Al Khaleej Training and Education Co. signed on March 31 a memorandum of understanding (MoU) with Al Rajhi REIT Fund to sell and lease back three educational properties.
The preliminary deal is valid for 180 days from the signing date, Al Khaleej said in a bourse statement on Sunday.
“This potential sale & leaseback transaction will help the company to unleash the cash tied up in the assets and use the proceeds to support the company’s financial position and expansion plans and to pay down the company debt,” Al Khaleej added.
The related financial impact is likely to show in 2019 and onwards, the company noted, adding that no related parties are involved in the deal.
In a separate statement, Al Rajhi REIT said the value will be partly paid in cash, and also through issuing additional units to Al Khaleej Training and the public in Al Rajhi REIT Fund.
“This transaction will require a capital increase in Al Rajhi REIT Fund subject to CMA and unit holder approval,” the fund added.
The potential acquisition comes as part of Al Rajhi REIT’s strategy to but attractive real estate assets in Saudi Arabia, the statement added.
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