Sq Paragraph/reference Current text Proposed text 1 Real estate broker
fees
The fund pays 2.5% (maximum) of the value of any real estate investment that is acquired, and this value is paid to the broker in exchange for bringing opportunities, investigating, and negotiating. These fees are due on properties that will be acquired in the future and paid directly after efragh or upon investment or as agreed upon between the parties. Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
2 Property manager fees and real estate assets management
expenses
The property manager and / or property managers will manage all initial assets and will receive an annual fee equivalent to 3% of the total revenue (real estate rents) already collected from real estate assets and is paid out semi- annually.
In addition to the fees, the fund pays the property manager semi-annually all costs, expenses, and expenses (including maintenance and water and electricity consumption and complex insurance expenses) actually incurred by the property manager with respect to providing management services, knowing that those costs, expenses and expenses that are paid at the end of each half-year are subject to a price ceiling of 17% of the total revenue (real estate rents) already collected from the properties, and the property manager alone is responsible for the costs and expenses that exceed
The property manager and / or property managers will manage all initial real estate assets and that includes real estate management services, leasing, and rent collection services. The fund will maintain its asset management costs by not exceeding 10% of the annual rental income of the assets.
17%, whether he carried it in person (i.e. in his personal name) or got paid by the fund
3 Transaction costs The fund bears all dealing/dealing expenses and costs such as selling, buying, acquisition of assets, and associated advisory and legal costs. Note that these expenses and dealing costs will not exceed 1% of the transaction price (whether it is a purchase or a sale of the fund’s asset), noting that no transaction costs will be applied to the fund’s initial assets purchase.
The fund manager gets 1% of the selling price of each asset and/or units in a real estate fund that is sold by the fund, he also gets 1% of the purchasing price of each asset and/or units in a real estate fund that is purchased by the fund in exchange for the fund manager conducting the necessary investigation, negotiating the terms of purchase or sale, and completing the process. The transaction fees are payable after the completion of the purchase or sale of each asset or units in real estate fund. The fund manager will not receive a transaction fee in connection with the initial real estate asset purchase of the fund.
4 Development fees In the event that the fund invests in real estate development projects; the developer will receive fees in return for his supervision/ working on developing the project in the form of a percentage of the project construction costs, according to the prevailing market price, and with a maximum of 7% of the project construction costs.
If the fund invest in real estate development projects, the developer will receive his fees for supervising, working on the development of the project in the form of a percentage of the construction costs, according to the prevailing market price and a maximum of 7% of the project construction costs, which include but not limited to administrative costs, construction costs, general services costs, market fees, studies fees, design fees, and all other costs that may be incurred to develop the assets.
5 Operating expenses Means all direct and indirect operating expenses, that are
incurred related to the activities of the assets, including property management fees, land leases, direct and indirect expenses for operating and maintaining the assets, and
administrative expenses including but not limited to utility costs, service costs, repair and maintenance costs, spare parts costs, inventory and supply costs, sales and marketing expenses, and any service provider costs (including security and consulting services), supplier costs, personnel costs, property management costs, permits and regulatory approvals fees, investment insurance expenses, green landscaping and guarding expenses, all taxes related to operating the assets, communication expenses and costs, insurance and any other insurance costs, and any cost usually accepted as operating expenses.
6 Summary of the assets: Operating expenses
- The operating expenses of Al Makan Mall - Hafar Al-Batin Governorate for the year 2019 amounted to 9.8 million Saudi riyals.
- Actual operating expenses may differ from expected expenses, and this will be disclosed in the fund's annual financial reports
- The operating expenses of Al Makan Mall - Riyadh for the year 2019 amounted to 4.7 million Saudi riyals.
- Actual operating expenses may differ from expected expenses, and this will be disclosed in the fund's annual financial reports
- The operating expenses of Al Makan Mall - Tabuk for the year 2019 amounted to 3.67 million Saudi riyals.
- Actual operating expenses may differ from expected expenses, and this will be disclosed in the fund's annual financial reports
- The operating expenses of Al Makan Mall - Dawadmi for the year 2019 amounted to 6.42 million Saudi riyals.
- Actual operating expenses may differ from expected expenses, and this will be disclosed in the fund's annual financial reports
7 Real estate broker fees
A maximum of 2.5% of the purchase value of any real estate investment will be paid, and those expenses will be disclosed in the financial disclosure summary at the end of the year.
8 Method of calculating transaction fees
Dealing fees are calculated when buying or selling any real estate asset (the total purchase or sale price of each real estate asset multiplied by the percentage)
Dealing fees are calculated when buying or selling any real estate asset or units in real estate funds (the total purchase or sale price of each real estate asset multiplied by the percentage)
9 Property
Management fees
Total income already collected from real estate assets multiplied by the assigned percentage.
Paid Annually
Total revenue of the real estate asset contracts multiplied by the percentage
10 Development fees Those expenses will be disclosed in the financial disclosure summary at the end of each year.
According to the development agreements, it is usually paid during the development period, and those expenses will be disclosed in the financial disclosure summary at the end of the year, if any.
11 Independent Real Estate Appraisers fees
Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
Half of the fees are paid before preparing the evaluation, and the remainder is paid after completion, and these expenses will be disclosed in the financial disclosure summary at the end of the year
12 Technical and consulting
engineering service providers fees
Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
Half of the fees are paid in advance, and the remainder will be paid after completion, and those expenses will be disclosed in the financial disclosure summary at the end of the year, if any
13 Remuneration of Board Members
Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
The fund bears all the actual travel and accommodation costs incurred by each member in order to attend the meetings, and the fund also bears an attendance remuneration which is limited to independent members of the fund’s board of directors, at a maximum of 5,000 Saudi riyals per meeting, and the sum of these costs and bonuses (for all members) should not exceed 100,0000 riyals annually, and payments will be made after the meeting or when it is due, and these expenses will be disclosed in the summary of financial disclosure at the end of the year.
14 Method of
Calculating Financing expenses
Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
According to the prevailing market price and paid periodically every 3 or 6 months, and these expenses will be disclosed in the financial disclosure summary at the end of the year if any
15 Fund management fees
Annual fees equivalent to 0.75% from the net asset value of the fund and is calculated and paid daily.
Annual fees equivalent to 0.75% from the net asset value of the fund and is calculated and paid quarterly.
16 Other expenses Those expenses (if any) will be disclosed in the financial disclosure summary at the end of each year.
0.5% of the total value of the fund’s assets annually, and it will be paid upon maturity, and these expenses will be disclosed in the financial disclosure summary at the end of the year
