Riyadh Development, Al Akaria complete 2 school projects

Logos of Riyadh Development Co. and Saudi Real Estate Co. (Al Akaria)

Riyadh Development Co. (ARDCO) and Saudi Real Estate Co. (Al Akaria) said in separate Tadawul statements they have completed the development of two educational complexes, one for boys and the other for girls.

For more news and details on the projects

The schools are part of Riyadh Schools Group, which operates under the Mohammed bin Salman Foundation (Misk), and are located in the Tilal Al Riyadh Community in the Al-Malqa district.

The boys’ complex was built on a plot of 10,296 square meters (sqm) with a built-up area of 14,500 sqm, while the girls’ facility covers 10,875 sqm with a built-up area of 20,500 sqm. Together, the two complexes span more than 22,000 sqm of land with 34,000 sqm of built-up space.

The projects were delivered on schedule and within budget at a total cost of about SAR 275 million. Annual rental income will be SAR 22 million for the first five years, rising by about 5% every five years thereafter.

ARDCO owns 50% of the projects, while Al Akaria holds 25%. Both companies said rental income will be reflected in their financial results starting in Q3 2025.

A special-purpose company established for this project has leased the two schools to Riyadh Schools Group under a 25-year contract starting Aug. 1, 2025.

The developments are part of ARDCO’s “Invest for Growth” strategy, launched in 2023, which focuses on high-quality real estate projects to balance sustainable returns with value creation for Riyadh. The strategy also targets diversification into residential, educational, logistics and mixed-use assets.

In April 2024, Al Akaria and ARDCO signed a cooperation agreement with Arriyadh Holding Co. to establish a special purpose vehicle to develop educational complexes in Tilal Al Riyadh at a cost of SAR 275 million, including land value. ARDCO serves as project developer.