AN INVESTMENT OPPORTUNITY

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(No Transcript)
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AN INVESTMENT OPPORTUNITY FOR A SELECT FEW
Situated in Dubai Sports City, in the heart of
Dubailand, Eden Gardens is an up market serviced
apartment development, that offers investors an
opportunity to achieve above average rental
returns in a growing market.
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Table of Contents

• Dubai

• Why Dubai?

• Dubai Economy

• Growth of Tourism

• Hotel Industry Growth

• Major Developments in Dubai

• Air Traffic Growth

• Dubailand

• Dubai Sports City

• Dubai Real Estate Market

• Eden Gardens

• Whos who?

• An Investment Opportunity - How it works

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Where is Dubai?
The World
Middle East
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The Dubai Economy

• A strong and diversified economy
• No longer reliant on oil
• GDP / capita of 19,000 one of the highest in
  the world
• International trade increased by 11 p.a. since
  1998
• Developments in infrastructure,
  industrialization, tourism economic cooperation
  have opened new opportunities for Dubais
  economic future

Source Department of Economic
Development/Department of Tourism and Commerce
Marketing
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UAE GDP
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Dubai GDP
Construction
Real Estate
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Why Dubai?

• One of the Worlds Fastest Growing Cities
• (Population Growth 5 p.a.)    
• Tax Free Living - No Capital Gains Tax on
  Property
• 365 Days of Sunshine
• Cosmopolitan Lifestyle
• Safe, Clean, Modern City with Full Amenities
• Fastest Growing Tourist Destination in the
  World

Source Department of Economic
Development/Department of Tourism and Commerce
Marketing Future Brand Survey 2005
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Why Dubai?

• Regions Leading Banking Financial Centre
• Regions Leading IT Media Centre
• Regions Leading Logistical Hub
• International Schools
• World Class Medical Facilities
• Sun, Sand, Surf, Sports, Shopping,
• Adventure and even Snow - Dubai has it all!
• 90 b in Active Planned Construction

Source Department of Economic
Development/Department of Tourism and Commerce
Marketing Future Brand Survey 2005
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Milestones
Dubai has consistently innovated and grown over
the last 35 years
Dubai has achieved international recognition for
World Class events and developments
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Tourism

• 25 New Luxury Hotels to Open in the Next 3 Years
• Hotel Revenues Reached 2b in 2004
• Hotel Guests Increased by 8 to over 5m Guests
• Average Length of Stay Increased by 12
• Average Occupancy Increased by 6 to 89
• Projected 15m Tourists by 2010

Source Hotel Benchmark Survey by Deloitte
Touche
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Projected Tourism Number of Visitors
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Average Length of Stay
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Hotel Average Occupancy Rates
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Why Serviced Apartments?

• Makes Good Business Sense in a Growing Market
• Many International Chains see the Value of
  Offering Short Term Rental Accommodation
  -Marriott, Hilton and Inter-Continental
• An Important Stage in the Development of the
  Tourism Market
• Average Occupancy Average Length of Stay in
  Dubai have Consistently Risen in the Past Decade

Source Hotelier Middle East September 2005
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Total Number of Serviced Apartment Guests
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
Source Department of Economic Development/Departm
ent of Tourism and Commerce Marketing
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Major Developments in Dubai
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Dubai International Airport

• Terminals 1 and 2
• Present Capacity 22m
• Terminal 3 Under Construction
• Expected Completion Date - 2006
• Largest Airport Development in the World - 4.1 b
• Capacity to Reach 60m Passengers / Year

Source Department of Civil Aviation
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Airport Traffic Summary
Source Department of Civil Aviation
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Jebel Ali International Airport

• Work Began February 2002
• Covering 140 km²
  (Heathrow 12 km²)
• 6 Runways - Most in the World
  (Heathrow 2 Operational, 1 Under Construction)
• To Include Zones Catering to the Financial,
  Industrial, and Tourism Sectors
• Upon Completion - One of the Worlds Largest
  Airports

Source Department of Civil Aviation Airport
Council International (ACI)
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Dubai International Financial Centre (DIFC)
New Regulated Capital Market Positioning Dubai
as a World Class Financial Centre Onshore
Capital Market Designated as a Financial Free
Zone Creating a Unique Financial Services Cluster
Economy for Wealth Creation Initiatives 6
Primary Sectors Banking Services, Capital
Markets, Asset Management Fund Registration,
Reinsurance, Islamic Finance Back Office
Operations
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Dubai Marina

• World Class Marina Development by EMAAR
• Over 100 High Rise Luxury Residential Towers
• Incorporating Jumeirah Beach Residence (JBR)

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Palm Islands

• 3 Man Made Palm Tree Shaped Islands
• Luxury Homes Resorts, Shopping, Spas Marinas
• Donald Trump Bringing Trump Brand to the Islands

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The World

• 300 Man Made, Private Islands
• Covering 9 km in Length 6 km in Width,
  Surrounded by an Oval Shaped Breakwater
• Sizes Range from 250,000 - 900,000 ft² with
  50-100 m of Water Between Each Island
• Only Means of Transportation from the Mainland to
  the Islands Will Be by Marine Transport

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Dubailand

• 8b Entertainment, Leisure, Tourism Project by
  Dubai Holding
• Multi-Faceted Development with Universal Appeal
• Divided into 5 Themed worlds with Over 200
  Individual Projects
• Features Theme Parks, Eco-Tourism Resorts,
  Museums, Galleries, Spas Shopping

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Dubailand
Located in the Heart of Dubailand
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Dubai Sports City

• 50m ft², 550m Sports Leisure Complex in the
  Heart of Dubailand
• 4 Indoor Outdoor Multipurpose Stadiums with
  15,000 - 60,000 Capacity
• Ernie Els 18 Hole Championship Golf Course
  Butch Harmon Golf Academy
• ICC Global Cricket Academy New International
  Headquarters
• First Manchester United Soccer Academy Outside
  the UK
• David Lloyd Tennis Academy

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Dubai Real Estate Market

• One of the Key Forces Behind Dubais Phenomenal
  Growth Success
• Continued Expansion of the Tourism Industry
• Creating Demand for Leisure Facilities, Hotels,
  Serviced Apartments
• Increased Liquidity Due to 3 Years of High Oil
  Prices
• Repatriation of Capital from Abroad by Regional
  Investors

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Rental Yields in Dubai are Higher than Global
Rates
Dubai rental yields are 8 13 compared to 5 6
internationally
Source K P M G
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Eden Gardens - An Introduction

• Located on the Main Artery of Dubai Sports City
• 318 Serviced Up Market Apartments Fully
  Furnished Equipped
• Continual Short-Term Demand by Spectators to
  Sporting Events, Athletes Attending Coaching
  Academies
• Leisure Facilities to Include Pool Gym

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Eden Gardens - An Introduction

• Parking Included for All Units
• Completion Date March 2008
• 99 Year Lease Hold Ownership

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Developer Lokhandwala International Builders

• Based in Mumbai
• Specialising in Real Estate Real Estate
  Investment
• Several Prestigious Projects in Mumbai -
  Lokhandwala Residency, Lokhandwala Galaxy, Zahra,
  Harmony, Queens Court, Ram House
• In Dubai Lady Rattan Manor at International City

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Architects National Engineering Bureau NEB)

• Over 20 Years in the Region
• Offices Throughout the Region
• Services Include Architecture, Urban Design
  planning, mechanical Engineering, Landscaping,
  Many More
• Other Projects

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Notes to the Investment Opportunity

• Projected Occupancy Rates 67
• All Gross Rental Accumulated
• All Expenses Deducted
• Net Income to Owners ( Pro-Rata )
• Rental Service Fees 20 of Gross Income
• Projected Building Maintenance Costs
  3.74/ft2
• Projected Rental Service Costs
  1.70/ft2
• Projected Community Fees (Estimate)
  0.82/ft2
• Provision for Furniture Replacement
  25 p.a.
• Rental Return on Investment (Projected) 10-13
  p.a.
• Capital Appreciation (Estimate)
  5 p.a.
• Conservative Projection of Total Return on
  Investment 15 18 p.a.

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Unit Mix Price Range
Link to Data
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Payment Terms Bulk Purchase Discount

• Payment Terms
• 10 Initial Payment
• Reservation Form Signed Post Dated Cheque
  for the Next Month
• 10 Every 3 Months for 24 Months 90
• 10 Upon Completion
• Bulk Purchase Discount
• Upon Application

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For more information please contact 971 4 359
6530 or your sales consultant Website
www.edengardensdubai.com Email info_at_lokhandb.ae
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An Investment Opportunity
Assumption 67 Occupancy
Projected Gross Rental Revenues in 1st year -
11,860,000 Starting at 68 per unit per night

• Less expenses

• Property Facilities Management - 1,180,000
• Provision for furniture Replacement -
  580,000
• Rental Management Fee Service Costs
  - 2,370,000
• Rental Service Costs - 536,000
• Estimated Community Developer Fee - 260,000

• Net Total Profit to Owners -
  6,934,000

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Distribution to Owners - 6,934,000

• Participation Ratio

• Calculated by dividing unit size (including
  service area) by total built up areas of
  residential component 315,921 ft²

• Example

• 555 ft2 studio apartment 93,200
• Participation Ratio 555/315,921 0.001757

• Profit to Owner

• Net Total Profit to Owners 6,934,000
• Multiplied by Participation Ratio 0.001757
• Net Profit to Individual Owner 12,183
• Rental Return 13 p.a.
• Estimated Capital Appreciation _at_ 5 p.a.
• Total ROI 18