AOL unit signs 30-year lease for schools in Eastern Province

Academy of Learning signs long-term agreement to develop, operate four schools in Eastern Province

Academy of Learning Co. (AOL) said its wholly owned subsidiary, Learning Private Schools Co., signed on April 5 a 30-year lease agreement for four model schools with a total capacity of 5,000 students in Dammam and Al Khobar.

In a statement to Tadawul, the company said the agreement was signed with Wujood Developments Co., a subsidiary of Alwabel Investments Co., and aims to provide education services across all stages for both boys and girls, while supporting its geographic expansion in the Eastern Province.

AOL added that the schools in Dammam are located in the Akwaan residential layout, while those in Al Khobar are in the Al Tahliyah and Al Khuzama residential layouts.

It added that the schools will be developed by Wujood and used for educational activities across all stages, including nursery, early childhood education, and other levels, as well as special education programs.

The total development cost is estimated at around SAR 200 million, to be borne by Wujood. The annual lease value will be set at 8% of the actual cost, with a 5% increase every five years, in line with the agreement’s terms.

The contract was awarded and signed on April 5, with the lease term to begin six months after the delivery of each school. The company said no related parties are involved in the deal.

AOL expects the positive financial impact to materialize gradually once operations begin, following a six-month grace period from the delivery date of each school.

The company added that its investment strategy in schools is based on leasing rather than ownership, aiming to reduce capital expenditure and accelerate returns.