Fund Manager

Close-Ended Real Estate Fund

SAR 99,206Unit NAV

Itqan Capital

Charges of Custody 0.15% p.a.

Others Fee 0.10% p.a.

The Fund's Term 4 Extendable to 1 + 1 Years

Fund Auditor Ernst and Young

Real Estate Evaluators Century 21 , Remax Kon

Fund Type

Currency Saudi Riyal

Dividend Payout 7 % p.a.

Face Value Per Unit SR 100,000.00

Inception Date 17 March, 2015

Valuation Days 30 June & 31 December

Risk Degree Low to Medium

Management Fee 1.25% p.a

Real Estate Market Overview

Asset Allocation

Fund Investment Strategy

Fund Key Facts Investment Activity

Residential

100%

Offices

0%

Cash 1.4%

Real Estate

96.6%

Investments

in funds2.0%

The Fund invests in a residential compound located in a

prime location in Riyadh with a total size of 9,752 sqm

consisting of 40 villas and 22 executive suites. The

property boasts comprehensive ameneties including a

swimming pool and gym and is currently rented out to

a number of credit worthy individuals and companies.

Fact sheet - 31 March 2015 - Private Fund

The Fund aims to realize operational returns and capital gains in

the medium-term by purchasing income-generating real estate

properties in prime locations in the main cities of Saudi Arabia.

The strategy lies in leasing these properties for a specific period

and then selling them with the objective of realizing superior total

returns for the Fund's investors. The Fund is open to invest in all

real estate sectors but primarily focuses on Class A and B

residential and office spaces with a preferance for newly built or

renovated propertieis in order to generate a healthy distribution

of dividends to investors between 7 and 8% p.a.

Dividend Distribution

Based on the financial studies, the Fund Manager expects to make

distributions to the Unit-holders during the Fund term. The Fund

Manager shall make semi-annual distributions to Fund’s unit-holders

starting from the second half of the Fund's first operational year

equivalent to an average of 7% per annum i.e. 3.5% bi-annually, at the

end of June and end of December each Gregorian year. The first year

distributions will be 7% paid at the end of the second half of the

Fund’s first year.

Itqan Capital, authorized by CMA, license # 07058-37, PO Box 8021, Jeddah , Elite Al Shatea, Al Malik Road, KSA.

Tel. +966 12 243 7000, Fax. +966 12 234 7222, Toll Free 800 30 30 800 Disclaimer: Neither the past performance of the investment fund nor the past performance of the index is an indication of how the investment fund will perform in the future. There is no guarantee for unit holders that the investment

fund's absolute performance or its performance relative to the index will repeat or match past performance .

www.itqancapital.com

A member of Al Baraka Banking Group

Saudi Arabia has witnessed strong economic growth in the past

few years, which has been reflected well in the rising average

household income of the continuously growing population, the

majority of which is under the age of 20. The current housing

supply and demand equilibrium is significantly out of balance, with

the demand substantially outweighing the supply. According to

Credit Suisse, a Swiss bank, Saudi Arabia's total housing gap was

projected to reach 2 million units by the end of 2014, assuming

population growth of 2.5% and a constant annual supply of new

units, and this indeed has become the case now. The fall in oil

prices represents some challenges; however, this is expected to

have short-term implications on the real estate market, given the

willingness of the government to fund expenditure with the

amount of SAR 860 billion this year. and the ongoing expansive

gap between the supply and demand for housing. On the other

hand, the ongoing expansive gap between the supply and demand

for housing represents a great concern to the government, as it is

clearly steering the attention of developers and investors

towards residential development. This is seen through the newly

instilled laws incentivizing and facilitating such action, as

apparent in the initiation of the ’white land tax' and home

ownership laws. Regarding current performance, residential sale

and rental prices have been increasing for the past year, and are

expected to continue to rise in 2015 but at a slower rate, due to

the new restrictions on home ownership that requires a 30%

down payment from the borrower in order to proceed with the

loan. In respect to the office sector, rents are increasing in Jeddah

and vacancy rates are stable, implying demand for office space.

To the contrary, increasing vacancy rates in Riyadh implies that

the market is potential ly reaching a peak in supply .