Commercial Valuation Valuation Report Prepared for MEFIC Capital – MEFIC REIT Fund 30 Apartments, The Pad Business Bay Dubai, United Arab Emirates Valuation Date as at 31 December 2018 Cavendish Maxwell 2205 Marina Plaza Dubai Marina P.O. Box 118624 Dubai United Arab Emirates Tel: +971 4 453 9525 Fax: +971 4 453 9526 www.cavendishmaxwell.com 25 February 2019 2019/02/CM/117 MEFIC Capital – MEFIC REIT Fund. P.O. Box 12333 Riyadh Kingdom of Saudi Arabia Attn: Turki A. Al-fozan Dear Sir, REPORT & VALUATION FOR INTERNAL PURPOSES (the ‘Purpose’) 30 APARTMENTS (SEE SCHEDULE), THE PAD, BUSINESS BAY, DUBAI, UNITED ARAB EMIRATES (the ‘Property’) MEFIC CAPITAL – MEFIC REIT FUND (the ‘Client’) Further to our Terms of Engagement dated 18 February 2019 and your subsequent signed instructions, we have inspected the Property in order to advise you as to our opinion of the current Market Value of the Freehold interest in the Property, as stated with the attached report. We trust that the attached meets your requirements and should you have any queries, please do not hesitate to contact us. Yours faithfully, James Cresswell BA (Hons) MSc MRICS Head of Commercial Valuation RICS Registered Valuer For and on behalf of Cavendish Maxwell 2 CONTENTS 1.0 TERMS OF REFERENCE ........................................................................................................................... 8 1.1 Introduction ............................................................................................................................................... 8 1.2 Client .......................................................................................................................................................... 8 1.3 Date of Inspection ..................................................................................................................................... 8 1.4 Valuation Date ........................................................................................................................................... 8 1.5 Purpose of Valuation ................................................................................................................................. 8 1.6 Basis of Valuation ..................................................................................................................................... 8 1.7 Variation from Standard Assumptions .................................................................................................... 8 1.8 Special Assumptions ................................................................................................................................ 8 1.9 Capacity of Valuer ..................................................................................................................................... 9 1.10 Status of Valuer ......................................................................................................................................... 9 1.11 Disclosure .................................................................................................................................................. 9 1.12 Independence ............................................................................................................................................ 9 1.13 Conflicts of Interest ................................................................................................................................... 9 1.14 Compliance with Valuation Standards and Assumptions ..................................................................... 9 1.15 Sources of Information ........................................................................................................................... 10 1.16 Verification ............................................................................................................................................... 10 1.17 Limitation of Liability .............................................................................................................................. 10 1.18 Reliance .................................................................................................................................................... 11 1.19 Confidentiality & Publication .................................................................................................................. 11 2.0 THE PROPERTY....................................................................................................................................... 12 2.1 Location ................................................................................................................................................... 12 2.2 Situation ................................................................................................................................................... 12 2.3 Property Description ............................................................................................................................... 13 2.4 Accommodation and Use ....................................................................................................................... 14 2.5 Condition and State of Repair ................................................................................................................ 15 2.6 Services .................................................................................................................................................... 16 2.7 Planning and Statutory Enquiries .......................................................................................................... 16 2.8 Site and Ground Conditions ................................................................................................................... 16 2.9 Environmental Issues ............................................................................................................................. 16 3.0 TENURE & TENANCIES .......................................................................................................................... 18 3.1 Title Details .............................................................................................................................................. 18 3.2 Tenancies ................................................................................................................................................. 18 4.0 MARKET COMMENTARY ........................................................................................................................ 19 4.1 UAE Economic Performance and Demographics ................................................................................. 19 4.2 Residential Market ................................................................................................................................... 20 4.3 Price and Rent Performance .................................................................................................................. 20 4.4 Supply ...................................................................................................................................................... 24 4.5 Transactions ............................................................................................................................................ 26 4.6 Market Outlook ........................................................................................................................................ 27 5.0 VALUATION METHODOLOGY & RATIONALE ....................................................................................... 28 5.1 Basis of Valuation ................................................................................................................................... 28 3 5.2 Method of Valuation ................................................................................................................................ 28 5.3 Comparable Evidence ............................................................................................................................. 29 5.4 Assumptions and Special Assumptions ............................................................................................... 32 5.5 Valuation Assumptions ........................................................................................................................... 32 5.4 Assumptions and Special Assumptions ............................................................................................... 33 6.0 OPINION OF VALUE ................................................................................................................................ 34 6.1 Market Value ............................................................................................................................................ 34 Appendix A - Standard Valuation Assumptions and Bases of Valuation 4 EXECUTIVE SUMMARY Address: The Pad, Business Bay, Dubai, United Arab Emirates Location: The Property comprise 30 x residential units within the Pad Tower in Business Bay of a total 2,705.24 sq m (29,119 sq ft). The Pad is a G+M+P+23 residential development by Omniyat comprising of 253 furnished apartments that benefit from a range of views including Downtown, Dubai Creek and Burj Khalifa The building is adjacent to the Dubai Canal and the main access to it is granted via Al Abraj Street. Description: The Property consists of 1 x studio unit, 1 x studio loft unit, 17 x 1-bedroom units, 6 x 2-bedroom units and 5 x 2-bedroom loft units in the Pad Tower in Business Bay. The building is in