Al Akaria, ARDCO ink SAR 275M agreement to develop educational complexes

28/04/2024 Argaam

Al Akaria, ARDCO ink SAR 275M agreement to develop educational complexes

Logo of Riyadh Development Co.


Saudi Real Estate Co. (Al Akaria) and Riyadh Development Co. (ARDCO) signed, on April 25, a cooperation agreement with Arriyadh Holding Co. to set up a special purpose vehicle (SPV).

 

The SPV aims to develop educational complexes at the cost of SAR 275 million, including the land value, the two companies said in separate statements to Tadawul.

 

ARDCO will assume the role of the project developer.

 

The educational complexes will be developed for male and female students on the allocated plots located in Tilal Al Riyadh residential community, jointly owned by Al Akaria (25%), ARDCO (50%), and Arriyadh Holding (25%).

 

The agreement will extend for 25 years, with the lease contract starting as of the academic year 2025, the statement added.

 

The relevant financial impact will be reflected in Q4 2025 financials. The details of the financial impact will be clear upon the project’s expected completion in Q3 2025.

 

The related parties are Prince Faisal bin Abdulaziz bin Ayyaf, Chairman of ARDCO and Arriyadh Holding, as well as Fahd Al Kassim, board member of ARDCO and executive committee member of Arriyadh Holding. This is in addition to Abdullah Al-Bahouth, representing the General Organization for Social Insurance, which has a representative on Arriyadh Holding board of directors.

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