Alandalus Property secures SAR 48m SAB facility for education push

Alandalus Property signed a SAR 48 million Tawaruq financing agreement with Saudi Awwal Bank, the company said in a bourse filing. The facility runs eight years and is earmarked for acquiring and developing educational real estate.

The financing is Sharia-compliant. Alandalus secured it with a promissory note and a mortgage on the asset, plus an assignment of the project's future revenues. That structure is standard for commercial real estate in Saudi Arabia, giving the bank layered security while letting the developer tap the asset's cash flows.

The money will buy a land plot for an educational facility and fund its construction. Once built, Alandalus plans to lease the property. The deal fits the company's 2026-2030 strategic plan, which targets diversification beyond retail and commercial spaces into sectors like education.

Alandalus said no related parties were involved. The financing was negotiated at arm's length.

Education real estate offers stable occupancy and long leases, making it a defensive asset class. The partnership with SAB shows banks continue to back projects aligned with the Kingdom's development goals.

The company will draw the funds in line with construction milestones. Revenue from the project will service the debt over the eight-year term.

In May, Alandalus provided an update on its joint venture with Masat Real Estate Company.