NCLE signs SAR 87M lease contract for educational complex in Riyadh

Logo of National Company for Learning and Education (NCLE)

National Company for Learning and Education (NCLE) signed, on April 7, a lease contract with Hayat Al-Nasser, Muhammad Al-Quwaifli, and Abdulaziz Al-Aiban for the operation of an educational complex building in Riyadh.

The contract is valued at SAR 3.75 million per year, with a 10% increase every five years. The total value stands at SAR 87 million (excluding value-added tax), according to a statement to Tadawul.

The contract runs 20 years, starting Aug. 18, 2024, with the first 10 years binding on both parties and an additional 10 years with the option of non-renewal granted only to NCLE.

The building is an educational complex for boys and girls, built on a land area of 5,250 square meters in Al Qirawan district, Riyadh, with a capacity estimated at 1,400 students. It will be operated in the 2024/2025 academic year.

The financial impact of the deal is expected to appear in the first quarter of the company’s fiscal year ending on Aug. 31, 2025. There are no related parties to the contract, the statement added.

This investment is part of the company's strategy to expand its student base as well as achieve growth and higher returns.

Moreover, the complex will contribute to the increase of the company’s market share in northern Riyadh by providing educational curricula that serve multiple segments of parents, NCLE said.