Taleem real estate investment fund (REIT) said it has reached an agreement with top Saudi investment company Al Rajhi United to acquire a 30,000-sq-m educational real state located in Al Nuzha district in capital Riyadh.

The fund will acquire the 30,000-sq-m property by issuing 22.5 million new units of Taleem REIT Fund to Al Rajhi United, said Taleem in a statement to the Saudi bourse Tadawul.

The property, located in close proximity to Abi Bakr As Siddiq Road, King Abdullah Road and Hail Street, will have a built up area of 48281 sq m, it stated.

It is currently leased to Al Rowad International Schools for a period of 30 years ending in December 2041 (remaining contract life of 24 years) with an estimated remaining contract value of SR498.14 to SR553.49 million ($133 million to $148 million).

After completing due diligence, the fund manager will seek the approval of the fund board, unit holders at the unit holders meeting and the CMA to conclude the deal, said the statement.

The MoU is valid for 45 days and is extendable at mutual consent of both parties, it added.-TradeArabia News Service