First Avenue for Real Estate Development Company has announced it has signed an agreement with SNB Capital, Dar Al Majed Real Estate Company (Almajdiah) and Rekaz Real Estate Company to establish an investment fund focused on the education sector in Saudi Arabia.

The proposed fund will seek to acquire and develop educational facilities across the Kingdom as the company expands into education-related real estate assets as part of its strategy to diversify its portfolio and income streams, said First Avenue in its filing to Saudi bourse Tadawul.

The move is aimed at enhancing long-term investment returns through operational assets that generate recurring income, while reducing market risks through greater diversification.

These educational assets are increasingly being integrated into mixed-use developments globally due to their role in improving quality of life, supporting residential communities and creating sustainable value for real estate projects, First Avenue’s filing said.

Under the agreement, the parties will explore investment and development opportunities in the education sector, including potential partnerships with local and international education operators.

The MoU is valid for 1-year from the date of signing and does not currently impose any direct financial obligations on the parties, it added.