Saudi Fransi Capital, a leading financial services provider that manages fixed-income portfolios, has announced the development of a school in Riyadh through its real estate investment trust (REIT) fund Taleem.
Established in 1964, Al Tarbiya Islamya Schools is one of the premier K12 schools in the capital city. The school is located in Ar Rahmaniya district on a land size spanning 45,666.94 sq m with a built-up area of 30,122 sq m.
Al Tarbiya Islamya Schools management has undertaken to expand student capacity by developing a new ‘boys section building’ with a built-up area of 12,900 sq m.
Total estimated cost of TIS expansion is SR33.3 million and pending works are expected to be completed by August 2022. This expansion will be financed through shariah-compliant loan facility.
The lease addendum starts from September 1 and the terms of the lease addendum are in line with the existing lease agreement with TIS.
Saudi Fransi Capital in its capacity as the Fund Manager of Taleem REIT said the expansion will add 28 classrooms and support areas including gym, auditorium and swimming pool. For clarification, this expansion is being done on School’s existing land parcel.
In line with Fund’s strategy to increase real estate portfolio, the Fund has entered into agreements whereby construction works completed to date will be transferred to the Fund at cost. Further, remaining construction will be undertaken by the Fund.
One of the agreements novated to the Fund is with a related party, the terms of the contract were set at arm's length.
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