Mulkia Investment Company signed a memorandum of understanding for the purpose of establishing a real estate fund for acquiring a property (a plot of raw land) in the city of Buraidah with a total area of 2.6 million square meters, provided that the process of transferring ownership and payment takes place after completing the procedures of the bank financing the fund and after ensuring that there is no objection from the Capital Market Authority on the fund as a private real estate fund and fund establishment, the implementation takes place within a period of 90 days from the date of signing the memorandum. The two parties also have the right to extend this period with their written consent, the memorandum not taking effect except after ensuring that the Authority does not object and the fund is established, as in case If the company was unable to obtain a non-objection on the fund from the Capital Market Authority for any reason, the acquisition memorandum is considered as if it did not exist and there is no any obligation on the two parties, For more clarification, the memorandum is considered binding on both parties during the agreed upon period, in case the company obtains a no-objection on the fund and fund is launched. If this is not achieved, the memorandum will be considered canceled.

Implementation will take place within a period of 90 days from the date of signing the memorandum of understanding, and both parties have the right to extend this period with their written consent.

If the fund is launched and the acquisition of the property is completed, the financial impact will be positive, as it will result in a management fee revenue for the company starting from the date of the fund’s launch, which is expected to take place in the second quarter of 2024.