Form 424B3 Black Creek Diversified

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In order to obtain an essential conclusion, we obtain an opinion from an external appraisal company, and then the assessment process follows the regular assessment process described above.

Real estate-related assets and other assets

Real estate-related assets, whose salability or transferability is not restricted, are valued monthly on the basis of publicly available information. To the extent that information is available, these real estate-related assets will generally be valued at the last trade in these securities, which was executed on or before the close of trading on the Valuation Day, or, if there is no such trade, at the last ” Offer Price. The value of these real estate-related assets, which have limited salability or transferability, can be adjusted by the price source for a liquidity discount. In determining the amount of this discount, the nature and duration of this restriction as well as the relative volatility of the market price of the asset are taken into account.

Other assets include derivatives (with the exception of interest rate hedges), creditworthy government bonds, cash and cash equivalents, and trade receivables. Estimates of the fair values ​​of other assets are determined using generally accepted methods and, where available, on the basis of publicly available price quotations and information.

Other assets also include individual investments in mortgages, equity investments, mezzanine loans and loans related to our DST program (as described under the heading “Valuation of Assets and Liabilities Related to the DST Program” below) made in our Determination of the NAV are included at the estimated fair value using generally recognized valuation methods.

In accordance with our valuation procedures, our board of directors, including the majority of our independent directors, approve the pricing sources of our real estate-related and other assets. In general, these sources are third parties other than our advisor. However, we may use the advisor or a Black Creek Group affiliate as a source of pricing if the asset is not deemed material to the company or other pricing sources are not reasonably available and provided that our directors, including the majority of our independent directors, must Approve the initial assessment made by our consultant and any subsequent material adjustments made by our consultant. The Independent Valuation Advisor does not typically act as an external source of prices for these assets, but may be employed to do so in certain circumstances.

Liabilities, excluding real estate-level mortgages, corporate-level credit facilities, and interest rate hedges

Unless stated below, we include an estimate of the fair values ​​of our liabilities in our NAV calculation. These liabilities include, but are not limited to, fees and reimbursements payable to the Consultant and its affiliates, billing and accrued expenses, and other liabilities. In accordance with our evaluation procedures, our directors, including the majority of our independent directors, approve the pricing sources of our liabilities, which may include third parties or our advisor or its affiliates.

Under applicable GAAP, we recognize liabilities for distribution fees (i) we currently owe the Dealer Manager under the terms of our Dealer Manager Agreement and (ii) for an estimate that we may pay to our Dealer Manager in future periods. However, we do not subtract the liability for estimated future distribution fees in our calculation of NAV as we intend that our NAV will reflect our estimated value on the day we determine our NAV. Accordingly, our estimated net asset value at any given time does not include any estimated future distribution fees that may become due after that date.

The estimated fair values ​​of these liabilities can be determined by our advisor or another suitable price source. Our independent valuation advisor is not responsible for evaluating or reviewing these liabilities.

Liabilities – real estate level mortgages, corporate level credit facilities and interest rate hedges

Our property-level mortgages and company-level credit lines held to maturity, including those that are hedged, are valued by the advisor at face value (i.e., their respective outstanding balances). Since we often use interest rate hedges to stabilize interest payments (i.e., to set overall interest rates through interest rate swaps or limit interest rate risk through interest rate caps) on individual loans, each loan and the associated interest rate hedge is treated as a financial instrument that is valued at face value if it is is to be held to maturity (for fixed-income debt instruments that are not subject to interest rate hedging, the day near the maturity on which the



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