Al Majdiah, First Avenue sign MoU to launch education real estate fund

Logos of Al Majdiah and First Avenue. The proposed fund aims to explore partnership opportunities with local and international education operators.

Dar Al Majed Real Estate Co. (Al Majdiah) signed a non-binding memorandum of understanding (MoU) with SNB Capital, as fund manager, alongside Rikaz Real Estate Co. and First Avenue Real Estate Development Co., to study the establishment of an education-focused real estate investment fund.

The proposed fund aims to invest in educational assets and projects, as well as explore partnership opportunities with local and international education operators to support the growth of educational real estate investments and generate sustainable returns, the developer said in a statement to Tadawul.

The MoU, which was signed on June 8, will remain valid for one year.

The MoU currently has no direct financial impact, as it is a preliminary framework for cooperation and evaluating future investment opportunities among the parties.

Al Majdiah said that the initiative aligns with its strategy to expand into promising investment sectors, diversify its real estate portfolio, and build an education-focused investment platform across Saudi Arabia.

Acting CEO and board member Abdulsalam Al Majed is a related party to the MoU. He serves as a board member at Al Jadah Al Oula Real Estate Development Co., in which Al Majdiah owns a 9.2% stake.

The MoU is part of Al Majdiah’s strategy to strengthen its presence in high-quality sectors and support its expansion plans, in line with the accelerating growth in the Kingdom’s educational investment sector.

In a separate Tadawul statement, First Avenue announced its entry into the educational investment sector through a real estate fund in collaboration with Al Majdiah and Rikaz Real Estate.

First Avenue will continue evaluating a range of operational and investment models for the targeted projects, including direct development opportunities and partnerships with specialized local and international educational operators, to maximize investment returns.

The move reflects the company’s expansion into the education sector as one of the promising operational asset classes, in line with global best practices in real estate development.

The initiative aims to enhance investment returns by deploying income-generating operational assets with sustainable returns over the medium and long term, while mitigating market risks through diversified income sources.

Abdulsalam Al Majed and board member Khaled Al Qahtani, the Chairman of Rekaz Real Estate, are related parties.

The MoU does not, at this stage, create any direct financial obligations on any of the parties. Any material financial impact arising from the execution of future definitive agreements or implementation contracts will be disclosed in due course, the statement said.