KEC signs deal for educational complex with Riyadh Schools Holding

Logo of Knowledge Economic City (KEC)

Knowledge Economic City (KEC) signed, on July 3, a contract for the development and leasing of an educational complex in Knowledge Economic City (KEC) with Riyadh Schools Holding Co., a subsidiary of Mohammed Bin Salman Nonprofit City (Misk City), according to a Tadawul statement.

The 25-year contract involves development and long-term lease for an integrated educational complex in KEC in Madinah.

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Under the contract, KEC will develop the complex and its associated facilities in accordance with the highest engineering and technical standards specified by Riyadh Schools Group (RSG), aligning with the group’s institutional identity and approved standards.

The complex will include modern educational facilities, enabling RSG to operate the school and provide educational services for up to 1,800 male and female students.

The complex will be developed by KEC on its own land, covering an area of 20,000 square meters (sqm). It will include classrooms and supporting facilities.

The deal is valued at SAR 399.3 million, excluding VAT, and will be paid in annual installments starting at SAR 13.7 million in the first year and increasing progressively over the contract duration.

The deal involves leasing the educational complex — set to be developed in KEC — along with all its components, based on the principles, rules, and conditions agreed upon by both parties in the development and lease contract.

KEC will be responsible for preparing the property and handing it over to RSG for use as a fully integrated educational complex.

The deal is expected to have a positive financial impact on the company’s revenues and financials once operations commence.

Furthermore, the inclusion of a distinguished institution such as Riyadh Schools adds significant value to KEC. This partnership is anticipated to enhance the integration of educational services within the city’s urban development.

Additionally, the complex’s location within the Al-Alya project is likely to boost the investment appeal of the company’s projects and support the strong demand currently seen in the residential sector, the statement said.