13 Muharram 1446 - 19 July 2024
    
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Eye of Riyadh
Business & Money | Sunday 14 April, 2024 10:15 am |
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National Learning signs SAR 87M lease contract for educational complex in Riyadh

National Company for Learning and Education (NCLE) signed, on April 7, a lease contract with Hayat Al-Nasser, Muhammad Al-Quwaifli, and Abdulaziz Al-Aiban, for the operation of an educational complex building in Riyadh.

 

 

 

In a statement to Tadawul, the company pointed out that the contract value is amounted to SAR 3.75 million per annum, to be increased 10% every five years, whereas the total value of the contract throughout its total duration stands at SAR 87 million (excluding value-added tax).

 

 

 

The 20-year contract duration starts as of August 18, noting that the first 10 years are binding for both parties, while the following 10 years are exclusively optional for the lessee, NCLE, not to renew.

 

 

 

The building is an educational complex for boys and girls, built on a land area of 5,250 square meters in Kairouan district, Riyadh, with a capacity estimated at 1,400 students. It will be operated starting from the 2024/2025 academic year.

 

 

 

The financial impact of the deal is expected to appear as of the first quarter of the company’s fiscal year, which will end on August 31, 2025, noting that there are no related parties to the contract.

 

 

 

This investment comes within the company’s strategy that aims to expand the student base and achieve growth and higher returns.

 

 

 

Moreover, the complex will contribute to the increase of the company’s market share in northern Riyadh, by providing educational curricula that serve multiple segments of parents, the statement added. 

 

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