Kuwait Financial Centre K.P.S.C. "Markaz" Markaz Real Estate Fund (MREF) July 2014 Asset Management | Investment Banking

2 Real Estate Investment Opportunity Kuwait Market Overview 4 Markaz Added Value 6 MREF Terms 8 MREF Asset Allocation 10 MREF Operational Performance 12 MREF Financial Performance 14 MREF Performance VS Comparables 16 Table of Contents

Kuwait Market Overview Real Estate Investment Opportunity

4 Kuwait Market Overview The local real estate sector in Q witnessed stability in terms of rents and value for all sectors. During 2013, Investment, industrial and commercial (retail) sectors increased by 5-10%, while the commercial office sector increased by 3-5% in value due to the increase in occupancy and rental rates. Investment sector property values stabilized during Q2-2014, after increase in rents and values in 2013 by 7% and 10% respectively. In Salmiya and Hawalli cap rates for violation-free buildings range between 6.25 – 6.75% while it ranges between 6.75 – 7.25% in Mangaf and Mahboula. Industrial properties in Shuwaikh and Al Rai areas stabilized in terms of value and rent during Q2-2014, after an increase in terms of values by up to 10% during Prime location properties are currently offered at 8.5-9% cap rate while secondary street properties are being offered at 9-10% cap rate. Commercial office & Retail sector witnessed an increase in value from property evaluators in 2013, and currently yielding % cap rate depending on the location of the building. We expect all sectors to continue stabilizing on the short term. On the medium/long term, we expect the commercial (office and retail) sectors to increase in value with the increase in rents and occupancy.

Markaz Added Value Real Estate Investment Opportunity

6 Markaz has built an expertise in real estate and specifically in income generating real estate, having made for the past decade prudent quality investments and managed properties efficiently yielding stable income and generating above market returns to its investors. Markaz added value lies in: Acquiring valuable properties selecting sectors based on supply/demand, location based on market trends and appeal to end-users. Managing Acquisition Risk carrying thorough legal, technical, operational and commercial due diligence on target properties. Managing Investment Risk through balancing the fund exposure sectorial and geographical wise. Efficiently managing acquired Properties through improving rent levels, improving collection rates, reducing vacancy, maintaining the properties, supervising operation expenses and creating value through value-added activities. Markaz Added Value

Markaz Real Estate Fund “MREF” Terms Real Estate Investment Opportunity

8 MREF is an open ended fund, investing mainly in income generating properties with the aim of generating stable income and returns through prudent acquisition, management and disposal of properties in the most promising segments of the real estate market in Kuwait. Term: Open ended, operational since Distribution: Monthly dividends equal to 7% pa on nominal unit value (one KD) Subscription: Monthly on NAV Redemption: Every 6 months from subscription date Leverage: 0% Fees: Placement fees: 2% Management fee: 10% of net income (equivalent to c. 0.4% of net assets in 2013) Carried interest: 20% of net realized income over 8% p.a. required return to unitholders NAV: KD as of July 2014 Markaz Real Estate Fund “MREF” Terms

MREF Asset Allocation Real Estate Investment Opportunity

10 Real Estate Investment Opportunity MREF invested in a diverse portfolio of real estate properties in low risk sectors and high concentration areas within the state of Kuwait. MREF Asset Allocation MREF holds a balanced portfolio of 43 properties. Properties are distributed across sectors and governorates. Fund Net Assets Value reached KD 117m as of July Income Generating Properties Sector Distribution Governorate Distribution Development / Income Distribution

MREF Operational Performance Real Estate Investment Opportunity

12 Real Estate Investment Opportunity MREF Operational Performance Fund assets are managed efficiently: Increased monthly gross income from KD 50K to 418.6K Collection rate decreased from 97% to 82% Maintained high occupancy at 87% 82% Jul-14

MREF Financial Performance Real Estate Investment Opportunity

14 Real Estate Investment Opportunity MREF’s prudent and systematic strategy allowed it to weather the downturn and yield a solid performance delivering above average return to its investors. MREF Financial Performance Return Since Inception: % Average Annual Return: +9.2% As of July 14 *As of Jul-14

MREF Performance VS Comparables Real Estate Investment Opportunity

16 Real Estate Investment Opportunity The fund’s prudent investment strategy and the active management of assets allowed MREF to outperform other funds while MREF operates at zero % leverage. MREF Performance VS Comparables AS OF DATE: FUNDFUND MANAGERDISTRIBUTION YEARLY DISTRIBUTION RETURN YTD TOTAL RETURN ANNUALIZED RETURN SINCE INCEPTION FUND VALUE (KD MILLIONS) COUNTRY/REGIONAL PRESENCE INCEPTION DATE JUN-14MREFMarkazMonthly7.0%*7.85%9.27%128.54%KD mKuwait FEB – 03 JUN-14 Al Dar Real Estate Fund Al Dar Asset Management Irregular 3.10% in Cash 1.33% in Units 1.57%2.64%79.84%KD 3.61mKuwait/GCC AUG – 02 JUN-14 Alimtiaz Real Estate Fund Alimtiaz Investment None ---KD 3.33mKuwait/GCC/MENAJUN - 08 JUN-14 AWAED Real Estate Fund A’Ayan Leasing & Investment Co. Monthly4.00%*3.23%-22.34%KD 13.52mKuwait/GCCAPR – 05 *On Nominal Value

Kuwait Financial Centre K.P.S.C. "Markaz" P.O. Box 23444, Safat State of Kuwait Tel: Fax: markaz.com