The Knowledge Economic City Announces the Signing of a Development and Leasing Contract for Educational Complex in the Knowledge Economic City with Riyadh Schools Holding Company
Element List | Explanation |
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Introduction | The Knowledge Economic City Announces the Signing of a Development and Leasing Contract for Educational Complex in the Knowledge Economic City with Riyadh Schools Holding Company - a subsidiary of Mohammed bin Salman Non-Profit Foundation (MiSK Foundation) |
Transaction Details | Establishment of strategic relationship between the Knowledge Economic City Company (KEC) and Riyadh Schools Holding Company producing a development and leasing agreement for an educational complex within the Knowledge Economic City, Madinah, for a period of 25 years. Under this agreement, KEC will develop an integrated educational complex and lease it to Riyadh Schools Holding Company.
The complex will be developed in accordance with the highest engineering and technical specifications, as outlined by the Knowledge Economic City Company and in coordination with the standards set by Riyadh Schools Group. These specifications will align with those adopted in other Riyadh Schools Group campuses and will reflect the Group’s corporate identity and quality benchmarks. The educational complex will feature modern facilities designed to support the delivery of high-quality education to approximately 1,800 male and female students. It will offer internationally accredited curricula and employ advanced teaching methods and standards. The project will uphold the reputation of Riyadh Schools for excellence and adherence to the highest levels of academic quality, which it has maintained for decades. |
Transaction Amount | The agreement encompasses a total contract value of SAR 399,326,882 (excluding value-added tax), to be paid in annual installments. The payment structure commences with SAR 13.7 million in the first year, increasing progressively over the duration of the lease period. |
Transaction Conditions | Under the agreement, KEC will undertake the full development of the educational complex in accordance with the agreed specifications and quality standards. Upon completion, the complex will be leased in its entirety to Riyadh Schools Holding Company based on the principles, terms, and conditions mutually agreed by both parties. |
Parties of the Transaction | 1- The Knowledge Economic City Company
2-Riyadh Schools Holding Company – a subsidiary of the Mohammed bin Salman Non-Profit Foundation (MiSK Foundation) |
Date of Entering Into The Transaction | 2025-07-03 Corresponding to 1447-01-08 |
Description of Activity of The Asset Subject of The Transaction | An educational complex will be developed by Knowledge Economic City on its 20,000-square-meter owned land and will include classrooms and various supporting facilities. |
Transaction reasons | By collaborating on this vital project, the two parties aim to serve Madinah and its residents by developing facilities that provide a high-quality, sustainable educational environment aligned with the aspirations of the region and in step with its evolution as a leading cultural and economic center. They are leveraging their combined capabilities to deliver a distinguished educational model that elevates the quality of education and supports the goals of the national vision.
The inclusion of a prestigious educational institution such as Riyadh Schools Group represents a significant enhancement to the Knowledge Economic City ecosystem. With its extensive experience and internationally recognized academic standards, the Group adds depth to the educational offering and contributes to the integration of services within the City, while advancing its strategic objectives. This initiative also marks a continuation of Riyadh Schools Group’s expansion strategy, reinforcing its presence in Madinah by delivering internationally benchmarked education as part of a visionary national project. The development is expected to foster a pioneering educational experience focused on nurturing a generation that is both scientifically and ethically prepared to serve their country and play a vital role in society’s progress. Furthermore, the project will help diversify income sources and strengthen financial sustainability by generating consistent revenue streams—benefiting both parties and supporting the achievement of their shared long-term goals efficiently and effectively. |
Expected Impact of the Transaction on the Company and Its Operations | Maximizing the utilization of the educational complex is expected to positively impact revenue generation from the underlying asset and is anticipated to have a favorable financial effect on the company’s revenues and performance upon the commencement of operations. Furthermore, the inclusion of a distinguished institution such as Riyadh Schools Group within Al-Alya project adds significant value to KEC. With its extensive experience and internationally recognized academic standards, Riyadh Schools will enhance the integration of educational services within the broader KEC urban development. In addition, this strategic partnership supports KEC’s objective of offering diverse, high-quality services, further reinforcing its position as a premier destination and aligning with the current strong demand for its residential sector projects. |
Related Parties | There are no related parties involved in this agreement. |
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