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Transaction Real Estate Advisory Services Our services April 2014

Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

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Page 1: Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

Transaction Real Estate Advisory Services Our services

April 2014

Page 2: Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

2 | Transaction Real Estate Advisory Services Our services

Page 3: Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

3Transaction Real Estate Advisory Services Our services |

What’s

InsideOur commitment to the global real estate, hospitality and leisure industries 4

Our market knowledge and experience 6

Our spectrum of services to the industry 7

Our specialty advisory services 8

Our real estate ownership lifecycle 10

Our project management methodology 11

The right team 12

Page 4: Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

4 | Transaction Real Estate Advisory Services Our services

Our commitment to the global real estate, hospitality and leisure industries

Part of an integrated global real estate teamEY is one of the largest integrated real estate practice in MENA. With 7,000 professionals providing audit, tax and transaction advisory services to real estate owners, investors, lenders, developers, managers and users.

Unique and borderless approachOur unique approach combines entrepreneurial thinking and a working knowledge of real estate with broad industry experience, vast resources and a diverse network of clients. Our practices in Europe, the Middle East, India and Africa (EMEIA) operates under a single structure as part of a global framework.

We are pioneers in bringing a borderless approach to the emerging markets of Russia, India, the Middle East, Africa, and Europe.

Globally integrated practiceOur globally integrated practice enables us to better leverage our strengths and make swift moves in bringing together our teams to serve our clients, drawing on our industry experience across all our services in 87 countries.

Services that provide quick response to client needsEY’s EMEIA real estate group of 2,300 people has built close working relationships with our colleagues in EMEIA and across the world; allowing us to respond quickly to client needs ensuring an efficient and well-coordinated international approach.

The EY advantageImplicit in EY’s strategy is the responsibility to provide thought leadership to the businesses and industries we serve. We are committed to being a knowledge leader in the real estate industry by being proactive and attentive to industry trends, while responding with creative ideas that help our clients deal with the issues they face.

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EY Middle East, India and AfricaThe Middle East practice of EY is a full member of EY Global and has been operating in the region since 1923.

We believe real estate, operations, marketing and financing functions must be synchronized to maintain a competitive edge as well as the following:

• Quality of service are paramount

• Revenue enhancement programs are a necessity

• Operational efficiency is the goal

• Cost management is fundamental

• People are the agents for change

EY’s Middle East Transaction Real Estate Advisory Services practice can help organizations improve the way it manages its investments in real estate assets — throughout the life cycle of the property portfolio.

Throughout, our goals remain the same:

• To minimize risk

• To control expenses

• To improve overall performance

• To accelerate the creation of bottom-line value for companies

EY is the largest and most integrated professional organization operating in the Middle East, with 21 offices in 16 markets throughout the region.

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Our market knowledge and experience

Our practice has undertaken extensive work in countries such as:

Sea

Afghanistan

Algeria

Angola

Bahrain

Benin

Bermuda

MartiniqueCape Verde

Cote D’ivoire

Djibouti

Egypt

Eritrea

GabonDemocratic

Republic Of Congo

GhanaGuinea

IraqJordan

Kazakhstan

Kenya

Kuwait

Lebanon

Libya

Maldives

Malta

Mauritania

Mauritius

Morrocco

Mozambique

Nigeria

Oman

Pakistan

Palestinian National Authority

Qatar

Togo

Saudi Arabia

Senegal

South Africa

Sudan

Syria

Tanzania

Thailand

Tunisia

Turkey

Uganda

United Arab Emirates

Malaysia

EY possess unmatched knowledge and expertise in the Middle East real estate, hospitality and leisure markets.

We understand and offer a full scope of multidisciplinary services for every real estate industry segment such as:

• Commercial

• Hospitality, Leisure and Entertainment

• Residential

• Retail

• Industrial

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Our spectrum of services to the industry

EY’s MENA Transaction Real Estate Advisory Services Group offers:

• Integrated, cross-functional network over 40 experienced real estate and hospitality Professionals

• Value-added multidisciplinary services and strategies to companies that own, develop or operate real estate and hospitality assets

• Ben

chmark

ing

• Cap

ital so

urcing

/plac

emen

ts/

deplo

ymen

t

• High

est a

nd be

st us

e ana

lysis

• Mark

et an

d fea

sibilit

y stud

ies

• Stra

tegic

busin

ess p

lannin

g

• Acquisitions

• Due diligence

• Restructuring

• Valuations and appraisals

• Management contract review

• Management company selection

and negotiations

• Operational enhancement

• Repositioning analysis

Development Advisory ServicesTransaction A

dvisory ServicesOperator search and selection

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8 | Transaction Real Estate Advisory Services Our services

Our speciality advisory services

Development Advisory Services • Include site evaluations and strategic market research, which consist of an international

benchmark of relocation incentives and a general market overview of a selected group of real estate uses

• Conducts alternative industry cluster analysis, including potential industry cluster requirements and market positioning of the project

• Provides international/regional benchmarks of master planned cities and real estate development strategy meetings to co-develop the assumptions

Market and financial feasibility studies• Performs market and financial feasibility studies for your project, which involve

a site inspection and evaluation, economic and demographic overview of the market, and an independent analysis of the real estate market which would include both existing and proposed supply

• Reviews the facilities program and comments on the number of units, size, unit mix and appropriate mix of facilities

• Evaluation of individual project component, in terms of demand and revenue generation potential, that provides details of estimated operating costs culminating in an EBITDA estimate

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Highest and best use studies• Assistance in preparing a highest and best use study for projects, which identifies

physically possible and market driven uses for the available land

• High level market review pertaining to the market background, current and future supply, trends in demand and pricing levels

• Short list of potential real estate uses based upon a weighted analysis

• Co-develops the major assumptions forming the basis for estimated operating costs culminating in indicative cash flow statements for each potential use

Strategic business planning services• Primary goal is to serve as the main advisor to individuals and corporations

• Approach consists of understanding client goals and objectives, identifying market alternatives, evaluating and analyzing different scenarios, and assisting the client in developing an actionable business plan

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Our specialty advisory services (contd)

Transaction Advisory Services• Objective and responsive advice to support the strategic real estate decisions of the client

• Help develop capital market strategies for acquiring and disposing of real estate assets, including fund concepts, sale and leaseback transactions, debt restructuring and other transactions

Capital raising• Assistance in raising necessary capital in the form of equity and debt, whether through

a private placement of equity or IPO

Financial and commercial due diligence• Performs financial and commercial due diligence on any intended target acquisitions

in the real estate and hospitality sectors

Valuation and development appraisals • Help assess the fair value/market value of real estate assets adopting various methods

to include comparable approach, capitalization methods, discounted cash flow (DCF), residual land valuation, cost approach, etc.

Organizational change• Help accommodate organizational growth while aligning real estate and financial

decisions, increasing structural and functional efficiencies and streamlining processes

Restructuring • Restructuring Advisory Services include guiding companies through the liquidity

management process focused on operational cost savings, developing and evaluating business plan and strategic alternatives, providing alternative debt/equity structures based upon asset base and/or anticipated cash flows, advising on negotiations and on pre-bankruptcy and divestiture planning

• Provides financial advice throughout Chapter 11 proceedings, and advise on tax aspects of restructuring in and out of bankruptcy

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Operator search and selection • Management contract reviews; company selection and negotiations

• Services designed to select a management company/ operator on a timely basis to meet clients’ needs as well as to provide professional advice during the contract negotiation process

• Creates value by aligning the vision of the asset with return expectations, providing an equitable and analytical selection process and indispensable knowledge of the industry and players, benchmarking commercial contract terms and assisting the client in the implementation of the management-company relationship

Operational enhancement• Designed to assist the client in identifying and diagnosing the issues impacting a single

asset or a portfolio of properties

• Proven methodology that delivers both short-term profitability and long-term enterprise value maximization. Our framework for co-developing a road map consists of a current state/future state analysis, gap analysis and closing-the-gap recommendations.

Repositioning analysis• Benchmarking property and helping the client identify key opportunities

for improvement: renovation, re-branding, cost containment, enhancing product/services quality, increasing product/service differentiation, improving the sales/marketing strategy in rooms, food and beverage, meeting/banquet and all other revenue generating departments

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Our real estate ownership lifecycle

Project identification

Project evaluation

Operator/developer Search

Ongoing investment Management operations

Enhancement Organizational change

Development

Highest and best use analysis

Real estate development

strategy

Management contract review

Performance monitoring

Diagnostic review/positioning analysis

Acquisition

Market and financial Feasibility study

Acquisition due Diligence

Request for proposals process

Capital markets advisory/

fundraising

Developers and owners goals and objectives

Annual buy/hold/sell analysis

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Our project management methodology

• Close interaction with stakeholders at all stages of the project to ensure that we gain complete understanding of client requirements to be addressed in the development of all work products.

• Regular meetings between our advisors and concerned management at which we report progress to date, the work plan for the following period, the work accomplished, any problems being encountered in the execution of our work, as well as drafts of our work products. This ensures timely completion of the job at hand and provides the client with an opportunity to monitor on-going progress.

• We propose that the stakeholders nominate a project coordinator who will be able to coordinate between the stakeholders and EY on the various requirements, which may arise during the course of each project. He or she is also responsible for scheduling and committing the resources required.

• We obtain management’s approval of our work at each stage of the project prior to proceeding with the next stage. This ensures that our work effort is always directed toward the common objective of providing you with a quality product in a timely manner.

• All work products are submitted to the stakeholders for review and approval prior to being issued in final form. This ensures that any amendments or enhancements requested by the management are incorporated in the final document.

• We believe this approach encourages management to “buy in” to our recommendations and assumptions of ownership in the work products.

Project management and oversight

• Structure initiatives• Project charters and plans• Monitor and control change• Report project progress

quality management• Project integration• Issue management

Knowledge management

• Knowledge management• Implementation lessons

learned

Project management

Quality assessment

• Monthly project management quality assessment

Project level policy and business issues

• Interface to sponsorship structures

• Risk management• Linkages with other

business initiatives

Project administration• Role and responsibility

definition• Resource management• Project standards

and methodologies

Plan

Control Execute

Projectmanagement

EY has developed a project management methodology for all of our assignments — geared to ensure that our work is carried out in an efficient manner and the final product meets our clients’ expectations.

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The right team

Yousef WahbahPartner and Head | MENA Transaction Real Estate, Hospitality & Leisure Services Dubai, UAE

Yousef Wahbah has 16 years of business advisory services experience. Yousef’s expertise in real estate and his dedication to what he does is what lead TREAS to be what it is today, making EY one of the largest integrated real estate advisory practice in MENA.

Noura YassinDirector |TREAS Dubai, UAE

Noura Yassin is specialized in investment valuation, development appraisal, feasibility study, advisory services and highest and best use with more than 17 years of experience in the real estate market. Noura has acquired significant experience in valuation of real estate worth billions of dollars from major companies in MENA.

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Said BajaberDirector |TREAS Jeddah, Saudi Arabia

Said Bajaber is the first designated member of the Appraisal Institute (MIA) in Africa and the Arab world. Said has more than 17 years of real estate valuation and advisory services experience. His expertise lies in strategic real estate advisory services, valuation, asset management as well as market and financial feasibility studies in the real estate market.

Nehme AyoubSenior Manager | TREAS Doha, Qatar

Nehme Ayoub has 8 years of experience in the real estate, finance and investments sector. His expertise lies in the hospitality sector. Nehme has a broad range of engagements including market feasibility studies, asset and portfolio valuations, highest and best use analysis, management contract negotiations and operational reviews.

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The right team (contd)

Maya Josserande WhiteleySenior Manager | TREAS Dubai, UAE

Maya Josserande Whiteley’s expertise lies in strategic advisory, operational analysis, branding and repositioning analysis, fund structuring and capital raising, as well as market research, feasibility studies, highest and best use analysis, and operator search & selection.

Saqib SaeedManager| TREAS Abu Dhabi, UAE

Saqib Saeed has over 7 years of real estate valuation and transaction advisory services experience with proven expertise in valuations, strategic real estate advisory services and market and financial feasibility studies.

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Lara QafeitiManager| TREAS Amman, Jordan

Lara Qafeiti is specialized in the real estate and hospitality sector with 8 years of experience in corporate finance advisory services. Lara’s expertise lies in preparing business plans, valuation, information memorandums and due diligence reviews.

Kristoff JacquesManager| TREAS Muscat, Oman

Kristoff Jacques has undertaken many real estate market overviews, financial feasibility studies, valuation and best use studies across Oman and India. Kristoff has 6 years of experience with extensive knowledge in real estate advisory and valuation.

Page 18: Transaction Real Estate Advisory Services - Ernst - EY · PDF fileTransaction Real Estate Advisory Services Our services | 3 ... hospitality and leisure industries 4 ... Our spectrum

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

The MENA practice of EY has been operating in the region since 1923. For over 90 years, we have grown to over 5,000 people united across 20 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region.

© 2015 EYGM Limited. All Rights Reserved.

EYG no.DF0195

ED 0115This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

ey.com/mena