Key Takeaways
- • Al Majdiah and First Avenue signed a non-binding memorandum of understanding (MoU) with SNB Capital (fund manager) and Rikaz Real Estate to establish an education-focused real estate investment fund in Saudi Arabia, effective June 8, 2026.
- • The proposed fund will invest in educational assets and projects while exploring partnerships with local and international education operators, positioning itself to capture growth in the Kingdom's expanding educational real estate sector.
- • The MoU carries no immediate financial impact as it is a preliminary framework for cooperation; it remains valid for one year during the evaluation phase of future investment opportunities.
- • Al Majdiah's Acting CEO and board member Abdulsalam Al Majed is flagged as a related party due to his concurrent board membership at Al Jadah Al Oula Real Estate Development Co., in which Al Majdiah holds a 9.2% stake.
- • The initiative aligns with both companies' strategic expansion into high-quality, high-growth sectors, with Al Majdiah leveraging the partnership to diversify its real estate portfolio and establish an education-focused investment platform across Saudi Arabia.
Summary
Dar Al Majed Real Estate Co. (Al Majdiah) and First Avenue Real Estate Development Co. have jointly signed a non-binding memorandum of understanding with SNB Capital and Rikaz Real Estate Co. to explore the establishment of a Saudi Arabia-focused education real estate investment fund. The agreement was executed on June 8, 2026, and will remain valid for one year, according to Tadawul disclosures from both companies.
The proposed fund is designed to acquire, develop, and manage educational real estate assets across the Kingdom while simultaneously identifying and establishing partnerships with both local and international education operators. This dual approach—asset ownership combined with operational partnerships—positions the fund to generate sustainable returns while supporting the acceleration of the Kingdom's educational investment sector. The fund represents a strategic entry point into education real estate for First Avenue, which has previously engaged in real estate fund initiatives, and a portfolio diversification move for Al Majdiah.
The MoU structure reflects the preliminary nature of the collaboration. As a non-binding framework agreement, it carries no direct financial impact on either party and establishes a one-year window for the consortium to conduct due diligence, structuring, and final investment thesis development before formal fund establishment. This extended evaluation period allows the partners to assess market opportunities, identify pipeline assets, and finalize terms of fund governance and capital deployment strategy.
A related-party disclosure was filed concerning Al Majdiah's Acting CEO and board member Abdulsalam Al Majed, who serves as a board member at Al Jadah Al Oula Real Estate Development Co., in which Al Majdiah maintains a 9.2% ownership stake. This relationship was explicitly flagged in regulatory filings, indicating the company's adherence to transparency standards regarding potential conflicts of interest.
Both companies framed the initiative as aligned with broader strategic objectives: Al Majdiah cited expansion into promising investment sectors and portfolio diversification, while First Avenue announced its formal entry into the education sector through real estate assets. The partnership capitalizes on accelerating growth in Saudi Arabia's educational investment landscape, positioning the proposed fund to benefit from secular tailwinds in the Kingdom's education infrastructure development.
The proposed fund is designed to acquire, develop, and manage educational real estate assets across the Kingdom while simultaneously identifying and establishing partnerships with both local and international education operators. This dual approach—asset ownership combined with operational partnerships—positions the fund to generate sustainable returns while supporting the acceleration of the Kingdom's educational investment sector. The fund represents a strategic entry point into education real estate for First Avenue, which has previously engaged in real estate fund initiatives, and a portfolio diversification move for Al Majdiah.
The MoU structure reflects the preliminary nature of the collaboration. As a non-binding framework agreement, it carries no direct financial impact on either party and establishes a one-year window for the consortium to conduct due diligence, structuring, and final investment thesis development before formal fund establishment. This extended evaluation period allows the partners to assess market opportunities, identify pipeline assets, and finalize terms of fund governance and capital deployment strategy.
A related-party disclosure was filed concerning Al Majdiah's Acting CEO and board member Abdulsalam Al Majed, who serves as a board member at Al Jadah Al Oula Real Estate Development Co., in which Al Majdiah maintains a 9.2% ownership stake. This relationship was explicitly flagged in regulatory filings, indicating the company's adherence to transparency standards regarding potential conflicts of interest.
Both companies framed the initiative as aligned with broader strategic objectives: Al Majdiah cited expansion into promising investment sectors and portfolio diversification, while First Avenue announced its formal entry into the education sector through real estate assets. The partnership capitalizes on accelerating growth in Saudi Arabia's educational investment landscape, positioning the proposed fund to benefit from secular tailwinds in the Kingdom's education infrastructure development.
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