Taleem REIT Fund — Capital/Financing Update 2021

Mar 9, 2021

Saudi Fransi Capital announces material development related to Taleem REIT Fund

4333 · 09/03/2021 08:00:38 · Announcement #62170 · View on Saudi Exchange

Saudi Fransi Capital announces material development related to Taleem REIT Fund

4333

TALEEM REIT

0.40 %

1442/07/25     09/03/2021 08:00:38

Element List

Explanation

Description of the Event

The Covid-19 pandemic has caused unprecedented global challenges, the after effects of which remains unpredictable to date. Amidst these challenging times, the Fund Manager of Taleem REIT Fund would like to express its gratitude to the Government of Saudi Arabia for its relentless efforts and continued role in combating the effects of this pandemic in a way that ensures the protection of its citizens and residents. We pray to Allah to limit the impact of this pandemic in the near future.

In view of the above and to preserve our strategic contractual relationships with our tenants, the Fund Manager has been monitoring the impact of this pandemic on the economy in general and on the education sector in particular. Therefore, the fund manager, after obtaining the approval of the Fund’s Board of Directors, has resolved the following:

a) Rental escalation(s), which were becoming due in the year 2021 will be postponed by 1 year and will now be affected in the year 2022.

b) Subject to tenant’s acceptance, appointing an independent financial consultant to assess the financial stress caused by COVID-19 pandemic on Fund’s tenants. Any extension of financial support measures for tenants by the Fund will be based on the independent financial consultant's report.

The recommendation of the financial consultant will not binding on the tenant(s). The Fund Manager and the Fund Board of Taleem REIT Fund would like to assure all stakeholders that they retain the utmost confidence and optimism in both the Saudi economy and the positioning and quality of Taleem REIT Fund asset. The Fund Manager will continue to announce any material developments in this regards in due course. The Impact Caused by the Event By suspending the rent escalation that was due in 2021, the contractual rent will remain at the same level as it was in the financial year of 2020. The financial consultant may recommend other financial support measures, the impact of which will be determined in due course.

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.