Saudi Economic and Development Securities Company (“SEDCO Capital”), in its capacity as the Fund Manager of SEDCO Capital REIT Fund (the “Fund”), is pleased to announce the approval by the Fund’s Board to increase the capital of the Fund. The Fund Manager will proceed to obtain all required regulatory approvals; the Capital Market Authority, Tadawul and majority of the unitholders.

The Fund aims to acquire a real estate portfolio with a value of more than SAR 900 million, consisting of 10 developed income-generating properties in different sectors located between Riyadh and the Eastern region (the “Portfolio”).

The Fund intends to cover this acquisition with a combination of cash and in-kind contributions by issuing new units to increase the Fund’s capital and using financial leverage as per the Fund’s terms and conditions.

This potential acquisition is part of the Fund’s strategy to acquire attractive income-generating properties. The Fund Manager expects a positive impact on the overall performance of the Fund.

The targeted portfolio is owned by a group of unitholders of a private real estate fund managed by SEDCO Capital.

Actions:

1. Signing a memorandum of understanding with the seller.

2. Conducting technical due diligence.

3. Conducting legal due diligence.

4. Obtaining the Capital Market Authority’s approval.

5. Obtaining Tadawul’s approval.

6. Obtaining majority of the unitholders’ approval.

The Fund Manager will disclose any developments related to this matter in a timely manner.