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Alandalus subsidiary lands school BOT deal in Riyadh
Alandalus Property's SPV signs development and long-term lease for a Riyadh educational complex under a build-operate-transfer model. No financial terms disclosed. Stock closed up 0.4%. The BOT structure isolates construction risk and ensures recurring lease revenue for the parent.
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Alandalus Property Co. said its wholly owned subsidiary, Alandalus Litashid Almabani Aldirasia Co., signed two agreements covering the development and lease of an educational complex in Riyadh. The subsidiary was formed specifically for this project, the company said in a filing.
One agreement covers construction. The other secures a long-term lease under a build-operate-transfer model. Under that arrangement, Alandalus will fund construction, operate the facility for a set period, then transfer ownership to the counterparty. The structure gives the school operator lower upfront costs and gives Alandalus steady lease income during the operating phase.
The project adds to Alandalus's exposure in the capital, where purpose-built educational facilities are in growing demand. Saudi Arabia's Vision 2030 targets expanding the private-school network, and the government has allocated significant budget to education. Several developers have announced similar BOT complexes in Riyadh.
Alandalus has a portfolio of residential and commercial properties across the kingdom. The Riyadh complex will generate recurring lease revenue once operational, while the development contract provides near-term construction revenue for the subsidiary. The company's last full-year revenue stood at SAR 1.2 billion, with net income of SAR 215 million.