Logo of National Company for Learning and Education
National Company for Learning and Education (NCLE) inked a lease agreement with Yamami Co. to lease an educational complex building in Riyadh, according to a bourse filing.
The rent value will amount to SAR 7.95 million per year, which will increase by SAR 1 million every five years (including renewal period).
The educational building – for boys and girls – spans 19.649 square meters (sqm).
The 10-year lease period will start as of Sept. 1, 2021, and can be renewed – only for NCLE - for another 10 years under the same terms.
The relevant financial impact will appear as of Q1 of FY ending Aug. 31, 2022.
The related parties include Khalid Mohammed Al-Khudair, Chairman of NCLE and a shareholder in Yamami Co., and Mohammed Khalid Al-Khudair, Chief Executive Officer (CEO) of NCLE, who indirectly owns shares in Yamami Co.
The related parties own directly and indirectly 1.36% of NCLE share capital, and 58.8% of Yamami Co.
This contract was concluded within the normal course of business and did not include any preferential benefits.
It is subject to the approval of the upcoming general meeting. However, NCLE has the right to cancel the contract in case it failed to obtain the approval of the general meeting.
The educational complex will launch operations as of the next academic year 2021/2022 with a capacity of 3,200 students.
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