First Avenue for Real Estate Development Company Announces the Signing of a Memorandum of Understanding to Establish a Fund for Development and Investment in the Education Sector.

First Avenue Real Estate Development Company signed a Memorandum of Understanding (MoU) on June 8, 2026, with SNB Capital, Dar Al Majed Real Estate Company, and Rekaz Real Estate Company to establish an Educational Investment Fund.
The fund aims to acquire and develop educational sites across various regions of Saudi Arabia to diversify the company’s portfolio into income-generating operational assets.
The MoU is valid for one year and carries no direct financial obligations at this stage; future financial impacts will be disclosed upon the execution of definitive agreements.
Related party interests are noted as Board Members Mr. Abdulsalam Al-Majed and Mr. Khalid Al-Qahtani hold leadership positions at Dar Al Majed Real Estate and Rekaz Real Estate, respectively.

Element List	Explanation
Memorandum Signing Date	2026-06-08 Corresponding to 1447-12-22
Counterparty	SNB Capital, Dar Al Majed Real Estate Company, and Rekaz Real Estate Company.
Memorandum Subject	First Avenue Real Estate Development Company announces its entry into the educational investment sector as part of its strategy to further diversify its real estate portfolio. This strategic direction aims to enhance investment returns through income-generating operational assets with sustainable returns over the medium and long term, while mitigating market risks through the diversification of income sources. In this regard, the Company has signed a Memorandum of Understanding (MoU) to establish an Educational Investment Fund with SNB Capital, in partnership with Dar Al Majed Real Estate Company "Almajdiah" and Rekaz Real Estate Company. The fund aims to expand within the education sector through the acquisition and development of educational sites across various regions of the Kingdom. This initiative reflects the Company’s expansion into the education sector as one of the promising operational asset classes, in line with global best practices in real estate development. Such practices increasingly integrate educational and service components within mixed-use developments due to their significant role in enhancing quality of life, increasing the attractiveness of residential communities, and creating long-term value for real estate assets. The Company will continue evaluating a number of operational and investment models for the targeted projects, including direct development opportunities and partnerships with specialized local and international educational operators, with the objective of maximizing investment returns.
Memorandum Duration	One year from the date of signing
Related Parties	Mr. Abdulsalam Al-Majed, the Managing Director of Dar Al Majed Real Estate Company, and Mr. Khalid Al-Qahtani, the Chairman of Rekaz Real Estate Company, are Members of the Board of Directors
Financial Impact	The Memorandum of Understanding does not, at this stage, create any direct financial obligations on any of the parties. The Company will disclose any material financial impact that may arise from the execution of future definitive agreements or implementation contracts, if any.