| Item | Explanation |
|---|---|
| Introduction | Banan Real Estate Company is pleased to announce the signing of a cooperation agreement to establish a real estate fund with Artal Financial Company and Abdulaziz & Saad Al-Mu’ajjal Trading and Investment Company |
| Previously announced event | Signing a memorandum of understanding with Abdulaziz & Saad Al-Mu’ajjal Trading and Investment Company |
| Date of previous announcement on the Saudi Exchange (Tadawul) website | 1446-12-15 corresponding to 2025-06-11 |
| Link to the previous announcement on the Saudi Exchange (Tadawul) website | Click here |
| Latest developments on the announced event | The tripartite cooperation agreement to establish a real estate investment fund has been signed between Abdulaziz & Saad Al-Mu’ajjal Trading and Investment Company and Artal Financial Company, with Banan Real Estate Company as a third party. The agreement includes the following provisions:
1- Artal Financial Company shall be responsible for the procedures of establishing and licensing the fund with the Capital Market Authority in accordance with the applicable laws and regulations, and it shall be appointed as the fund manager.
2- The fund aims to acquire the project land, located in Al-Qairawan District with an area of 7,425 square meters, and develop it through contracting with the project developer.
3- Abdulaziz & Saad Al-Mu’ajjal Trading and Investment Company (the current land owner) shall contribute a stake representing 70% of the capital contribution as an in-kind contribution to the fund, while (Banan Real Estate Company) shall contribute 30% of the capital contribution as a cash contribution.
4- Banan Real Estate Company shall be appointed as the main developer of the project by the fund, pursuant to a development agreement to be signed after the fund is established.
5- Banan Real Estate Company shall be appointed as the exclusive developer for marketing and leasing the project units, 6- Artal Financial Company shall prepare the final financial feasibility study to determine the optimal capital structure of the fund, including the debt ratio and the equity investors’ contribution. |
| Reasons for the delay from the previously announced date | Not applicable |
| Costs associated with the event and whether they changed, with reasons | Not applicable |
| Impact of the delay on the Company’s financial statements | It is expected that this contract will have a positive financial impact through generating revenues from the development fees included in the agreement, in addition to Banan Real Estate Company’s share in the fund, which will contribute to improving financial returns over the medium and long term. |
| Additional information | Any material developments related to this matter will be announced |
