Land Area 24,813 Parking basement 10,902 Land …...Land Area 24,813 Parking basement 10,902 Land cost 80,000,000 GEA GEA (%) Land Cost Units Positioning Hotel 51,335 59% 40,369,161

Land Area 24,813

Parking basement 10,902

Land cost 80,000,000

GEA GEA (%) Land Cost Units Positioning

Hotel 51,335 59% 40,369,161 575 rooms Upscale Hotel

Three Towers 29,599 34% 88 apartments Upper-Upscale Residences

Maisonette tower 3,220 4% 4 maisonettes Upper-Upscale Residences

Eight villas 2,598 3% 8 villas Upper-Upscale Residences

Total 86,752 100% 80,000,000 675 units Upper-Upscale Residences

39,630,839

3

5

Upscale Hotel, RAK, UAE 1 2 3 4 5 6 7 8 9 10

in AED 000s 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Hotel Component

Number of Keys 575 575 575 575 575 575 575 575 575 575

Days Open 365 365 365 365 365 365 365 365 365 365

Roomnights Available 209,875 209,875 209,875 209,875 209,875 209,875 209,875 209,875 209,875 209,875

Roomnights Occupied 114,827 126,872 143,058 143,058 143,058 143,058 143,058 143,058 143,058 143,058

Room Occupancy % 54.7% 60.5% 68.2% 68.2% 68.2% 68.2% 68.2% 68.2% 68.2% 68.2%

Average Room Rate 703 727 753 779 806 834 864 894 925 958

RevPAR 385 440 513 531 550 569 589 609 631 653

AED 000s % AED 000s % AED 000s % AED 000s % AED 000s % AED 000s % AED 000s % AED 000s % AED 000s % AED 000s %

Revenue

Hotel Rooms 80,745 59.6 92,293 59.5 107,672 59.6 111,441 59.6 115,341 59.6 119,378 59.6 123,557 59.6 127,881 59.6 132,357 59.6 136,989 59.6

Food & Beverage 47,324 34.9 54,211 35.0 63,258 35.0 65,472 35.0 67,763 35.0 70,135 35.0 72,589 35.0 75,130 35.0 77,760 35.0 80,481 35.0

Spa & Recreation 2,918 2.2 3,530 2.3 4,141 2.3 4,286 2.3 4,436 2.3 4,592 2.3 4,752 2.3 4,919 2.3 5,091 2.3 5,269 2.3

Rental Income 427 0.3 442 0.3 457 0.3 473 0.3 490 0.3 507 0.3 525 0.3 543 0.3 562 0.3 582 0.3

Other Revenue 4,168 3.1 4,609 3.0 5,181 2.9 5,362 2.9 5,550 2.9 5,744 2.9 5,945 2.9 6,153 2.9 6,368 2.9 6,591 2.9

Total Revenue 135,582 100 155,084 100 180,709 100 187,034 100 193,580 100 200,356 100 207,368 100 214,626 100 222,138 100 229,913 100

Departmental Expenses

Hotel Rooms 13,861 17.2 15,327 16.6 17,228 16.0 17,831 16.0 18,455 16.0 19,101 16.0 19,769 16.0 20,461 16.0 21,177 16.0 21,918 16.0

Food & Beverage 29,519 62.4 32,641 60.2 36,689 58.0 37,973 58.0 39,303 58.0 40,678 58.0 42,102 58.0 43,575 58.0 45,101 58.0 46,679 58.0

Spa & Recreation 1,999 68.5 2,211 62.6 2,485 60.0 2,572 60.0 2,662 60.0 2,755 60.0 2,851 60.0 2,951 60.0 3,054 60.0 3,161 60.0

Other Expenses 2,533 60.8 2,744 59.5 3,010 58.1 3,116 58.1 3,225 58.1 3,338 58.1 3,455 58.1 3,575 58.1 3,701 58.1 3,830 58.1

Total Departmental Expenses 47,911 35.3 52,922 34.1 59,412 32.9 61,492 32.9 63,644 32.9 65,871 32.9 68,177 32.9 70,563 32.9 73,033 32.9 75,589 32.9

Total Departmental Profit 87,671 64.7 102,162 65.9 121,297 67.1 125,542 67.1 129,936 67.1 134,484 67.1 139,191 67.1 144,063 67.1 149,105 67.1 154,324 67.1

Undistributed Expenses

Administrative & General 11,576 8.5 12,084 7.8 12,650 7.0 13,092 7.0 13,551 7.0 14,025 7.0 14,516 7.0 15,024 7.0 15,550 7.0 16,094 7.0

Sales & Marketing 5,788 4.3 6,042 3.9 6,325 3.5 6,546 3.5 6,775 3.5 7,012 3.5 7,258 3.5 7,512 3.5 7,775 3.5 8,047 3.5

Marketing Fee 807 0.6 923 0.6 1,077 0.6 1,114 0.6 1,153 0.6 1,194 0.6 1,236 0.6 1,279 0.6 1,324 0.6 1,370 0.6

Maintenance 4,490 3.3 4,750 3.1 5,060 2.8 5,237 2.8 5,420 2.8 5,610 2.8 5,806 2.8 6,010 2.8 6,220 2.8 6,438 2.8

Energy 10,424 7.7 11,028 7.1 11,746 6.5 12,157 6.5 12,583 6.5 13,023 6.5 13,479 6.5 13,951 6.5 14,439 6.5 14,944 6.5

Total Undistributed Expenses 33,085 24.4 34,827 22.5 36,857 20.4 38,147 20.4 39,482 20.4 40,864 20.4 42,294 20.4 43,775 20.4 45,307 20.4 46,893 20.4

GOP Before Management Fees 54,585 40.3 67,335 43.4 84,440 46.7 87,395 46.7 90,454 46.7 93,620 46.7 96,897 46.7 100,288 46.7 103,798 46.7 107,431 46.7

Management Fees

Management Fee 2,034 1.50 3,102 2.00 3,614 2.00 3,741 2.00 3,872 2.00 4,007 2.00 4,147 2.00 4,293 2.00 4,443 2.00 4,598 2.00

Adjusted GOP 52,552 38.8 64,233 41.4 80,826 44.7 83,655 44.7 86,583 44.7 89,613 44.7 92,749 44.7 95,996 44.7 99,355 44.7 102,833 44.7

Fixed Charges

Building Insurance 760 0.6 824 0.5 904 0.5 935 0.5 968 0.5 1,002 0.5 1,037 0.5 1,073 0.5 1,111 0.5 1,150 0.5

Incentive Management Fee 3,275 2.4 4,040 2.6 5,911 3.3 6,118 3.3 6,332 3.3 6,553 3.3 6,783 3.3 7,020 3.3 7,266 3.3 7,520 3.3

Replacement Reserve (RFF&E) 1,356 1.0 3,102 2.0 5,421 3.0 7,481 4.0 7,743 4.0 8,014 4.0 8,295 4.0 8,585 4.0 8,886 4.0 9,197 4.0

Total Fixed Charges 5,391 4.0 7,965 5.1 12,236 6.8 14,534 7.8 15,043 7.8 15,569 7.8 16,114 7.8 16,678 7.8 17,262 7.8 17,866 7.8

EBITDA 47,160 34.8 56,268 36.3 68,590 38.0 69,120 37.0 71,540 37.0 74,044 37.0 76,635 37.0 79,317 37.0 82,093 37.0 84,967 37.0

6

Development Parameters Upscale Hotel, RAK, UAE

Keys 575

Land Area Allocation 12,521m²

Total GEA (Excl Parking & Balconies) 51,335m²

Total GEA (% of total project) 59.2%

Basement Parking Area Allocation 6,912m²

Project Development CostsTotal Cost

(AED000s)

Area Cost /sqm Per Key

(AED000s)

% of

Total

Land Cost

Land Cost 40,369 12,521m² 3,224 70 8.6%

Subtotal Land Cost 40,369 70 8.6%

Construction & Fit Out Cost

Construction 252,928 51,335m² 4,927 440 53.7%

Parking Cost 12,780 6,912m² 1,849 22 2.7%

FF&E (Fixtures, Furniture and Equipment) 76,130 51,335m² 1,483 132 16.1%

OS&E (Operating Supplies and Equipment) 16,017 51,335m² 312 28 3.4%

Contingency 39,158 n/a 11% 68 8.3%

Subtotal Fit Out Cost 397,013 690 84.2%

Soft Costs

Professional Fees 21,471 n/a 6% 37 4.6%

Technical Services Fees & Brand Fee 3,030 n/a n/a 5 0.6%

Pre-Opening Costs 9,524 n/a n/a 17 2.0%

Subtotal Other Costs 34,025 59 7.2%

Total Project Cost

Total Project Cost 471,408 9,183 820 100%

Total Cost Per Key (AED) With Land 819,840

Total Cost Per Key (AED) Without Land 749,633

Total Cost Per Key (USD) With Land 223,207

Total Cost Per Key (USD) Without Land 204,093

Interest Cost during construction 0 n/a n/a n/a n/a

Total Project Cost (Incl. Interest Cost) 471,4087

8

Project Returns Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

FCFF Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Capex Phasing -Equity Cash 30.0% 50.0% 20.0%

Capex Phasing -Equity Land 16.0% 16.0% 16.0% 16.0% 36.0%

Capital Expenditure (135,771) (221,978) (92,667) (6,459) (14,533)

EBITDA 47,160 56,268 68,590 69,120 71,540 74,044 76,635 79,317 82,093

Terminal Value 925,193

Free Cash Flow to Firm (FCFF) (135,771) (221,978) (92,667) 40,701 41,735 68,590 69,120 71,540 74,044 76,635 79,317 1,007,286

Cumulative Cashflow (135,771) (357,749) (450,416) (409,715) (367,980) (299,390) (230,269) (158,729) (84,686) (8,051) 71,267 1,078,553

Project IRR 15.9%

Project NPV (AED 000s) 599,335 @ 4.2% Discount Rate

Financial Assumptions

Loan Tenure 12 year(s)

Grace Period 3 year(s)

Repayment Period 9 year(s)

Debt-to-Equity 98.1% / 1.9%

Land Equity Contribution (AED000s) 765

Cash Equity Contribution (AED000s) 8,171

Loan Amount (AED000s) 462,471

Cost of Equity (%) 15.0%

Interest Rate (%) 4.0%

WACC (%) 4.2%

9

•

•

•

Equity Returns Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Capital Expenditure Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9



Capex Phasing -Debt Drawdown 30.0% 50.0% 20.0%

Capital Expenditure -Equity (2,574) (4,208) (1,757) (122) (276)

Capital Expenditure -Debt (138,741) (231,236) (92,494)

Debt Repayment Schedule Grace Grace Grace Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Cumulative Debt 138,741 375,527 483,042 502,364 454,894 405,525 354,182 300,785 245,252 187,497 127,433 64,966

Principal Repayment 0 0 0 (47,470) (49,369) (51,343) (53,397) (55,533) (57,754) (60,065) (62,467) (64,966)

Interest Capitalised 5,550 15,021 19,322

Interest Payment 0 0 0 (20,095) (18,196) (16,221) (14,167) (12,031) (9,810) (7,500) (5,097) (2,599)

Debt Service 0 0 0 (67,564) (67,564) (67,564) (67,564) (67,564) (67,564) (67,564) (67,564) (67,564)

Debt Service Coverage Ratio 0.70 0.83 1.02 1.02 1.06 1.10 1.13 1.17 1.22

FCFE Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

EBITDA 47,160 56,268 68,590 69,120 71,540 74,044 76,635 79,317 82,093


Free Cash Flow to Equity (FCFE) (2,574) (4,208) (1,757) (20,527) (11,572) 1,026 1,556 3,975 6,479 9,071 11,753 939,722

Cumulative Cashflow (2,574) (6,782) (8,539) (29,065) (40,637) (39,611) (38,055) (34,080) (27,601) (18,530) (6,777) 932,944

Equity IRR 46.7%

Equity NPV (AED000s) 184,591 @ 15% Discount Rate

11

Upper-Upscale Residences, RAK, UAE 1 2 3 4 5 6 7 8 9 10

in AED 000s 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Serviced Apartment Component

Number of Keys 44 44 44 44 44 44 44 44 44 44

Days Open 365 365 365 365 365 365 365 365 365 365

Roomnights Available 16,060 16,060 16,060 16,060 16,060 16,060 16,060 16,060 16,060 16,060

Roomnights Occupied 8,133 9,150 10,167 10,167 10,167 10,167 10,167 10,167 10,167 10,167

Room Occupancy % 50.6% 57.0% 63.3% 63.3% 63.3% 63.3% 63.3% 63.3% 63.3% 63.3%

Average Room Rate 1,268 1,347 1,430 1,480 1,532 1,586 1,641 1,699 1,758 1,819

RevPAR 642 768 905 937 970 1,004 1,039 1,075 1,113 1,152


Revenue

Serviced Apartments 10,315 61.6 12,327 61.1 14,540 60.6 15,048 60.9 15,575 61.0 16,120 61.0 16,685 61.0 17,268 61.0 17,873 61.0 18,498 61.0

Food & Beverage 6,018 35.9 7,402 36.7 8,967 37.4 9,191 37.2 9,466 37.1 9,798 37.1 10,141 37.1 10,496 37.1 10,863 37.1 11,243 37.1

Rental Income 243 1.5 248 1.2 253 1.1 259 1.0 267 1.0 277 1.0 286 1.0 296 1.0 307 1.0 317 1.0

Other Revenue 178 1.1 197 1.0 216 0.9 221 0.9 228 0.9 236 0.9 244 0.9 253 0.9 261 0.9 271 0.9

Total Revenue 16,755 100 20,174 100 23,975 100 24,720 100 25,537 100 26,430 100 27,355 100 28,313 100 29,304 100 30,329 100



Food & Beverage 4,299 71.4 4,742 64.1 5,201 58.0 5,331 58.0 5,491 58.0 5,683 58.0 5,882 58.0 6,087 58.0 6,301 58.0 6,521 58.0

Other Expenses 93 52.3 100 51.1 108 50.0 111 50.0 114 50.0 118 50.0 122 50.0 126 50.0 131 50.0 135 50.0




Administrative & General 1,367 8.2 1,409 7.0 1,451 6.1 1,488 6.0 1,532 6.0 1,586 6.0 1,641 6.0 1,699 6.0 1,758 6.0 1,820 6.0

Sales & Marketing 729 4.4 751 3.7 774 3.2 793 3.2 817 3.2 846 3.2 875 3.2 906 3.2 938 3.2 971 3.2

Marketing Fee 103 0.6 123 0.6 145 0.6 150 0.6 156 0.6 161 0.6 167 0.6 173 0.6 179 0.6 185 0.6

Maintenance 618 3.7 647 3.2 677 2.8 694 2.8 715 2.8 740 2.8 766 2.8 793 2.8 821 2.8 849 2.8

Energy 1,436 8.6 1,503 7.4 1,572 6.6 1,612 6.5 1,660 6.5 1,718 6.5 1,778 6.5 1,840 6.5 1,905 6.5 1,971 6.5



Management Fees

Management Fee 251 1.50 403 2.00 479 2.00 494 2.00 511 2.00 529 2.00 547 2.00 566 2.00 586 2.00 607 2.00

Adjusted GOP 5,590 33.4 8,181 40.6 11,206 46.7 11,628 47.0 12,049 47.2 12,471 47.2 12,908 47.2 13,359 47.2 13,827 47.2 14,311 47.2

Fixed Charges

Building Insurance 105 0.6 113 0.6 121 0.5 124 0.5 128 0.5 132 0.5 137 0.5 142 0.5 147 0.5 152 0.5

Incentive Management Fee 292 1.7 515 2.6 818 3.4 849 3.4 879 3.4 910 3.4 942 3.4 975 3.4 1,009 3.4 1,044 3.4

Replacement Reserve (RFF&E) 168 1.0 403 2.0 719 3.0 989 4.0 1,021 4.0 1,057 4.0 1,094 4.0 1,133 4.0 1,172 4.0 1,213 4.0

Total Fixed Charges 564 3.4 1,031 5.1 1,658 6.9 1,961 7.9 2,028 7.9 2,099 7.9 2,173 7.9 2,249 7.9 2,328 7.9 2,409 7.9

EBITDA 5,026 30.0 7,150 35.4 9,548 39.8 9,666 39.1 10,021 39.2 10,372 39.2 10,735 39.2 11,110 39.2 11,499 39.2 11,902 39.2

12

1 2 3 4 5 6 7 8 9 10

in AED 000s 2020 2021 0 2022 2023 2024 2025 2026 2027 2028 2029


Revenue

20% Serviced Apartments 2,063 24.3 2,465 23.9 2,908 23.6 3,010 23.7 3,115 23.8 3,224 23.8 3,337 23.8 3,454 23.8 3,575 23.8 3,700 23.8

100% Food & Beverage 6,018 70.8 7,402 71.8 8,967 72.6 9,191 72.5 9,466 72.4 9,798 72.4 10,141 72.4 10,496 72.4 10,863 72.4 11,243 72.4

100% Rental Income 243 2.9 248 2.4 253 2.1 259 2.0 267 2.0 277 2.0 286 2.0 296 2.0 307 2.0 317 2.0

100% Other Revenue 178 2.1 197 1.9 216 1.7 221 1.7 228 1.7 236 1.7 244 1.7 253 1.7 261 1.7 271 1.7

Total Revenue 8,503 100 10,313 100 12,343 100 12,681 100 13,076 100 13,534 100 14,008 100 14,498 100 15,006 100 15,531 100


Serviced Apartments 454 22.0 463 18.8 472 16.2 484 16.1 498 16.0 516 16.0 534 16.0 553 16.0 572 16.0 592 16.0

Food & Beverage 4,299 71.4 4,742 64.1 5,201 58.0 5,331 58.0 5,491 58.0 5,683 58.0 5,882 58.0 6,087 58.0 6,301 58.0 6,521 58.0

Other Expenses 93 52.3 100 51.1 108 50.0 111 50.0 114 50.0 118 50.0 122 50.0 126 50.0 131 50.0 135 50.0




Administrative & General 694 8.2 720 7.0 747 6.1 763 6.0 785 6.0 812 6.0 840 6.0 870 6.0 900 6.0 932 6.0

Sales & Marketing 370 4.4 384 3.7 398 3.2 407 3.2 418 3.2 433 3.2 448 3.2 464 3.2 480 3.2 497 3.2

Marketing Fee 52 0.6 63 0.6 75 0.6 77 0.6 80 0.6 83 0.6 85 0.6 88 0.6 92 0.6 95 0.6

Maintenance 314 3.7 331 3.2 349 2.8 356 2.8 366 2.8 379 2.8 392 2.8 406 2.8 420 2.8 435 2.8

Energy 729 8.6 768 7.4 809 6.6 827 6.5 850 6.5 880 6.5 911 6.5 942 6.5 975 6.5 1,009 6.5



Management Fees

Management Fee 128 1.50 206 2.00 247 2.00 254 2.00 262 2.00 271 2.00 280 2.00 290 2.00 300 2.00 311 2.00

Adjusted GOP 1,371 16.1 2,535 24.6 3,937 31.9 4,072 32.1 4,213 32.2 4,361 32.2 4,513 32.2 4,671 32.2 4,835 32.2 5,004 32.2

Fixed Charges


Incentive Management Fee 148 1.7 263 2.6 421 3.4 435 3.4 450 3.4 466 3.4 482 3.4 499 3.4 517 3.4 535 3.4

Replacement Reserve (RFF&E) 85 1.0 206 2.0 370 3.0 507 4.0 523 4.0 541 4.0 560 4.0 580 4.0 600 4.0 621 4.0

Total Fixed Charges 286 3.4 527 5.1 854 6.9 1,006 7.9 1,039 7.9 1,075 7.9 1,113 7.9 1,152 7.9 1,192 7.9 1,234 7.9

EBITDA 1,085 12.8 2,008 19.5 3,083 25.0 3,066 24.2 3,175 24.3 3,286 24.3 3,401 24.3 3,520 24.3 3,643 24.3 3,770 24.3

1 2 3 4 5 6 7 8 9 10

in AED 000s 2020 2021 0 2022 2023 2024 2025 2026 2027 2028 2029


Revenue

80% Serviced Apartments 8,252 100.0 9,862 100.0 11,632 100.0 12,039 100.0 12,460 100.0 12,896 100.0 13,348 100.0 13,815 100.0 14,298 100.0 14,799 100.0

Total Revenue 8,252 100 9,862 100 11,632 100 12,039 100 12,460 100 12,896 100 13,348 100 13,815 100 14,298 100 14,799 100






Administrative & General 673 8.2 689 7.0 704 6.1 724 6.0 748 6.0 774 6.0 801 6.0 829 6.0 858 6.0 888 6.0

Sales & Marketing 359 4.4 367 3.7 376 3.2 386 3.2 399 3.2 413 3.2 427 3.2 442 3.2 458 3.2 474 3.2

Marketing Fee 51 0.6 60 0.6 71 0.6 73 0.6 76 0.6 79 0.6 81 0.6 84 0.6 87 0.6 90 0.6

Maintenance 305 3.7 316 3.2 329 2.8 338 2.8 349 2.8 361 2.8 374 2.8 387 2.8 400 2.8 414 2.8

Energy 707 8.6 735 7.4 763 6.6 785 6.5 810 6.5 838 6.5 868 6.5 898 6.5 929 6.5 962 6.5



Management Fees

Management Fee 124 1.50 197 2.00 233 2.00 241 2.00 249 2.00 258 2.00 267 2.00 276 2.00 286 2.00 296 2.00

Adjusted GOP 4,219 51.1 5,646 57.3 7,269 62.5 7,555 62.8 7,836 62.9 8,110 62.9 8,394 62.9 8,688 62.9 8,992 62.9 9,307 62.9

Fixed Charges


Incentive Management Fee 144 1.7 252 2.6 397 3.4 413 3.4 429 3.4 444 3.4 460 3.4 476 3.4 492 3.4 510 3.4

Replacement Reserve (RFF&E) 83 1.0 197 2.0 349 3.0 482 4.0 498 4.0 516 4.0 534 4.0 553 4.0 572 4.0 592 4.0

Total Fixed Charges 278 3.4 504 5.1 804 6.9 955 7.9 990 7.9 1,024 7.9 1,060 7.9 1,097 7.9 1,136 7.9 1,175 7.9

EBITDA 3,941 47.8 5,142 52.1 6,465 55.6 6,600 54.8 6,846 54.9 7,086 54.9 7,334 54.9 7,591 54.9 7,857 54.9 8,131 54.9

14

Calculation >> A B= A ÷ 10.76 C D E= A * C

Sale Prices (uninflated)

Selling Price

AED /Sqm

Selling Price

AED /Sqft

NIA +

Balconies

(Sqm /Unit)

Number of

Units

Selling Price

AED /Unit

Apartment type 1 19,270 1,790 114 20 2,204,461

Apartment type 2 19,270 1,790 228 32 4,394,169

Apartment type 3 19,270 1,790 370 36 7,122,067

Maisonette 22,160 2,059 457 4 10,134,426

Villa 23,124 2,148 352 8 8,132,524

Total Sale Revenue (uninflated) 19,856 1,845 27,534 100 546,694,930

15

Project Stage 2017 2018 2019 2020 2021 2022

Stage of the Project

Calculation Sales Phasing Schedule 2017 2018 2019 2020 2021 2022 Total

F Sales phasing (%) 5.0% 10.0% 40.0% 30.0% 15.0% 0.0% 100%

G= F * D(total) Number of Units Sold (#) 5 10 40 30 15 0 100

H= F * E(total) Area Sold (Sqm) 1,377 2,753 11,013 8,260 4,130 0 27,534

Payment Plan (% Annual Payment) 2017 2018 2019 2020 2021 2022

I Payment Plan for 2017 Buyers 40.0% 20.0% 20.0% 20.0% 100%

J Payment Plan for 2018 Buyers 40.0% 20.0% 40.0% 100%

K Payment Plan for 2019 Buyers 40.0% 60.0% 100%

L Payment Plan for 2020 Buyers 100.0% 100%

M Payment Plan for 2021 Buyers 100.0% 100%

Selling Price 2017 2018 2019 2020 2021 2022

N= A(total) Average Selling Price /Sqm (Present Value) 19,856 19,856 19,856 19,856 19,856 19,856 N/A

O Annual Inflation (%) 2.0% 2.0% 2.5% 3.0% 3.5% 3.5% N/A

P Inflation Factor (Base Year: 2015) 1.04 1.06 1.09 1.12 1.16 1.20 N/A

Q= N * P Selling Price /Sqm (Future Value) 20,658 21,071 21,598 22,246 23,024 23,830 N/A

R= Q ÷ 10.76 Selling Price /SqFt (Future Value) 1,919 1,957 2,006 2,067 2,139 2,214 N/A

Sales Income (Future Value) 2017 2018 2019 2020 2021 2022

S= H*I*Q+H*J*Q+H*K*Q+H*L*Q+H*M*QGross Sales Revenue (Future Value) 11,375,628 28,894,095 112,436,708 355,362,962 95,090,747 0 603,160,141

T= 6% * S Less: Sales Commission / Fee (6.0%) 682,538 1,733,646 6,746,202 21,321,778 5,705,445 0 36,189,608

U= 2% * S Less: Marketing Cost (2.0%) 227,513 577,882 2,248,734 7,107,259 1,901,815 0 12,063,203

V= S - (T+U) Net Sales Income (Future Value) 10,465,578 26,582,568 103,441,772 326,933,925 87,483,488 0 554,907,330

Construction / Pre-Sale Post-Completion Sale

16

17

Development Parameters Upper-Upscale Residences, RAK, UAE

Keys 100

Land Area Allocation 12,292m²

Total GEA (Excl Parking & Balconies) 35,417m²

Total GEA (% of total project) 40.8%

Basement Parking Area Allocation 3,990m²

Balcony Areas 4,011m²

Project Development CostsTotal Cost

(AED000s)

Area Cost /sqm Per Key

(AED000s)

% of

Total

Land Cost

Land Cost 39,631 12,292m² 3,224 396 13.1%

Subtotal Land Cost 39,631 396 13.1%

Construction & Fit Out Cost

Construction 152,080 35,417m² 4,294 1,521 50.1%

Parking Cost 7,378 3,990m² 1,849 74 2.4%

FF&E (Fixtures, Furniture and Equipment) 44,236 35,417m² 1,249 442 14.6%

OS&E (Operating Supplies and Equipment) 9,669 35,417m² 273 97 3.2%

Contingency 23,663 n/a 11% 237 7.8%

Subtotal Fit Out Cost 237,026 2,370 78.1%

Soft Costs

Professional Fees 21,336 n/a 10% 213 7.0%

Technical Services Fees 459 n/a n/a 5 0.2%

Brand Fee 2,571 n/a n/a 26 0.8%

Pre-Opening Costs 2,572 n/a n/a 26 0.8%

Subtotal Other Costs 26,938 269 8.9%

Total Project Cost

Total Project Cost 303,595 8,572 3,036 100%

Total Cost Per Key (AED) With Land 3,035,950

Total Cost Per Key (AED) Without Land 2,639,642

Total Cost Per Key (USD) With Land 826,559

Total Cost Per Key (USD) Without Land 718,661

Interest Cost during construction 0 n/a n/a n/a n/a

Total Project Cost (Incl. Interest Cost) 303,595

Project Returns 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Project Year >> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Calculation Operational Year >> Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

A CapEx - Phasing of Development Cost 30.0% 50.0% 20.0%

B CapEx - Phasing of Land Cost 16.0% 16.0% 16.0% 16.0% 36.0%

C= A*Dev Cost + B*Land Cost CapEx - Total Project Cost (85,530) (138,323) (59,134) (6,341) (14,267)

D Sale Income from Residences 10,466 26,583 103,442 326,934 87,483 0

E EBITDA from Operation 1,085 2,008 3,083 3,066 3,175 3,286 3,401 3,520 3,643

F= Year 11 of E ÷ 9% less 2%

Transaction Cost Terminal Value 41,055

G = C + D + E + F Free Cash Flow to Firm (FCFF) (75,065) (111,740) 44,308 321,678 75,224 3,083 3,066 3,175 3,286 3,401 3,520 44,698

Cumulative Cashflow (75,065) (186,805) (142,497) 179,181 254,405 257,489 260,555 263,729 267,015 270,415 273,935 318,633

Project IRR 42.6%

Project NPV (AED 000s) 249,279 @ 4.2% Discount Rate

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Financial Assumptions

Loan Tenure 12 year(s)

Grace Period 3 year(s)

Repayment Period 9 year(s)

Debt-to-Equity 98.1% / 1.9%

Land Equity Contribution (AED000s) 751

Cash Equity Contribution (AED000s) 5,004

Loan Amount (AED000s) 297,840

Cost of Equity (%) 15.0%

Interest Rate (%) 4.0%

WACC (%) 4.2%

Equity Returns Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

Capital Expenditure Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9



Capex Phasing -Debt Drawdown 30.0% 50.0% 20.0%

Capital Expenditure -Equity (1,621) (2,622) (1,121) (120) (270)

Capital Expenditure -Debt (89,352) (148,920) (59,568)

Debt Repayment Schedule Grace Grace Grace Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Cumulative Debt 89,352 241,846 311,088 323,531 292,960 261,165 228,099 193,711 157,946 120,752 82,069 41,839

Principal Repayment 0 0 0 (30,571) (31,794) (33,066) (34,389) (35,764) (37,195) (38,683) (40,230) (41,839)

Interest Capitalised 3,574 9,674 12,444

Interest Payment 0 0 0 (12,941) (11,718) (10,447) (9,124) (7,748) (6,318) (4,830) (3,283) (1,674)

Debt Service 0 0 0 (43,513) (43,513) (43,513) (43,513) (43,513) (43,513) (43,513) (43,513) (43,513)

Debt Service Coverage Ratio 7.54 2.06 0.07 0.07 0.07 0.08 0.08 0.08 0.08

FCFE Year 0 Year 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Sale Income from Residences 10,466 26,583 103,442 326,934 87,483

EBITDA from Operation 0 0 0 1,085 2,008 3,083 3,066 3,175 3,286 3,401 3,520 3,643


Free Cash Flow to Equity (FCFE) 8,844 23,960 102,321 284,386 45,708 (40,429) (40,447) (40,338) (40,227) (40,112) (39,993) 1,185

Cumulative Cashflow 8,844 32,804 135,125 419,511 465,219 424,790 384,344 344,005 303,778 263,666 223,673 224,858

Equity IRR N/A

Equity NPV (AED000s) 233,236 @ 15% Discount Rate

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1 2 3 4 5 6 7 8 9 10

Calculation 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

A= Net Income for

distribution to

Owners of branded

residences 3,940,786 5,141,864 6,464,670 6,600,232 6,846,487 7,086,114 7,334,128 7,590,822 7,856,501 8,131,479

B 11,445 11,445 11,445 11,445 11,445 11,445 11,445 11,445 11,445 11,445

C = A ÷ B 344 449 565 577 598 619 641 663 686 710

Calculation 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

For Investors who purchased a unit in 2017 prices:

D Purchase price /Sqm 20,048

E = C ÷ D Yield for Investor 1.7% 2.2% 2.8% 2.9% 3.0% 3.1% 3.2% 3.3% 3.4% 3.5%


F Purchase price /Sqm 20,449

G = C ÷ F Yield for Investor 1.7% 2.2% 2.8% 2.8% 2.9% 3.0% 3.1% 3.2% 3.4% 3.5%


H Purchase price /Sqm 20,960

I = C ÷ H Yield for Investor 1.6% 2.1% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.3% 3.4%


J Purchase price /Sqm 21,589

K = C ÷ J Yield for Investor 1.6% 2.1% 2.6% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.3%

Investor Yields

Income per Sqm (AED)

Area in Rental Pool (Sqm)

Rental Pool Net Income (AED)

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Documents

Land Area 24,813 Parking basement 10,902 Land …...Land Area 24,813 Parking basement 10,902 Land cost 80,000,000 GEA GEA (%) Land Cost Units Positioning Hotel 51,335 59% 40,369,161