Al-Khaleej Training and Education Company announced the establishment of a real estate income fund aimed at focusing on the education sector in the region, following the signing of a memorandum of understanding with Al-Arabi National Investment Company last week.

The fund aims to construct educational buildings or purchase existing ones to develop the education sector in line with global trends.

Gulf Training and Education also plans to transfer the company’s existing real estate assets to a real estate investment trust (REIT) under the name "Gulf Education REIT." This memorandum is effective from the date of signing for a period of four months, and there are no related parties.

The properties to be included in the real estate investment trust consist of six properties, as follows: The company’s headquarters building and a school building in Al-Maghrzat District; a school building in Al-Sahafa District in Riyadh; a school building in Dammam; a training center building in Al-Khobar; and a training center building in Al-Ahsa.

This agreement supports the company’s strategy to convert real estate assets into tradable investment assets to reflect the fair value of these assets, which will improve the company’s liquidity and reduce debt, Work is currently underway to complete the required procedures, and the company will announce any material developments regarding the establishment of the real estate fund in a timely manner.