Introduction Banan Real Estate Company is pleased to announce the signing of a contract between its subsidiary, Qimam Noshz Real Estate Development Company, and Armah Sports Company for the development and leasing of two fitness clubs located in Riyadh, along the Northern Ring Road. The total value of the contract is 224,018,481 SAR, excluding VAT. This project is the first of several to be executed between Banan Real Estate Company and its subsidiaries in partnership with Armah Sports Company, aimed at developing integrated fitness clubs. Date of Announcement of the Award 2025-01-27 Corresponding to 1446-07-27 Contract Subject Matter Development and lease of two fitness clubs in Riyadh, located on the Northern Ring Road. The Entity with Which the Contract was Signed Armah Sports Co Date of Signing the Contract 2025-01-27 Corresponding to 1446-07-27 Contract Value The minimum contract value is SAR 224,018,481 (excluding VAT), with an additional percentage that could reach up to 24% in the event of increased club revenues. Contract Details A development and lease contract under which Qimam Noshz Real Estate Development Company will develop the land leased by Armah Sports Company, located in Riyadh on the Northern Ring Road in Al-Wadi district. The contract includes the development of two fully equipped fitness clubs—one for men and one for women—ready for operation (excluding movable furniture and sports equipment), in addition to a commercial building that Qimam Noshz Real Estate Development Company will develop and operate for its own benefit. It has also been agreed that Armah Sports Company will lease the two fitness clubs under a long-term lease agreement, which will commence upon their full handover and will last for 19 years, with a total contract value of SAR 224,018,481 (excluding VAT). The contract includes a potential increase of up to 24%, depending on the performance and revenue of the fitness clubs. Additionally, Qimam Noshz Real Estate Development Company will bear the full rental cost of the development land for the entire contract duration with the property owner. Contract Duration 19 years Financial Impact and the Relevant Period During the project implementation period, Banan Real Estate Company generates direct revenues from development activities, in addition to enhancing its investments and increasing its returns through its subsidiary, Qimam Noshz Real Estate Development Company. Banan Real Estate directly owns a 23% stake, while its subsidiary, Al-Azizah Investment and Real Estate Development Company, holds a 22% stake in Qimam Noshz Real Estate Development Company. Related Parties NONE Additional Information The land on which the project is being built is leased by Armah Sports Company for a period of 21.5 years at an annual rental value of 5.5 million riyals in addition to a 10% increase every five years with a grace period of one and a half years. Qimam Nosh Real Estate Development Company will lease the land from Armah Sports Company under the same terms of the contract with the owner. Qimam Nosh Real Estate Development Company will develop the land in cooperation with Banan Real Estate Company at a total cost of around 70 million riyals, which includes the establishment of two fitness clubs that will be leased to Armah Sports Company, in addition to a commercial building that Qimam Nosh Real Estate Development Company will lease independently.