according to a statement on Thursday to the Saudi Stock Exchange (Tadawul).

The building covers an area of 30,000 square metres and the built up area is 48,281 square metres.

“The property is currently leased to Al Rowad International Schools for a period of 30 years ending in December 2041 (remaining contract life of 24 years) with an estimated remaining contract value of SAR 498.14 to 553.49 million,” the bourse’s statement added.

The 45-day MoU may be extended after mutual agreement between both parties.

By the end of May, the Saudi Capital Market Authority (CMA) approved the listing and implementing the initial public offering (IPO) of the fund’s units under the real estate investment traded funds (REITs) with a 10% daily flocculation rate.