Riyadh – Mubasher: The National Company for Learning and Education (NCLE) signed two lease contracts at an annual value of SAR 14.10 million with National Nova Company on 13 October 2022.
NCLE inked the first deal for an educational complex building in Riyadh at a cost of SAR 5.80 million annually throughout the contract duration, according to a bourse disclosure.
Located in Al Qairawan District, the project spans 9,735 square metres with an estimated capacity of 1,720 students.
Meanwhile, the second contract was signed for a 14,833 square metres land area in Al Arid District at an annual value of SAR 8.30 million. The educational building in Riyadh has an estimated capacity of 2,520 students.
The agreements hold a duration period of 20 years starting from 27 August 2023. The first 10 years will be binding for both parties, while the additional 10 years will be optional only to NCLE for non-renewal.
The Saudi listed firm expects that the deals will reflect on its income statements during the first quarter (Q1) of the fiscal year (FY) that will end on 31 August 2024.
The two educational projects, which align with NCLE’s expansion and growth strategy, will commence operating during the academic year 2023/2024.
Earlier this month, NCLE secured a SAR 188 million loan from the Saudi British Bank (SABB) to finance acquisitions, purchase assets, and construction works.
