Alkhaleej Training and Education Company announces the signing of an agreement to Sale Leaseback an Educational Property owned by the company
|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 24, 2019 a contract for the sale of an educational property agreed in the Memorandum of Understanding was signed The sale and lease of three educational properties of the company property.|
|Transaction Details||Alkhaleej Training and Education Company sells one of the educational property agreed upon with the Memorandum of Understanding signed with the Al-Rajhi REIT Fund and the subject of the deal is Rowad Alkhaleej International School located in Al-Zohour District on Anas Bin Malik Road, northeast of Dammam, for an amount of SAR 244.5 million, and the sale includes a plot size of 20,213 square meters, with a buildup area of 25.797 square meters.|
|Transaction Value||244.5 million Saudi riyals|
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. The total payment is received in two parts; the first part is related to the issuance of 13,605,688 new units from the Al-Rajhi REIT Fund and the remaining is paid through cash.
3. Alkhaleej Training and Education Company leases back this property for a period of 15 years from the date of transferring of the property which is 24/12/2019, with an annual rental amount of SR 18.94 million, with an annual rent 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||2019-12-24 Corresponding to 1441-04-27|
|Description of the Business of the Asset forming the Subject Matter of the Transaction||International private schools|
|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.