| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | With reference to the company’s announcement on 30/09/2019 regarding the extension of the Memorandum of Understanding signed with the Al-Rajhi REIT Fund and announced on 31/03/2019, AlKhaleej Training and Education Company announces that on December 25, 2019 a contract of Sale Leaseback of two educational properties was signed which was agreed in the memorandum of understanding for the Sale Leaseback of three educational properties of the company properties. |
| Transaction Details |
Alkhaleej Training and Education Company Sale Leaseback two of the educational properties agreed in the Memorandum of Understanding signed with the Al-Rajhi REIT Fund and the two properties subject to the deal are: 1. Rowad Alkhaleej International Schools located on Prince Muqrin Bin Abdulaziz Street in Al-Mugharrazat district, Riyadh, for an amount of 210 million Saudi riyals. The sale includes a plot of land with an area of 15,959.90 square meters, with a buildup area of 38,627.6 square meters. 2. Baraem Rowad Alkhaleej Insternational School, located on Prince Abdullah Bin Saud Bin Abdullah Sneatan Al Saud Street in Al-Sahafa district, Riyadh, for an amount of 20 million Saudi Riyals, and the sale includes a plot with an area of 1,830 square meters, with a buildup area of 2,549 square meters |
| Transaction Value | 230 million Saudi riyals |
| Transaction Terms |
1. Al-Rajhi REIT Fund obtained the approval of the Capital Market Authority and the owners of the fund to purchase, and this approval was obtained, 2. With regard to the Rowad Alkhaleej International Schools located in Al-Mugharrazat district: – Part of the value of the property is received through the issuance of 11,685,867 new units from the Al-Rajhi REIT Fund, and the remaining amount is paid in cash. – Alkhaleej Training and Education Company to leaseback the property for 15 years from the date of transferring of the property which is 25/12/2019, with an annual rental amount of SAR 16.275 million, with an increase of 7.5% every five years 3. As for the Baraem Rowad Alkhaleej Insternational School located in Al-Sahafa District – Part of the property’s value is paid through the issuance of 1,112,939 new units from the Al-Rajhi REIT Fund and the remaining amount is paid in cash. – Alkhaleej Training and Education Company to leaseback the property for 15 years from the date of transferring of the property which is 25/12/2019, with an annual rental amount of SAR 1.55 million, with an increase of 7.5% every five years |
| Parties of the Transaction | Alkhaleej Training and Education Company and Al Rajhi REIT Fund |
| Transaction Funding Method | does not apply |
| Transaction Execution Date | 2019-12-25 Corresponding to 1441-04-28 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | International private schools and kindergartens |
| Asset Book Value | do not apply |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | do not apply |
| Transaction reasons | Provide cash |
| Expected Impact of the Transaction on the Company and Its Operations | The sale leaseback process will help to provide liquidity in assets and use those returns to support the financial position and future expansion of the Company’s segments. |
| Details of Using The Proceeds of the Asset Sale | The proceeds from the sale leaseback will be used to buy shares in Al Rajhi REIT Fund and repay some of the Company’s debt to reduce financial charges. |
| Related Parties | There is no |
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.