Taleem REIT Fund — Capital/Financing Update 2020

Jun 30, 2020

Saudi Fransi Capital announces the occurrence of specific event related to Taleem REIT Fund – The acquisition of an educational property

4333 · 30/06/2020 08:41:25 · Announcement #59547 · View on Saudi Exchange

Saudi Fransi Capital announces the occurrence of specific event related to Taleem REIT Fund – The acquisition of an educational property

4333

TALEEM REIT

0.40 %

1441/11/09     30/06/2020 08:41:25

Element List	Explanation
Description of the Event	Saudi Fransi Capital announces acquisition of an educational property, which is currently leased by Al-Ghad National Schools located in King Abdullah District, Riyadh. Al-Ghad National Schools is wholly-owned and operated by National Company for Learning and Education.
The Impact Caused by the Event	The financial impact of this transaction is expected to be positive on the Fund's results starting from the second half of 2020.
Additional Information	Salient terms of the transaction are as follows:

1. The purchase price of the property is SAR 92 million, which is funded by Fund’s existing financing facility with Banque Saudi Fransi, which has been previously announced.

2. The School is located in King Abdullah District on Al-Uruba Street on a total land size spanning 11,282.58 m2, with a total built-up area of 17,908.28 m2.

3. The property is leased to the School under a 10-year binding lease agreement starting 1 July 2020, with annual rent payment of SAR 5.95 million and increases by 10% in year 5, followed by 10% escalation every 5th year (including renewal periods).

4. The Lease is automatically renewed for additional three five-year periods (total lease life of 25 years); unless the Lessee elects to not renew by serving a 5-year advance notice period to the Lessor.

5. The Fund will incur a brokerage fees in respect of this acquisition.

6. The Lease is secured by way of promissory notes and corporate guarantees.

Further, we are pleased to inform that all legal formalities in respect of this acquisition have been completed as of Monday 08/11/1441H corresponding to 29/06/2020G.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.