– Announcement –

Alkhabeer Capital Announcement Regarding an Update of the Terms and Conditions of Alkhabeer REIT Fund

Alkhabeer Capital Company (The Fund Manager) announces an update of the terms and conditions of Alkhabeer REIT Fund as of 16 Jumada al-Awwal 1445 corresponding to
30 November 2023. A summary of the main updated items are as follows:

1. Definitions: The definition of “Value Added Tax (VAT)” has been updated by update the Authority’s name.

2. Fund Directory: The list of Fund’s Appointed Valuers has been updated.

3. Fund Summary: The following items were added in order to comply with the CMA’s circular regarding the fund manager’s compliance with the rules of zakat collection:

– ZATCA Registration Expenses.

– Zakat.

The Tax Advisor’s fees have been updated.

4. Risks of Investing in the Fund:

– (Zakat and Income Tax Risks) statement has been updated to comply with the CMA’s circular regarding the fund manager’s compliance with the rules of zakat collection.

– The name of the ZATCA Authority has been updated with following risks:

a. Value Added Tax Risks;

b. Real Estate Transaction Tax Risks; and

c. Withholding Tax Risks.

5. Fees, Service Charges, Commissions and Management Fees: All items of the (Fees, Service Charges, Commissions and Management Fees) paragraph have been updated to be consistent with the following updates:

– ZATCA Registration Expenses.

– Tax Advisor’s Fees.

– Updating the calculation of Independent Directors’ Remuneration to be calculated with the maximum range, as already mentioned in first place, within the fund’s terms and conditions.

6. Fund Assets: The list of Fund’s Appointed Valuers has been updated.

7. Fund Board:

– The data of the Fund’s Board of Directors members paragraph has been updated.

– The paragraph of conflict of interest has been updated to comply with relevant rules and regulations.

8. Other Information: (Zakat) statement has been updated to comply with the CMA’s circular regarding the fund manager’s compliance with the rules of zakat collection.

9. Appendix (2) – Summary Financial Disclosure: The following items were added in order to comply with the CMA’s circular regarding the fund manager’s compliance with the rules of zakat collection:

– ZATCA Registration Expenses.

– Zakat.

10. Appendix (3) – Example of Calculation of Fees and the Total Expense Ratio of the Fund:
All items of Appendix (3) paragraph have been updated to be consistent with the following updates:

– ZATCA Registration Expenses.

– Tax Advisor’s Fees.

– Updating the calculation of Independent Directors’ Remuneration to be calculated with the maximum range, as already mentioned in first place, within the fund’s terms and conditions.

The updated terms and conditions can be found in the attached file and through the fund Manager’s website, as in the following link: https://www.alkhabeer.com/reit/

– End –