Emaar, the Economic City announces the signing of two lease agreements with the National Automotive and Vehicles Academy

Element List	Explanation
Introduction	Emaar, the Economic City announces the signing of two lease agreements for offices and units in a building with the National Automotive and Vehicles Academy.
Transaction Details	The transaction includes the signing of two lease agreements to rent office spaces as well as units in Building B02 located in Entaj Street, Industrial Valley in King Abdullah Economic City to operate retails, labs, and workshops for the Academy learning activities, and it will include a leading academy in the region dedicated to developing the knowledge and technical skills of the local workforce, with the aim of nationalizing jobs and technical knowledge in the fields of automobile and vehicle manufacturing and maintenance.

Element List

Explanation

Introduction

Emaar, the Economic City announces the signing of two lease agreements for offices and units in a building with the National Automotive and Vehicles Academy.

Transaction Details

The transaction includes the signing of two lease agreements to rent office spaces as well as units in Building B02 located in Entaj Street, Industrial Valley in King Abdullah Economic City to operate retails, labs, and workshops for the Academy learning activities, and it will include a leading academy in the region dedicated to developing the knowledge and technical skills of the local workforce, with the aim of nationalizing jobs and technical knowledge in the fields of automobile and vehicle manufacturing and maintenance.

The lease term is five (5) years, and the lessee has the option to renew the agreement for an additional period to be agreed upon by the parties by providing a written notice at least six (6) months prior to the expiration of the current Lease Period. These lease agreements are subject to the Economic Cities and Special Zones Authority’s final approval. Transaction Amount The total value of the two lease agreements is SAR 21,630,455. Whereas the value of the office lease agreement is SAR 18,492,675, and the total value of the retail unites lease agreement is SAR 3,137,780. Transaction Conditions The transaction includes signing two lease agreements for offices and retail units.

The lease term is five (5) years. Parties of the Transaction Lessor: Emaar, the Economic City.

Lessee: National Automotive and Vehicles Academy. Date of Entering Into The Transaction 2024-10-07 Corresponding to 1446-04-04 Description of Activity of The Asset Subject of The Transaction A commercial building Transaction reasons Utilizing available assets to enhance the company's revenue streams. Expected Impact of the Transaction on the Company and Its Operations The Company will commence recognizing revenue starting from the fourth quarter of 2024, in accordance with the lease agreements’ terms and conditions and applicable financial reporting standards. Related Parties The Public Investment Fund (PIF), which owns 25% of Emaar, the Economic City, and also owns 91.8% of Ceer, the National Automotive Company, and indirectly has ownership in Lucid Limited, which collectively own the National Automotive and Vehicles Academy.

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