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Private & Confidential

 Private & Confidential
SEDCO Capital, Jeddah, KSA – July 2021

Valuation Report

(11) SEDCO CAPITAL REIT FUND PROPERTY -

RIYADH, JEDDAH, DAMMAM & KHOBAR, KSA

SEDCO CAPITAL

REPORT ISSUED 29 JULY 2021

ValuStrat Consulting
703 Palace Towers 6th floor, South tower 111, Jameel square
Dubai Silicon Oasis Al Faisaliah Complex Tahlia Road
Dubai Riyadh Jeddah
United Arab Emirates Saudi Arabia Saudi Arabia
Tel.: +971 4 326 2233 Tel.: +966 11 2935127 Tel.: +966 12 2831455
Fax: +971 4 326 2223 Fax: +966 11 2933683 Fax: +966 12 2831530
www.valustrat.com

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TABLE OF CONTENTS

1 Executive Summary 4
1.1 THE CLIENT 4
1.2 THE PURPOSE OF VALUATION 4
1.3 INTEREST TO BE VALUED 4
1.4 VALUATION APPROACH 4
1.5 DATE OF VALUATION 5
1.6 OPINION OF VALUE 5
1.7 SALIENT POINTS (General Comments) 5

2 Valuation Report 8
2.1 INTRODUCTION 8
2.2 VALUATION INSTRUCTIONS/INTEREST TO BE VALUED 6
2.3 PURPOSE OF VALUATION 8
2.4 VALUATION REPORTING COMPLIANCE 8
2.5 BASIS OF VALUATION 9
2.6 EXTENT OF INVESTIGATION 11
2.7 SOURCES OF INFORMATION 11
2.8 PRIVACY/LIMITATION ON DISCLOSURE OF VALUATION 12
2.9 DETAILS AND GENERAL DESCRIPTION 13
2.10 ENVIRONMENT MATTERS 26
2.11 TENURE/TITLE 27
2.12 VALUATION METHODOLOGY & RATIONALE 28
2.13 VALUATION 36
2.14 MARKET CONDITIONS & MARKET ANALYSIS 38
2.15 VALUATION UNCERTAINTY 44
2.16 DISCLAIMER 45
2.17 CONCLUSION 45

APPENDIX 1 – PHOTOGRAPHS

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1 EXECUTIVE SUMMARY
THE EXECUTIVE 1.1 THE CLIENT
SUMMARY AND
Mohamed W. Binmahfooz
VALUATION SHOULD NOT
SEDCO Capital
BE CONSIDERED OTHER
Jeddah, Kingdom of Saudi Arabia
THAN AS PART OF THE

ENTIRE REPORT.

1.2 THE PURPOSE OF VALUATION

The valuation is required for the REIT transaction and submission to the Capital
Market Authority (CMA).

1.3 INTEREST TO BE VALUED

The below mentioned (11) REIT property are the scope of this valuation exercise.
P# Property Name Location Land Area (sq. m) BUA (sq. m) Interest
1 Khalidiyah Business Centre Jeddah 7,903 24,876.51 Freehold
2 Rawdah Business Centre Jeddah 2,462.50 17,526.74 Freehold
3 Panda Al Hamadaniah Jeddah 13,685.85 5,858 Freehold
4 Panda Ishbiliyah Riyadh 23,604 10,784 Freehold
5 Jazeera Compound Riyadh 20,758 12,646 Freehold
6 Burj Al Hayat Riyadh 1,494.75 6,574 Freehold
7 Public Prosecution Office Jeddah 4,767.25 19,342 Freehold
8 Panda Rayaan Dammam 18,144.80 9,800 Freehold
9 Al Hukair Time Dammam 5,155.52 3,326 Freehold
10 Saudi Fransi Bank Dammam 5,191.44 879 Freehold
11 Ajdan Walk Khobar 16,965.77 32,212.08 Freehold

Source: Client 2021

1.4 VALUATION APPROACH

We have undertaken the Discounted Cash Flow (DCF) approach to valuation.

1.5 DATE OF VALUATION

Unless stated to the contrary, our valuations have been assessed as at the date of
30 June 2021.

The valuation reflects our opinion of value as at this date. Property values are
subject to fluctuation over time as market conditions may change.

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1.6 OPINION OF VALUE

Property # Property Name Location Value - Rounded (SAR)
1 Khalidiyah Business Centre Jeddah 144,000,000
2 Rawdah Business Centre Jeddah 107,000,000
3 Panda Al Hamadaniah Jeddah 38,000,000
4 Panda Ishbiliyah Riyadh 79,000,000
5 Jazeera Compound Riyadh 65,000,000
6 Burj Al Hayat Riyadh 20,000,000
7 Public Prosecution Office Jeddah 63,000,000
8 Panda Rayaan Dammam 65,000,000
9 Al Hukair Time Dammam 32,000,000
10 Saudi Fransi Bank Dammam 27,600,000
11 Ajdan Walk Khobar 357,000,000
Aggregate Portfolio Value (SAR) 997,600,000
*The executive summary and valuation should not be considered other than as part of the entire report.
The client is advised that whilst all reasonable measures have been taken to supply an accurate valuation
as possible as at the Valuation date, this figure should be considered in the context of the volatility of
today’s marketplace.

1.7 SALIENT POINTS (GENERAL COMMENTS)

It’s been over year since the outbreak of the Novel Coronavirus (COVID-19),
declared by the World Health Organisation as a “Global Pandemic” back on 11
March 2020, had impacted global financial markets. Travel restrictions had been
implemented by many countries across the globe and travel restrictions remain in
force due to a new wave of infections / viruses. The past year to 18 months, the
world has undergone numerous transformations with businesses from all sectors
disrupted. Businesses and industries remain working remotely and business leaders
are focused on cost optimisation and digitisation.

The roll-out of vaccinations offer hope for life and business to get back to near
normal, and recovery of oil price appears to be stable in KSA with positive trends
going forward into 2021 and beyond. The same tends have been apparent across
other global markets suggesting back to regularity with the caution of implementing
social distancing rules and wearing of masks, etc., though the threat remains as
observed with many countries across the Asian sub-continent, Europe and South
America suffering from a heavy bout of the new variant virus of COVID-19.

The KSA economy appears stable within a recovery mode on the back of higher oil
demand and private consumption along with KSA’s Vision 2030 looks to diversify the
economy away from oil through focusing on direct foreign investment, tourism and
the increase of locals in the workforce.

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Though the recent budget revealed, the budget deficit remains amounting to SR7.44
billion in the first quarter of this year, the ministry revealed that the total funding for
the deficit amounted to SR29.55 billion. The cost of risk is also likely to stay elevated
in 2021 reflecting the volatile global health situation and international travel
restrictions still weigh on the economies across continents and globally affecting
Middle East and KSA.

The real estate traditional determinants of location and value for money continue to
be a key success influencing property and accommodation preference though
investors in KSA are also no less sensitive to asset classes and the location of
property providing investor expectations and stable long-term income for portfolios
and funds. Equally, strong investor appetite remains for ‘best in class’ / ‘Institutional
Asset Class – Grade A’ / good quality property providing long term income.

With all positive activity and investment by the government creating opportunities
through projects across the Kingdom and through the creation of the Giga projects
and a previous stimulus packages of SAR 120 billion plus has meant a stable KSA
economy with positive outlook going forward throughout 2021 and beyond.

Since the last exercise in December 2020 prices have largely remained unchanged,
although we have made adjustments based upon information provided and/or
conditions of property leases. We expect the subject mixed portfolio referred in this
report to remain stable in the foreseeable future subject to ongoing maintenance,
upkeep of the property and to provide yield stability with the real estate sector
generally follows the fortunes of the greater economy. A funds performance relies
on the performance of the underlying income generating investments and there is
counterparty default risk that could affect the value of your investment. Past
performance and forecasts are not reliable indicator of future results.

Burj Al Hayat Hotel - we understand from the client they are in the process of
considering a new operator and have received an offer in consideration of a rental
income of SAR 1.5 million per annum. It is below market conditions as the new
operator will carry out CAPEX works on the subject property (Burj Al Hayat Hotel).
Further details to be confirmed by the client.

Property values are subject to fluctuation over time as market conditions may
change. Valuation considered full figure and may not be easily achievable in the
event of an early re-sale. It also must be borne in mind that capital values can fall as
well as rise. The client is advised that whilst all reasonable measures have been
taken to supply an accurate valuation as possible as at the Valuation date, this figure
should be considered in the context of the volatility of today’s marketplace.

For the purpose of this, we have assumed that a good and marketable title is held free
from any encumbrances, mortgages, charges, third party interests, etc. Should this
not be the case, we reserve the right to amend our valuation and report.

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We are unaware of planning or other proposals in the area or other matters which
would be of detriment to the subject properties, although your legal representative
should make their usual searches and enquiries in this respect.

We confirm that on-site measurement exercise was not conducted by ValuStrat

International, and we have relied on the site areas provided by the Client. In the event
that the areas of the properties and site boundaries prove erroneous, our opinion of
Market Value may be materially affected, and we reserve the right to amend our
valuation and report.

We have assumed that the properties are not subject to any unusual or especially
onerous restrictions, encumbrances or outgoings and good title can be shown. For
the avoidance of doubt, these items should be ascertained by the client’s legal
representatives. ValuStrat draws your attention to any assumptions made within this
report. We consider that the assumptions we have made accord with those that would
be reasonable to expect a purchaser to make. We are unaware of any adverse
conditions which may affect future marketability for the subject properties. It is
assumed that the subject properties are freehold and are not subject to any rights,
obligations, restrictions and covenants.

This report should be read in conjunction with all the information set out in this report,
we would point out that we have made various assumptions as to tenure, town
planning and associated valuation opinions. If any of the assumptions on which the
valuation is based is subsequently found to be incorrect, then the figures presented
in this report may also need revision and should be referred back to the valuer.

Note that property values are subject to fluctuation over time as market conditions
may change. Valuation considered full figure and may not be easily achievable in the
event of an early re-sale. The client is advised that whilst all reasonable measures
have been taken to supply an accurate valuation as possible as at the Valuation date,
this figure should be considered in the context of the volatility of today’s marketplace.

The valuation assumes that the freehold title should confirm arrangements for future
management of the buildings and maintenance provisions are adequate, and no
onerous obligations affecting the valuation. This should be confirmed by your legal
advisers.

This executive summary and valuation should not be considered other than as part
of the entire report.

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2 VALUATION REPORT
2.1 INTRODUCTION
Thank you for the instruction regarding the subject valuation services.

We (‘ValuStrat’, which implies our relevant legal entities) would be pleased to

undertake this assignment for SEDCO Capital (‘the client’) of providing valuation
services for the properties mentioned in this report subject to valuation assumptions,
reporting conditions and restrictions as stated hereunder.

2.2 VALUATION INSTRUCTIONS / PROPERTY INTEREST

TO BE VALUED
P# Property Name Location Land Area (sq. m) BUA (sq. m) Interest
1 Khalidiyah Business Centre Jeddah 7,903 24,876.51 Freehold
2 Rawdah Business Centre Jeddah 2,462.50 17,526.74 Freehold
3 Panda Al Hamadaniah Jeddah 13,685.85 5,858 Freehold
4 Panda Ishbiliyah Riyadh 23,604 10,784 Freehold
5 Jazeera Compound Riyadh 20,758 12,646 Freehold
6 Burj Al Hayat Riyadh 1,494.75 6,574 Freehold
7 Public Prosecution Office Jeddah 4,767.25 19,342 Freehold
8 Panda Rayaan Dammam 18,144.80 9,800 Freehold
9 Al Hukair Time Dammam 5,155.52 3,326 Freehold
10 Saudi Fransi Bank Dammam 5,191.44 879 Freehold
11 Ajdan Walk Khobar 16,965.77 32,212.08 Freehold

Source: Client 2021

2.3 PURPOSE OF VALUATION

The valuation is required for SEDCO Capital REIT transaction for the Saudi Market
Purpose and submission to the Capital Market Authority (CMA).

2.4 VALUATION REPORTING COMPLIANCE

The valuation has been conducted in accordance with Taqeem Regulations (Saudi
Authority for Accredited Valuers) in conformity with International Valuation Standards
Council (IVSCs’) and International Valuations Standards (IVS).

It should be further noted that this valuation is undertaken in compliance with

generally accepted valuation concepts, principles and definitions as promulgated in

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the IVSCs International Valuation Standards (IVS) as set out in the IVS General
Standards, IVS Asset Standards, and IVS Valuation Applications.

2.5 BASIS OF VALUATION

2.5.1 MARKET VALUE

The valuation of the subject property, and for the above stated purpose, has been
undertaken on the Market Value basis of valuation in compliance with the above-
mentioned Valuation Standards as promulgated by the IVSC and adopted by the
RICS. Market Value is defined as: -

The estimated amount for which an asset or liability should exchange on the
valuation date between a willing buyer and a willing seller in an arm’s length
transaction, after proper marketing and where the parties have each acted
knowledgeably, prudently and without compulsion.

The definition of Market Value is applied in accordance with the following conceptual
framework:

“The estimated amount” refers to a price expressed in terms of money payable for
the asset in an arm’s length market transaction. Market value is the most probable
price reasonably obtainable in the market on the valuation date in keeping with the
market value definition. It is the best price reasonably obtainable by the seller and
the most advantageous price reasonably obtainable by the buyer. This estimate
specifically excludes an estimated price inflated or deflated by special terms or
circumstances such as atypical financing, sale and leaseback arrangements, special
considerations or concessions granted by anyone associated with the sale, or any
element of special value;

“an asset should exchange” refers to the fact that the value of an asset is an
estimated amount rather than a predetermined amount or actual sale price. It is the
price in a transaction that meets all the elements of the market value definition at the
valuation date;

“on the valuation date” requires that the value is time specific as of a given date.
Because markets and market conditions may change, the estimated value may be
incorrect or inappropriate at another time. The valuation amount will reflect the
market state and circumstances as at the valuation date, not those at any other date;

“between a willing buyer” refers to one who is motivated, but not compelled to buy.
This buyer is neither over eager nor determined to buy at any price. This buyer is
also one who purchases in accordance with the realities of the current market and
with current market expectations, rather than in relation to an imaginary or
hypothetical market that cannot be demonstrated or anticipated to exist. The
assumed buyer would not pay a higher price than the market requires. The present
owner is included among those who constitute “the market”;

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“and a willing seller” is neither an over eager nor a forced seller prepared to sell at
any price, nor one prepared to hold out for a price not considered reasonable in the
current market. The willing seller is motivated to sell the asset at market terms for
the best price attainable in the open market after proper marketing, whatever that
price may be. The factual circumstances of the actual owner are not a part of this
consideration because the willing seller is a hypothetical owner;

“in an arm’s-length transaction” is one between parties who do not have a

particular or special relationship, e.g. parent and subsidiary companies or landlord
and tenant, that may make the price level uncharacteristic of the market or inflated
because of an element of special value. The market value transaction is presumed
to be between unrelated parties, each acting independently;

“after proper marketing” means that the asset would be exposed to the market in
the most appropriate manner to effect its disposal at the best price reasonably
obtainable in accordance with the market value definition. The method of sale is
deemed to be that most appropriate to obtain the best price in the market to which
the seller has access. The length of exposure time is not a fixed period but will vary
according to the type of asset and market conditions. The only criterion is that there
must have been sufficient time to allow the asset to be brought to the attention of an
adequate number of market participants. The exposure period occurs prior to the
valuation date;

‘where the parties had each acted knowledgeably, prudently’ presumes that
both the willing buyer and the willing seller are reasonably informed about the nature
and characteristics of the asset, its actual and potential uses and the state of the
market as of the valuation date. Each is further presumed to use that knowledge
prudently to seek the price that is most favorable for their respective positions in the
transaction. Prudence is assessed by referring to the state of the market at the
valuation date, not with benefit of hindsight at some later date. For example, it is not
necessarily imprudent for a seller to sell assets in a market with falling prices at a
price that is lower than previous market levels. In such cases, as is true for other
exchanges in markets with changing prices, the prudent buyer or seller will act in
accordance with the best market information available at the time;

‘and without compulsion’ establishes that each party is motivated to undertake the
transaction, but neither is forced or unduly coerced to complete it.

Market value is the basis of value that is most commonly required, being an
internationally recognized definition. It describes an exchange between parties that
are unconnected (acting at arm’s length) and are operating freely in the marketplace
and represents the figure that would appear in a hypothetical contract of sale, or
equivalent legal document, on the valuation date, reflecting all those factors that
would be taken into account in framing their bids by market participants at large and
reflecting the highest and best use of the asset. The highest and best use of an asset
is the use of an asset that maximizes its productivity and that is possible, legally
permissible and financially feasible.

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Market value is the estimated exchange price of an asset without regard to the
seller’s costs of sale or the buyer’s costs of purchase and without adjustment for any
taxes payable by either party as a direct result of the transaction.

2.5.2 VALUER(S)

The Valuer on behalf of ValuStrat, with responsibility of this report is Mr. Ramez Al
Medlaj (Taqeem Member) who has sufficient and current knowledge of the Saudi
market and the skills and understanding to undertake the valuation competently.

We further confirm that either the Valuer or ValuStrat have no previous material
connection or involvement with the subject of the valuation assignment apart from
this same assignment undertaken.

2.5.3 STATUS OF VALUER

Status of Valuer Survey Date Valuation Date

External Valuer *Between 20-30 June 2021 30 June 2021
*The inspection was external and visual in nature only.

2.6 EXTENT OF INVESTIGATION

In accordance with instructions received we have carried out an external and internal
inspection of the property. The subject of this valuation assignment is to produce a
valuation report and not a structural / building or building services survey, and hence
structural survey and detailed investigation of the services are outside the scope of
this assignment. We have not carried out any structural survey, nor tested any
services, checked fittings of any parts of the property.

Our site inspection was limited to the visual assessment of the exterior & interior
features of the subject properties including their facilities & amenities and the
properties’ surrounding developments. For the purpose of our report, we have
expressly assumed that the condition of any un-seen areas is commensurate with
those which were seen. We reserve the right to amend our report should this prove
not to be the case.

2.7 SOURCES OF INFORMATION

For the purpose of this report, it is assumed that written information provided to us
by the Client is up to date, complete and correct in relation to title, planning consent
and other relevant matters as set out in the report. Should this not be the case, we
reserve the right to amend our valuation and report.

2.7.1 VALUATION ASSUMPTIONS / SPECIAL ASSUMPTIONS

This valuation assignment is undertaken on the following assumptions:

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The subject properties are valued under the assumption of property held on a Private
interest with the benefit of trading potential of existing operational entity in
possession;

Written information provided to us by the Client is up to date, complete and correct

in relation to issues such as title, tenure, details of the operating entity, and other
relevant matters that are set out in the report; that no contaminative or potentially
contaminative use has ever been carried out on the site;

We assume no responsibility for matters legal in character, nor do we render any

opinion as to the title of the property, which we assume to be good and free of any
undisclosed onerous burdens, outgoings, restrictions or other encumbrances.
Information regarding tenure and tenancy must be checked by your legal advisors;

This subject is a valuation report and not a structural/building survey, and hence a
building and structural survey is outside the scope of the subject assignment. We
have not carried out any structural survey, nor have we tested any services, checked
fittings or any parts of the structures which are covered, exposed or inaccessible,
and, therefore, such parts are assumed to be in good repair and condition and the
services are assumed to be in full working order; we have not arranged for any
investigation to be carried out to determine whether or not any deleterious or
hazardous material have been used in the construction of the property, or have since
been incorporated, and we are therefore unable to report that the property is free
from risk in this respect. For the purpose of this valuation, we have assumed that
such investigations would not disclose the presence of any such material to any
significant extent; that, unless we have been informed otherwise, the properties
comply with all relevant statutory requirements (including, but not limited to, those of
Fire Regulations, By-Laws, Health and Safety at work;

We have made no investigation, and are unable to give any assurances, on the
combustibility risk of any cladding material that may have been used in construction
of the subject building. We would recommend that the client makes their own
enquiries in this regard; and the market value conclusion arrived at for the properties
reflect the full contract value and no account is taken of any liability to taxation on
sale or of the costs involved in effecting the sale.

2.8 PRIVACY/LIMITATION ON DISCLOSURE OF VALUATION

This valuation is for the sole use of the named Client. This report is confidential to
the Client, and that of their advisors, and we accept no responsibility whatsoever to
any third party.

No responsibility is accepted to any third party who may use or rely upon the whole
or any part of the contents of this report. It should be noted that any subsequent
amendments or changes in any form thereto will only be notified to the Client to
whom it is authorised.

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2.9 DETAILS AND GENERAL DESCRIPTION

2.9.1 LOCATION & DESCRIPTION OF PROPERTY

The subject portfolio consists of (11) real estate assets located within Riyadh,
Jeddah and Dammam, Kingdom of Saudi Arabia, described briefly as follows:

1. Khalidiyah Business Centre

The subject property is located along the southwest corner of Prince Sultan Road
and Buhur Ash Shuara Street, within Al Khalidiyah District, Jeddah, Saudi Arabia. It
is situated about 1.6 kilometers northeast of Badriyah Towers & Almukmal Tower
and approximately 1.5 & 3.5 kilometers east of Stars Avenue Mall & Red Sea
shoreline, respectively.

Khalidiyah Business Centre is situated in a mixed-use development district for

residential and commercial uses. It is well accessible thru the fronting Prince Sultan
Road, a major thoroughfare in the city linking the district to King Abdul Aziz
International Airport. The nearby Sari Street likewise provides access for the
property leading to the Red Sea/Corniche area. For ease of reference, refer to the
illustration below (GPS Coordinates - 21°34'16.07"N, 39° 8'33.60"E).
Ash Shati The First Clinic

Stars Avenue

Khalidiyah
Amoudia Business Center
Boulevard Compound
King Abdul Aziz Road

Prince Sultan Road

Al Shallal
Theme Park
NCB Capital
Le Prestige Mall
Leylaty Alhamrani
Universal HO

Al Khalididyah Almukmal
Tower
Badriyah Towers Amoudia
Markets

Saudia Airline Compound

Source: Google Extract 2021 - For Illustrative Purposes Only.

The subject property is a 5-storey with mezzanine and roof floor retail and office
building known as Khalidiyah Business Centre. It is mainly built of reinforced
concrete structures with glass and aluminum cladding exterior wall, painted concrete
and partly marble cladding/wood paneling interior wall, granite/marble tiles flooring,
acoustic tiles and painted suspended ceiling, wooden & glass doors. It is equipped
with elevators, firefighting system with smoke detector and fire alarm, CCTV security
cameras and centralized air-conditioning system. The subject property was
observed to be in good condition and properly maintained.

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As per document provided to us, the said retail/office building was built on a
rectangular land with an aggregate area of 7,903 square meters. It was reportedly
constructed circa 2008 with a total built-up area of 24,860.77 square meters as per
building permit provided and details below:

Floor Level BUA (sqm) Use

Ground Floor 5,277.29 Retail
Mezzanine 1,836.00 Retail
First Floor 4,578.97 Office
Second Floor 5,221.22 Office
Third Floor 3,384.42 Office
Fourth Floor 3,384.42 Office
Roof Floor 1,193.39 Office/Services
Total BUA (sqm) 24,876.54
Source: Client 2021

2. Rawdah Business Centre

The aforesaid property is located at the northeast corner of Al Rawdah Road and
Ahmad Jamjum Street, within Al Rawdah District, Jeddah, Kingdom of Saudi Arabia.
It is situated about 70 meters southwest of Omnia Center, some 340 meters
northeast of Rovan Plaza and approximately 700 meters northwest of Radisson Blu
Hotel. Rawdah Business Centre is situated along the commercial strip of Ar Rawdah
Road characterized by retail and office buildings. It is well accessible thru the fronting
Al Rawdah Road and the nearby Madinah Al Munawarah Road, a major
thoroughfare in Jeddah directly linking the district towards north to King Abdul Aziz
International Airport. For ease of reference, refer to the illustration below (GPS
Coordinates - 21°33'46.86"N, 39° 9'50.98"E).

N2 Mall
Consulate of
Egypt in Jeddah

Omnia Center
Rawdah
Al Faisaliyah
Business Center Serafi
Megamall
Al Taher Center Radisson Blu
Abdul Latif Jameel
Rovan Plaza
Le Meridien Hotel
Jeddah International Extra
Al Rawdah Shopping Center
Al Aziziyah
Centerpoint
IKEA Abyat

Novotel Tahlia

Nojoud Center

Source: Google Extract 2021 - For Illustrative Purposes Only.

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The subject property is a 7-storey with mezzanine, 2-level basement parking and 2-
roof floors; retail and office building known as Rawdah Business Centre. It is mainly
built of reinforced concrete structures with concrete and glass on aluminum frame
external walls, painted concrete and partly marble cladding interior wall,
granite/marble/ceramic tiles & laminated flooring, painted suspended ceiling,
wooden & glass doors. It is equipped with elevators, firefighting system with smoke
detector and fire alarm, CCTV security cameras and centralized air-conditioning
system.

As per document provided to us, the said retail/office building was built on a
rectangular land with an area of 2,462.50 square meters. It was reportedly
constructed circa 2014 with a total built-up area of 17,526.74 square meters as per
building permit provided and details below.

Floor Level BUA (sqm) Use

Basement 1 2,030.00 Parking
Basement 2 2,030.00 Parking
Ground Floor 1,734.74 Retail
Mezzanine 544.00 Retail
First Floor 1,576.00 Office
Second Floor 1,576.00 Office
Third Floor 1,576.00 Office
Fourth Floor 1,576.00 Office
Fifth Floor 1,576.00 Office
Sixth Floor 1,576.00 Office
Roof Floor – 2 level 1,732.00 Office
Total BUA (sqm) 17,526.74
Source: Client 2021

The subject property was observed to be in good condition and properly maintained.

3. Panda Al Hamadaniyah

The above-mentioned property is located at the southwest corner of Al Hamadaniyah

street and an unnamed street, within Al Hamadaniyah District, Jeddah, Kingdom of
Saudi Arabia.

It is situated about 340 meters northeast of Al Haramain Expressway, some 3.5

kilometers southeast of King Abdul Aziz Sports Stadium and approximately 10
kilometers northeast of King Abdul Aziz International Airport New Terminal.

Panda Al Hamadaniyah is situated in the northeast of Jeddah in an area mainly for

residential use.

The fronting Al Hamadaniyah street provides access to the nearby Al Haramain

Expressway, the main road in Jeddah linking to Makkah on the south and Madinah
on the north.

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For ease of reference, refer to the illustration below (GPS Coordinates -

21°45'19.77"N, 39°11'44.83"E).
Al Amwaj
King Abdul Aziz Al Hamadaniyyah
Sports City Stadium
Hyper Panda
Kingdom Tower
Obhur Al
Janoubiyah

Mawi Al
Bahar Resort KING ABDULAZIZ
INTERNATIONAL
Al Basateen AIRPORT, JEDDAH Farm Marketrs

Hyper Panda
North Terminal
King Abdulaziz Road

Luqia
South Terminal Muawiya lbn Abi
Sufyan Mosque

New Jeddah Al Hamadaniyyah District

Airport Terminal 1
Source: Google Extract 2021 - For Illustrative Purposes Only.

The subject property is a supermarket known as Panda Hypermarket. It is single

storey and constructed of reinforced concrete & steel frame structures with painted
concrete exterior and interior walls, ceramic tiles flooring and bare ceiling.

It is equipped with firefighting system, CCTV security cameras and centralized air-
conditioning system.

As per building permit provided to us, it was reportedly constructed circa 1433 and
has a total built-up area of 5,858 square meters with an open parking area of 2,550
square meters. It was built on land with an area of 13,685.85 square meters.

The property is relatively new and in good condition.

4. Panda Ishbiliyah

The subject property is located on the south corner of Ashaikh Jaber Alahmed
Alsabah Road & Qalat Al Fustat Street, within Ishbiliyah District, Riyadh, Kingdom of
Saudi Arabia. It is situated adjacent to KSB Compound, about 700 meters southeast
of Ishbiliyah Park and approximately 1-kilometre northeast of Ishbiliyah Compound.

Panda Isbiliyah’s immediate neighbourhood is mainly residential although lands

along the main road is being utilized for commercial use.

It is easily accessible thru the fronting Ashaikh Jaber Alahmed Alsabah Road which
links the district to King Khalid International Airport to the north.

For ease of reference, refer to the illustration below (GPS Coordinates -

24°47'56.43"N, 46°48'51.58"E).

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Immigration
Division Jawazat

Al Munsiyah

MVPI Center
Al Qadisiyah

City Plaza

Arizona Golf Resort Qurtubah Al Yarmouk

IBDAA Plaza
Danube Isbiliyah Park
Nakhla
Hyper Panda
Sabiq HQ Isbiliyah

Nakheel Village KSB Compound

British School Isbiliyah

Compound
Granada
Business Park

Source: Google Extract 2021 - For Illustrative Purposes Only

The subject property is also a supermarket known as Panda Hypermarket. It is single

storey and constructed of reinforced concrete and steel frame structures with glass
panel and aluminum cladding exterior walls, painted interior wall, ceramic tiles
flooring and bare ceiling.

It is equipped with firefighting system, CCTV security cameras and centralized air-
conditioning system.

We were not provided with the copy of the building permit, although we were
informed that it has a total built-up area of 10,784 square meters.

It was observed to be in good condition and properly maintained.

5. Jazeera Compound

The above-mentioned property is situated at the southwest corner of Mujashi Bin

Masud and Al Mughira Bin Al Iyash streets, within As Sulimaniyah District, Riyadh,
Kingdom of Saudi Arabia.

It is located about 100 meters southeast of Al Jazeera Markets, some 600 meters
east of 1st Akaria Mall and approximately 950 meters northeast of Centria Mall.

Jazeera compound is situated in an area where development is mainly for residential

and commercial use.

It is very accessible to commercial centers, offices, schools and medical institutions

as it close to Musa Bin Nusair Street which directly links to Olaya Street and King
Fahd Road, both main roads in Riyadh.

For ease of reference, refer to the illustration below (GPS Coordinates -

24°42'16.96"N, 46°41'20.83"E).

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Akaria Al Sadhan
Compound
Anoud Tower
Aljazera Markets
Sky Tower

As Sulimaniyah

1st Akaria Mall

Jazeera
Al Rajhi Capital
Courtyard by Marriott Compound

Hyatt Regency Hotel

Centria Mall

Olaya Towers
Saline Water
Conversion Corp.
Narcissus Hotel

Olaya District

Al Wasel Tower
Panorama Mall

Source: Google Extract 2021 - For Illustrative Purposes Only

The subject property is a residential compound comprising of 52 residential units of

which 26-units are villas and 26-units are apartments.

The compound was built on a rectangular shaped land with an aggregate area of
20,758 square meters.

The residential units are typically two-storey buildings with painted concrete exterior
& interior wall, ceramic tiles and laminated flooring, painted suspended ceiling and
glass on aluminum frame windows.

Compound facilities and amenities includes a fitness gym, swimming pool,

basketball/tennis/football court, laundry room, landscaped playground and park. It is
secured with concrete perimeter wall and steel gate.

We were not provided with a copy of the building permit, although we were informed
that the compound was developed in the 1990’s with a total BUA of 16,606 square
meters. It was observed the subject compound was maintained to a good standard
and condition.

6. Burj Al Hayat Hotel

The aforementioned property is located at the northeast corner of Al Wara street and
an unnamed street, within Olaya District, Riyadh, Kingdom of Saudi Arabia.

It is situated about 130 meters southwest of Holiday Inn Riyadh Meydan, some 850
meters northwest of the Ministry of Interior and approximately 1 kilometer southeast
of King Fahd National Library and Park.

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Burj Al Hayat is situated in an area characterized by medium rise commercial & office
buildings.

Some notable buildings in the immediate vicinity includes the El Ajou Group Al Jeel
Medical Company building, General Directorate of Narcotics Control, Holiday Inn
Riyadh Meydan, etc. The nearby King Fahd Road provides excellent accessibility for
the said property.

The succeeding illustration shows the location of the subject property and its
immediate neighborhood (GPS Coordinates - 24°40'37.16"N, 46°41'28.62"E).

King Fahd Library

Olaya District
Plaza Inn Olaya

Olaya Park AlMuhaidb Hotel Suites

Holiday Inn Boudl Apart Hotel

Riyadh-Olaya
Aloft Hotel Riyadh

Holiday Inn Riyadh-Meydan

Burj Al Hayat

Saudi Fund for

Development

King Faisal Specialist

Hospital & Research Center Al Mutamarat
Ministry of
Interior

Intercontinental
Riyadh
Movenpick Hotel

Source: Google Extract 2021 - For Illustrative Purposes Only

The subject property is a hotel apartment building constructed on a land with an area
of 1,494.75 as per document provided. It is a six storey with basement reinforced
concrete building with glass/aluminum cladding and concrete exterior wall, marble
cladding façade reception area and hotel lobbies interior wall, granite/marble tiles
reception area, wall to wall carpet tiles flooring on hotel lobbies, painted and
wallpaper finished interior walls, ceramic/wall to wall carpet/laminated hotel room
flooring, painted ceiling, glass on aluminum frame windows, wooden hotel room
doors and glass main entrance door.

Hotel facilities includes a swimming pool, fitness gym, business center and sauna. It
is equipped with elevators, firefighting system with smoke detector and fire alarm,
CCTV security cameras, internet WIFI and centralized air-conditioning system.

We were not provided with a copy of the building constructed permit although we
were informed that the building was built circa 2000 with a total built-up area of 6,574
square meters. It is in good condition and well maintained.

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7. Public Prosecution Building

The above property is located along the east side of Al Haramain Expressway
access road, within Ar Rayaan District, Jeddah, Kingdom of Saudi Arabia.

It is situated about 700 meters south of Ford Al Jazirah Vehicles showroom and
approximately 3.4 kilometers of King Abdul Aziz International Airport New Terminal.

The Public Prosecution Office Building is situated in an area wherein lands along the
main road are for commercial use while interior plots are for residential use.

The nearby Al Haramain Expressway provides good accessibility for the subject
property.

For ease of reference, refer to the illustration below (GPS Coordinates -

21°39'59.24"N, 39°12'17.59"E).
Ar Rayyan District
Obhur Al Shamaliah
Bakheet Company-HQ

Al Haramain Expressway
Ford Showroom
Kingdom King Abdul Aziz King Abdul Aziz

Tower Sports City Stadium International Airport Al Fada Group

Saudi Oger Labor Camp

Obhur Al
Janoubiyah

Public Prosecution Office

KING ABDULAZIZ
INTERNATIONAL
AIRPORT, JEDDAH
Al Basateen Ar Rayaan
North Terminal
King Abdulaziz Road

Ford Showroom
South Terminal
Public Prosecution Office

New Jeddah
Airport Terminal

Source: Google Extract 2021 - For Illustrative Purposes Only

The subject property is a seven storey with basement, office building constructed
mainly of reinforced concrete structure.

Architectural building finishes consist of glass cladding façade and concrete exterior
wall, granite cladding and painted concrete interior wall, granite/marble/ceramic tiles
flooring, acoustic tiles and painted suspended ceiling, wooden and glass doors.

The building is equipped with elevators, firefighting system with smoke detector &
fire alarm, CCTV security cameras and air-conditioning system.

As per document provided to us, the building was constructed circa 1434 and has a
total built-up area (BUA) of 19,342 square meters as detailed below.

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Floor Level BUA (sqm) Use

Basement 4,767.29 Parking
Ground Floor 2,000.65 Office
First Floor 2,108.89 Office
Second - Fourth Floor 6,556.05 Office
Fifth – Sixth Floor 3,909.22 Office
Total BUA (sqm) 19,342
Source: Client 2021

8. Panda Rayaan

The subject property, identified as Panda Rayaan, is located along the northwest
side of Al Imam Ali Bin Abi Street within Al Rayaan District, Dammam, Kingdom of
Saudi Arabia.

It is situated across Prince Mohammed Bin Fahd Complex, about 700 meters
southwest of Maternity and Children Hospital and approximately 950 meters south
of King Fahd Specialist Hospital Dammam.

Panda Rayyan is situated in an area where land utilization is mostly for commercial
use. Some of the prominent establishments near the subject property includes the
Prince Mohammed Bin Fahd Complex, Al Rajhi Bank, Sahel Gas Station, Alinma
Bank, SABB, Saudi Fransi Bank, etc. It is easily accessible thru the fronting Al Imam
Ali Bin Abi Street and the nearby Othman Bin Affan Road. For ease of reference,
refer to the illustration below (GPS: 26°24'8.90"N, 50°5'59.08"E).

Riyadh King Fahd

Bank Specialist
Hospital
Seafront Court of Appeals Dammam
ANB
Jarir
Maternity and Bookstore
Children Hospital
King Abdullah Ar Rayyan District
Civic Center

Al Hamra
Saudi Fransi Bank
Saudi Electronic SABB
Al Rajhi Bank
University
Marina Mall Sheraton Hotel Panda Rayan
Dammam Prince Mohammed
Alinma Bank
Bin Fahd Complex

Al Argan
Prince Mohammed Project
Dammam Bin Fahd Stadium
Medical Tower

.
Saudi Dammam
Ar Rayyan Railway An Narwas
Electronic
University Abdullah Fuad
Al Khalidiyah
Industrial Al Janubiyah
Othaim Area No.1
Panda Rayan Mall

Al Basatin

Source: Google Extract 2021 - For Illustrative Purposes Only

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The subject property, known as Panda Rayan, is a single-storey, commercial retail

shop and hypermarket building built mainly of reinforced concrete structure.

Architectural building finishes consist of partly glass panel façade and painted
concrete exterior walls, granite tiles flooring, painted interior walls, glass door and
steel roll-up doors. It is equipped with air-conditioning system and firefighting system.
The property includes an asphalt-paved driveway and parking area.

Panda Rayaan has a total built-up area of 9,800 as per information provided. It was
observed to be in good condition and properly maintained.

9. Al Hukair Time

The subject property, commonly known as Al Hukair Time, is located along the north
side of Al Ashriah Street within Ash Shati Ash Sharqi District, Dammam, Kingdom of
Saudi Arabia. It is situated about 370 meters west of the Arabian Gulf shoreline,
some 780 meters east of Sheraton Dammam Hotel and Convention Center and
approximately 800 meters southeast of Al Shatea Mall.

Al Hukair Time is situated in an area where lands are mostly developed for
commercial use due to its proximity to the Arabian Gulf shores. Notable
developments in vicinity includes the Park Inn by Radisson, Best Western Hotel, Ewa
East Moon Hotel Apartment, Applebee’s, etc.

It is accessible via the fronting Al Ashriah Street and the nearby Prince Mohammed
Bin Fahd and Khaleej Roads. The illustration below shows the location of the subject
property in relation to its immediate neighborhood and environs (GPS: 26°27'9.75"N,
50°7'41.91"E).
Lulu Hypermarket
Heritage Village
Ash Shati Ash Sharqi
Arabian Gulf
STC
Al Dawaa
Khaleej Road
Roshan Gulf
Sea Front
Almutlaq Twenty 4
Hotel Suites
Furniture City Max Tulip Inn
Al Shatea Mall
Al Hokair Time
Dammam
Applebees
Word Gulf Sea Club Resort
SABB Best Western Coral Island
Park Inn by Radisson Ash Shati
Power Gym Ash Sharqi
Sheraton Dammam
Ewa East Moon
Hotel & Convention
Center
Chocolate Shop
Kosebasi
Hotel Apartment
Ewan Gallery
King Abdullah
Civic Center
Ash Shati
Saihat Lake Al Gharbi

Al Jawharah
Taba Center
Dareen Mall Marina Mall
Al Shatea Mall

As Salam
Al Hokair
Time
Dammam Center Al Badi
Municipality Sheraton
Ar Rabi Dammam Hotel

An Nur

Source: Google Extract 2021 - For Illustrative Purposes Only

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The above property is a single-storey with mezzanine and basement, commercial

showroom building constructed mainly of reinforced concrete structure with glass
panel, aluminum cladding and brick-stone finish façade; painted concrete exterior
wall and glass on aluminum frame main entrance doors.

We were not able to view the interior finishes of the said building although it was
noticed to be in excellent condition and properly maintained.

As per information provided to us, it was supposedly constructed circa 1437 and has
a total built-up area of 3,326 square meters.

10. Saudi Fransi Bank

The subject property, identified as Saudi Fransi Bank, is situated near the west side
intersection of Othman Bin Affan and Al Imam Bin Ali Abi Talib Streets, within Ar
Rayyan District, Dammam, Kingdom of Saudi Arabia. It is located about 270 meters
northeast of Prince Mohammed Bin Fahd Complex, some 400 meters southwest of
Maternity and Children Hospital, and approximately 800 meters southeast of King
Fahd Specialist Hospital Dammam.

Saudi Fransi Bank is located in an area where lands along the main road are
developed for commercial use and interior plots are for residential use.

Notable landmarks in the vicinity includes the SABB Bank, Al Rajhi Bank, Panda
Hypermarket, etc. It is very accessible thru Othman Bin Affan and Al Imam Ali Bin
Abi Talib streets. For ease of reference, refer to the illustration below (GPS:
26°24'13.84"N, 50°6'8.82"E).

Riyadh King Fahd

Seafront Bank Specialist
Hospital
Court of Appeals Dammam
ANB
Jarir
Bookstore
Maternity and
King Abdullah Ar Rayyan District Children Hospital
Civic Center

Al Hamra
Saudi Electronic Saudi Fransi Bank SABB
University Al Rajhi Bank
Marina Mall Sheraton Hotel Panda Rayan
Dammam Prince Mohammed
Alinma Bank
Dammam Bin Fahd Complex
Medical Tower Al Argan Project
Prince Mohammed
Bin Fahd Stadium

Saudi Dammam
Ar Rayyan Railway An Narwas
Electronic
University Abdullah Fuad
Al Khalidiyah
Industrial Al Janubiyah
Othaim Area No.1
Saudi Fransi Mall
Bank
Al Basatin

Source: Google Extract 2021 - For Illustrative Purposes Only

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The subject property, identified as Saudi Fransi Bank, is a two-storey building

constructed mainly of reinforced concrete structure with glass panels and concrete
exterior wall and glass main entrance door. We were not able to view the interior
finishes of the subject building, although it was observed to be well maintained and
in good condition. Other improvements on the subject property includes an asphalt-
paved driveway with painted concrete curb & gutter, interlock concrete paver
sidewalk and steel pole lightings open parking area fronting the said building.

As per document provided to us, the building was reportedly constructed circa 1426
and has a total built-up area of 879 square meters as per detail below. It is in good
condition and well maintained.

Floor Level BUA (sqm) Use

Ground Floor 426 Office
First Floor 453 Office
Total BUA (sqm) 879
Source: Client 2021

11. Ajdan Walk, Khobar

The subject property is located in the Khobar Waterfront in Corniche Road.

Primary vehicular access to the property will be via Prince Turkey Street, which
is commonly known as the Corniche Road. The property is located within the
upcoming Ajdan Waterfront Development being developed by Al Oula. For
ease of reference, refer to the illustration below.

N 12.

13.

14.

15.

16. Al Gusaibe Retail

Ramada Hotel
Village
Al Jomaa
Golden Tulip 17. Al Turki Centre
Cornishe Food & Centre
Beverage Strip
Ajdan walk
Office Building
18.
Sofitel Hotel
19.
Crystal Island Gulf Centre
20. Gulf Meridian
Al Rafifi Tower Hotel
Al Dughaither
21.
Leisure Island
Ministry of Interior
Gulf Terrace
Border Guard
Hotel

Hospitality Retail Offices & Compounds Subject Site

Source: Google Extract 2021 - For Illustrative Purposes Only.

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Description Property Details

Property Name Ajdan Walk, Khobar
Type Retail Development - 27 F&B Units over 12 Buildings
Land Area (sq. m.) 16,965.77
Built-Up Area (sq. m.) 32,212.08
Parking Bays Approximately 339
No of Units 27 Food & Beverage (F&B) Units
Owner Ajdan Real Estate Development Company
Location Prince Turkey Street (Ajdan Walk), Khobar
GPS Co-ordinates 26°16'59.90"N 50°13'11.99"E
Interest Valued Assumed Freehold

The subject mixed-use development consists of a unique retail village with luxury
residential buildings that include food and beverage podiums with major cinema and
other facilities.

The various components of the development are expected to complement each

other with state-of-the-art design and quality. The subject property is now complete,
and it is understood tenants are fitting out with signed occupational tenancy
agreement in place.

The subject property consists of 27 units / shops distributed over 11 buildings with
total GFA of 11,581 sq. m, whilst the GLA is approximately 14,235 sq. m. The
schedule below depicts a detailed area schedule (space program) for Ajdan Walk
including Gross Floor and Gross Leasable Area(s):

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Units / GFA Total Total GLA

#Building FF GFA GF seating FF Seating Total GFA
Shops (sq. m) Seating (sq. m)
Building 1 1 608 649 87 - 87 1,256 1343
Building 2 2 897 745 209 326 535 1,641 2176
Building 3 1 773 665 238 256 494 1,438 1932
Building 4 5 631 693 55 223 278 1,323 1602
Building 5 5 352 338 182 65 247 690 937
Building 6 7 876 940 148 143 291 1,816 2107
Building 7 2 649 551 153 111 263 1,200 1463
Building 8 1 1755 - - - 0 1,755 1755
Building 9 1 253 - 203 - 203 253 456
Building 10 1 127 - 142 - 142 127 269
Building 11 1 82 - 113 - 113 82 195
Total 27 7,003 4,581 1,530 1,124 2,653 11,581 14,235
Source: Client 2021

2.10 ENVIRONMENT MATTERS

We are not aware of the content of any environmental audit or other environmental
investigation or soil survey which may have been carried out on the property and
which may draw attention to any contamination or the possibility of any such
contamination.

In undertaking our work, we have been instructed to assume that no contaminative

or potentially contaminative use has ever been carried out on the property.

We have not carried out any investigation into past or present use, either of the
property or of any neighbouring land, to establish whether there is any contamination
or potential for contamination to the subject property from the use or site and have
therefore assumed that none exists. However, should it be established subsequently
that contamination exists at the property or on any neighbouring land, or that the
premises has been or is being put to any contaminative use, this might reduce the
value now reported.

Details
Based on the document supplied by the client, the land areas and built-up areas of the subject
properties are as follows:
Prop. # Property Name Land Area (sqm) BUA (sqm)
1 Khalidiyah Business Center 7,903.00 24,876.51
2 Rawdah Business Center 2,462.50 17,526.74
3 Panda Al Hamadaniah 13,685.85 5,858
Area
4 Panda Ishbiliyah 23,604.00 10,784
5 Jazeera Compound 20,758.00 12,646
6 Burj Al Hayat 1,494.75 6,574
7 Public Prosecution Office 4,767.25 19,342
8 Panda Rayan 18,144.80 9,800
9 Al Hukair Time 5,155.52 3,326

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10 Saudi Fransi Bank 5,191.44 879

11 Ajdan Walk 16,965.77 32,212.08
Topography Generally, the properties are mostly regular in shape and on level terrain
Drainage Assumed available and connected.
ValuStrat’s verbal inquiries with local authorities were unable to confirm whether flooding is a point
Flooding of concern at the subject property. For the purposes of this valuation, ValuStrat has assumed that
the subject property is not flood prone. A formal written submission will be required for any further
investigation which is outside of this report’s scope of work. Note: It is understood that there is no
known flooding in the areas where the properties are located.
ValuStrat’s’ verbal inquiries with local authorities were unable to confirm whether land slip is a
point of concern at the subject property. For the purposes of this valuation, ValuStrat has assumed
Landslip
that the subject property is not within a landslip designated area. A formal written submission will
be required for any further investigation which is outside of this report’s scope of work.

2.10.1 TOWN PLANNING

Neither from our knowledge nor as a result of our inspection are, we aware of any
planning proposals which are likely to directly adversely affect this property. In the
absence of any information to the contrary, it is assumed that the existing use is
lawful, has valid planning consent and the planning consent is not personal to the
existing occupiers and there are no particular onerous or adverse conditions which
would affect our valuation.

In arriving at our valuation, it has been assumed that each and every building enjoys
permanent planning consent for their existing use or enjoys, or would be entitled to
enjoy, the benefit of a “Lawful Development” Certificate under the Town & Country
Planning Acts, or where it is reasonable to make such an assumption with continuing
user rights for their existing use purposes, subject to specific comments. We are not
aware of any potential development or change of use of the property or properties in
the locality which would materially affect our valuation.

For the purpose of this valuation, we have assumed that all necessary consents have
been obtained for the subject property(s) referred within this report. Should this not
be the case, we reserve the right to amend our valuation and report.

2.10.2 SERVICES

We have assumed that the subject properties referred within this report are
connected to mains electricity, water, drainage, and other municipality services.

2.11 TENURE/TITLE
Unless otherwise stated we have assumed the freehold title is free from
encumbrances and that Solicitors’ local searches and usual enquiries would not
reveal the existence of statutory notices or other matters which would materially
affect our valuation. We are unaware of any rights of way, easements or restrictive
covenants which affect the property; however, we would recommend that the
solicitors investigate the title in order to ensure this is correct. The valuation assumes

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that the freehold title should confirm arrangements for future management of the
building and maintenance provisions are adequate, and no onerous obligations
affecting the valuation. This should be confirmed by your legal advisers. The subject
properties were registered under the below-mentioned title deeds which we had
assumed on freehold basis. Should this not be the case we reserve the right to
amend our valuation and this report.

P# Property Name Location Title Deed No. T.D. Date Land Area (sqm) Interest
1 Khalidiyah Business Centre Jeddah 520204005172 1433/2/23 7,903 Freehold
2 Rawdah Business Centre Jeddah 420228018317 1440/8/17 2,462.50 Freehold
3 Panda Al Hamadaniah Jeddah 220206006345 1434/3/14 13,685.85 Freehold
4 Panda Ishbiliyah Riyadh 410111055251 1440/9/18 23,604 Freehold
5 Jazeera Compound Riyadh 310117046169 1440/9/17 20,758 Freehold
6 Burj Al Hayat Riyadh 910104046943 1440/9/17 1,494.75 Freehold
7 Public Prosecution Riyadh 720223019231 1439/11/12 4,767.25 Freehold
8 Panda Rayyan Dammam 530105021904 1440/2/7 18,144.80 Freehold
9 Hukair Time Dammam 330107029073 1440/2/7 5,155.52 Freehold
10 Saudi Fransi Bank Dammam 330114008967 1440/6/9 5,191.44 Freehold
11 Ajdan Walk Khobar 930203009265 1440/6/9 16,965.77 Freehold

Source: Client 2021; The above properties are owned by Saudi Economic & Development Company for
Real Estate Funds (SEDCO).

NB: All aspects of tenure/title should be checked by the client’s legal representatives
prior to exchange of contract/drawdown and insofar as any assumption made within
the body of this report is proved to be incorrect then the matter should be referred
back to the valuer in order to ensure the valuation is not adversely affected.

2.11.1 OCCUPANCY LEASES & TENANCY DETAILS

We have been provided with the lease contract agreements/tenancy schedules for
the (11) property which have been adjusted for the multiple occupied property and
have summarized details in the table below:
Prop. # Property Name Gross Rent (SAR) % Occ. OPEX *Escalation Lease Terms
1 Khalidiyah Business Centre 12,239,035 p.a. 85% 13% 2.5% 2-10 years
2 Rawdah Business Centre 10,632,000 p.a. 75% 14% 2.5% 1-5 years
3 Panda Al Hamadaniah 2,845,151 p.a. 100% 0% 5% 15 years
4 Panda Ishbiliyah 5,822,670 p.a. 100% 0% 5% 15 years
5 Jazeera Compound 7,408,500 p.a. 97% 20% 2.5% Annual Renewals
6 Burj Al Hayat 1,500,000 p.a. - - - TBC
7 Public Prosecution Office 5,500,000 p.a. 100% 6% 0% Annual Renewals
8 Panda Rayaan 4,966,761 p.a. 100% 0% 5% 15 years
9 Al Hukair Time 2,200,000 p.a. 100% 0% 13.64% 20 years
10 Saudi Fransi Bank 2,000,000 p.a. 100% 0% 33% 10 years
11 Ajdan Walk 25,000,000 p.a. 100% 0% 5% 10 years

Source: Client 2021

*Refer to lease contract agreement for details of rent escalation/growth rate of each property. We
assume information provided is correct and accurate.

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For Khalidiyah Business Centre, the client has informed us that a proposed Parking
Building and Roof Top Restaurant construction will be undertaken started in March
2019 with a target construction duration of 14 months at an estimated CAPEX of
SAR 12.8 million. This will generate an additional gross leasable area of 1,895
square meters beginning March 2021. Assuming an average rental rate of SAR
1,400/sqm, it produces additional rental income of SAR 2,653,000 per annum;
hence, Gross Rent in Year 2021 will be SAR 16,498,344 per annum.

The Ajdan Walk lease agreement is between Ajdan Walk Development Real estate
and First Development Real Estate Holding Company commencement from
1/1/2019 for a term of 10 years with an initial income of SAR 25 million per annum
and thereafter in year 6 at an income of SAR 26,250,000 per annum. Due to
confidentiality and size of documents, we are unable to attach agreements with this
report. For further details refer to the Fund Manager.

Burj Al Hayat Hotel - we understand from the client they are in the process of
considering a new operator and have received an offer in consideration of a rental
income of SAR 1.5 million per annum. It is below market conditions as the new
operator will carry out CAPEX works on the subject property (Burj Al Hayat Hotel).
Further details to be confirmed by the client.

We have assumed that all lessees are in a position to renew on their forthcoming
renewal process.

For the purposes of this valuation, we have explicitly assumed that the lease contract
agreements, tenancy schedules and all other information provided by the client are
complete, accurate and updated. Should this not be the case, we reserve the right
to amend our valuation and this report.

2.12 METHODOLOGY & APPROACH

In determining our opinion of Market Value for the freehold interest in the subject
property, we have utilized the Discounted Cash Flow (DCF) approach taking into
consideration the lease contract agreements/tenancy schedules and other related
information provided by the client.

2.12.1 DISCOUNTED CASH FLOW APPROACH

The subject property(s) fall into a broad category of investment property with the
prime value determinant being the properties’ ability to generate rentals and rental
growth through the ongoing letting and reasonable maintenance.

In determining our opinion of Market Value of the subject property we have utilized
the Investment Approach utilizing a Discounted Cash Flow technique.

Discounting Cash Flow analysis is defined in the International Valuation Standards

as a financial modelling technique based on explicit assumptions regarding the
prospective cash flow of the property. This analysis involves the projection of a series
of periodic cash flows a property is anticipated to generate, additionally giving regard

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to the frequency and timing of associated development costs, contingency

allowances etc.

To this projected cash flow series, an appropriate discount rate is applied to establish
an indication of the present value of the income stream associated with the property.
The DCF approach involves the discounting of the projected net cash flow on a
yearly basis over the explicit cash flow period. In the case of the subject compounds
the cash flow has been projected over a 10-year period reflecting a market practice
for cash flows reflecting the two lease terms referred above for both properties.

The cash flow is discounted back to the date of valuation at an appropriate rate to
reflect risk in order to determine the Market Value of both properties. The rental
income being capitalised and discounted in the cash flow refers to net rental income,
that is, the income stream. A contractual agreed growth rate as referred in the lease
contract based on rental income per annum has been agreed and has been reflected
within the DCF calculations.

The future values quoted for property, rents and costs are projections only formed
on the basis of information currently available to us and are not representations of
what the value of the property will be as at a future date.

2.12.2 MARKET RENTS

Since the last exercise in December 2020 prices have remained largely unchanged,
although adjustments have been made based on information provided by the client
based on the tenancy schedules and in line with lease terms reflecting market
conditions. We expect the subject mixed portfolio referred in this report to remain
stable in the foreseeable future subject to ongoing maintenance, upkeep of the
property and to provide yield stability with the real estate sector generally follows the
fortunes of the greater economy. Although should the pandemic – health crisis cases
persist, we expect an adjustment in rent and capital values in December 2021.

A funds performance relies on the performance of the underlying income generating

investments and there is counterparty default risk that could affect the value of your
investment. Past performance and forecasts are not reliable indicator of future
results. Property values are subject to fluctuation over time as market conditions may
change.

Valuation figures considered full figure and may not be easily achievable in the event
of an early re-sale. It also must be borne in mind that capital values can fall as well
as rise. The client is advised that whilst all reasonable measures have been taken
to supply an accurate valuation as possible as at the Valuation date, this figure
should be considered in the context of the volatility of today’s marketplace. Sales or
rental evidence for similar properties within KSA are not readily available or
transparent due to the nature of the property market within the Kingdom of Saudi
Arabia. Much if not all of the evidence is anecdotal, and this limitation may place on
the non-reliability of such information and impact on values reported.

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In forming our opinion of Market Rent for the subject property, we have looked at the
following market rental rates of some office space, retail stores and residential villas
within Riyadh, Jeddah & Dammam.

Rental rates of some office & retail spaces within Jeddah

Establishments Type Area (sqm) Rent/sqm (SAR) Location
Retail 133-304 900 – 1,100
Omnia Centre Rawdah District
Office 217-504 930 – 1,400
Retail 136-1,623 2,250 - 5,100
Nojoud Centre Tahlia Street
Office 105-4,225 400 - 1,100
Retail 29-265 700 - 2,000
Al Marwah Plaza Al Marwah District
Office 57-304 650 - 900

Rental Rates of some Commercial Retail Strips/Plazas within Riyadh

Establishments Type Area (sqm) Rent/sqm (SAR) Location
Retail - 1,500 North Ring Road, Al Ghadir
Veranda F&B
Office 200-400 1,000 District
Retail 145-1,150 1,380-2,300 North Ring Road, At Taawun
Black Garden
Office 137.00 365 District
Jarir Complex Retail 325-390 1,000 Uthman Bin Affan Road
Al Ezdihar Complex Retail 192-336 850 Northern Ring Road
Retail 114-280 690-950 King Khalid Road, Ar Rehab
Tijan Plaza
Office 70-192 400-550 District
Retail 208-317 1,000 Uthman Bin Affan Road, At
Rawana Plaza
Office 88-148 550 Taawun District
Al Sahafa Center Retail 66-250 1,200-1,800 King Abdul Aziz Road, Al
Office 337-447 400-550 Sahafa District
Tilal Center Retail 76-456 900-2,100 Al Malqa District
Al Yarmouk Center Retail 74-320 1,300-1,800 Dammam Rd., Al Yarmouk

Rental Rates of some villas within residential compound in Riyadh

Name of Compound Location Villa Type Area (m²) Rent/Yr (SAR) Rent/m²(SAR)
Palms Estate Compound Khozama District 3-Bedroom 220 200,000 909.09
3-Bedroom 300 240,000 800.00
2-Bedroom 180 170,000 944.44
2-Bedroom 165 150,000 909.09
DHC Compound Diriyah Area 1-Bedroom 79 60,000 759.49
3-Bedroom 167 110,000 658.68
Al Rabia Community Ad Diriyah District 3-Bedroom 284 160,000 563.38
4-Bedroom 422 250,000 592.42
Daraq Diplomatic Quarter As Safarat 4-Bedroom 450 265,000 588.89
4-Bedroom 500 287,000 574.00
4-Bedroom 539 317,000 588.13
Del Mar Compound Al Munsiyah District 3-Bedroom 496 215,000 433.47
2-Bedroom 198 85,000 429.29
Carolina Palms Compound Al Mutha'ar District 4-Bedroom 342 245,000 716.37
3-Bedroom 260 180,000 692.31
3-Bedroom 180 125,000 694.44
Cecil Compound Khurais Road 3-Bedroom 166 100,000 602.41
3-Bedroom 161 90,000 559.01

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Commercial Properties offered for Lease in the vicinity of Panda Rayaan, Dammam
Sn Property Type Area (sqm) Rent/Year (SAR) Rent/Sqm (SAR) Location
1 Commercial 3,500 1,400,000 400 Ar Rayyan District-close by
2 Commercial 1,900 750,000 395 Al Muraikabat District
3 Commercial 4,000 1,400,000 350 An Nur District
4 Commercial 1,026 350,000 341 As Saif District
5 Commercial 900 300,000 333 Al Hamra District
6 Commercial 2,030 500,000 246 Prince Mohd. Bin Fahd Rd
7 Commercial 1,680 400,000 238 Al Badr District
8 Commercial 3,600 800,000 222 Uhud District

Retail shops for lease in the vicinity of Al Hukair Time, Dammam

Sn Property Type Area (sqm) Rent/Year (SAR) Rent/Sqm (SAR) Location
1 Retail 288 150,000 521 Ash Shati Ash Sharqi
2 Retail 599 419,300 700 Ash Shati Ash Sharqi
3 Retail 380 285,000 750 Ash Shati Ash Sharqi
4 Retail 166 165,000 994 Ash Shati Ash Sharqi
5 Retail 841 850,000 1,011 Ash Shati Ash Sharqi

Office spaces for lease in the vicinity of Saudi Fransi Bank, Dammam
Sn Property Type Area (sqm) Rent/Year (SAR) Rent/Sqm (SAR) Location
1 Office 125 62,500 500 Ar Rayyan District
2 Office 435 279,705 643 Ar Rayyan District
3 Office 100 70,000 700 Ar Rayyan District
4 Office 140 140,000 1,000 Ar Rayyan District
5 Office 250 270,000 1,080 Ar Rayyan District

Retail leases Across Khobar

GLA (m²) Annual Rent (SAR) Rent/m² (SAR) Location
36 90,000 2,500 Thuqbah
30 45,000 1,500 Thuqbah
40 50,000 1,250 Thuqbah
289 400,000 1,384 Madinat Al Umal
60 70,000 1,167 Al Andalus
40 30,000 750 Al Aqrabiyah

Rental Rates of some hotel buildings in Riyadh

S# Property Type District BUA (m²) Rent/Year (SAR) Rent/m² (SAR)
1 Hotel Building w/ Retail Al Yasmin 10,013 4,300,000 430
2 Hotel Building Al Olaya 6,750 3,400,000 504
3 Hotel Building King Fahd 7,669 6,250,000 815
4 Hotel Al Yasmin 6,300 3,000,000 476

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The client has provided us rental details referred below, although, we have adjusted
the rentals for the multiple occupied property such as Khalidiyah Business Centre
and Rawdah Business Centre.

#No. Property GLA/NLA (sq. m) Gross Income (SAR) Actual Rate per sq. m
1 Khalidiyah Business Centre 14,369 12,239,035 p.a. 852
2 Rawdah Business Centre 11,794 10,632,000 p.a. 901
3 Panda (Jeddah) 5,858 2,845,151 p.a. 486
4 Panda (Riyadh) 10,784 5,822,670 p.a. 540
5 Jazeera Compound 9,630 7,408,500 p.a. 769
6 *Burj Al Hayat 6,574 3,400,000 p.a. *228
7 Public Prosecution 14,575 5,500,000 p.a. 377
8 Panda Rayan 9,800 4,966,761 p.a. 507
9 Hukair Time 3,326 2,200,000 p.a. 661
10 Saudi Fransi Bank 879 2,000,000 p.a. 2,275
11 Ajdan Walk 14,235 25,000,000 p.a. 1,756
Source: Client 2021; *Burj Hayat Hotel is currently below market rent

2.12.3 ASSUMPTIONS & COMMENTARY

The subject property has been assessed as an investment property subject to the
lease amount provided by the client and any assumptions made by ValuStrat within
market benchmarks.

ValuStrat has made certain assumptions and adjustments based on their experience
in valuing typical commercial and residential properties in Riyadh, Jeddah &
Dammam, KSA taking cognisance of the surrounding developments within the
property which will ultimately form part of.

This was done in an attempt to forecast our interpretation of performance of the

subject property over the 10-year explicit cash flow period.

In this instance, we have adopted the following rates:

Growth Rates & Operational Cost

The growth rates for the subject properties are as per lease contract agreements
provided by the client which are summarized as follows:

Property # Property Name Growth Rates Operational Cost

1 Khalidiyah Business Centre 2.50% 13%
2 Rawdah Business Centre 2.50% 14%
3 Panda Al Hamadaniah 5% 0%
4 Panda Ishbiliyah 5% 0%
5 Jazeera Compound 2.50% 20%
6 *Burj Al Hayat - -

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7 Public Prosecution Office 2.5% 6%

8 Panda Rayaan 5% 0%
9 Al Hukair Time 13.64% 0%
10 Saudi Fransi Bank 33% 0%
11 Ajdan Walk 5% 0%
*Burj Al Hayat lease terms to be confirmed in the forthcoming periods.

Exit Yield

The exit yield is a resultant extracted from transactional evidence in the market;
however, due to anecdotal evidence and limited market activity we have had to rely
on anticipated investor expectations from typical property investments.

These typically vary between 7% and 9%, with exceptions on either side, depending
on the quality of the property, length of the leases and the location.

Based on the above criteria we are of the opinion that a fair exit yield for the subject
properties is shown on the succeeding page and table.

Discount Rate

The discount rate reflects the opportunity cost of capital. It reflects the return
required to mitigate the risk associated with the particular investment type in
question.

To this we have to add elements of market risk and property specific risk. The market
risk comes in the form of; inter alia, potential competition from existing and latent
supply.

Market risk will also reflect where we are in the property cycle. For the purpose of
our valuation calculations, we have adopted the following exit yields & discount rates.

Property # Property Name Exit Yield Discount Rates

1 Khalidiyah Business Centre 8% 10.5%
2 Rawdah Business Centre 8% 10.5%
3 Panda Al Hamadaniah 7% 9%
4 Panda Ishbiliyah 7% 9%
5 Jazeera Compound 8.5% 10.5%
6 Burj Al Hayat 8.5% 10%
7 Public Prosecution Office 8% 9%
8 Panda Rayaan 7% 9.5%
9 Al Hukair Time 7% 8%
10 Saudi Fransi Bank 7.5% 9%
11 Ajdan Walk 7% 7.5%

2.12.4 INVESTMENT YIELD AND DISCOUNT RATE(S)

Despite the continuance of subdued conditions, the KSA real estate investment
market remains resilient in times of global uncertainty, protectionism, technology
innovation disruption and regional volatility.

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The divergence between prime yields and secondary continues to widen, reflecting
the fact that investors are willing to pay a premium for assets seen as lower risk, in
core locations along with strong covenants/tenants/branding.

Whilst there remains a lack of transactional evidence in the KSA market and the
lack of good quality income generating assets across the KSA market; however,
strong investor appetite remains for ‘Best in Class’ / ‘Institutional Asset Class –
Grade A’ / good quality property providing long term income.

The historic strength of asset classes and significant growth in the past few years
has meant fairly attractive yields and with the continuance of current stable demand
but slower growth. Investors are also no less sensitive to asset classes i.e., office,
retail, residential, industrial and the location of property providing investor
expectations and stable long-term income for portfolios and funds.

The foreseeable future the subject property(s) referred in this report appear to
provide stable investment subject to ongoing maintenance, upkeep of the property
and provided that yield stability remains with the real estate sector generally
following the fortunes of the greater economy and while the oil reserves are currently
fairly strong, then the economy remains stable and backed-by strong fundamentals
of the KSA market (i.e. young growing population) and also the economic
transformation plan transforming the Kingdom towards a service economy post-oil
era.

General consensus anticipates a strident improvement in the Saudi economy in the

period ahead (vison 2020 and vision 2030), supported by both the oil and non-oil
sectors.

Accordingly, we can provide investment yield performance indicator in current

market conditions as follows:
Transaction Type Investment Yield (%)
Major Cities & Core Location(s) 7% - 8.5%
Best in Class / Institutional Asset Class – Grade A 7% - 8.5%
Good Quality Income Generating Asset 7% - 8.5%
Strong Covenants / Leases / Tenants / Strong Brands 7% - 8.5%
Secondary / Tertiary Location & Grade B/C stock. 9% - 10.5%

2.12.5 VALUATION SUMMARY

The resultant values based upon the above variables/assumptions for the subject
properties are as follows:
Property # Property Name Location Value - Rounded (SAR)
1 Khalidiyah Business Centre Jeddah 144,000,000
2 Rawdah Business Centre Jeddah 107,000,000
3 Panda Al Hamadaniah Jeddah 38,000,000
4 Panda Ishbiliyah Riyadh 79,000,000

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5 Jazeera Compound Riyadh 65,000,000

6 Burj Al Hayat Riyadh 20,000,000
7 Public Prosecution Office Jeddah 63,000,000
8 Panda Rayaan Dammam 65,000,000
9 Al Hukair Time Dammam 32,000,000
10 Saudi Fransi Bank Dammam 27,600,000
11 Ajdan Walk Khobar 357,000,000
Aggregate Portfolio Value (SAR) 997,600,000

2.12.6 VALUATION COMMENTARY

1. The outbreak of the pandemic COVID-19 a year on remains a material factor

in daily life and uncertain economic trends globally along with delta, delta
plus virus with mutations of the virus; therefore, should the the health crisis
persist affecting the economy in 2021-22, it is likely the market rates/prices
will be affected. The client is also recommended to consider the benefits in
such a market, of having more frequent valuations to monitor the value of
the subject property.

2. In times of uncertainty with restricted travel due to ongoing concerns of

pandemic 2020 with volatility across many sectors; hence many businesses
are affected due to the closure and loss of business, we assume all rentals,
lease(s) and landlord & tenant information provided by the client is correct
and accurate. Should this not be the case, we reserve the right to amend
our valuation and report.

3. We have been made aware there is no rent arrears (debt) and all tenants
are up to date with rental obligations. Should this not be the case, we reserve
the right to amend our valuation and report.

4. Occupancy rates and rents may fluctuate depending on a number of factors,

including market and economic conditions resulting in the
property/investment not being profitable.

5. KSA’s oil production and business is a major contributor to Saudi income

and strong economic conditions. Therefore, any major fluctuations in oil
prices can have a similar effect on the local economy impacting commercial
investments and the overall long-term development of the economy in
volatile and uncertain times.

6. The growth of the economy is also subject to numerous other external

factors, including continuing population growth, increased direct and foreign
investment in the local economy and Government and private sector
investment in infrastructure, all of which could have a significant impact on
the economy and business profitability.

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7. It should be noted that the valuation provided is of the property (excluding

any element of value attributable to furnishings, removable fittings and sales
incentives) as new. It is possible that the valuation figure may not be
subsequently attainable on a resale as a’ second-hand villa especially if
comparable new property is on offer at the same time.

8. As regards properties, which are retained, or to retain an ownership interest

in, such competition may affect the Funds ability to attract and retain tenants
and reduce the rents impacting the property/investment.

9. Any retained or owned property by fund will face competing properties

leading to high vacancy rates resulting in lower rental rates. It is imperative
for leasing obligations to preserve and keep-up high standard of landlord &
tenant (property management) and so it will necessitate that the property be
maintained to a good standard to maintain its value.

10. The subject portfolio referred in this report is considered as full figure(s) and
may not be easily achievable in the event of an early re-sale in the short
term due to volatile and uncertain times. Refer to our market conditions
section below.

11. Property values are subject to fluctuation over time as market conditions
may change.

12. We have assumed that the land is not subject to any unusual or especially
onerous restrictions, encumbrances or outgoings and good title can be
shown. For the avoidance of doubt, these items should be ascertained by
the client’s legal representatives.

2.13 VALUATION

2.13.1 MARKET VALUE

ValuStrat is of the opinion that the Market Value of the freehold interest in the subject
11 (eleven) property referred within this report, as of the date of valuation, based on
the Discounted Cash Flow (DCF) Approach and assumptions expressed within this
report, may be fairly stated as follows;

Market Value (rounded and subject to details in the full report):

Aggregate Value: SAR 997,600,000 (Nine Hundred Ninety-Seven Million, Six

Hundred Thousand, Saudi Arabian Riyals).
The client is advised that whilst all reasonable measures have been taken to supply an accurate valuation
as possible as at the Valuation date, this figure should be considered in the context of the volatility of
today’s marketplace.

We are currently experiencing a very uncertain property market and due to the reduced level of
transactions, there is an acute shortage of comparable evidence upon which to base valuations. Due to
this shortage, it may be necessary at times for a Valuer to draw upon evidence which is of a historical
nature.’

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The valuation assumes that the freehold title should confirm arrangements for future management of the
building and maintenance provisions are adequate, and no onerous obligations affecting the valuation.
This should be confirmed by your legal advisers.

The value provided in this report is at the top end of the range for properties of this location and character
and will necessitate that the property be maintained to a good standard to maintain its value.

2.14 MARKET CONDITIONS SNAPSHOT

2.14.1 MARKET ASSESSMENT, TIMES OF UNCERTAINTY (COVID-19 PANDEMIC) &

VALUATION COMMENTARY OVERVIEW

The outbreak of the pandemic COVID-19 a year on remains a material factor in daily
life and uncertain economic trends globally and in the middle east, though KSA has
remained fairly resilient with PIF – sovereign wealth fund going from strength to
strength. Through the unprecedented trial over the Coronavirus COVID-19 and the
global spread of the virus, it has meant a significant impact on global financial
markets as geographies experience continued spread and increase of pandemic
cases. This has meant a global shutdown/lockdown of economies with most sectors
affected.

The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health
Organization (WHO) as a “Global Pandemic” back on 11 March 2020, has impacted
global financial markets. Travel restrictions have been implemented by many
countries across the globe and continues to be restricted travel throughout 2021.
Market activity is being impacted in many sectors. Prior to the global rapid spread of
the virus and the announcement by the KSA authorities of an initial indefinite
lockdown, the KSA real estate market was in a healthy position with many analysts
predicting a strong 2020 for real estate (vision 2020) with the positive activity and
investment by the government unveiling a number of reforms, including recent
facilitation of the tourism visa, where citizens of 49 countries are now able to apply
e-visas and holders of Schengen, UK or US visas are eligible for visas on arrival.

Also, the government has now allowed the full foreign ownership of retail and
wholesale operations along with previously opening up of the Tadawul Stock Market
to foreign investment supported by current energy reforms, cutting subsidies,
creating jobs, privatising state-controlled assets and increasing private sector
contribution to the country’s economy, etc. With all the opportunities throughout the
Kingdom and the creation of the Giga projects, there was an ambitious resilience
which was suddenly shutdown overnight due to the initial lockdown period. With all
the current uncertainty, market stagnation and short-term challenges whereby force
majeure (as a result of the pandemic’s cause beyond anyone’s reasonable control)
had created inactivity. As mentioned above the KSA market’s ambitions and
resilience, we understand investor sentiment remains strong as it was prior to the
pandemic and the KSA was on an upward course showing growth in the last quarter
of 2019 after a period of subdued market conditions.

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The current global crushing of liquidity in economies will have impact on markets and
real estate market and this maybe the case with many economies across the globe;
however, the KSA market has shown resilience in previous years through a period
of downward trend (2016-18), a correction allowing for the market to bottom out with
2019 experiencing growth in the first quarter and subdued market conditions
throughout 2019. The latter part of Q4 – 2019 saw positive growth with strong
investor appetite, though the market lacking good quality stock. Now with the Saudi
government confirming a stimulus package of SAR 120 billion plus, we understand
the market will bounce back with investors underlying strong appetite. This will delay
any evidence in the short term of declining prices and with the government stimulus
will assist any short-term losses on transactions, private and public funds, although
will need to be sustained in the short-term.

The KSA real estate sector generally follows the fortunes of the greater economy
and while the oil reserves were left off prior to the pandemic fairly strong, although
currently a price war between major producers is adding to a growing supply glut,
though this will help KSA once markets start normalizing again. The KSA economy
remains stable and backed-by strong fundamentals of the KSA market (i.e. young
growing population) and also the economic transformation plan transforming the
Kingdom towards a service economy post-oil era.

In short, the pandemic is expected to be a short-term shock wave with an eventual

surge of business activity leading to a rapid recovery either in the form of a “V-shape”
or a more gradual recovery in the form of a “U-shape” bounce back. Accordingly, we
expect the KSA market to surge in business over the course of 2021 allowing for
markets to start flourishing towards long term sustainability in social trends and
patterns along with socio-economic distancing in a growing cycle. On the other hand,
should the global economic impact of the Coronavirus pandemic (COVID-19)
outbreak persist and will be dependent on how long the virus lasts, how far it spreads
and how much lock-down, public organizations quarantines disrupt the market.
Indeed, the current response to COVID-19 means that we are faced with
unprecedented set of circumstances on which to base judgement(s). There is strong
evidence that real estate markets have sprung back to strong activity and growth
fairly quickly as we are experiencing in the Kingdom of Saudi Arabia.

Equally, the short-term generally speaking we do not expect the current real estate
market to show any small adjustment in prices/rates. The KSA real estate market is
a developing market with much invested by the government in infrastructure projects,
so we expect the government’s latest stimulus to preserve liquidity and for demand
to hold having limited / no bearing on prices / rates. However, should the pandemic
persist throughout 2021, we do expect adjustment later on in the year.

Our valuation(s) is / are therefore reported on the basis of ‘material valuation

uncertainty’ as per VPS 3 and VPGA 10 of the RICS Red Book Global.
Consequently, less certainty – and a higher degree of caution – should be attached
to our valuation than would normally be the case.

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Given the unknown future impact that COVID-19 might have on the real estate
market, we recommend that you keep the valuation of this property under frequent
review.

2.14.2 MARKET CONDITIONS PRIOR TO THE PANDEMIC & THE KSA LOCKDOWN

Despite a new wave of infections (Variant Viruses) this year (2021), the roll out of
vaccinations offers hope in controlling this disease and provide a path of recovery in
sight along with recovery in oil rice provides further impetus.

The Kingdom of Saudi Arabia (KSA) - world's largest exporter of crude oil, embarked
four years (2016) ago on an ambitious economic transformation plan, “Saudi Arabia
Vision 2030”. In a hope to reduce its reliance on revenue from hydrocarbons, given
the plummeting oil price revenues from 2014.

Through the current vision 2030 and in a post oil economy, KSA is adapting to times
of both austerity measures and a grand ambitious strategy. With an overdue
diversification plan Saudi Arabia’s economic remodelling is about fiscal sustainability
to become a non-dependent nation of oil. This is supported by current energy
reforms, cutting subsidies, creating jobs, privatising state-controlled assets and
increasing private sector contribution to the country’s economy.

Despite economic headwinds, across the region, KSA has shown resilience through
a period of subdued real estate market activity. The real estate sector generally
follows the fortunes of the greater economy and whilst Saudi Arabia is undergoing
structural reforms politically, economically and socially will transform the Kingdom
towards a service economy post-oil era.

These changes along with significant amounts of investment - estimated to soon be

over 1 trillion US dollars will create vast amounts of opportunities for the public and
private sectors across all businesses segments.

The KSA economy in the first quarter of 2019 has relied on the current oil price rise
to pull it out of recession; however, the previous 18-24 months, KSA faced a
protracted spell of economic stress, much of which can be attributed to the falling oil
prices coupled with regional political issues.

Oil prices starting to surge again around 65 dollars a barrel currently from under 30
dollars a barrel in early in 2016 which resulted in a crash in prices and the economy
dipped into negative territory in 2017 for the first time since 2009, a year after the
global financial crisis.

General consensus anticipates a piercing improvement in the Saudi economy in the

period ahead (2021-2022), supported by both the oil and non-oil sector. So ultimately
it appears the economy will still need to rely on oil revenues to bridge the gap in the
short term with a budget deficit over the past 3 years and the Kingdom borrowing
from domestic and international markets along with hiking fuel and energy prices to
finance the shortfall. The economy slipped into recession in 2018 but returned to

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growth in 2019, albeit at the fairly modest level of 1.7%, according to estimates from
the International Monetary Fund (IMF). However, the return to growth is mainly due
to a return to increase in oil prices again and output which, in turn, is enabling an
increase in government spending.

Accordingly, in the short term needs to rely on the oil revenue and this reliance is
being channelled into public spending. The reforms that have been pushed through
to date have led to important changes aiding the economy.

The opening up of the entertainment industry will create jobs for young locals and
women driving makes it easier for millions more people to enter the workforce.
Reforms to the financial markets have led indexing firms to bring the Saudi Stock
Market (Tadawul) into the mainstream of the emerging markets universe which now
assists to draw in many billions of investment dollars.

A due enactment of law will encourage public-private partnerships to herald more

foreign investment.

The economic transformation that the KSA has embarked upon is complex and
multidimensional and will certainly take time to turn around a non-oil serviced
economy, although there have been recent positive signs, but it will remain in the
short term with the support of oil revenues.

On the other hand, the KSA was resilient in the previous recession in 2007/2008 on
strong oil reserves and not only can the Saudi government be relied upon to step in
to rescue troubled lenders, reliable institutions for procedural reasons but crucially,
it can also afford to do so, although has suffered due to previous oil price declines
and it has meant increased spending.

Vision 2030 to diversify the economy from reliance on oil, has only just commenced
in previous years and with a young and increasingly well-educated population,
together with its own sovereign wealth fund, the Kingdom has many favourable
factors to become a leading service sector economy in the region. Reform efforts
include a reduction of subsidies on fuel and electricity and the implementation of a 5
per cent VAT back on 01 January 2018 which increased to 15 per cent VAT as of 01
July 2020.

The government is also striving to get women to play a greater role in the economy
including recently allowing them to drive back in 2019. Wider reforms have been
initiated by the government allowing for the entertainment industry to flourish with
the opening of the first cinema in King Abdullah Financial District (KAFD) along with
4 VOX screens opening at Riyadh Park Mall.

The cinema entertainment is spurred on by Public Investment Fund (PIF) in

collaboration with AMC Cinemas and led by the Development and Investment
Entertainment Company (DIEC), a wholly owned subsidiary of PIF.

With an objective of 30 to 40 cinemas in approximately 15 cities in Saudi Arabia over

the next five years, and 50 to 100 cinemas in about 25 Saudi cities by 2030.

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As part of wider reforms to overhaul the economy and to allow for deep rooted
diversification, the Public Investment Fund (PIF) have initiated plans to bolster the
tourism / entertainment industry by forming ambitious plans such as the following:

Red Sea Tourism Project

To transform 50 islands consisting of 28,000 square kilometres along the Red Sea
coastline into a global tourism destination. For ease of reference to illustration below
showing the location in relation to the Kingdom of Saudi Arabia.

Al Faisaliyah Project

The project will consist of 2,450 square kilometres of residential units, entertainment
facilities, an airport and a seaport. Refer to the below illustration for the location.

Qiddiya Entertainment City

Qiddiya Entertainment City will be a key project within the Kingdom’s entertainment
sector located 40 kilometres away from the center of Riyadh. Currently alleged for
“The First Six Flags-branded theme park”.

The 334 square kilometre entertainment city will include a Safari Park too. The
project will be mixed use facility with parks, adventure, sports, events and wild-life
activities in addition to shopping malls, restaurants and hotels.

The project will also consist around 4,000 vacation houses to be built by 2025 and
up to 11,000 units by 2030. Again, for ease of reference refer to the below illustration
for the location.

KSA Cities Moving Beyond Oil

NEOM City

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Neom City

The NEOM city project will operate independently from the “existing governmental
framework” backed by Saudi government along with local and international
investors.

The project will be part of a ‘new generation of cities’ powered by clean energy. The
ambitious plan includes a bridge spanning the Red Sea, connecting the proposed
city to Egypt and stretch into Jordan too.

Economic Cities

The overall progress with the Economic Cities has been slow and projects on hold
over the past 7-10 years, although KAFD has recently given the go ahead to
complete by 2020.

Within the Saudi Vision 2030 the governed referenced that they will work to “salvage”
and “revamp”.

Real Estate Growth

Overall ValuStrat research reveals that real estate sectors have continued to decline
in both sales and rental values.

We expect demand to remain stable due to fundamentals of a growing young

population, reducing family size, increasing middle-class and a sizeable affluent
population – all of which keeps the long-term growth potential intact.

Despite short term challenges, both investors and buyers remaining cautious, the
Saudi economy has shown signs of ambition with the government unveiling a
number of reforms, including full foreign ownership of retail and wholesale operations
along with opening up of the Tadawul Stock Market to foreign investment as well as
the reforms mentioned in the previous section referred above.

As mentioned earlier, KSA experienced positive growth by oil price rise in the first
quarter of 2021; hence the main driver of the recovery remains oil. Over 2021 we
envisage the Kingdom’s consumer outlook to be more favourable in economic
conditions.

Moreover, tax on development land implemented in 2017/18 has kept the

construction sector afloat, encouraging real estate developers. Adapting to a new
KSA economic reality has been inevitable, although the Kingdom’s oil dynamics
remain pivotal for future development within the KSA 2030 economic vision plan.

In latter part of 2017, the Public Investment Fund (PIF), Saudi Arabia’s sovereign
wealth fund set up a real estate refinancing company aimed at advancing home
ownership in the Kingdom, which suffers from a shortage of affordable housing.

This initiative will create stability and growth in the Kingdom’s housing sector by
injecting liquidity and capital into the market. Another plan to help kick start the real

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estate market by boosting the contribution of real estate finance to the non-oil GDP
part.

The real estate sector has played an increasingly important role in the Saudi Arabian
economy. Growing demand across all sectors combined with a generally limited
supply has forced real estate prices to accelerate over the past (2008-2016). The
close ties with the construction, financing institutions and many others have provided
crucial resources that contributed to the development of the Saudi economy.

The real estate market performance in 2019/20 and the general trend in KSA for
most sectors have remained subdued given lower activity levels, while prices have
been under pressure across most asset classes leading to a gradual softening of
rental and sale prices.

The real estate sector remains subdued, and prices may have bottomed out across
sectors, and we expect in the medium to long term for the market to pick-up further
growth given the reforms and transformation in KSA, although we expect the growth
to be slow and steady subject to a stable political environment in KSA and across
the region.

The outlook remains optimistic for the longer term due to the various KSA initiatives
aimed at stimulating the real estate market whilst encouraging the private sector to
play a key role in the transformation. All in all, market volatility remains currently, and
prices are likely to witness further deterioration in the short term. Since the issuing
of this report the KSA lockdown for the COVID-19 health crisis was lifted back on 21
June 2020 and the economy is now trying to get back to normalcy.

A watching brief should be kept on the economy, although we expect the economy
to gather some pace later in 2021-22.

Property values are subject to fluctuation over time as market conditions may
change. Valuation considered full figure and may not be easily achievable in the
event of an early re-sale. It must be borne in mind that both rental and capital values
can fall as well as rise.

2.15 VALUATION UNCERTAINTY

This valuation has been undertaken against a background of significant levels of
Market volatility is one of the main reasons of Valuation uncertainty in the real estate
market in the Kingdom and within the GCC region given the dramatic changes in
markets in current oil price slump and other factors too. We are currently
experiencing a very uncertain property market and due to the reduced level of
transactions, there is an acute shortage of comparable evidence upon which to base
valuations.

Given the current uncertainties it may be necessary at times for a Valuer to draw
upon evidence which is of a historical nature. The current shortage of transaction,
combined with a rapidly changing market only serves to highlight the unpredictability

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of the current market, which is subject to change on a day by day basis. The RICS
valuation standards consider it essential to draw attention to foreseen valuation
uncertainties that could have a material effect on valuations, and further advises to
indicate the cause of the uncertainty and the degree to which this is reflected in
reported valuations.

We further state that given the valuation uncertainty stated above our valuation
represents our impartial calculated opinion / judgement of the properties, based on
relevant market data and perceptions as at the date of valuation.

The client is advised that whilst all reasonable measures have been taken to supply
as accurate a valuation as possible as at the Valuation date, this figure should be
considered in the context of the volatility of today’s marketplace

The client is also recommended to consider the benefits in such a market, of having
more frequent valuations to monitor the value of the subject property.

2.16 DISCLAIMER
In undertaking and executing this assignment, an extreme care and precaution has
been exercised. This report is based on information provided by the Client. Values
will differ or vary periodically due to various unforeseen factors beyond our control
such as supply and demand, inflation, local policies and tariffs, poor maintenance,
variation in costs of various inputs, etc.

It is beyond the scope of our services to ensure the consistency in values due to
changing scenarios.

2.17 CONCLUSION
This report is compiled based on the information received to the best of our belief,
knowledge and understanding. The information revealed in these reports is strictly
confidential and issued for the consideration of the Client. No part of this report may
be reproduced either electronically or otherwise for further distribution without our
prior and written consent.

We trust that this report and valuation fulfils the requirement of your instruction. This
report is issued without any prejudice and personal liability.

For and on Behalf of, ValuStrat.

Ramez Al Medlaj (Taqeem Member Yousuf Siddiki (Taqeem Member No.

No. 1210000320) 1210001039)
Senior Associate Real Estate, KSA Director - Real Estate, KSA

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APPENDIX 1 - PHOTOGRAPHS
Property No. 1 – Khalidiyah Business Centre

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Property No. 2 – Rawdah Business Center

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Property No. 3 – Panda Al Hamadaniah

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Property No. 4 – Panda Ishbiliyah

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Property No. 5 – Jazeera Compound

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Property No. 6 – Burj Al Hayat

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Property No. 7 – Public Prosecution Building

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Property No. 8 – Panda Rayaan

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Property No. 9 – Al Hukair Time

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Property No. 10 – Saudi Fransi Bank

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Property No. 11 – Ajdan Walk

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