Al Khaleej Training’s REIT to reduce debts, says CEO

Al Khaleej Training and Education’s plan to set up a Real Estate Investment Traded Fund (REIT) is aimed at reducing debts and generating income to purchase new lands and schools, chief executive Alwaleed Aldryaan told CNBC Arabia on Monday.

The new fund will also enhance the company’s strategic plans in the education sector, as Al Khaleej is aiming to add two new educational institutions annually at an estimated investment cost between SAR 100 and SAR 150 million each.

The company currently depends on bank loans to finance its expansions and has debts between SAR 380 and SAR 400 million, Aldryaan said.

Meanwhile, Aldryaan added that Al Khaleej’s properties – with their fair value ranging between SAR 600 and SAR 650 million – will be transferred to the new REIT and will be fully managed by ANB Invest.

Last week, the training company signed a memorandum of understanding (MoU) with ANB Invest to establish a Real Estate Investment Traded Fund (REIT) that will focus on the education sector by constructing or purchasing educational buildings, Argaam reported.