Alinma Makkah Real Estate Fund announces the receipt of a non-binding offer from Jabal Omar Development Company for the settlement of its outstanding and future obligations towards Alinma Makkah Fund

6 Safar 1443 AH H - 13 September 2021 G

Jabal Omar Development Company (the "Company"), submitted a non-binding offer to Alinma Investment Company, the Fund Manager of Alinma Makkah Real Estate Fund ("the Fund”), to settle the Company’s outstanding and future obligations resulting from the agreements signed between the Fund and the Company.  Such obligations are mainly represented in financial commitments arising from the agreements which are valid until the end of the Fund Asset lease term or the Company’s exercise of its call option to acquire the Fund’s assets in accordance to the Fund’s terms and conditions.

The Fund Manager would like to raise to the attention of the Unitholders that the offer received proposes the Fund’s acceptance of an in-kind consideration (shares in the Company) in exchange for surrendering the Fund’s assets to the Company in accordance to a specific exchange ratio. The received offer is legally non-binding and considered valid for a period of sixty (60) calendar days. The terms and conditions of the offer is subject for negotiation. The implementation of the transaction, if the offer is accepted, requires approvals such as Unitholder approval regarding changes to the Fund’s terms and conditions in addition to the Capital Market Authority approval regarding the transaction procedural framework.

The Fund Manager will review the offer received on behalf of the Fund, seeking the best interests of the fund Unitholders, through hiring specialized consultants, and submitting a summary report to the Fund Unitholders to enable them to vote on the required amendments to the Fund’s Terms and Conditions, if the offer is accepted.

The Fund Manager would like to assure the Fund Unitholders that the offer received from the Company, the Fund Asset lessee, will not affect the Fund's ongoing operations, as stipulated in the Fund’s Terms and Conditions and the Fund’s related contractual agreements.  Until the Fund receives the required approvals regarding the offer in its binding form.

The Fund Manager will share with unitholders a copy of the offer.

It’s worth noting that the potential transaction involves related parties as some members of the Board of Directors also have an interest in the potential transaction, this matter will be evaluated and determined by the fund manager to ensure compliance with the relevant laws and regulations.

Details of related parties and Board Members with interest will be announced at a later stage.

The Fund will announce any fundamental changes regarding the potential transaction in a timely manner, in accordance with the relevant laws and regulations.