Appraisal Report_IVS

Appraisal

Preface

Instructions

Mr. Mohamed Chebaro has been instructed by Click here to enter text. (the ‘Client’, the ‘Instructing Party’) in its capacity as Partner in ownership to advice upon the Market Value (MV) of properties comprising of type of real estate Real estate assets located in Click here to enter text. (together herein referred as subject properties across the report).

The details of the subject properties under the purview of this valuation exercise are tabulated below: Cadaster Plot Number

Purpose

The Valuer understands that the valuation is required by the Client for Choose an item. Acquisition Purposes

The Client

The client of the valuation is Click here to enter text.

The valuation will be prepared strictly and only for the use of the client and for the Purpose specifically stated. The instructing party would make all reliant parties aware of the terms and conditions of this agreement under which this exercise is being undertaken and take due acknowledgements to the same effect.

The Valuer

Mohamed Chebaro, Partner at 3DA, is a Registered Architect at the Order of Engineers & Architects (OEA) and is approved by the Lebanese courts (Member No. 36), and the Central Bank of Lebanon as an Expert Architect/ Valuator.

With over 21 years of experience in the real estate industry, Mohamed is a seasoned professional with experience in providing real estate valuation services to a wide spectrum of clients including financial institutions, private equity funds, developers, NBFCs, corporate houses, banks, resolution professionals, land owners, etc…

He has worked on variety of valuation, consulting and technical due diligence assignments for various purposes including investment related due diligence, mortgage/collateral appraisals, financial reporting, listing purposes etc…

He has covered a wide range of asset classes, such as residential projects, integrated township developments, hospitality assets, commercial (office and retail) projects, industrial developments, warehousing parks, educational projects, and healthcare developments etc… for both national as well as international clients.

Architect Mohamed A. Chebaro

Limitation of Liability

• The Valuer provides the Services exercising due care and skill. The Valuer shall not accept liability for any errors, misstatements, omissions in the Report caused due to false, misleading or incomplete information or documentation provided to the Valuer by the Instructing Party.

• The Valuer will neither be responsible for any legal due diligence, title search, zoning check, development permissions and physical measurements nor undertake any verification/ validation of the zoning regulations/ development controls etc

Disclosures

The Valuer hereby certifies that:

• He is eligible to be appointed as a valuer in as per the Regulation and local applicable laws.

• The Valuer has adequate and robust internal controls to ensure the integrity of the valuation reports

• The Valuer has sufficient key personnel with adequate experience and qualification to perform services related to property valuation at all times

• The Valuer has sufficient financial resources to enable them to conduct their business effectively and meet their liabilities

• The Valuer has acquainted himself with all laws or regulations relevant to such valuation

• The Valuer is not an associate of the instructing party

• The Valuer has not been involved with the acquisition or disposal, within the last twelve months, of any of the properties valued under this summary valuation report.

• The Valuer and any of its employees/ consultants involved in valuation of the Client’s assets are not invested in the assets being valued till the time such person is designated as valuer of such client and not less than 6 months after ceasing to be valuer of the client

• The valuation of assets undertaken is independent, objective, impartial, true and fair and in accordance with the ethical standards of the Royal Institution of Chartered Surveyors (RICS)

• The Valuer shall render, at all times, high standards of service, exercise due diligence, ensure proper care and exercise professional judgement

• The Valuer has discharged its duties towards the client in an efficient and competent manner, utilizing its knowledge, skills and experience in best possible way to complete the said assignment

• The Valuer shall not accept remuneration, in any form, for performing a valuation of the client’s assets from any person other than the client or its authorized representatives.

• The Valuer shall before accepting any assignment from any related party to the client, disclose to the client, any direct or indirect consideration which the valuer may have in respect of such assignment

• The Valuer shall disclose to the client, any pending business transactions, contracts under negotiation and other arrangements with the Instructing Party or any other party whom the client is contracting with and any other factors which may interfere with the Valuer’s ability to give an independent and professional valuation of the property

• The Valuer shall not make false, misleading or exaggerated claims in order to secure assignments

• The Valuer shall not provide misleading valuation, either by providing incorrect information or by withholding relevant information

• The Valuer shall not accept an assignment that includes reporting of the outcome based on predetermined opinions and conclusions required by the client

Compliance with Valuation Standards

The valuation undertaken by the Valuer is in accordance with the International Valuation Standards (IVS) effective 31st of January 2020.

Architect Mohamed A. Chebaro 4/19 2022-05-24

Assumptions, Disclaimers, Limitations & Qualifications to Valuation

• Valuation Subject to Change: The subject valuation exercise is based on prevailing market dynamics as on the date of valuation and does not take into account any unforeseeable developments which could impact the same in the future

• Our Investigations: The Valuer is not engaged to carry out all possible investigations in relation to the subject properties. Where in our report the Valuer identifies certain limitations to his investigations, this is to enable the reliant party to instruct further investigations where considered appropriate or where the Valuer recommends as necessary prior to reliance. The Valuer is not liable for any loss occasioned by a decision not to conduct further investigations

• Assumptions: Assumptions are a necessary part of undertaking valuations. The Valuer adopts assumptions for the purpose of providing valuation advice. The client accepts that the valuation contains certain specific assumptions and acknowledges and accepts the risk that if any of the assumptions adopted in the valuation are incorrect, then this may have an effect on the valuation

• Information Supplied by Others: The valuation is based on the information provided by the Instructing Party (The Client). The same has been assumed to be correct and has been used for valuation exercise. Where it is stated in the report that another party has supplied information to the Valuer, this information is believed to be reliable but the Valuer can accept no responsibility if this should prove not to be so

• Future Matters: To the extent that the valuation includes any statement as to a future matter, that statement is provided as an estimate and/or opinion based on the information known to the Valuer at the date of this document. The Valuer do not warrant that such statements are accurate or correct

• Map and Plans: Any sketch, plan or map in this report is included to assist reader while visualizing the properties and assume no responsibility in connection with such matters

• Site Details: Based on title due diligence information provided by the Client, the Valuer understands that the subject properties are free from any encroachments and are available as on the date of the valuation.

• Town Planning: The current zoning of the subject properties has been adopted on the basis of review of various documents (title deeds) provided by the Instructing Party and the current land use maps for the subject region. The same has been considered for the purpose of this valuation exercise. Further, it has been assumed that the development on the subject properties adheres/ would adhere to the development regulations as prescribed by the relevant authorities. The Valuer has not made any enquiries with the relevant development authorities to validate the legality of the same.

• Area: The areas were based on legal documents and plans. The Valuer has not undertaken additional verification and physical measurement for the purpose of this valuation exercise

• Condition & Repair: In the absence of any information to the contrary, the Valuer has assumed that there are no abnormal ground conditions, which might adversely affect the current or future occupation, development or value of the property; the property is free from rot, infestation, structural or latent defect

• Not a Structural Survey: The Valuer states that this is a valuation report and not a structural survey

• Legal: Unless specifically disclosed in the report, the Valuer has not made any allowances with respect to any existing or proposed local legislation relating to taxation on realization of the sale value of the subject property.

Architect Mohamed A. Chebaro

• Other Assumptions:

Considering the unorganized nature of real estate markets in Lebanon, all comparable evidence (if any) provided in the valuation report has been limited to the basic details such as the area of asset, rate at which transacted, broad location, etc.

All measurements, areas and ages quoted in our report are approximate

• Material Valuation Uncertainty from Novel Coronavirus: The outbreak of the Novel Coronavirus (COVID 19), declared by the World Health Organization as a “Global Pandemic” on the 11th March 2020, is causing heightened uncertainty in both local and global market conditions. Global financial markets have seen steep declines since late February largely on the back of the pandemic over concerns of trade disruptions and falling demand. Many countries globally have implemented strict travel restrictions and a range of quarantine and “social distancing” measures. Market activity is being impacted in most sectors. In this environment, we have considered / relooked at various performance parameters and have adopted heuristic/ careful interventions to our projected cash flows based on our view as of this date.

As at the valuation date, we consider that we can attach less weight to previous market evidence for comparison purposes, to inform opinions of value. Indeed, the current response to COVID 19 means that we are faced with an unprecedented set of circumstances on which to base a judgement. Our valuation(s) is / are therefore reported on the basis of ‘material valuation uncertainty’. Consequently, less certainty and a higher degree of caution should be attached to our valuation than would normally be the case. Values may change more rapidly and significantly than during standard market conditions. Given the unknown future impact that COVID 19 might have on the real estate market, we recommend that you keep the valuation of these properties under frequent review. For the avoidance of doubt, the inclusion of the ‘material valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon. Rather, the declaration has been included to ensure transparency of the fact that in the current extraordinary circumstances less certainty can be attached to the valuation than would otherwise be the case. The material uncertainty clause is to serve as a precaution and does not invalidate the valuation.

Mohamed A. Chebaro

Valuation methodology and approach

Scope of Valuation

The valuation exercise is aimed at the assessment of the Market Value (MV) of the subject property. In considering the value of the property, the Valuer has considered the guidelines laid out in the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors (RICS)

Basis of Valuation

The valuations have been conducted in accordance with the RICS Valuation Global Standards 2020 (Red Book Incorporating the IVSC International Valuation Standards, effective from 31st January 2020). The valuation exercise has been undertaken by appropriately a qualified Valuer and would be aimed at assessing the Market Value of subject properties.

As per the Valuation and Guidance Notes issued by the Royal Institution of Chartered Surveyors (RICS) the market value is defined as:

‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion’.

Approach & Methodology

There are four methods, generally used for estimation of value:

1. Replacement value (cost) approach

2. Comparative value (sales comparison) approach

3. Operating income (income capitalization or discounted cash flows) approach

4. Residual value approach

1. Replacement value (cost) approach is based on an assumption that a knowledgeable buyer will not pay for the same substitute property more than the amount necessary to create such property. This approach is particularly applicable when the subject property is related with relatively new buildings/constructions that reflect the highest or best use of the land lot or when the buildings/constructions on the land lot are relatively unique or specialized and the market has a limited supply of comparable properties.

Under the replacement approach to value, the value of land is established by considering comparable sales transactions. The replacement value of buildings/constructions is determined on the basis of typical sources, first of all details supplies by local professional construction companies and accepted national price fixing measures. In some cases, the application of this approach is based on the construction cost of the subject property and information about the construction costs of similar buildings, less the accrued depreciation amount calculated with reference to data obtained from all sources. Then the additional value of land is added to the replacement value of buildings/constructions less depreciation amount to reflect the value of the subject property under the replacement value approach.

2. Comparative value (sales comparison) approach relies on search for recent sales transactions involving comparable property and analysis of data related to the subject property. This approach is based on the price paid in actual market transactions over comparable properties to derive the market price of the subject property. This property valuation approach relies on data on fully comparable sales transactions concluded over a relatively long period of time that reflect the market conditions related to the subject property. Applying the sales comparison approach to value, the data interrelation allows determining the value of the subject property considering certain adjustments in

Mohamed A. Chebaro

view of the physical and economical characteristics of the property. The sales comparison approach is used to determine the specified sales price of a comparable unit.

3. Operating income (income capitalization of discounted cash flow) approach is normally applied to establish the value of income generating properties to be acquired by an investor. This approach also relies on market data that are used to determine the current economical volumes of rent rates and expenses that form the basis of the estimated net income. Depending on the purpose of the subject property, the specifics of its operation and the character of cash flow as well as the typical expectations of buyers and sellers on the market, the appraiser may adopt the capitalization approach to value. Under the direct capitalization approach, the value is calculated by dividing the net income (profit) by a capitalization rate. When the discounted cash flow approach is applied, the value of the property is calculated by summing up the present values of future cash flows, discounted at a discount rate. Both the direct capitalization and the discounted cash flow approach are used to determine the market value.

Using the operating income (income capitalization or discounted cash flow) approach to value, first of all, one must consider the overall income, from which the respective amounts are subtracted considering the losses for vacancies and levies, expenses and provisions. The resulting net income is capitalized or discounted at a specific rate, which is proportional to the risks related to the title to the subject property.

Under the direct capitalization approach, income and expenses of one year are stabilized and the net resulting operating income is capitalized at a capitalization or return rate in proportion to the title to the subject property. Such income capitalization considers the competitive return resulting from alternative instruments of investment into real estate or other property. The baseline assumption of this approach is that the forecast cash flow will be available for an unlimited duration in time, however this statement is usually not the case when it comes to compound investments into real estate.

4. Residual approach, for the purpose of evaluation of projects under development, the residual value method is used. This method is applied to establish the value of a vacant land site or of a land site and buildings that are prepared for redevelopment. Market Value according to Residual method generally is used to evaluate properties with possible future development. According to this method construction costs and other expenses for development of property together with assumed allowance for developer’s profit, sale incomes after development are being calculated.

Valuation Approach

Residual value approach

Valuation Assumptions

None

Architect Mohamed A. Chebaro

The Property’s macro location

The Region

Governorate: Mount Lebanon District: Aley Town: El Kobbeh

Location: ☐ Urban ☐ Suburban ☐ Rural

Distance from Beirut: 12 Km

Distance from District center: 12 Km

Elevation ASL: 150m

Directions: Beirut Khaldeh Choueifat El kobbeh

Notes:

The Neighborhood Available Services ☒ Educational ☐ Public ☒ Commercial ☒ Medical ☐ Religious ☐ Touristic Infrastructure

In the Neighborhood Site Vicinity Public Type Public Private Type electricity ☒ ☒ ☐ Potable water ☒ ☒ ☐ Sanitary Sewer ☒ ☒ ☐ Storm Sewer ☐ ☐ ☐ Street ☒ Asphalt ☒ ☐ Asphalt Curb ☒ Concrete tiles ☐ ☐ Lighting ☒ ☒ ☐ Notes:

Architect Mohamed A. Chebaro

Geographical properties of Parcel No.: …

Limits Contains

Façade/ Depth:

North: Street and Plot … Vacant Land 168 m

South: Plots … Residential & Vacant Land 179 m

East: Street 19 m

West: Secondary street 17 m

Shape: Irregular Slope: 35 o Geology: Sand & Rocks

Area Based on ALR 3673 m2 Alignment Decree No. m2 Net Area 3673 m2

Plot contains: Vacant land Notes:

Architect Mohamed A. Chebaro

Building Code for Parcel No.:…

Zone: B1 Based on Decree Number 813/ 2008

Total Exploitation Coefficient Floor Area Ratio Max Allowable Height Maximum No. of floors 1 25% 17 4

Min Subdivisionned

Area: 1500Area m2 800 m2

Facade 25 m 20 m

Depth 25 m 20 m

Setbacks

Min. Buildable:

From Limit/ Axe of Road or Alignment 4 m

From adjacent plots: Sides 4 m

From adjacent plots: Back 4 m

Applicable to BEIRUT ONLY:

According to the parcel location in reference to roads and based on the width of such roads, The above exploitation factors shall be increased by

• Piloti floor and the additional residential basement is not permitted

☐ 10% ☐ 20%

Special conditions:

Notes:

• Follows the airport’s aviation height zoning

• The Zoning & Alignment certificate is dated: 8/7/2007.

• As instructed by the client, the appraisal value will be based on the values indicated in this document and recorded above.

• The Valuer is not liable for any change to the Zoning & Alignment which might affect the value of the property

Architect Mohamed A. Chebaro 12/19 2022

Attestation of the Land Registry (ALR)

Plot No.: Cadaster: El Kobbeh Description: Vacant plot Name Share (out of 2400)

Ownership: … 2400

Entries relevant to the appraisal value

None Date: 20/04/2022 Notes:

Architect Mohamed A. Chebaro 13/19 2022

Appraisal

Notes:

1. Refer to appendix 1 for a detailed feasibility/ residual method calculation (Page 16)

2. In reference to the current financial and monetary crisis and the unofficial banks capital control:

a. the above appraisal represents the real estate value, irrespective of the mode of payment (whether in cash USD banknote or in Check USD or a mix).

b. The effect of this crisis on the real estate sector has not fully manifested yet since the real estate sector is still being considered a relatively safe haven.

c. For sale transactions, we notice currently that buyers expect discounts of 40% or more for cash/ fresh USD. This has no financial scientific reference and might change anytime depending on the financial/ political status and the sellers’ intentions and needs

d. Sellers are currently becoming less likely to sell in Banker’s Checks.

Architect Mohamed A. Chebaro

Adjoined documents

Description Attached Doc. # by expert

Pictures ☐ ☐

ALR ☒ 1 ☐

Cadastral map ☒ 2 ☐

Subdivision map ☐ ☐ certificate of area ☐ ☐

Zoning & Alignment ☒ 2 ☐

Draft Subdivision map ☐ ☐

Construction Permit ☐ ☐

Construction Permit Drawings ☐ ☐

Occupancy Permit ☐ ☐

Occupancy Permit Drawings ☐ ☐ ☐ ☐

Architect Mohamed A. Chebaro 15/19 2022

Mohamed A. Chebaro

Mohamed A. Chebaro

Appraisal Report

Preface

Instructions

Mr. Mohamed Chebaro has been instructed by (the ‘Client’, the ‘Instructing Party’) in its capacity as Owner Representative to advice upon the Market Value (MV) of properties comprising of residential Real estate assets located in mssaytbeh/beirut (together herein referred as subject properties across the report).

The details of the subject properties under the purview of this valuation exercise are tabulated below:

Cadaster Plot Number Section Number

Property Type mssaytbeh beirut residential

Purpose

The Valuer understands that the valuation is required by the Client To assist Client in establishing an asking price | to assist Client in establishing a value for property tax purposes

The Client

The client of the valuation is

The valuation will be prepared strictly and only for the use of the client and for the Purpose specifically stated. The instructing party would make all reliant parties aware of the terms and conditions of this agreement under which this exercise is being undertaken and take due acknowledgements to the same effect.

The Valuer

Mohamed Chebaro, Partner at 3DA, is a Registered Architect at the Order of Engineers & Architects (OEA) and is approved by the Lebanese courts (Member No. 36), and the Central Bank of Lebanon as an Expert Architect/ Valuator.

With over 21 years of experience in the real estate industry, Mohamed is a seasoned professional with experience in providing real estate valuation services to a wide spectrum of clients including financial institutions, private equity funds, developers, NBFCs, corporate houses, banks, resolution professionals, land owners, etc…

He has worked on variety of valuation, consulting and technical due diligence assignments for various purposes including investment related due diligence, mortgage/collateral appraisals, financial reporting, listing purposes etc…

He has covered a wide range of asset classes, such as residential projects, integrated township developments, hospitality assets, commercial (office and retail) projects, industrial developments, warehousing parks, educational projects, and healthcare developments etc… for both national as well as international clients.

Architect Mohamed A. Chebaro

Limitation of Liability

• The Valuer provides the Services exercising due care and skill. The Valuer shall not accept liability for any errors, misstatements, omissions in the Report caused due to false, misleading or incomplete information or documentation provided to the Valuer by the Instructing Party.

• The Valuer will neither be responsible for any legal due diligence, title search, zoning check, development permissions and physical measurements nor undertake any verification/ validation of the zoning regulations/ development controls etc

Disclosures

The Valuer hereby certifies that:

• He is eligible to be appointed as a valuer in as per the Regulation and local applicable laws.

• The Valuer has adequate and robust internal controls to ensure the integrity of the valuation reports

• The Valuer has sufficient key personnel with adequate experience and qualification to perform services related to property valuation at all times

• The Valuer has sufficient financial resources to enable them to conduct their business effectively and meet their liabilities

• The Valuer has acquainted himself with all laws or regulations relevant to such valuation

• The Valuer is not an associate of the instructing party

• The Valuer has not been involved with the acquisition or disposal, within the last twelve months, of any of the properties valued under this summary valuation report.

• The Valuer and any of its employees/ consultants involved in valuation of the Client’s assets are not invested in the assets being valued till the time such person is designated as valuer of such client and not less than 6 months after ceasing to be valuer of the client

• The valuation of assets undertaken is independent, objective, impartial, true and fair and in accordance with the ethical standards of the Royal Institution of Chartered Surveyors (RICS)

• The Valuer shall render, at all times, high standards of service, exercise due diligence, ensure proper care and exercise professional judgement

• The Valuer has discharged its duties towards the client in an efficient and competent manner, utilizing its knowledge, skills and experience in best possible way to complete the said assignment

• The Valuer shall not accept remuneration, in any form, for performing a valuation of the client’s assets from any person other than the client or its authorized representatives.

• The Valuer shall before accepting any assignment from any related party to the client, disclose to the client, any direct or indirect consideration which the valuer may have in respect of such assignment

• The Valuer shall disclose to the client, any pending business transactions, contracts under negotiation and other arrangements with the Instructing Party or any other party whom the client is contracting with and any other factors which may interfere with the Valuer’s ability to give an independent and professional valuation of the property

• The Valuer shall not make false, misleading or exaggerated claims in order to secure assignments

• The Valuer shall not provide misleading valuation, either by providing incorrect information or by withholding relevant information

• The Valuer shall not accept an assignment that includes reporting of the outcome based on predetermined opinions and conclusions required by the client

Compliance with Valuation Standards

The valuation undertaken by the Valuer is in accordance with the International Valuation Standards (IVS) effective 31st of January 2020.

Architect Mohamed A. Chebaro 4/31 2022-11-30

Assumptions, Disclaimers, Limitations & Qualifications to Valuation

• Valuation Subject to Change: The subject valuation exercise is based on prevailing market dynamics as on the date of valuation and does not take into account any unforeseeable developments which could impact the same in the future

• Our Investigations: The Valuer is not engaged to carry out all possible investigations in relation to the subject properties. Where in our report the Valuer identifies certain limitations to his investigations, this is to enable the reliant party to instruct further investigations where considered appropriate or where the Valuer recommends as necessary prior to reliance. The Valuer is not liable for any loss occasioned by a decision not to conduct further investigations

• Assumptions: Assumptions are a necessary part of undertaking valuations. The Valuer adopts assumptions for the purpose of providing valuation advice. The client accepts that the valuation contains certain specific assumptions and acknowledges and accepts the risk that if any of the assumptions adopted in the valuation are incorrect, then this may have an effect on the valuation

• Information Supplied by Others: The valuation is based on the information provided by the Instructing Party (The Client). The same has been assumed to be correct and has been used for valuation exercise. Where it is stated in the report that another party has supplied information to the Valuer, this information is believed to be reliable but the Valuer can accept no responsibility if this should prove not to be so

• Future Matters: To the extent that the valuation includes any statement as to a future matter, that statement is provided as an estimate and/or opinion based on the information known to the Valuer at the date of this document. The Valuer do not warrant that such statements are accurate or correct

• Map and Plans: Any sketch, plan or map in this report is included to assist reader while visualizing the properties and assume no responsibility in connection with such matters

• Site Details: Based on title due diligence information provided by the Client, the Valuer understands that the subject properties are free from any encroachments and are available as on the date of the valuation.

• Town Planning: The current zoning of the subject properties has been adopted on the basis of review of various documents (title deeds) provided by the Instructing Party and the current land use maps for the subject region. The same has been considered for the purpose of this valuation exercise. Further, it has been assumed that the development on the subject properties adheres/ would adhere to the development regulations as prescribed by the relevant authorities. The Valuer has not made any enquiries with the relevant development authorities to validate the legality of the same.

• Area: The areas were based on legal documents and plans. The Valuer has not undertaken additional verification and physical measurement for the purpose of this valuation exercise

• Condition & Repair: In the absence of any information to the contrary, the Valuer has assumed that there are no abnormal ground conditions, which might adversely affect the current or future occupation, development or value of the property; the property is free from rot, infestation, structural or latent defect

• Not a Structural Survey: The Valuer states that this is a valuation report and not a structural survey

• Legal: Unless specifically disclosed in the report, the Valuer has not made any allowances with respect to any existing or proposed local legislation relating to taxation on realization of the sale value of the subject property.

Architect Mohamed A. Chebaro

• Other Assumptions:

Considering the unorganized nature of real estate markets in Lebanon, all comparable evidence (if any) provided in the valuation report has been limited to the basic details such as the area of asset, rate at which transacted, broad location, etc.

All measurements, areas and ages quoted in our report are approximate

• Material Valuation Uncertainty from Novel Coronavirus: The outbreak of the Novel Coronavirus (COVID 19), declared by the World Health Organization as a “Global Pandemic” on the 11th March 2020, is causing heightened uncertainty in both local and global market conditions. Global financial markets have seen steep declines since late February largely on the back of the pandemic over concerns of trade disruptions and falling demand. Many countries globally have implemented strict travel restrictions and a range of quarantine and “social distancing” measures. Market activity is being impacted in most sectors. In this environment, we have considered / relooked at various performance parameters and have adopted heuristic/ careful interventions to our projected cash flows based on our view as of this date.

As at the valuation date, we consider that we can attach less weight to previous market evidence for comparison purposes, to inform opinions of value. Indeed, the current response to COVID 19 means that we are faced with an unprecedented set of circumstances on which to base a judgement. Our valuation(s) is / are therefore reported on the basis of ‘material valuation uncertainty’. Consequently, less certainty and a higher degree of caution should be attached to our valuation than would normally be the case. Values may change more rapidly and significantly than during standard market conditions. Given the unknown future impact that COVID 19 might have on the real estate market, we recommend that you keep the valuation of these properties under frequent review. For the avoidance of doubt, the inclusion of the ‘material valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon. Rather, the declaration has been included to ensure transparency of the fact that in the current extraordinary circumstances less certainty can be attached to the valuation than would otherwise be the case. The material uncertainty clause is to serve as a precaution and does not invalidate the valuation.

Mohamed A. Chebaro

Valuation methodology and approach

Scope of Valuation

The valuation exercise is aimed at the assessment of the Market Value (MV) of the subject property. In considering the value of the property, the Valuer has considered the guidelines laid out in the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors (RICS)

Basis of Valuation

The valuations have been conducted in accordance with the RICS Valuation Global Standards 2020 (Red Book Incorporating the IVSC International Valuation Standards, effective from 31st January 2020). The valuation exercise has been undertaken by appropriately a qualified Valuer and would be aimed at assessing the Market Value of subject properties.

As per the Valuation and Guidance Notes issued by the Royal Institution of Chartered Surveyors (RICS) the market value is defined as:

‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion’.

Approach & Methodology

There are four methods, generally used for estimation of value:

1. Replacement value (cost) approach

2. Comparative value (sales comparison) approach

3. Operating income (income capitalization or discounted cash flows) approach

4. Residual value approach

1. Replacement value (cost) approach is based on an assumption that a knowledgeable buyer will not pay for the same substitute property more than the amount necessary to create such property. This approach is particularly applicable when the subject property is related with relatively new buildings/constructions that reflect the highest or best use of the land lot or when the buildings/constructions on the land lot are relatively unique or specialized and the market has a limited supply of comparable properties.

Under the replacement approach to value, the value of land is established by considering comparable sales transactions. The replacement value of buildings/constructions is determined on the basis of typical sources, first of all details supplies by local professional construction companies and accepted national price fixing measures. In some cases, the application of this approach is based on the construction cost of the subject property and information about the construction costs of similar buildings, less the accrued depreciation amount calculated with reference to data obtained from all sources. Then the additional value of land is added to the replacement value of buildings/constructions less depreciation amount to reflect the value of the subject property under the replacement value approach.

2. Comparable value (sales comparison) approach relies on search for recent sales transactions involving comparable property and analysis of data related to the subject property. This approach is based on the price paid in actual market transactions over comparable properties to derive the market price of the subject property. This property valuation approach relies on data on fully comparable sales transactions concluded over a relatively long period of time that reflect the market conditions related to the subject property. Applying the sales comparison approach to value, the data interrelation allows determining the value of the subject property considering certain adjustments in

Architect Mohamed A. Chebaro 7/31 2022-11-30

view of the physical and economical characteristics of the property. The sales comparison approach is used to determine the specified sales price of a comparable unit.

3. Operating income (income capitalization of discounted cash flow) approach is normally applied to establish the value of income generating properties to be acquired by an investor. This approach also relies on market data that are used to determine the current economical volumes of rent rates and expenses that form the basis of the estimated net income. Depending on the purpose of the subject property, the specifics of its operation and the character of cash flow as well as the typical expectations of buyers and sellers on the market, the appraiser may adopt the capitalization approach to value. Under the direct capitalization approach, the value is calculated by dividing the net income (profit) by a capitalization rate. When the discounted cash flow approach is applied, the value of the property is calculated by summing up the present values of future cash flows, discounted at a discount rate. Both the direct capitalization and the discounted cash flow approach are used to determine the market value.

Using the operating income (income capitalization or discounted cash flow) approach to value, first of all, one must consider the overall income, from which the respective amounts are subtracted considering the losses for vacancies and levies, expenses and provisions. The resulting net income is capitalized or discounted at a specific rate, which is proportional to the risks related to the title to the subject property.

Under the direct capitalization approach, income and expenses of one year are stabilized and the net resulting operating income is capitalized at a capitalization or return rate in proportion to the title to the subject property. Such income capitalization considers the competitive return resulting from alternative instruments of investment into real estate or other property. The baseline assumption of this approach is that the forecast cash flow will be available for an unlimited duration in time, however this statement is usually not the case when it comes to compound investments into real estate.

4. Residual approach, for the purpose of evaluation of projects under development, the residual value method is used. This method is applied to establish the value of a vacant land site or of a land site and buildings that are prepared for redevelopment. Market Value according to Residual method generally is used to evaluate properties with possible future development. According to this method construction costs and other expenses for development of property together with assumed allowance for developer’s profit, sale incomes after development are being calculated.

Valuation Approach

Sales Comparison approach

Valuation Assumptions

Based on the scope of this valuation, the survey of the apartments has been conducted visually without thorough testing of the systems and services, accordingly the following are non verified assumptions made for the purpose of reaching a fair market value

1. Assumption 1: Electro Mechanical services such Sanitary and HVAC are considered in need of minor maintenance only to achieve a working condition.

2. Assumption 2: Humidity in few locations, specifically at Aluminum windows, needs only minor exterior water proofing repairs, and interior paint touch up

Architect Mohamed A. Chebaro

Governorate: beirut

The Property’s macro location

The Region

District: beirut Town: mssaytbeh

Location:

Urban Suburban Rural Distance from Beirut: Km Distance from District center: Km Elevation ASL: m Directions: beirut Notes:

The Neighborhood Available Services

Educational Public Commercial Medical Religious Touristic Infrastructure

In the Neighborhood Site Vicinity Public Type Public Private Type

electricity

Potable water Sanitary Sewer Storm Sewer Street asphalt asphalt Curb concrete concrete Lighting Notes:

Architect Mohamed A. Chebaro

Geographical properties of plot No.:5064

Limits Contains

North: Public street General de gaulle

South: Public street Rafic el hariri

East: Plot 5063 and plot 5065 Exotica and Residential building respectively

West: Public street Rafic el hariri

Plot contains: Residential building named “ ”

Notes:

Architect Mohamed A. Chebaro

Construction Date 1999

Consists of:

Building specifications

2 Blocks A & B No Use

Basements 3 Storage rooms, Parking and services

Ground floor 1 Building entrance Mezzanine

Upper floors 12 12 Residential apartments in each Block Façade

Main facades: Lime Stone

Secondary facades: Lime Stone

Fenestrations: Aluminum (Technal) and double Glazing

Balconies handrail: Aluminum and glass

Balconies ceiling: Painted Gypsum False ceiling

Architect Mohamed A. Chebaro

building facade building facade

Common Areas

Floors Walls ceilings

Parking epoxy paint paint

Building entrance marble marble Decorative Gypsum board

Staircase: Entrance façade: Destroyed due to 4th of august 2020 Port explosion Staircase handrail:

Common services:

Lifts No 3 Type: Space lab/ Thyssen Generator No 2 Type: Interphone No 1 Type:

Artesian well No None

Architect Mohamed A. Chebaro

parking Building main entrance

Building main entrance elevator

Classification below medium medium good excellent

Notes:

1. The building has a shared pool, which is not currently operational. In that respect we have been informed that the owners committee is in the process of converting the swimming pool to a second main entrance from the lower street. (still under construction)

2. The building façade and the common areas are fairly maintained (it could be better) considering the highly corrosive location facing west the sea & sandy beach.

Humidity at few window parapets

Crack and Humidity at few window parapets

Humidity at few walls

Mohamed A. Chebaro

2/3 Floor Walls ceiling

Kitchen ceramic ceramic Painted false ceiling

Bathrooms Marble Marble Painted Gypsum ceiling

Sanitary fixtures Kermag mixers Grohe

Kitchen cabinets Stainless Steel counter Granite sink Stainless Steel

Industrial kitchen Industrial kitchen

Guest bathroom Bathroom 1

Electrical Switches

Attestation of the Land Registry (ALR)

Plot No.: Cadaster: Description: Name Share (out of 2400) Ownership: 480 480 240 240 240 240 240 240

Entries relevant to the appraisal value

None Date: 12/7/2021

Notes: Refer to document 1

Architect Mohamed A. Chebaro 23/31

Comparable

Notes:

1. The comparable properties are listed for sale and not actual sales, due to the lack of reliable information on recent sale transactions in the neighborhood.

2. Since the apartments subject of the appraisal are located on different floor levels ( ), The price corrections and specifically for the item number 2 aims at reaching an average value. For appraisal purposes, this value shall be increased or decreased depending on the floor level.

3. In performing this comparable analysis, the unique luxurious finishing of the apartment is considered over improvements, which, despite the high costs associated with it, in the event of sale will not add to the sale value due to the lack of appreciation by the buyers.

General Criteria leading to appraisal

Appraisal

Specific Criteria leading to appraisal ▪ Site location & Surrounding ▪ Site specifications ▪ real estate market

▪

Description Type of use Area/ m2 Appraisal-$/m2 Total Substractions

5064/ A6 Mssaytbeh Residential 614.50 $6,750.00 $4,147,875.00

5064/ A15 Mssaytbeh Residential 613.50 $7,650.00 $4,693,275.00

5064/ A16 Mssaytbeh Residential 614.50 $7,750.00 $4,762,375.00 $0.00 $0.00 $13,603,525.00 $0.00

Net Total $13,603,525.00

Thirteen millions six hundred thousand US Dollars Only

1. In reference to the current financial and monetary crisis and the unofficial banks capital control, the above appraisal represents the real estate value, irrespective of the mode of payment (whether in cash USD banknote or in Check USD or a mix).

Notes:

2. Please note that this crisis did not affect the real estate value (up to this moment at least), since supply and demand is still in balance. Nevertheless, we notice currently that sellers might be inclined to offer discounts 35% or more for cash/ fresh USD and buyers might pay motivated sellers 4.5 times or more the cash value in local checks USD (this is becoming less likely since sellers are becoming reluctant to sell in Checks).

This has nothing to do with any financial scientific calculations and might change anytime depending on the financial/ political status.

Architect Mohamed A. Chebaro 27/31

Adjoined documents

Description Attached Doc. # by expert Pictures

ALR 1 Cadastral map Subdivision map 2 certificate of area

Architect Mohamed A. Chebaro 28/31

Mohamed A. Chebaro