Horizon Education signs SAR 21.1M lease contract with Buildings Development

Logo of Horizon Educational Co.

Horizon Education Co. signed today, June 22, a lease agreement with Buildings Development Co. to invest in a plot of land for the construction and operation of an educational complex named Horizon International Schools, affiliated with the company.

In a statement to Tadawul, Horizon Education said the annual lease value amounts to SAR 739,000, while the annual rent will increase by 10% every five contractual years, bringing the total lease value over the 25-year lease term to SAR 21.08 million, excluding VAT.

The leased land is located in Al-Suwaidi district, Riyadh, spanning 6,188.59 sqm, and will be used for the construction and operation of the educational complex over a period of 25 years from the contract signing date.

The agreement includes a two-year grace period during which no rent will be payable.

The company expects the financial impact of the agreement to begin once the project is completed and operations commence, adding that it will announce any material developments related to the lease agreement and the project in due course. Moreover, the company stated that there are no related parties to the deal.

The company said the investment aligns with its strategy to expand and grow its student base, supporting its targeted growth and returns.

Horizon Education received on May 14 an award notification for a lease contract in Al-Suwaidi district, Riyadh, from Buildings Development to invest in the construction and operation of an educational complex named Horizon International Schools, affiliated with the company, according to Argaam’s data.