Al Mal Capital REIT, the first REIT listed on the Dubai Financial Market (DFM), has purchased two school campuses of Al Shola Private Schools in Ajman for AED300 million ($81.7m), as part of a sale and leaseback transaction.
The school campuses have been leased back to the operator for a long-term period on a triple net basis for management and operation.
“With the educational sector bolstering and attracting significant interest in the investment landscape, these acquisitions are positioned to generate cash flows enabling incremental monetisation of the investment through consistent dividends”, said Naser Al Nabulsi, vice chairman and CEO of Al Mal Capital.
“The acquisition marks our first transaction this year and is a very optimistic move in terms of channelising the resources in line with the mandate of the REIT,” he added.
The two acquired schools, part of the Al Shola Group, span a total land area of approximately 300,000 sqft and a built-up area of around 495,800 sqft, with a total capacity to accommodate up to 4,300 students.
Al Mal Capital was advised by Al Tamimi & Co (legal) and CBRE (valuation).
“We are confident that Al Mal Capital REIT, backed by the long track record of Al Mal Capital’s diversified and multi-line investments and coupled with an experienced and dedicated management team, will help to facilitate fair returns for both parties,” said Abdallah Omran, chairman of the board of directors of Al Shola Group.
“Al Shola Group will strive to capitalise on the opportunities in the sector and will continue to pursue a growth-focused strategy aimed at enhancing and maintaining the infrastructure while strengthening the student portfolio and ratio,” he said.
Al Mal Capital REIT is a closed-ended real estate investment trust, managed by Al Mal Capital, a subsidiary of Dubai Investments PJSC.
Al Shola Group, founded in 1983, currently operates five schools (three in Sharjah and two in Ajman) with roughly 10,700 students and a total capacity of almost 13,250 students.
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