MEFIC Capital and Round Hill Capital Complete the Acquisition of a Significant Mixed-Use Urban Regeneration Project in Porto, Portugal

MEFIC Capital (“MEFIC”) a full service financial services company authorised by the Capital Market Authority of Saudi Arabia, and Round Hill Capital (“Round Hill”), a leading specialist real estate investment, development and asset management firm, announce today that they have acquired, through a new joint venture involving controlled affiliates, a 7.8 ha (78,061 sq m) development site adjacent to the University of Porto Campus at Paranhos in Porto, Portugal’s second largest city.

The new Joint Venture has made a €100 million commitment to deliver this significant mixed-use urban regeneration project, which will comprise a range of accommodation types including student accommodation; residential apartments and a hotel, as well as substantial ancillary commercial facilities, including a supermarket, Mercado and office space.

The site will become part of the Porto Innovation District, an initiative between Porto City Council, InvestPorto and the local universities, faculties, business schools, hospitals, institutes and research centres to help drive innovation and entrepreneurship in Porto (http://www.portoinnovationhub.com/en/).

Round Hill and MEFIC were advised by EDGE International Lawyers, Arcadis, Baker Mackenzie, DDM and Deloitte.

Commenting on the transaction, Michael Bickford, founder and CEO of Round Hill Capital, said:

“Round Hill has been evaluating the Portuguese markets for several years and is delighted to have completed the acquisition of this very well located mixed-use urban regeneration scheme in Porto, which will set a new standard in Portugal with an uncompromising approach to quality, safety and service.

We appreciate the positive engagement we have received from Porto City Council and InvestPorto, which gives us great confidence in the future of this project. We look forward to continuing to work closely with the local stakeholders and communities in the Porto Innovation District to deliver this exciting project. We are confident it will provide significant benefits to the city of Porto and its universities’ staff and students for many years to come.

Portugal is benefitting from positive macro-economic trends, persisting supply/demand fundamentals for student housing, hotel rooms as well as wider residential property and an attractive investment environment. Round Hill continues to look to make further investments in Portugal with similar value characteristics.”

Mr. Ibrahim A. Al Hedaithy, Executive Board Member & Managing Director MEFIC Capital, stated:

“We are pleased that MEFIC’s first investment outside of Saudi Arabia has been made in Portugal, a country that shares our values of integrity and professionalism. The stable and growing economy is a key attraction whilst allowing us to create long-term employment and assist in developing the local and wider community in a responsible manner. It is a pleasure to be able to play a small part in helping to support Porto’s growing reputation as a significant European investment destination.”

About Round Hill Capital:

Round Hill Capital is a leading specialist real estate investment, development and asset management firm. Round Hill Capital has a long and proven reputation for successfully identifying and acquiring high quality European real estate.

Round Hill Capital is a highly focused investor and is experienced in establishing and running first class operating companies, having invested more than €6.0 billion of capital in European real estate assets since its inception in 2002. Round Hill Capital has successfully acquired and managed more than 100,000 residential units across Europe and currently is one of the largest private landlords in multiple countries. Round Hill has a significant and growing residential development pipeline across the UK and Continental Europe.

Round Hill has a successful track record of investing in and operating student accommodation assets, having acquired, built up and managed over 2,700 student housing beds. In 2015, Round Hill sold 2,378 beds to Greystar Real Estate Advisers in 2015 for £600 million. Round Hill has a well-established brand and operational platform for student accommodations called the Nido Collection.

Round Hill Capital has an established track record of generating high risk adjusted returns and invests and asset manages real estate with some of the world’s leading institutions and private investors.

Further information on Round Hill Capital is available at: www.roundhillcapital.com

About MEFIC Capital:

MEFIC Capital, with SR400m fully paid capital, is a complete financial services company authorised by the Capital Market Authority of Saudi Arabia to operate as a full service investment bank in Asset Management, Corporate Finance & Advisory, Wealth Management, Brokerage, and Custody.

MEFIC’s shareholders consist of the prominent regional institutions such as Ahli United Bank – Kuwait, Ahli United Bank –Bahrain, The Arab Investment Company (TAIC) as well as a number of astute and influential business individuals considered as leaders in the financial investments and advisory fields.

MEFIC Capital’s strategic partner, Ahli United Bank (AUB) has been recognized as “Bank of The Year – Middle East 2016” by The Banker, the world’s longest running international banking magazine and member of the Financial Times Group. This represents the second time that AUB has received this prestigious award.

Further information on MEFIC Capital is available at: www.mefic.com.sa/en/about-mefic/overview