Mulkia Investment Company announces the availability of the supplementary supplement to the terms and conditions for Mulkia Gulf Real Estate REIT Fund to enable the unitholders to vote on the total asset value increase decision which leads to fund capital increased between SAR (250,000,000) at the maximum, and SAR (114,858,848) at the minimum. This is to complete the acquisition of Aljada Commercial Hotel Complex, and for the Partial repayment of the outstanding financing amount.

The meeting will be held remotely using Tadawulaty system At six o’clock in the evening on Sunday 06/08/1444 H corresponding to 26/02/2023 G, according to the announcement of the fund manager on 13/02/2023 G, The supplementary annex to the proposed terms and conditions, which include the details about the fund total assets increase, can be viewed through the attached file.

Note that the targeted offering period starts from 24/08/1444 H corresponding to 16/03/2023 G and ends on 07/09/1444 H corresponding to 29/03/2023G

We would like to inform you that the mechanism for subscriptions, allocation and pricing will be as follows:

• Allocating 3,556,911 units as in-kind units to the property owners, each as per their percentage in the property ownership. and for the cash units, they will be allocated according to the following mechanism:

1. Allocating the cash units offered firstly to the Fund’s registered unitholders at the unitholders meeting day, who is wishing to subscribe to the additional cash units. The allocation shall be at a maximum percentage of each unitholder’s ownership on that meeting day.
2. Allocating the remaining cash units after the procedure in Paragraph (1) to the fund’s registered unitholders at the unitholders meeting day, with regards to whatever exceeds the unitholders ownership percentage of the Fund at that day. This is proportional to the size of the additional subscription for unitholders without applying a maximum for subscribers of this category.
3. Allocating %20 of the remaining portion after the procedure in paragraph (2) for institutional investors. However, if they fail to cover that portion, the remaining will be allocated to the rest of the subscribers as described in paragraph (4).
4. Allocating the remaining additional cash units (if any) to the rest of the registered and non-registered institutional and individual investors on the unitholders meeting day for increasing the total value of the Fund’s assets.

• After the end of the offering period, if the total subscription amounts collected from all investors (including the in-kind subscription) are less than the minimum amount required to be collected (SAR 114,858,848), all subscription amounts will be refunded to the investors (without any deduction except for bank charges) within 5 business days from the expiry date of additional offering period, maximum, unless the offering period is extended.
• After the end of the offering period, if the total subscription amounts collected from all investors (including the in-kind subscription) are equal to or more than the minimum required to be collected to increase the Fund’s capital of SAR 114,858,848, subscriptions will be accepted up to a maximum amount of SAR 250,000,000, which is the maximum increase of the Fund’s capital
• Determining the subscription price for the additional units will be based on the average closing price for five (5) trading days ending three days before the offering, less 10%, noting that the Fund Manager will rely on a unified pricing mechanism for in-kind and cash subscriptions.

Note that voting on the decision will be available during the meeting of unitholders scheduled to be held remotely using Tadawulaty system, and voting will begin on Wednesday 02/08/1444 H corresponding to 22/02/2023 G, provided that the voting period on the decision ends on the day of the meeting on 06/08/1444 H corresponding to 26/02/2023 H at seven thirty in the evening