Ajyad Al Sad Land

Makkah CITY

PREPARED FOR
KASB Capital

APRIL 2018
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REF: WCRE-18-164-1
Date: 12/04/2018
M/S KASB Capital Land Line: +966 11 207 9979
Attn Mr. Osama Salama Email: [email protected]

Subject: Valuation Report for Ajyad Al Sad Land in Makkah City, Saudi Arabia.

Dear Mr. Salama,

With reference to your request and approval dated on April -8- 2017 for valuation service of the Raw Land (Ajyad Al Sad Land) located in
Makkah city, please find hereafter our detailed valuation report including other information related to the mentioned property.

Issued without prejudice and liabilities

WHITE CUBES REAL ESTATE

Dr. Mohammad Taha – CEO WHITE CUBES GLOBAL Mr. Essam Al Hussaini – GM- WHITE CUBES KSA

Member of the Saudi Authority of Accredited Valuers (Taqeem) License No. 1220000263 Member of the Saudi Authority of Accredited Valuers (Taqeem) License No. 1210000474
Member of the International Association of certified valuer License No. MIE00394
Member of the Arab Academy for Valuation License No. 20100112
Senior Sworn Valuer in the Lebanese Ministry of Justice
Member of the American Institute for Valuation

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COPYRIGHT © WHITE CUBES REAL ESTATE. 2020
This report is the sole property of WHITE CUBES REAL ESTATE and must not be copied in any form or by any means, either in whole or in part, without the prior written consent of WHITE CUBES REAL ESTATE.
The information included in this report has been obtained and collected from external sources generally known to be reliable. However, no warranty given in respect to the accuracy of these information. We would
like to be informed of any inaccuracies so that we may correct them.

WHITE CUBES REAL ESTATE is the exclusive real estate advisory agent for TAHA CORP CONSULTING in the Kingdom of SAUDI ARABIA

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Table of Contents
(Please Click on the Title for Direct Access)

INTRODUCTION 7

INSTRUCTION 8
CLIENT 8
INTREST TO BE VALUED 8

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STATUS OF CONSULTANT / VALUER 8
INDEPENDENT CONSULTANT 8
DISCLOSING CONFLICT OF INTREST 9
CONFIDENTIALITY 9
ENVIRONMENTAL MATTERS 9
STRUCTURAL STABILITY (IF ANY) 10
OPINION OF VALUE 10
VALUATION STANDARDS 10

KSA – ECONOMIC OVERVIEW 11

GROSS DOMESTIC PRODUCTS (GDP) 12

UNEMPLOYMENT RATES 12
INFLATION RATES 13
INTREST RATES 13
CONSUMER PRICE INDEX (CPI) 14
GOVERNMENT REVENUES 15
GOVERNMENT SPENDING 15
BUDGET ALLOCATION FOR 2017 16
GASOLINE PRICES 16
POPULATION STATISTICS 17
GENERAL STATISTICS FOR 2016 / 2017 18
KSA ECONOMIC VISION 2030 – 8 KEY POINTS 19

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KSA – FACTORS AFFECTING REAL ESTATE MARKET 21

REAL ESTATE MARKET INSIGHTS 22

REAL ESTATE MARKET YIELDS-2017 23
TAXATION OF UNDEVELOPED LANDS 24
REIT DEFINITION 25
NEW TAX REGULATIONS 27
THE NEW CITY OF NEOM - KSA 28

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PROPERTY INFO 31

PROPERTY DESCRIPTION 32
TITLE DEED & OWNERSHIP 32
BOUNDARIES 32
LAND SPECS 33
PROPERTY ZONING: 33
INFRASTRUCTURE FACILITIES: 33
LOCATION 34
ACCESS & LAND MARKS 35
PHOTO RECORD 36

VALUATION 37

PURPOSE OF VALUATION 38
CLIENT APPROVAL DATE 38
INSPECTION DATE 38
VALUATION DATE 38
REPORT DATE 38
INSPECTION ROLE 39
MARKET SURVEY 39
REPORT CURRENCY 39
INSURANCE 39
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LEGAL NOTICES 40
INFORMATION SOURCE 40
DOCUMENTS RECIEVED 40
KNOWLEDGE & SKILLS 41
OUR ACCREDDITED VALUERS IN TAQEEM 41
VALUATION COMPLIANCE 42
VALUATION STANDARDS 42
BASES OF VALUATION: 42
VALUATION APPROACH: 45
GENERAL ASSUMPTIONS 47

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RISK ANALYSIS 48
COMPARABLE APPROACH 49
SUBJECT PROPERTY VALUE 50
REPORT USE 50
DISCLAIMER 50
CONCLUSION: 51

RELATED DOCUMENTS 52

TITLE DEED 53

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INTRODUCTION
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This section is to express disclosures, disclaimers and general

statements about the limitations of the valuation procedures.

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INSTRUCTION CLIENT

We have received instruction from KASB Capital dated on April 8/2018 to The client to whom this report is prepared is KASB Capital, a company working
proceed with the valuation service for Ajyad Al Sad Land in Makkah city. under the Saudi law and regulations.

Valuation Type Real Estate Client Name KASB Capital

Instructions From KASB Capital Domain Investment Firm
Property Type Raw Land Location KSA, Riyadh
Property Name Ajyad Al Sad Land Contact Person Osama Salama

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Location Makkah Contact No. +966 11 207 9979

INTREST TO BE VALUED STATUS OF CONSULTANT / VALUER

We are instructed that the Subject Property should be valued as freehold, free We confirm that the Valuer / Consultant has no material connection or
from any encumbrances or third-party interests. We have not made any involvement with the subject of the valuation or with the Client and can provide
investigation on the title and have assumed that any such investigation would an objective and unbiased valuation. We confirm the Valuer is competent to
not identify any discrepancies in ownership. undertake the valuation assignment and has sufficient skills and knowledge of
the respective market to undertake the valuation.

INDEPENDENT CONSULTANT

An External Valuer is defined in the RICS Standards as; “A valuer who, together with any associates, has no material links with the client company or the subject
of the assignment.”

We confirm that we are an independent contractor for the subject service, and nothing contained in this agreement shall be construed as constituting any
relationship with the client other than that of client and independent contractor, or as creating any employment relationship whatsoever between the client &
White Cubes staff. We also confirm that we have no conflict of interest to the client’s property.

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DISCLOSING CONFLICT OF INTREST

We would like to bring to your attention the following:

No If Yes Remarks
Client Date
The subject property was previously valuated by White Cubes ------------------- --------- --------------------------------------
White Cubes was previously involved in selling activities related to the property ------------------- --------- --------------------------------------
White Cubes was previously involved in advisory services related to the property ------------------- --------- --------------------------------------

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CONFIDENTIALITY ENVIRONMENTAL MATTERS

This document and / or any other documents received from the client are We are not aware of the content of any environmental audit or other
confidential between White Cubes Est. and the client. Except as may be environmental investigation or soil survey which may have been carried out on
required by any court or authority, the subject service shall not disclose or use the property and which may draw attention to any contamination or the
or cause to be disclosed or used, at any time during the Term. possibility of any such contamination.

Any of the Client's secrets and/or confidential information, any other non-public In undertaking our work, we have been instructed to assume that no
information relating to the client business, financial or other affairs acquired by contaminative or potentially contaminative use has ever been carried out on
the subject service during the process remain confidential. the property.

We have not carried out any investigation into past or present uses, either of
the properties or of any neighboring land, to establish whether there is any
contamination or potential for contamination to the subject properties from the
use or site, and have therefore assumed that none exists.

However, should it be established subsequently that contamination exists at

the properties or on any neighboring land, or that the premises has been or is
being put to any contaminative use, this might reduce the value now reported.

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STRUCTURAL STABILITY (IF ANY)

Our scope of service does not include any technical testing of structure for stability and strength measurements. However, and in case of any visualy observed
and noted deficiencies within the structure, we will note them in our report and to be reflect in the estimation of value.

OPINION OF VALUE

All the outputs will be shown in this report (Values) are based on our best knowledge of the market, documents received from the client (assumed to be correct),

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market findings and inspection inputs. Yet, the estimated values of the subject property / properties express our opinion of values based on the previously
mentioned findings.

VALUATION STANDARDS

The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Royal Institution of Chartered
Surveyors (RICS) Valuation Standards (2014 edition) and Rules of Conduct for members. In addition to recently published International Valuation Standards
issued by IVSC (International Valuation Standards Council) and applied by TAQEEM (Saudi Authority for Accredited Valuers).

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KSA – ECONOMIC OVERVIEW

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Real estate sector’s performance is bounded to the economic

conditions and factors. In this section of the report, we will state some
economic current facts and future estimations to be used as decision
making tools from an investor point of view.

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GROSS DOMESTIC PRODUCTS (GDP)

Saudi Arabia has an oil-based economy. Shipments of oil KSA GDP GROWTH RATE
account for 87 percent of total exports and for 46 percent of 8 6.26
GDP. In recent years, aiming to diversify the economy, the 4.5
6 4.9 4.9
government has been investing in telecommunications, 3.67 3.27 3.5
4 2.28 2.44 1.5 2.2
1.8 1.7 1.9 2.1
petrochemicals, natural gas exploitation and power 2
1.4 0.9
generation sectors. However, since January 2016, the rate 0
dropped considerably and reached its lowest value of 0.9 Jan Jul Jan Jul Jan Jul Jan Jul 2020
during the last quarter of the year. It is expected to gain 2014 2014 2015 2015 2016 2016 2017 2017 (F)

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(F) (F)
back its strength and reach 3.5% in 2020.
KSA GDP GROWTH RATE 2 per. Mov. Avg. (KSA GDP GROWTH RATE)
Source: Trading Economics

UNEMPLOYMENT RATES

Unemployment Rate in Saudi Arabia is expected to be 6 percent by the end of this quarter, according to Trading Economics global macro models and analysts’
expectations. The said rate is expected to stay stable throughout 2017. In the long-term, the Saudi Arabia Unemployment Rate is projected to trend around 5.8
percent in 2020, according to our econometric models.
KSA UNEMPLOYMENT RATE
6.2
6
5.8 6
5.6 6 6 6.1 6.1
5.9 5.6 5.6
5.7 5.7 5.7 5.7 5.8
5.4 5.6 5.6 5.6
5.5
5.2
Jan 2014 Jul 2014 Jan 2015 Jul 2015 42370 42552 Jan 2017 Jul 2017 2020 (F)
(F) (F)

KSA UNEMPLOYMENT RATE 2 per. Mov. Avg. (KSA UNEMPLOYMENT RATE)

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INFLATION RATES

Consumer prices in Saudi Arabia increased by 4.3 percent 5 4.2 4.3 4.2 4.14.1
year-on-year in January of 2016, compared to 2.3 percent 4 3.8 3.5 3.4
4.3 3 3.1
growth in the previous month. It was the highest reading since 3 2.3 3.3 3.1
3.3
2012, as transport (+12.6 percent) housing and utilities (+8.3 2 2.6
percent) and food (+1.3 percent) cost rose, boosted by a hike 1 1.7
in gasoline prices. On a month-on-month basis, consumer 0
Jan-16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sept 16 Oct 16 Nov 16 Dec 16 Jan 17 Apr 17 Jul 17 Oct 17 2020 (F)
prices dropped to 1.7 percent in December 2016. Inflation Rate (F) (F) (F) (F)
in Saudi Arabia is reported by the Central Department of

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INFLATION RATE
Statistics & Information, Saudi Arabia.

INTREST RATES

The Saudi Arabian Monetary Agency left its benchmark repo rate steady at 2 percent since 2009, but after 8 years, it is expected to reach 2.5% by 2017. Interest
Rate in Saudi Arabia averaged 3.86 percent from 1992 until 2015, reaching an all-time high of 7 percent in May of 2000 and a record low of 1.50 percent in March
of 2004. In 2020, the Rate is projected to reach 5.5% for the first time after 2008’s record. Interest Rate in Saudi Arabia is reported by the Saudi Arabian Monetary
Agency.

3
5.5
2

2.5
1 2 2 2 2 2 2 2 2

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (F) 2020 (F)

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CONSUMER PRICE INDEX (CPI)

Consumer Price Index CPI in Saudi Arabia is expected to increase to 143 Index Points in January 2017 from 136.8 Index Points in December of 2016. Consumer
Price Index CPI in Saudi Arabia averaged 102.16 Index Points from 1999 until 2016, reaching an all-time high of 138.10 Index Points in July of 2016 and a record
low of 84.80 Index Points in August of 2001. In the third quarter of 2017, the Index Points are expected to reach 145, and jump to 163 in 2020. Consumer Price
Index CPI in Saudi Arabia is reported by the Central Department of Statistics & Information, Saudi Arabia.
CPI
165
163

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160

155

150

145
145 144
143 143

140 138.1
137.6 137.6 138 137.9 137.9 137.8 137.5
137.1 137 137.3 136.8

135

130

125

120
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Apr-17 Jul-17 Oct-17 2020 (F)
(F) (F) (F) (F)

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GOVERNMENT REVENUES
GOVERNMENT REVENUES ',000'
1,700
Government Revenues in Saudi Arabia decreased to
608,500 SAR Million in 2015 from 1,156,361 SAR 1,500
Million in 2013. Government Revenues in Saudi 1,300
1,156
Arabia averaged 322,409.49 SAR Million from 1969 1,046
1,100 1,012.3
until 2015, reaching an all-time high of 1,247,398 911.9
864.3
SAR Million in 2012 and a record low of 5,668 SAR 900
Million in 1969. The Revenues are expected to 700 608.5 615.9 649
increase again in the upcoming years, reaching

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500
almost 1,012,366 SAR Million in 2020. Government
Revenues in Saudi Arabia is reported by the Saudi 300

Arabian Monetary Agency. 100

Source: Saudi Central Department and Statistical Information (CDSI) -100 2013 2014 2015 2016 2017-F 2018-F 2019-F 2020-F

GOVERNMENT SPENDING GOVERNMENT SPENDING ''000''

1482
1500 1420
Government Spending in Saudi Arabia decreased to
153,902 SAR Million in the third quarter of 2015 from 1300 1185
1156
196,810 SAR Million in the second quarter of 2015. 1046
1100
Government Spending in Saudi Arabia averaged
1,073,250 SAR Million from 2013 until 2016, 900
reaching an all-time high of 1,482,000 SAR Million in
700 609
2016, and a record low of 609,000 SAR Million in
2015. A remarkable increase is projected in 2020, in 500
which the Government Spending will reach almost
300
1,420,000 SAR Million. Government Spending in
Saudi Arabia is reported by the Saudi Arabian 100
Monetary Agency.
-100 2013 2014 2015 2016 2017-F 2020-F
Source: Saudi Central Department and Statistical Information (CDSI)

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BUDGET ALLOCATION FOR 2017

MUNICIPAL SERVICES, 5.5%
PUBLIC PROGRAMS UNIT,
Public Administration 27 SAR bn 12.0% EDUCATION, 22.5%
Military 191 SAR bn
Security & Regional Adm. 97 SAR bn PUBLIC ADMINISTRATION,
3.0%
Municipal Services 48 SAR bn ECONOMIC RESOURCES,
5.0%
Education 200 SAR bn
Health & Social Dev. 120 SAR bn INFRASTRUCTURE & HEALTH & SOCIAL
TRANSPORT, 6.0% DEVELOPMENT, 13.5%
Economic Resources 47 SAR bn

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Infrastructure & Transport 52 SAR bn
Public Programs Unit 108 SAR bn
MILITARY, 21.5% SECURITY & REGIONAL
Source: Ministry of Economy
ADMINISTRATION, 11.0%

GASOLINE PRICES

Gasoline Prices in Saudi Arabia had a stable value of 0.24 USD/Liter throughout 2016 as of May, according to Trading Economics global macro models and
analysts’ expectations. The number is expected to increase in 2017 and reach 0.30 USD/Liter by the end of the year. The Saudi Arabia Gasoline Prices is projected
to trend around 0.50 USD/Liter in 2020, according to our econometric models.
Gasoline Prices
0.6
0.5
0.5
0.4
0.28 0.3 0.3 0.3
0.3 0.24 0.25 0.25 0.25 0.24 0.24 0.24 0.24 0.24 0.24 0.24
0.2 0.16
0.1
0
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Oct-16 Nov-16 Dec-16 Jan-17 (F) Apr-17 (F) Jul-17 (F) Oct-17 (F) 2020 (F)

Gasoline Prices USD/Liter

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POPULATION STATISTICS

Based on the last population statistics issued by the 40

government and the forecast done by the Central
Department of Statistics and Information (CDSI), the
population increased from 27.5 million in 2010 to 35 33.62
34.27
31.5 million by end of 2015 (F). It is expected that the 32.94
32.24
31.52
population count will reach 34.2 million by end of 30.77
29.99
2019. 30 28.37
29.19
27.56

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Total Population Saudis None Saudis 25
22.38 22.78
2010 27.56 18.97 8.58 4.55% 21.55 21.97
20.7 21.12
2011 28.37 2.94% 19.4 2.27% 8.97 4.24% 19.83 20.27
20 18.97 19.4
2012 29.19 2.89% 19.83 2.22% 9.35 3.96%
2013 29.99 2.74% 20.27 2.22% 9.72 3.50%
2014 30.77 2.60% 20.7 2.12% 10.06 3.28%
15
2015 31.52 2.44% 21.12 2.03% 10.39 2.89%
11.24 11.48
2016 32.24 2.28% 21.55 2.04% 10.69 2.62% 10.39 10.69 10.97
9.72 10.06
2017 32.94 2.17% 21.97 1.95% 10.97 2.46% 10 8.97 9.35
8.58
2018 33.62 2.06% 22.38 1.87% 11.24 2.14%
2019 34.27 1.93% 22.78 1.79% 11.48 4.55%
5

The average population increase is Saudi Arabia is

almost 2.5% annually. The CAGR rate for Saudis is 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
almost 2.0% while it gets higher for none Saudis with
approximate rate of 3.29% Total Population Saudis None Saudis

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GENERAL STATISTICS FOR 2016 / 2017

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KSA ECONOMIC VISION 2030 – 8 KEY POINTS

SAUDI ARAMCO

Aramco will be converted into an energy holding company with an elected board and some subsidiaries will
be listed. Prince Mohammed said he expected the parent company to be valued at more than $2 trillion,
less than 5 % of which would be sold in an initial public offer. Selling even 1 % of the firm would constitute
the world’s biggest IPO, he added.

PUBLIC INVESTMENT FUND

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Restructure the state-owned Public Investment Fund (PIF), which the prince said would turn the world’s top
oil exporter into a global investment power. New assets, including state oil giant Saudi Aramco, would be
included in the redesigned fund. The prince said the PIF made returns of 30 billion riyals ($8 billion) in 2015
and that it would aim to increase its assets to more than 7 trillion riyals from 600 billion riyals.

RESTRUCTURING

Restructuring state assets and agencies, rather than spending cuts, will be key to making government
finances viable in the long term; Prince Mohammed said the reforms would not require major new spending
by the government but work on existing infrastructure projects would continue. He cited the housing ministry
as a target for restructuring. State price subsidies would be targeted more carefully so they went to the
people who needed them, not the rich.

MILITARY SECTOR

The government plans to set up a holding company for military industries that will be fully state-owned at
first and later listed on the Saudi bourse. Prince Mohammed said he expected the listing to take place by
the end of 2017.

PILGRIMS

The plan envisages a massive increase in Saudi Arabia’s capacity to receive Islamic pilgrims, to 30 million annually from 8 million.
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GREEN CARD” SYSTEM

Saudi Arabia will introduce a “green card” system within five years to give resident expatriates more rights to live and work in the kingdom over the long term.
Details were not given.

MINING AND RENEWABLE ENERGY

The plan sets a target for the kingdom to generate 9.5 gigawatts of renewable energy and to have the industry produce more of its equipment locally. It aims to
raise the mining industry’s contribution to gross domestic product to 97 billion riyals ($25.9 billion) and to increase the number of jobs in the sector by 90,000 by

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2020.

GOALS

The plan includes more than a dozen other numerical

goals, though it does not give details of how they will be
achieved. The deadline to achieve most of the goals
appears to be 2030. For example, the government’s non-oil
revenues are to reach 600 billion riyals by 2020 and 1 trillion
riyals by 2030, from 163.5 billion riyals in 2015.
Unemployment among Saudi nationals is to fall to 7 % from
11.6 %. Financial institutions will be encouraged to allocate
up to 20 % of their overall funding to small and medium-
sized enterprises by 2030.
Foreign direct investment will be raised to 5.7 % of GDP
from 3.8 %. Household savings are to rise to 10 % of total
household income from 6 %.

The share of non-oil exports in GDP is to rise to 50 % of GDP from 16 %. Doubling the number of archaeological sites recognized by UNESCO. Having three
Saudi cities recognized as among “the top 100 cities in the world”. Increasing the number of Saudis who play sports at least once a week to 40 % from 13 %.

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KSA – FACTORS AFFECTING REAL ESTATE MARKET

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This section talks briefly about the major aspects of the real estate
market in Saudi arabia.in addition to that, some other factors were
briefly stated which they can have big influence on the real estate
market as an overall.

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REAL ESTATE MARKET INSIGHTS

GOVERNEMENT SUPPORT MINISTRY OF HOUSING FOREIGNER OWNERSHIP REIT FUNDS

----------------------------------------- ----------------------------------------- ----------------------------------------- -----------------------------------------
The government intention to The Saudi ministry of housing The Saudi government is The Real Estate Investment
diversify economy by other has already initiated the plan of currently reviewing the Trust is a new investment trend
sectors than oil sector. this adding almost 500,000 housing regulations of foreigners’ in the Saudi market which has
diversification mainly focused units in different areas and ownership of housing units. The started in early 2017. Later in
on the supporting of the cities within the kingdom. The aim of this revision is to ease this section we will indicate the
industrial sector such as hosting step has come after the huge the procedures to enhance the rules and regulations of REIT

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the largest and integrated demand in the demand and residential real estate market funds which are issued by the
phosphate fertilizer facilities in acquisition financial obstacles performance by injecting Saudi Capital Market Authority
the world, tourism sector and of housing units by the mid to liquidity in the market and (CMA)
public services sectors low income level social absorb any market oversupplied
classes. units.

RESIDENTIAL SECTOR OFFICES & RETAIL HOSPITALITY INDUSTRIAL SECTOR

----------------------------------------- ----------------------------------------- ----------------------------------------- -----------------------------------------
Currently the real estate The retail sector has good As an overall, the hospitality Since one of the current major
residential market is witnessing market performance compared sector in Saudi Arabia focuses of the Saudi
huge demand for the acquisition to other sectors and especially supported by three main types government is to invest, expand
of housing units. Yet, the in the F&B sector. Yet, and of tourists; Business tourists (in and support the industrial
current inflated prices slow recently, the retail sector the main cities such as Riyadh, sector, huge demand starts to
down the transactions and witnessed some pressure when Jeddah & Dammam), internal arise among the major cities in
waiting for these prices to be the expat taxations announced. tourists (such as Jeddah & Taif) KSA for warehouses projects
corrected and back to normal. As for the offices sector, ist is and above all the religious and spaces. The performance
On the other hand, the Union of noted that the rental rates in the tourists (Makkah & Madinah) in of this sector is expected to
Owners law still under the market is decreasing, but it is the seasons of Hajj & Umra. continue the positive growth
process which will give great expected that this sector will Currently, the hospitality sector over the coming years
boost for the apartment units in recover soon based on the has very good performance in supported by the needs of other
the market once approved and foreigner investors new terms of occupancy rates, sectors such as the retail
announced. regulations. ADRs and RevPars sector.

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REAL ESTATE MARKET YIELDS-2017

All the mentioned below yields for different sectors are based on the many different market transaction. They are also influenced by the market conditions and
economic factors. The below shows the expected real estate yield rates for some major cities within the Kingdom of Saudi Arabia.

RESIDENTIAL UNITS
City Riyadh Jeddah Dammam Khobar Makkah Average Yield Rate in Major Cities
Min – Avr 8.0% 7.5% 8.5% 8.5% 6.0% 13%
Max - Avr 9.5% 9.0% 10.0% 10.0% 8.0%

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12%

OFFICES
11%
City Riyadh Jeddah Dammam Khobar Makkah
Min – Avr 7.5% 7.0% 8.0% 8.0% 6.0%
Max - Avr 9.0% 8.5% 9.5% 9.5% 8.0% 10%

9%
RETAIL
City Riyadh Jeddah Dammam Khobar Makkah 8%
Min – Avr 7.0% 7.0% 7.5% 7.5% 5.5%
Max - Avr 9.0% 8.5% 9.0% 9.0% 7.5% 7%

6%
HOSPITALITY
City Riyadh Jeddah Dammam Khobar Makkah 5%
Min – Avr 7.0% 6.5% 7.5% 7.5% 4.0%
Max - Avr 8.5% 8.0% 9.0% 9.0% 6.5%
4%

3%
WAREHOUSES
City Riyadh Jeddah Dammam Khobar Makkah
Min – Avr 8.0% 7.5% 7.0% 7.0% 6.5% 2%
Max - Avr 9.5% 9.0% 8.5% 8.5% 8.0% Residential Offices Retail Hospitality Warehouse

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TAXATION OF UNDEVELOPED LANDS

Saudi Arabia has recently announced that it plans to levy fees against vacant land in urban
areas throughout the Kingdom. Until this point, Saudi Arabia has been largely tax-free,
especially with regard to real estate. The aim of this initiative is to encourage development Phase 1 Phase 2 Phase 3 Phase 4

of urban areas within the Kingdom. Development is currently slow and unappealing largely
due to the cost of purchasing the land in the first instance. The cost of the land can comprise
as much as 50% of the total project costs, which is due largely to vast areas of prime real Undevelop
Developed Developed Developed
Lands in 1 Lands in 1 Lands in 1
estate being stockpiled by wealthy individuals and Companies with no intention of developing ed Lands Master Master City
+10,000 plan plan
the land but simply holding onto the land as a store of value. This proposal is in initial stages +5,000

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Sqm +10,000 +5,000 Sqm
and the true impact will fundamentally depend on the level of taxation which is imposed. Sqm Sqm

PHASES OF LAND TAXATION

JEDDAH CITY RIYADH CITY DAMMAM CITY

Geographical Areas included Geographical Areas included Geographical Areas included

within the Regulation within the Regulation within the Regulation

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REIT DEFINITION

Real Estate Investment Traded Funds, or REITs, are financial instruments that allow all types of investors to obtain investment exposure to the Real Estate Market.
This is achieved through collective ownership of constructed developed real estate qualified to generate periodic and rental income. REITs can invest locally,
regionally and globally, where the total asset value outside the Kingdom shall not exceed 25% of the fund's total asset value. REITs consist of units, where each
unit represents ownership in the underlying real estate. REITs are traded on the Exchange just like equities during trading hours. In addition, REITs are required
to distribute at least 90% of the fund’s net profits to the unit holders annually, as per the instructions issued by the Capital Market Authority (the CMA).

REIT SPECIFICATIONS

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Assets of Investment Real Estate Assets
Asset Type Income Generating Asset
Fund Legal Type Closed Ended Fund – Publicly Listed in the stock exchange
Number of Investors Minimum of 50 investors
Initial Offer Minimum of 100 Million SAR ( will change up to 500 Million SAR)
Nomina Value of Unit 10 SAR / Unit
Assets Ownership The assets must be registered under the name of third party (custodian) and owned by the unit holders
Distibutions At least 90% of the fund’s net profits must be distributed annually to the unit holders
Leverage The borrowing of the fund's must not exceed 50% of the total assets value of the fund
Assets Condition At Least 75% of the assets should be income generating properties, while the remaining 25% can be under development projects.
Land Assets No investment in vacant lands allowed.
Assets outside KSA Not more than 25% of the assets can be included in the fund
Public Ownership At least 30% of the total REIT units are owned by unit holders from the public

REIT

Conditional Income Ease of Investment High Transparency

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REIT STAKEHOLDERS

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NEW TAX REGULATIONS

Saudi Arabia’s move to impose various type of taxes on commodities, goods and services as well as residency and visit visa fees and charges on dependents of
expats is expected to boost the Government finances.3 major types of taxes were imposed as follows:

Selective commodity tax

Saudi Arabia officially applied the selective commodity tax Increasing its prices will also reduce the
on June 11, 2017. The tax will be imposed on three number of the children and youth who will
commodities - 100 % for tobacco and its derivatives, 100 % start using it, as they are the targeted

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for energy drinks, 50 percent for soft drinks. It would be category by companies producing these
collected in one phase from the suppliers and products. In the same context, the General
manufacturers, and these taxes are expected to increase Authority for Zakat and Income predicted that
the Government budget revenues. Selective taxation might Saudi Arabia’s revenues will reach more than
motivate many to quit these harmful substances instead of $3.2 billion (SR 12 billion Saudi riyal)
the huge budgets allocated annually to treat patients as a annually, after imposing the selective
result of consuming these substances. commodity tax.

VAT in 2018

Value-added Tax (VAT) is an indirect tax. This tax may It will be imposed on all products and
sometimes be referred to as a type of depreciation tax. In services, as a percentage of the value of the
countries with a value-added tax system, most goods and product, so that these companies and sales
services purchased and sold are charged. The Saudi points will collect consumer taxes for the
Ministry of Finance will begin to impose a value-added tax governments. The products exempted from
to be applied in the GCC starting from 2018. It is expected this tax do not exceed 100 products, while the
to have repercussions on many economic sectors. This tax Kingdom's estimated revenues from VAT are
is levied on goods and services during the various stages estimated to be $10.65 billion (40 billion Saudi
of the supply chain, including the final selling stage riyals).
indirectly, which is imposed on the difference in the cost
price and the sale price of the goods, and on the cost of
production

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Expat Tax

The decision to increase the residency and visitor visa In 2019, the expatriate labor fees in a
fees was implemented as a step towards balancing company whose number of foreign
budget revenues and expenditures by 2020. A monthly employees exceed the number of Saudis
fee for expats and their companions will be applied in will be increased to 600 riyals monthly, and
2017 to expatriate workers in the Kingdom at SR 100 in sectors with a lower number of Saudis to
Saudi riyal for each facility, which aims to garner $266 500 riyals per month, with an increase of
million (1 billion Saudi riyal) by the end of the year. In each companion fees to be 300 riyals per
2018, a monthly fee of 400 Saudi riyals will be levied month. This is expected to collect $11.72

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on every employee in a company whose number of billion (44 billion Saudi riyals). In 2020, 800
foreign employees exceed the number of Saudis, and Saudi riyals will be collected on every
300 Saudi riyals fee on every employee in a company employee in a company whose number of
whose number of foreign employees is less than the foreign employees exceed the number of,
number of Saudis, and 200 Saudi riyals on every while it will be 700 Saudi riyals for every
person these foreign employees sponsor. Thus, it is employee in a company whose number of
expected to collect $6.39 billion (24 billion Saudi riyals) foreign employees is less than the number
in 2018, from the program of financial compensation for of Saudis. This is expected to collect $17.3
expats. billion (65 billion Saudi riyals).

THE NEW CITY OF NEOM - KSA

Saudi Crown Prince Mohammed bin Salman announced in October 2017 the
launch of NEOM City, a project that aspires to be the “safest, most efficient, most
future oriented, and best place to live and work” in the kingdom. NEOM’s land
mass will extend across the Egyptian and Jordanian borders, rendering NEOM
the first private zone to span three countries. The project will be backed by more
than $500 billion over the coming years by Saudi Arabia. Wind and solar power
will allow NEOM to be powered solely by regenerative energy, while 70 percent
of the world’s population will be able to reach it within eight hours.

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NEOM DESTINATION OF THE FUTURE

• NEOM aspires to be the safest, most efficient, most future oriented, and best place to live and work.
• NEOM is developed independent of the Kingdom’s existing governmental framework with investors, businesses, and
innovators consulted at every stage of development.
• NEOM's unique location connects Asia, Europe, and Africa, will include the world’s most significant and promising economic
sectors.
• NEOM land expands over 26,500 km2; its location will facilitate NEOM's rapid emergence as a global hub that has the
potential to bring together the best of Arabia, Asia, Africa, Europe and America.

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• NEOM will be backed by more than $500 billion over the coming years by the Kingdom of Saudi Arabia, the Saudi Arabian
Public Investment Fund, local as well as international investors.

ABOUT NEOM

NEOM commands a unique location to bring together the best of Arabia, Asia, Africa, Europe and America. NEOM resides in the Northwestern region of Saudi
Arabia, and spans over 26,500 km2. Overlooking the waterfront of the Red Sea to the South and the West, and the Gulf of Aqaba, NEOM enjoys an uninterrupted
coastline stretching over 468 km, with a dramatic mountain backdrop rising to 2,500 m to the East. A constant breeze leads to mild temperatures. The wind and
sun will allow NEOM to be powered solely by regenerative energy.

NEOM is situated on one of the world’s most prominent economic arteries, through which nearly a tenth of the world’s trade flows. Its strategic location will also
facilitate the zone’s rapid emergence as a global hub that connects Asia, Europe and Africa, enabling 70% of the world's population to reach it in under eight
hours, which brings the potential to combine the best of major global regions in terms of knowledge, technology, research, teaching, learning, living and working.
The site will also become the main entrance to the King Salman Bridge, linking Asia and Africa, which will add to the zone’s economic significance. NEOM’s land
mass will extend across the Egyptian and Jordanian borders, rendering NEOM the first private zone to span three countries.

Investments and financing will play a vital role in NEOM, set to be spearheaded by the Kingdom’s economy and supported by the Public Investment Fund (PIF) –
a major global fund with access to a worldwide network of investors and major companies -- set to be brought onboard to drive the success of NEOM. With the
ambition of becoming one of the world’s future economic and scientific capitals, in addition to being the future commerce capital of Saudi Arabia, NEOM is set to
attract new foreign direct investment that will contribute to PIF’s long-term growth strategy aimed at strengthening the Saudi Arabian economy. NEOM is developed
to be independent of the Kingdom’s existing governmental framework, excluding sovereignty.

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NEOM will adopt a regulatory framework that fosters technological as well as societal innovation and entrepreneurship in accordance with international best
practices. Investors, businesses, and innovators will be consulted at every step of the development in how best to create the economic framework, design the
urban plans, and attract top quality talent that will drive the growth of this zone and its resident population.

NEOM will achieve its ambitious goals of becoming among the top secure areas in the world – if not the most– by adopting the future technologies in the fields of
security and safety. This will raise the standards of public life activities and ensure the safety and protection of residents, visitors, and investors. All services and
processes in NEOM will be 100% fully automated, with the goal of becoming the most efficient destination in the world, and in turn be implemented on all activities
such as legal, government, and investment procedures among others. Additionally, NEOM will be subject to the highest sustainability standards, and will provide
all transactions, procedures, and claims through paperless and electronic means.

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A new concept for the workforce will be implemented, based on attracting high-caliber human resources with unique competencies for full-time innovation, decision
making and business leadership. Repetitive and arduous tasks will be fully automated and handled by robots, which may exceed the population, likely making the
NEOM's GDP per capita the highest in the world. All these elements will put NEOM at the world’s forefront in terms of efficiency which will make it the best
destination in the world to live in.

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PROPERTY INFO
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This section indicates full description of the subject property /

properties that contains the legal documents info, location,
components, status, condition and many other elements.

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PROPERTY DESCRIPTION

The subject property is a vacant Land located in Ajyad district, Makkah city. The Property has a total land area of 1,854.45 Sqm. The purpose of valuation that
include the subject property is for Private Fund Audit Requirement Purposes.

TITLE DEED & OWNERSHIP BOUNDARIES

We were provided with copy of the title deed of the subject property which is King Fahad Street
owned by one title deed. The details of the subject property:

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Starbuck Coffee shop

Commercial Building
City Makkah
District Ajyad

Title deed Type Electronic

T.D No. 920108008237
T.D Date 14/03/1438 H. D
Title Deed Value -------
Date of Latest Transaction 14/03/1438 H. D Naseem Road
Issued by Makkah Notary
North South East West
Property Type Vacant Land Pathway ------------ ------------ ------------
Land Area (Sqm) 1,854.45 Street ------------ ------------ ------------ ------------
Plot No. ------- Plot ------------ ------------ ------------ ------------
Block No. ------- Block ------------ ------------ ------------ ------------
Layout No. ------- Private Property ------------
Owners Mosfar Bin Abdullah Bin Yehya Al Bawaredi Mountain ------------
Ownership Freehold Valley ------------ ------------ ------------ ------------
Limitations of Document ------------ Sea ------------ ------------ ------------ ------------
River ------------ ------------ ------------ ------------
Notes The client has provided us with copy of the Title Deed Direct View on Internal Road
which was assumed to be correct and authentic. Sides Open 1
It is not in our scope to run legal diagnosis on any legal
document. Length 74 m 18 m 101 m 154 m

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LAND SPECS

The subject property (Land Only) has the following criteria:

Current Land Status Current Land Use Current Land Grading Current Surrounding Property
Vacant Commercial ------------- Graded ------------- Commercial -------------
Constructed ------------- Industrial ------------- Semi-Graded Industrial -------------
Under Construction ------------- Residential Mountain ------------ Residential
Excavated ------------- Agricultural ------------- Valley ------------- Hospitality
Raw Land ------------- Mix Use ------------- Slope ------------- Mix Use ------------

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PROPERTY ZONING:

The subject property is currently a Vacant Land in Makkah city. As per the city’s municipalities rules and regulations, the subject property is zoned as per the
following:
Raw Land Developed Land Occupied Land Outside Urban Areas
Residential ------ Applicable ------ ------
Commercial ------ ------ ------ ------
Industrial ------ ------ ------ ------
Agricultural ------ ------ ------ ------
Hospitality ------ Applicable ------ ------
Not Classified ------ ------ ------ ------

INFRASTRUCTURE FACILITIES:

Available in the surrounding Connected to the property

Water
Electricity All the infrastructural facilities are available in the
Tele-Communication surroundings and connected to the subject property.
Sewage

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LOCATION

The subject property is located in Ajyad District in Makkah city. The location and coordinates of the subject property are as follows:

Subject Property
21°25'10.8"N
39°50'01.5"E

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N Coordinates 21°25'10.8"N
E Coordinates 39°50'01.5"E
City Makkah
District Ajyad
Street Internal street
Property Type Vacant Land
Source: White Cubes & Google Maps

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ACCESS & LAND MARKS

The subject property can be accessed through the following main streets as shown in the map below.

ACCESS TO SUBJECT PROPERTY

7 The subject property can be accessed through the following roads:

North Side: Second RIng Rd.

Second Ring Rd. South Side: Ajyad St.

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East Side: King Abdul Aziz Rd.
West Side: King Abdul Aziz Rd.

LAND MARKS
1- Masjd Al Haram
2- Safa And Marwa
King Abdul Aziz Rd. 3- Al Safa Royal Palace
1 2 6 4- Al Shabeka Graveyard
4 5- Guest Palace
3 6- Al Salam Gate
5 7- Suleiman historic Palace
8- Ajyad Civil Defence Unit

Subject
8
Property Location of the subject
property according to
Ajyad St.
the City Center

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PHOTO RECORD
Date of Photos

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VALUATION
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In this section we will start the valuation process of the subject property
/ properties by applying proper valuation method. In addition, this
section will show more details about the valuation analysis,
assumption and other factors those may affect the final estimated
market value.

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PURPOSE OF VALUATION

The client requested to know the current market value of the subject property for Fund raising Purposes

Acquisition Purposes Selling Purposes Private Fund Raising

-------------------------------- --------------------------------

Public Fund Raising Real Estate Investment Trust (REIT) Internal Decision Making
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Insurance Purposes Liquidation Purposes Distribution of inheritance
-------------------------------- -------------------------------- --------------------------------

Financing Purposes Court Disputes Partnership Purposes

-------------------------------- -------------------------------- --------------------------------

Government expropriation Purposes Losses& Damages Purposes Others.

-------------------------------- -------------------------------- --------------------------------

Therefore, and according to the valuation purpose, and as requested by the client, we will adapt the valuation methodologies of Comparable Approach

CLIENT APPROVAL DATE INSPECTION DATE VALUATION DATE REPORT DATE

The client approval date reflects the The inspection date reflects the exact The Valuation date is the date on The valuation reports usually dated
green light given to use by the client date of the property’s inspection and which the opinion of value/s exactly as the valuation date. Yet,
to start the inspection procedures of the date of executed market survey. applies. The date of valuation is and in some cases, the report date
the property / properties subject to Yet, the outcome value of the subject the date were the value/s of the can be after the valuation date
the valuation process. property / properties will be based on subject property / properties is depending on the nature, size and
the findings at the inspection date. reflected. The valuation date is at location of the subject property.

April 08, 2018. April 10, 2018. April 12, 2018. April 12, 2018.

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INSPECTION ROLE

A visit to a property or inspection of an asset, to examine it and obtain relevant information, in order to express a professional opinion of its value. We hereby
confirm that we have inspected the subject property / Asset at the date of inspection. Our inspection procedure covers only the surface / boundaries / out layers
of the property. No technical inspection has been made such as soil test, construction durability, etc. the following shows the findings from the inspection
procedures.

MARKET SURVEY

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During the site visit, our team has made the
market survey for the immediate Samples Transactions Offerings Selling Prices Rental Prices
surrounding areas of the subject property to
collect all the possible and related data to
the valuation process. The collected data will General Surrounding Areas Demographic Economic Forecasts
be prices, rents, land offerings, properties
transactions, etc. the collected data type will Surrounding
Others Infrastructure Demand Drivers
be according to the property data and the Facilities
purpose of valuation.

REPORT CURRENCY

This report is using the currency of Saudi Arabian Riyals (SAR)

INSURANCE

We have not been provided with any insurance policy for the subject property.

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LEGAL NOTICES

We are not aware of nor have we been informed of any legal notices served on the property, outstanding or pending in the courts of law.

No Issues Issues Noted We have not been informed

Court Disputes -------------------------------- --------------------------------
Un Authorized Documents -------------------------------- --------------------------------
Conflict with Municipality Regulations and Law -------------------------------- --------------------------------
Mortgage and financing issues -------------------------------- --------------------------------

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INFORMATION SOURCE

For the purpose of this report, it is assumed that the written and verbal information provided to us by the Client is
up to date, complete and correct. White Cubes has furthermore undertaken further research with respect to, but Market Site
not limited to, general price levels of lands; occupancies, lease and daily active most known recent market Survey Inspection
activities. In addition, we have relied on the following sources in the valuation process.
- Market Survey done by our team
- Site inspection done by our team Local Real
Internal
Estate
- Local Real Estate Agents Agents
Databse

DOCUMENTS RECIEVED

The client has provided us by clear copy of the following documents.

Title Deed Copy Construction Permit Krooki
-------------------------------- --------------------------------

Master Plan Layouts 3D Design & Perspectives

-------------------------------- -------------------------------- --------------------------------

Pictures Presentation of the subject property Location Map

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KNOWLEDGE & SKILLS

We confirm that the undersigned valuer(s) undertaking this instruction are suitably qualified and have the appropriate knowledge and skills to undertake this
instruction. Even so, the valuer(s) acknowledge the significant assistance provided by the:
WHITE CUBES TEAM

Team Leader Site Inspection Team Reporting Team

Dr. Mohammad N Taha - Group CEO Mr Essam Hussaini - Head of Valuation Dpt. Mr. Othman Maarik - Consultant

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Approved Valuer Approved Valuer Approved Vauer

OUR ACCREDDITED VALUERS IN TAQEEM

Our main accredited Valuers and officially authorized by White Cubes Real Estate to sign on any document published by us are as per the following:

1 Dr. Mohammad N Taha – Partner – CEO

License Number 1220000263

2
Mr. Essam M. Hussaini – Owner – Head of Valuation Team
License Number 1210000474

3
Mr. Othman Al Maarik – Approved Valuer – Legal Consultant
License Number 1210000735

101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116
Valuer Name Completed Courses in Taqeem
101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116
Dr. Mohammad N Taha
Mr. Essam M. Hussaini
Mr. Othman Al Maarik
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VALUATION COMPLIANCE

The valuation has been prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation – Professional Standards (January 2014
Edition) and the International Valuation Standards Council (IVSC) International Valuations Standards (2014 Edition). It should be further noted that this valuation
is undertaken in compliance with generally accepted valuation concepts, principles and definitions as promulgated in the IVSC International Valuation Standards
(IVS) as set out in the IVS General Standards, IVS Asset Standards, and IVS Valuation Applications.

VALUATION STANDARDS

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The valuation approach done into this report took into consideration the valuation standards approved by the following associations.

- TAQEEM (Saudi Authority of Accredited Valuers).

- RICS (Royal Institution of charted Surveyors)
- IACVA (International Association of Certified Valuers & Analysts)
- IVSC (International Valuation Standards Council)
- ARV (Arabic Academy of Valuation)

BASES OF VALUATION:

Market Value
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;

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“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

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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”;

“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, eg 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;

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‘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

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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. 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.

FACTORS INFLUENCING MARKET VALUE

SUPPLY DEMAND ECONOMY PURPOSE LOCATION SPECS

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VALUATION APPROACH:

According to the International Valuation Standard Council (IVSC), and according to the TAQEEM valuation principles, there are 3 main types of real estate
valuation Approach as follows:

Cost Approach Cost Method (DRC)

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Comparable Approach Market Comparison Method

Income Approach RLV Cap Rate DCF

DEPRECIATED REPLACEMENT COST (DRC)

A cost approach is a real estate valuation method that surmises that the price someone should pay for a piece of property should not exceed what someone would
have to pay to build an equivalent building. In cost approach pricing, the market price for the property is equivalent to the cost of land plus cost of construction,
less depreciation. It is often most accurate for market value when the property is new. Generally, the cost approach considers what the land, devoid of any
structures, would cost, then adds the cost of building the structures, then depreciation is subtracted. The cost approach is most often used for public buildings,
such as schools and churches, because it is difficult to find recently sold comparable properties in the local market, and public buildings do not earn income, so
the income approach cannot be used, either. A property that already has improvements will usually contribute a certain amount of value to the site, but
improvements can also lower property value if the site's potential buyers wish to use the property for another use that would entail removing some of the
improvements to the current site. The cost approach is best used when improvements are new and there is adequate pricing information to value the property
components. The cost approach may be less desirable if there are no recent sales of vacant land for which to compare, since the major method of valuing vacant
lands is to use the sales comparison approach, or when construction costs are not readily available. The cost approach method includes:
• Estimate what the vacant property would be worth.
• Estimate the current cost of building the structures, then add that value to the value of the vacant land.
• Estimate the amount of accrued depreciation of the subject property, then subtract it from the total to arrive at the property’s worth.
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COMPARABLE METHOD

This is the method most are familiar with as it is the accepted method for valuing residential real estate. Typically, this method involves selecting properties with
similar characteristics in the same market area that have recently sold. Once those properties are found they are compared to the property in question and a
professional appraiser will deduct value from the subject property for comparative deficiencies and increase value for advantages. Typically, this method is required
if the investor is seeking conventional financing. For comparable information, property brokers, dealers and estate agents are contacted to ascertain the asking
and selling prices for property of the nature in the immediate neighborhood and adjoining areas. Neighboring properties, which have been recently sold or
purchased, are investigated to ascertain a reasonable selling price.

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CAPITALIZATION METHOD (CAP RATE)

The income approach values property by the amount of income that it can potentially generate. Hence, this method is used for apartments, office buildings, malls,
and other property that generates a regular income.
The appraiser calculates the income according to the following steps:
• Estimate the potential annual gross income by doing market studies to determine what the property could earn, which may not be the same as what it is
currently earning.
• The effective gross income is calculated by subtracting the vacancy rate and rent loss as estimated by the appraiser using market studies.
• The net operating income (NOI) is then calculated by subtracting the annual operating expenses from the effective gross income. Annual operating
expenses include real estate taxes, insurance, utilities, maintenance, repairs, advertising and management expenses. Management expenses are
included even if the owner is going to manage it, since the owner incurs an opportunity cost by managing it herself. The cost of capital items
is not included, since it is not an operating expense. Hence, it does not include mortgage and interest, since this is a debt payment on a capital item.
Estimate the capitalization rate (aka cap rate), which is the rate of return, or yield, that other investors of property are getting in the local market.

DISCOUNTED CASH FLOW (DCF)

The Discounted Cash Flow Method involves estimating net cash flows of an income generating property over specific period of time, and then calculating the
present value of that series of cash flows by discounting those net cash flows using a selected "discount rate." A discounted cash flow method (DCF) is a valuation
method used to estimate the attractiveness of an income generating property

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RESIDUAL LAND VALUE (RLV)

The residual land value is a method used to determine the value and potential profitability of a piece of property less any expenses related to the land. Residual
land value is the value of the land that remains after any and all deductions associated with the cost of developing, maintaining or reselling the land. The application
of the residual method of valuation is based on the principle that the price to be paid for a property that is suitable for development is equal to the difference
between (i) the completed value of the highest and best form of permitted development and (ii) the total cost of carrying out that development. Thus, the net capital
value of the completed development is assessed (after deducting any costs of sale) on the assumption that it has been developed for the most valuable form of
development, and from that value is deducted the cost of all construction and building work required to carry out the development (including all ancillary costs,
e.g. purchase costs, letting fees, finance, etc.), as well as an appropriate allowance for profit on the development

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With reference to the valuation purpose, taking into consideration the nature of the subject property, we will use the following ticked methods to
estimate the market value of the subject property:

DRC Comparable Income Cap DCF RLV

Land ------------------- ------------------- ------------------- -------------------
Building ------------------- ------------------- ------------------- ------------------- -------------------
Overall Property ------------------- ------------------- ------------------- ------------------- -------------------

GENERAL ASSUMPTIONS

• The subject property is valued under the assumption of freehold status unless otherwise stated in the report.
• All the written and verbal information provided to us by the Client assumed to be up to date, complete and correct in relation to elements such as title deed,
construction permits, land area, and any other relevant matters that are set out in the report.
• This report is a valuation report and not structural / building survey. Therefore, we did not carry out any structural due diligence, utilities check, services check,
soil test, etc.
• All the inputs used in the valuation methodologies are based on the collected market data using our best know how and experience in the related market.
• The output of this report (Final Value), is based on the used assumptions, received documents from the client and available market data. Yet, the output
estimates show an indicative value of the subject property / properties.

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RISK ANALYSIS

SECTOR ANAYSIS
Very Low Risk (1) Minimal Risk (2) Medium Risk (3) Elevated Risk (4) Very High Risk (5)
Risk Factor
1-6 8-12 13-18 19-24 25-30
Overall Economy ------------------------------ ------------------------------ ------------------------------ ------------------------------
Sector Current Performance ------------------------------ ------------------------------ ------------------------------ ------------------------------
Sector Future Performance ------------------------------ ------------------------------ ------------------------------ ------------------------------
Occupancy Rates ------------------------------ ------------------------------ ------------------------------
Supply Rate ------------------------------ ------------------------------ ------------------------------

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Demand Rate ------------------------------ ------------------------------ ------------------------------
Total Risk 1 4 9 0 0
Risk Category 14 Risk Points – Medium Risk

LAND ANAYSIS
Very Low Risk (1) Minimal Risk (2) Medium Risk (3) Elevated Risk (4) Very High Risk (5)
Risk Factor
1-5 6-10 11-15 16-20 21-25
Access ------------------------------ ------------------------------ ------------------------------ ------------------------------
Location ------------------------------ ------------------------------ ------------------------------ ------------------------------
Land Shape ------------------------------ ------------------------------ ------------------------------ ------------------------------
Surrounding Area facilities ------------------------------ ------------------------------ ------------------------------ ------------------------------
Total Risk 1 4 3 4 0
Risk Category 12 Risk Points – Medium Risk

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COMPARABLE APPROACH

AREA OF INSPECTION

According to the site inspection

done by our team for the purpose
of valuating the subject property,
we were able to find samples
similar to the subject property and

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located in the surrounding areas.

The average prices for similar

properties falls in the range
between SAR 65,000 to 75,000
SAR per Square Meter.

In the following, we will show the

comparison analysis for the
collected samples to know the
estimated market value of the
subject property

We have found 1 sample adjacent to the subject property (back side) which was sold recently for 65,000 SAR / Sqm. The deep we go into the neighbourhood,
the hard access properties will get where found another sample sold for ,000 SAR. Sqm. As for the lands that gets closed to main streets, the value raises up
massively up 100,000 SAR / Sqm. Therefore, we believe that the value of the subject property is 65,000 SAR / Sqm conservatively if the owner wishes for fast
selling. As for the valuation the property’s value is SAR 70,000 per square meter.

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SENSITIVITY ANALYSIS

SENSITIVITY ANALYSIS
-10% -5% 0% 5% 10%
Land Area 1,854 1,854 1,854 1,854 1,854
SAR / Sqm SAR 63,000.0 SAR 66,500.0 SAR 70,000.0 SAR 73,500.0 SAR 77,000.0
Property Value SAR 116,830,350 SAR 123,320,925 SAR 129,811,500 SAR 136,302,075 SAR 142,792,650
PROPERTY VALUE
SAR 130,000,000
Rounded Value

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SUBJECT PROPERTY VALUE

We are of an opinion that the total market value of the subject property taking into consideration the purpose of valuation by using the Comparable Approach is:

Property Value: 130,000,000 SAR

One Hundred Thirty Million Saudi Riyals

REPORT USE

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 authorized.

DISCLAIMER

In undertaking and executing this assignment, extreme care and precaution has been exercised. This report is based on the information supplied by the bank and
or the owner/s of the property. The values may 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.

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CONCLUSION:

We trust that this report and valuation fulfills the requirement of your instruction. The contents, formats, methodology and criteria’s outlined in this report are
pending copyright. This report is compiled based on the information received to the best of our belief, knowledge and understanding. The information revealed in
this report is strictly confidential and issued for the consideration of the client. The valuer's approval is required in writing to reproduce this report either electronically
or otherwise and for further onward distribution, hence no part of this report may be copied without prior consent. We trust that this report and valuation fulfills the
requirement of your instruction. The contents, formats, methodology and criteria’s outlined in this report are pending copyright.

Dr. Mohammad Taha – CEO Essam Hussaini

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Valuation Check Site Inspection Check

Member of (Taqeem) Member of (Taqeem)

License No. 1220000263 License No. 1210000474

WHITE CUBES REAL ESTATE

Dr. Mohammad Taha – CEO
Member of the Saudi Authority of Accredited Valuers (Taqeem)
PHD, CVA, AEC
License No. 1220000263

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RELATED DOCUMENTS
This section shows copies of all the received documents related to the
subject property / properties

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TITLE DEED

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