Riyadh – Mubasher: Al-Ghad National Schools Company, a 100% owned subsidiary of the National Company for Learning and Education (NCLE), has signed a lease agreement with Roboua’ Altaleem Real Estate Company for an educational complex in Riyadh.

The deal was signed on 29 June at a total value of SAR 63.7 million, according to a bourse statement on Tuesday.

The contract’s duration period is ten years binding on the two parties starting as of 1 July 2020. The lease will automatically be renewed for three additional periods of five years each. A cancellation right is granted only for Al Ghad Schools for the additional periods.

Moreover, a sum of SAR 36.7 million will be paid for the first five years in case the first renewal cancellation right is not executed, followed by a sum of SAR 40.4 million and SAR 43.6 million, respectively, for the second and third five years.

All payments shall be settled in annual instalments.

Earlier today, NCLE announced the termination of the educational complex lease agreement between Al-Ghad Schools and Yamami Holdings as the building’s ownership has been transferred to a new owner, and it was agreed to sign a new lease contract with the new owner.

The complex spans an area of 11.283 million square metres and has sections for boys and girls.

The transaction’s material impact will reflect as of the fourth quarter (Q4) of the fiscal year (FY) ending on 31 August 2020.