The overall investment, including the development of two extensions, is budgeted to approximately reach $33 million
GCC’s largest real estate investment trust (REIT) manager, Equitativa and Lycée Français Jean Mermoz (Lycée) has announced that they have broken ground on a new $6.8 million educational facility, scheduled for completion before the opening of Lycée’s senior school year in September 2020.
This will be part of phase two of the facility and is including the development of facilities such as a large gym, an auditorium, and two indoor pools alongside classrooms that can accommodate up to 1250 students.
Owned by Emirates REIT, the new building will be immediately leased to Lycée upon completion, in a long-term agreement that extends to 25 years.
Abdullah Al Hamli, chairman of Emirates REIT, said: “We are pleased to break ground and commence construction on the secondary school building which will be developed over a 5574 sqm. area. It will also house 24 additional classrooms and modern ancillary services, such as laboratories, gymnasium and an auditorium.”
“We anticipate this to be fully completed in less than 12 months and believe this new project will strengthen Emirates REIT’s rental income, offering substantial upside valuation and securing long-term cash flows.”
The new educational facility, together with the existing school, is expected to generate an estimated Internal Rate of Return (IRR) in excess of 11 percent.
Moreover, Lycée has simultaneously entered into a second Istisna agreement to fund the construction of the facilities’ extension in two phases. The overall investment, including the development of two extensions, is budgeted to approximately reach $33 million.
Sultan Bin Obaid, chairman of Lycée, added: “We are thrilled to extend our partnership with Equitativa on this new development, which complements the educational offering to our existing students and presents an opportunity for bespoke secondary education to new students. This addition will provide us with a wing for secondary school students.”
“For me, these 24 new classrooms for high school education offer continuity for students coming out of our elementary and intermediate school and give peace of mind to their parents looking at quality education for their children in an environment they recognise and appreciate,” he concluded.