Announcement by Alinma investment Company regarding a material development of Alinma Retail REIT (Acquisition of a new property).

27 Rabiʻ II 1444 AH H - 21 November 2022 G

Alinma Investment Company announces a material development in the Alinma Retail REIT Fund, where a new property has been acquired

Alinma Retail REIT Fund acquired an office/commercial building, the details of which are as follow:

• The building is located on Al-Imam Abdullah bin Saud bin Abdulaziz Road in Riyadh, Kingdom of Saudi Arabia.
• The property's land area is 4,875 square meters, the built up area is 10,955 square meters, and the leasable area is 6,644 square meters.
• The property was acquired for an amount of (52,000,000) Saudi Riyals, not including the Real Estate Transaction Tax, and the Commission Fee amounted to 500 thousand Saudi Riyals (0.96%).
• The total income of the property is (4,729,358.94) Saudi Riyals (with a return of 9.1%), with the capability of reaching 5,181,923 Saudi Riyals (providing a return of 9.97%).
• The acquisition was financed through the Sharia-compliant banking facilities available to the fund from Alinma Bank.
• With reference to the fund's Terms and Conditions which stipulate that the Fund Manager receives 1% of the acquisition price of each real estate asset in exchange for conducting the necessary investigations and negotiations, and with the aim of achieving a positive impact on the fund and the unitholders, Alinma Investment Company waived the respective fee.

It is expected that the financial impact of the deal will be overall positive, which will be reflected on the fund's results during the upcoming period. We would also like to point out that there are no related parties in this deal.

It should be noted that the acquisition agreement is conditional on the completion of due diligence procedures.