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My MallMARKET ASSESMENT STUDY - 14th DECEMBER 2017

My Mall

2

TABLE OF CONTENTS

Introduction 3

Executive Summary 11

Site Analysis 13

Supply Analysis 23

Demand Analysis 69

SWOT Analysis 88

Space Plan & Merchandise Mix 90

Introduction

Introduction

PROJECT ESSENTIALS

My Mall is a proposed community shopping centre located in the Al JerfIndustrial Area of Ajman.

Construction of the building is complete and the property is currently vacant. Thesite of the project is at the intersection of Sheikh Mohammed bin Rashid alMaktoum Rd and Al Humaidiyah Rd, in close proximity to Ajman China Mall.

The centre is laid out in a strip over three levels: a ground floor and mezzaninelevel facing the main road and an upper ground floor at the rear of the building.

Surface parking is available at the front and rear of the property.

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Project Details

Developer My Mall LLC

Project Name My Mall

Project Location Sheikh Mohammed bin Rashid Al Maktoum

Rd, Al Jerf Industrial 1, Ajman, UAE

Coordinates 25°25'29.0"N 55°31'41.2"E

GLA (m²) 35,409

Retail Levels 3 (G + UG + M)

Parking 730

Project Completion Q2 2018

Introduction

METHODOLOGY AND SOURCES

McARTHUR + COMPANY has been retained by My Mall LLC to conduct adevelopment, design and retail strategy study. This report aims to provide anunderstanding of the project site, its context in terms of the retail marketdynamics, and guidance on the future retail strategy of the complex.

A combination of qualitative and quantitative analysis was utilised during thecompilation of this report.

Information was derived from a mixture of primary research (eg through sitevisits and trade inter views) as well as secondary research using existingdatabases and research material.

Data sources include the IMF, Middle East Council of Shopping Centres,Euromonitor, UAE Federal Competitiveness and Statistics Authority, Ajman Deptof Economic Development, real estate industry research, developer websitesand the McARTHUR + COMPANY database.

Photos have also been sourced from internal and external databases.

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Introduction

* Summary only; refer to contract agreement for full scope

6

PROJECT SCOPE*

Phase I Development, Design & Retail Strategy Status

A Market Assessment Study Research existing and future retail supply; Provide breakdown of relevant centres with occupancy level estimates,

key categories & tenancies; Trade area mapping and demographic characteristics; SWOT analysis.

B Design & Functionality Advisory Review rentable area optimization strategies, ideal unit sizes, layout circulation options, ingress/egress, overall

accessibility and visibility; Assist in design coordination with architects & design team; Recommend development

of tenant design manual with third party providers; Review civic amenities; Assess retailer servicing requirements;

Review BOH; Evaluate external public facilities strategy.

C Investment Return Modelling /

Pro Forma

Review internal rate of return calculations and sensitivity analysis; Review the analysis of investment and project

valuation, suggest improvements.

WIP

D Merchandise Mix Planning Assist in developing optimised floor plans; Develop optimum merchandise mix; Identify potential

tenants/operators; Review projected rental income for each location; Conduct pre-leasing interviews to gauge

preliminary interest.

E Leasing Strategy Critical path plan; Review detailed leasing plan, merchandise mix & tenant selection; Establish detailed rental

plan, providing details on assumptions and depth chart; Review and analyse the common areas to identify the

income maximization potential.

WIP

F Business to Retailer Marketing

(Leasing Stage)

Work with the clients marketing team to develop a leasing campaign; Advise on marketing materials required for

the leasing campaign; Provide examples of Retail Design and Fit Out Manuals; Provide examples of Agreement to

Lease and Retail Lease.

WIP

Introduction

* Summary only; refer to contract agreement for full scope

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PROJECT SCOPE*

Phase II Leasing Services (Exclusive)* Status

A Leasing, Negotiation &

Handover

Create a workflow process for document flow that is well organized, easy to follow, achievable and trackable;

Undertake the leasing campaign; Conduct onsite tours of the premises with prospective tenants; Negotiate with

retailers to secure lease commitments; Provide monthly leasing update reports.

-

McARTHUR & COMPANY will provide a comprehensive leasing service, with a full leasing team assigned to the project. All planning which is completed for

leasing in Phase II will be utilized for Phase III leasing.

*Prior to starting the leasing campaign, the following needs to be agreed to and signed off:

1. Critical Path Plan

2. Merchandise Mix

3. Tenant Mix / Depth Chart

4. Budget Leasing Rates

5. Leasing Process

6. Receipt of leasing documentation (Bilingual if required)

Introduction

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GLOSSARY OF TERMS AND ABBREVIATIONS

Term Full Definition

Anchor - Tenant of a larger unit within the project that helps to drive footfall for the rest of the mall; typically a supermarket, department store, cinema etc.

BMS Building management system IT system that controls and monitors the building’smechanical and electrical equipment

CAGR Compound annual growth rate Mean annual growth rate over a specified period of years.

F&B Food and beverage Foodservice units eg restaurants, fast food, cafés, ice-cream kiosks, etc.

FEC Family entertainment centre An leisure and amusement centre, usually indoors within the project, and geared towards families with small children to teenagers.

GDP Gross domestic product Monetary value of an economy measured as the value of finished goods and services produced.

GFA Gross floor area Gross leasable area plus all of the internal common areas such as corridors, machine rooms, toilets and other back of the house elements. In other words, GFA

is the total floor area inside the building envelope.

GLA Gross leasable area Total area on which a shopping centre tenant pays rent. The GLA includes all selling space as well as storage and other miscellaneousspace. It is measured

from the centre of joint partitions and from outside wall faces.

HoReCa Hotels, Restaurants and Catering Consumer expenditure category relating to expenditure on domestic hotels, restaurants and catering establishments.

Impulse Food - F&B units focusingon ice-cream, juices, confectionery for eat-in or takeaway.

ICSC International Council of Shopping Centers Trade organisation for the international shopping center industry.

LEED Leadership in Energy & Environmental Design Certification programme for best-in-class green building strategies and practices

MECSC Middle East Council of Shopping Centres Trade organisation for the Middle East shopping center industry.

MEP Mechanical,electrical and plumbing Relating to mechanical,electrical and plumbing aspects of the building, such as elevators, escalators, travelators, electricity/water supply, etc.

Occupancyrate - Average amount of GLA occupiedduring the course of the time period, expressed as a proportion of total GLA available.

PTA Primary trade area Catchment area of customers that will account for around 70% of the project's turnover.

QSR Quick Service Restaurants Restaurants serving fast food, typically with service at a counter. Eg McDonald’s,KFC, Subway. Also includes ‘fast casual ‘ concepts such as Panera Bread,Chipotle etc.

STA Secondary trade area Secondary catchment area of customers that will account for an additional 20% of the project's turnover.

RDE Retail, Dining and Entertainment A grouping of consumer spending categories from which malls would typically aim to capture a share.

Introduction

SHOPPING CENTRE CLASSIFICATIONS

Reference to various shopping centre types is made throughout the report. Thefollowing table sets out the major shopping centre types, defining them in termsof typical anchor tenants, typical gross leasable area (GLA) in square metres andthe general GLA range of existing developments.

The data is based on Urban Land Institute and International Council of ShoppingCenters definitions.

Strip centres and independent convenience centres, typically of under 3,000m²,and other street level retail are not included in our supply analysis figures.

Source: McARTHUR + COMPANY based on ICSC, Urban Land Institute

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Shopping Centre

Types

Typical Anchors GLA (m²)

Typical

GLA range (m²)

Lower Upper

Super Regional Hypermarket,

3+ full-line dept stores

120,000 100,000+ -

Regional Hypermarket,

1-2 full-line dept stores

60,000 40,000 100,000

Community Supermarket, discount

dept store

18,000 10,000 40,000

Neighbourhood Supermarket 5,000 3,000 10,000

Convenience/

Strip

Convenience store/

mini-market

1,250 - 3,000

Power centre Category killers 40,000 25,000 55,000

Lifestyle Upscale specialty stores

with dining in an outdoor

setting

30,000 5,000 45,000

Outlet Manufacturer and

retailer outlets

20,000 5,000 35,000

Theme/ Festival Specialist retailers and

restaurants

20,000 7,500 30,000

Introduction

LIMITATIONS

Data Availability

It is important to note that up to date population and demographics data inAjman and the UAE is limited. While there is access to government databases,official statistics do not have the same scale and depth as found in some othercountries worldwide. As a result, data gaps were supplemented through primaryresearch as well as private sector secondary and tertiary sources whererequired.

McARTHUR + COMPANY analysis has been conducted based on all informationthat has been provided by the client during the preliminary discovery portion ofthis study.

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Executive Summary

My MallA family friendly retail, dining and entertainment destination appealing mainly to the residents of

northern Ajman, but also to visitors from across the rest of the city and as far as Umm al Quwain.

Providing a dynamic and exciting, yet pleasant and safe family environment, the development will

be a key driver in the expansion of the city’s leisure and entertainment offerings.

Executive Summary

DEVELOPMENT PROPOSITION

Catchment PopulationThe combined primary and

secondary trade areas include the

residential households of Ajman

and Umm al Quwain with over

140,000 households at present.

Spending PowerThe households of the primary

trade area typically belong to the

upper-middle and upper income

brackets with strong spending

power.

Consumer InterestA family destination for grocery

shopping, comparison shopping,

kids entertainment, cinema and

casual dining.

Target Retail TenantsHypermarket, value fashion and

home showroom concepts.

Quality cinema and selection of

cafés, restaurants and fast food

units.

Retail LayoutOriginally designed as a strip mall

with street-facing units, the project

needs to be adapted to a shopping

centre format to optimise

circulation and conversion rates.

Development PositioningA family value offering designed to

appeal to all nationalities and a

variety of household income

brackets.

Access & VisibilityThe project enjoys good access and

visibility from main roads in Ajman.

Route signage options from E11

and E311 should be explored.

Competitive EnvironmentThe supply of good quality modern

retail developments in Ajman and

Umm al Quwain is currently low,

but is set to increase, including the

City Centre Ajman expansion.

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Site Analysis

Site Analysis

KEY FINDINGS

▪ My Mall is located on the corner of Sheikh Mohammed Bin Rashid AlMaktoum Road and Al Humaidiyah Road in the Al Jerf Industrial Area districtof northern Ajman, just south of the Ajman / Sharjah border.

▪ The site benefits from good connectivity to and from Al Ittihad Street (E11),Sheikh Mohammed Bin Zayed Road (E311) and Sheikh Mohammed binRashid al Maktoum Street.

▪ The site benefits from good visibility as there are currently no obstructions toimpair the view, however due to it not being located directly on the mainroad highway signage options should be explored to ease the visitor journeyto the project.

▪ The project is located within an industrial zone with commercial warehousesand light industrial units. Across the road from My Mall, to the north, isChina Mall. To the south of the site is the residential neighbourhood of AlHamidiyah.

▪ Immediately to the west of the centre is an undeveloped plot of landdesignated for commercial use.

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Site Analysis

CONTEXT MAP

Source: Google Maps; McARTHUR + COMPANY Analysis

NORTHERN UAE

PROJECT SITEAJMAN CHINA MALL

CITY CENTRE AJMAN

THE OBEROI BEACH RESORT AL ZORAH

SHARJAH INT’L AIRPORT

CITY CENTRE SHARJAH

AJMAN UNIVERSITY OF

SCIENCE & TECNOLOGYAJMAN UPTOWN

FAIRMONT AJMAN

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Site Analysis

ROAD NET WORKS


PROJECT SITE

INTERCHANGE (EXIT) 81

INTERCHANGE(EXIT) 86

AJMAN / SHARJAH

AL JERF INDUSTRIAL 1


AL JERF 1

AL JERF 2

AL HAMIDIYAH 1

AL HAMIDIYAH 2

AL AMERAHAL RAWDA 3 AL RAWDA 2

Site Analysis

ACCESS

AJMAN

ACCESS FROM NORTH

AJMAN CHINA MALLAL ZORAH GOLF CLUB

ACCESS FROM SOUTH


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Site Analysis

EGRESS

AJMAN

EGRESS TO NORTH

EGRESS TO SOUTH


AJMAN CHINA MALLAL ZORAH GOLF CLUB

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Site Analysis

SITE PHOTOS

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Site Analysis

SITE PHOTOS

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Site Analysis

SURROUNDING TRADE AREA PHOTOS

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Site Analysis

SURROUNDING TRADE AREA PHOTOS

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Supply Analysis

Supply Analysis

AJMAN AND UMM AL QUWAIN SUPPLY OVERVIEW

The Emirate of Ajman had the second lowest amount of GLA in modern retaildevelopments per capita in the UAE after Umm al Quwain and Sharjah in 2017with 0.28m² per capita. In the UAE, Dubai has by far the highest retail GLA percapita at 1.37m², followed by Abu Dhabi with 0.82m².

The low level of modern GLA per capita in Ajman and Umm al Quwain comparedto other Emirates is attributable several key factors:

▪ While the population and household income levels of Emirati nationals inAjman are roughly similar to their compatriates in other Emirates, Ajman hasa smaller ‘middle-class’ ex-patriate consumer base. Middle class ex-patriates are key drivers of retail spending in Dubai and Abu Dhabi.

▪ The lifestyle of a large proportion of Ajman’s population is focused onworking in Dubai and commuting back and forth across the borders on a dailybasis with the aim of saving and remitting funds to family back home. Thishas led to Ajman becoming something of a dormitory town for Dubai.

▪ The native economies of Ajman and Umm al Quwain is also geared moretowards blue-collar industry sectors, such as manufacturing andconstruction, lacking the critical mass of high income workers as seen inDubai.

▪ The cities are also well served with street-level retail, particularly in the high-density urban landscapes of Al Nuaimeya, Al Rashideya and Al Liwaradistricts.

▪ The development of modern retail GLA in Ajman and Umm al Quwain is alsohampered by the relative lack of leisure tourist visitors, compared with Dubai,Abu Dhabi and even Ras al Khaimah. Leisure tourists are also key drivers ofspending at shopping centres, particularly in Dubai.

- 0.50 1.00

GLA (m² per capita)

Source: McARTHUR + COMPANY Analysis, MECSC, Developers; Trade interviews

1.50

Dubai

UAE

Abu Dhabi

Ras al Khaimah

Fujairah

Ajman

Sharjah

Umm al Quwain

GLA per Capita by Emirate: 2017

Street level retail in Ajman’s corniche area

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Supply Analysis

City Centre Ajman, which opened in 1998, was one of the first modern shoppingcentres in the Northern Emirates.

There was virtually no development of modern shopping centre space between1998 and 2004, but the 2005-2008 period saw several community-sizedcentres opened, such as Safeer Mall, Factory Mart, NK Mall and FakhruddinMall.

China Mall opened in Ajman in 2010 and then followed another long period ofstagnation until the opening of Dana Mall in 2014.

Several important projects are in the pipeline, including the expansion of MAFProperties’ City Centre Ajman, as well as the city’s first ‘lifestyle’ development -Ajman Marina Restaurant Complex. Umm al Quwain is to get its first modernshopping mall in 2018, the LuLu anchored Mall of Umm al Quwain.

AJMAN AND UMM AL QUWAIN SUPPLY TIMELINE

250

200

150

100

50

0

GLA 1,000m²

Source: McARTHUR + COMPANY Analysis, MECSC, Developers; Trade interviews

350

300

GLA

(m²)

Ajman and Umm al Quwain: Shopping Centre GLA C.C. AJMAN EXPANSION

EXPECTED

AJMAN MARINA /

MALL OF UAQ EXPECTED

Rendering of expanded City Centre Ajman

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

126 126 126 126 137 145 145 180 238 261 298 298 303

Supply Analysis

AJMAN AND UMM AL QUWAIN SUPPLY STRUCTURE

In 2010, the stock of shopping centres in Ajman was concentrated mainly incommunity centres that sprung up in the late 1990s and mid- to late 2000s,such as City Centre Ajman, Safeer Mall, Factory Mart, NK Mall and FakhruddinMall.

In the period 2010 and 2016, the shopping centre landscape saw theemergence of the neighbourhood mall format in the form of CityLife Jurf, CityLifeHamidiya and Dana Mall.

If current pipeline projects are realised according to our expectations, the supplyof retail space will diversify further, with the opening of the Emirate’s firstlifestyle centre, Ajman Marina Restaurant Complex. Furthermore, the expansionof City Centre Ajman will transform the property into the area’s first regionalmall. Mall of Umm al Quwain will further add to the supply of community mall-sized properties in the area.

Source: McARTHUR + COMPANY Analysis, MECSC, Developers, Press.

0 50,000 100,000

GLA (m2)

150,000 200,000

2010

2016

2022

Ajman and Umm al Quwain: Modern Retail GLA by

Centre Type

Super Regional

Regional

Community

Neighbourhood

Lifestyle

Other

Rendering of Ajman Marina Restaurant Complex

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Supply Analysis

COMPETITIVE ENVIRONMENT: RETAIL CENTRE SUMMARY TABLE

Note: Operational Future Supply ExpansionSource: McARTHUR + COMPANY Analysis, MECSC, Developers, Press.

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# Shopping Centre Developer/Operator Grocery Anchor Opening GLA (m2) Units (#) Parking (#)

1 China Mall Gulf Chinese Trading Corp n/a 2010 46,200 1,600 2,500

2 City Centre Ajman Majid Al Futtaim Properties Carrefour 1998 29,399 68 1,673

3 Grand Mall Real Estate Investment Public Corp TBC 2017 24,000 75 TBC

4 Safeer Mall Ajman Al Safeer Group of Companies Safeer Hypermarket 2005 15,304 58 600

5 Galleria Mall (frmly NK Mall) N K International Group n/a 2008 13,500 90 140

6 Fakhruddin Mall Fakhruddin Holdings Al Manama Supermarket 2008 12,000 18 100

7 CityLife Al Khor R Holding Al Manama Supermarket 2017 11,600 26 250

8 Dana Mall Bin Ghedayer Investments Properties Carrefour Market 2014 10,850 85 400

9 The Factory Mart Amri Group n/a 2007 9,800 40 75

10 LuLu Hypermarket Line Investments & Properties LLC LuLu Hypermarket 2005 7,500 10 100

11 CityLife Zorah R Holding Last Chance Wholesale 2016 4,900 20 200

12 CityLife Jurf R Holding SPAR Supermarket 2015 3,946 22 300

13 CityLife Al Hamidiya R Holding Kenz Supermarket 2015 3,570 22 300

14 Mirkaaz Ajman Holdings TBC 2020 37,000 174 850

15 Mall of Umm al Quwain Line Investments & Properties LLC LuLu Hypermarket 2018 20,000 59 1,000

16 City Mall (UAQ) UAQ Municipality TBC 2018 8,667 30 150

17 CityLife Al Tallah R Holding Ajman Coop 2018 7,000 60 475

18 Ajman Marina Rest. Complex Ajman Municipality n/a 2018 5,700 68 TBC

19 Souk Extra! Ajman Souk Extra! TBC 2022 5,000 18 TBC

- City Centre Ajman Majid Al Futtaim Properties 2019 23,000 70 1,600

Supply Analysis

COMPETITIVE ENVIRONMENT: RETAIL DEVELOPMENTS MAP OF AJMAN

AJMAN & UMM AL QUWAIN

PROJECT

UMM AL QUWAIN

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AJMAN

Supply Analysis

COMPETITIVE ENVIRONMENT: SUMMARY

Competitive Threat LevelEveryday

EssentialsDining

Enter-

tainment

Comparison

ShoppingRemarks

China Mall Chinese general merchandise market supported by basic F&B options.

City Centre Ajman * Solid community mall which will add a multiplex cinema and wider fashion offer.

Grand Mall In the podium of a mixed-use building, the mall is struggling to attract quality tenants.

Safeer Mall Ajman Value hypermarket and in-house Safeer fashion and home goods brands.

Galleria Mall Focused on value fashion and home goods.

Fakhruddin Mall Central location and anchored by Al Manama hypermarket, but dated look & feel.

CityLife Al Khor * Promising neighbourhood offering not yet fully operational.

Dana Mall Will benefit from strong supermarket and FEC tenant.

The Factory Mart Established and popular strip centre with value fashion and large Indian restaurant

LuLu Hypermarket Centrally located hypermarket anchored centre with dated look & feel.

CityLife Zorah Neighbourhood centre largely vacant except the supermarket and a restaurant.

CityLife Jurf Modern neighbourhood centre, F&B tenants with access to outdoor seating.

CityLife Al Hamidiya Anchored by market entrant Kenz Supermarket from Doha-based Saudia

Mirkaaz The proposed project will offer hypermarket, cinema, F&B and retail units.

Mall of Umm al Quwain Anchored by a LuLu Hypermarket, the mall will include retail, F&B, cinema and FEC.

CityLife Al Tallah Neighbourhood centre anchored by Ajman Coop.

Ajman Marina The city’s first lifestyle dining destination.

Souk Extra! Ajman Proposed neighbourhood centre with convenience retail offer.

Overall

Key: High Medium Low. Note: * evaluated as per announcements and M+C expectations

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Supply Analysis:

Key Player Profiles

Supply Analysis

KEY PLAYER PROFILES: CHINA MALL

China Mall is strategically located near Sheikh Mohammed bin Rashid AlMaktoum Road in the Ajman Free Zone, near to the Ajman port and a 25 minutedrive from Dubai International Airport.

13 pavilions were built in phase 1, which opened in 2010. Shops are located inthe west of the development, warehouses in the east, and offices/logistics inthe centre.

China Mall is divided into sections, or blocks, with blocks A to E focusing on thesale of general merchandise, hardware, appliances, furniture and commodities.Blocks F to H focus on the sale of home design, furniture and building materials– 95% of which are from China.

China Mall lies directly opposite My Mall.



CHINA MALL

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Project Data China Mall

Developer Ajman Free Zone

Opening October 2010

GLA (m²) 46,200

Retail Levels 1

Units 1,600

Parking 2,500

Occupancy Level 70% approx. (2017)

Typical Dwell Times 20mins-1.5hrs

Opening Times 10am-10pm (2pm-10pm Fri)

Supply Analysis


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Supply Analysis


33

Supply Analysis


34

Supply Analysis


35

Supply Analysis


36

Supply Analysis


15%

16%

6%

5%

2%10%

1%

Garments & Textiles Cosmetics & Perfume General Merchandise SupermarketMedical CareAdvertising Digital ServicesHardware

Furniture & Decoration

4%

3%2%1%

4%

3%

4%

18%

3%4%

Unit Breakdown by Category)

Handbags, Shoes & HatsAccessories & SpectaclesElectronic ProductsArts & Crafts Decorative Lighting Gold & JewelleryToys & Sporting Goods Food & Beverage

65%

0%

3%

2%

30%

GLA Breakdown by Type (%)

Retail

Entertainment

F&B

Services

Vacant/TBC

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Supply Analysis

KEY PLAYER PROFILES: CIT Y CENTRE AJMAN

City Centre Ajman is the largest shopping and entertainment destination in theemirate with more than 70 retail units and 18 multi-cuisine dining outletsspread over 30,000m² of leasable space.

The mall is home to Ajman’s largest Carrefour Hypermarket, a 9-screen VOX

Cinemas and a Magic Planet family entertainment centre.

City Centre Ajman offers value and convenience-oriented stores and promotions,tailored to the needs of local residents and its large student population.

The mall is conveniently located in the heart of the community on the E11.


AL JERF

CITY CENTRE AJMAN

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Project Data City Centre Ajman

Developer Majid Al Futtaim Properties

Opening December 1998

GLA (m²) 29,399

Retail Levels 1

Units 68

Parking 1,673

Footfall 10,000,000 (2016)

Occupancy Level 99% (2016)

Typical Dwell Times 25mins-1.5hrs

Opening Times 10am-10pm (12am Thu, Fri)

Supply Analysis

Ground Floor Plan


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Supply Analysis


4%

18%

42%

6%

9%

5%

4%

2%

2%

0%

5%

0%

2%

1%

GLA Breakdown by Category (m²)

Fashion Homewares F&BSport ServicesKids/Maternity Toys/Games/Books/OtherVacant/TBC

Entertainment Hypermarket Dept Store ElectronicsFootwear & AccessoriesBeauty / Perfume Watches / Jewellery

71%

18%

6%4%

1%GLA Breakdown by Type (%)

Retail

Entertainment

F&B

Services

Vacant/TBC

Source: McARTHUR + COMPANY Analysis

40

Supply Analysis

41


FoodcourtTypical mall corridor with kiosks

Magic Planet

Key Tenants Category

Carrefour Hypermarket

Centrepoint Department Store

Magic Planet FEC

Sun & Sand Sports Sports

VOX Cinemas Cinema

Areej Beauty / Perfumes

Mc Donald's QSR

KFC QSR

Pizza Hut QSR

Supply Analysis


Expansion

City Centre Ajman is undergoing an AED600 million (approx.) comprehensiveredevelopment that will see the mall almost double in size, from 30,000m² to52,000m².

When announced in August 2016, the mall’s expansion was anticipated toconclude in the third quarter of 2017, followed by additional refurbishment andre-demising of the existing mall. To date expansion works are still in progress.

The expanded City Centre Ajman will feature 150 retail & dining outlets, anexpanded VOX Cinemas with 4DX screens and specially-designed children’stheatres, and increased parking spaces to accommodate 3,200 vehicles.

42

Supply Analysis

KEY PLAYER PROFILES: CIT YLIFE AL KHOR

CityLife Al Khor, like CityLife Jurf, is a community mall concept by R Holding and

is strategically located in the Free Zone area of Ajman on Sheikh Rashid Bin

Saeed Al Maktoum Street, overlooking the Creek and the Marina.

CityLife Al Khor is planned to be a family destination with venues for retail,

entertainment and F&B. The mall has 29 retail units, 14 of which will offer F&B,

and 250 underground parking spaces.

CityLife Al Khor is anchored by Al Manama Supermarket and Sparky’s FEC.

Currently occupancy is low as Phase 1 recently opened to the public.


FREE ZONE

CITY LIFE AL KHOR

43

Project Data CityLife Al Khor

Developer R Holding

Opening 2017

GLA (m²) 11,600

Retail Levels 1

Units 26 (Phase 1)

Parking 250

Occupancy Level 36% est (2017)

Typical Dwell Times 10mins – 20mins

Opening Times 8.30am – 12am (supermarket)

Supply Analysis


22%

11%64%


Supermarket

FEC

Pharmacy

Jewellery & Watches

Café

Perfume & Cosmetics

Vacant

23%

11%

11%%

64%


Retail

Entertainment

F&B

Services

Vacant/TBC

44

Current Tenants Category

Sahar Al Sharq Perfumes Perfume & Cosmetics

Caribou Coffee Café

Time Zone Jewellery & Watches

Ibn Sina Pharmacy Pharmacy

Al Manama Supermarket Supermarket

Sparky's FEC

Supply Analysis


45

Supply Analysis


46

Supply Analysis


47

Supply Analysis

KEY PLAYER PROFILES: CIT YLIFE JURF

CityLife Jurf is a community mall concept by R Holding, designed to offerconvenience for those living within the neighbourhood. CityLife malls aim tolocate within populous neighbourhoods of Ajman and to cater to the daily needsof the local community.

CityLife Jurf is located on Sheikh Ammar Bin Humaid Street with University Streetto the south. The mall is located within the district of Al Jerf 1 in Ajman, a rapidlygrowing neighbourhood of Ajman.

CityLife Jurf is anchored by a SPAR Supermarket, has 7 F&B units with IHOPRestaurant being one of them, and is currently around 81% occupied with 7vacant units.


AL JERF 1

CITYLIFEJURF

48

Project Data CityLife Jurf

Developer R Holding

Opening 2015

GLA (m²) 3,946

Retail Levels 1

Units 22

Parking 300


Typical Dwell Times 10mins - 25mins

Opening Times 8am – 12am (supermarket)

Supply Analysis

KEY PLAYER PROFILES: CIT YLIFE JURF

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SPAR Supermarket

Caribou Coffee Café

Krispy Kreme Impulse Food

Nayomi Beauty Salon Beauty Salon

Gazebo Restaurant Restaurant

Hardees QSR

Karji Perfume & Cosmetics

iHop Restaurant

4D Gelato Café Impulse Food

Al Manara Pharmacy Pharmacy

Hour Choice Jewellery & Watches

Mikyajy Perfume & Cosmetics

Carol’s Cheesecake Café Café

Lari Exchange Money Exchange

Early Learning Centre Kids & Maternity

Supply Analysis

10%

8%

4%

2%

19%

KEY PLAYER PROFILES: CIT YLIFE AL-JURF


19%

0%


Supermarket

Restaurant

Café

Impulse Food

QSR

Perfume & Cosmetics

Pharmacy

Jewellery & Watches

Kids & Maternity

Beauty Salon

Money Exchange

Vacant

56%

19%

6%

Retail

Entertainment

F&B

Services

Vacant/TBC

50

Supply Analysis

KEY PLAYER PROFILES: CIT YLIFE AL-JURF

51

Supply Analysis

KEY PLAYER PROFILES: SAFEER MALL

Safeer Mall is located opposite Ajman University in the district of Al Nuaimia.

Safeer Mall offers 15,304m² of retail space spread over 2 levels. The mallhouses 4 anchor stores, a hypermarket, food court and family entertainmentcenter, all owned and promoted by Al Safeer Group.


AL NUAIMIA 3

SAFEER MALL

52

Project Data Safeer Mall

Developer Al Safeer Group of Companies

Opening 2005

GLA (m²) 15,304

Retail Levels 2

Units 58

Parking 600

Occupancy Level 62%

Typical Dwell Times 15mins – 1hr

Opening Times 9am – 11:30pm

Supply Analysis


53


Safeer Hypermarket Hypermarket

Eternity / Safeer Style Department Store

Shoes 4 Us Department Store

Smart Baby Department Store

X-pressions Style Department Store

Jungle Bungle FEC

Early Learning Centre Kids & Maternity

Smart Optics Optical / Sunglasses

Mikyajy Perfume & Cosmetics

Damas Watches Jewellery & Watches

Hang Ten Fashion

Aladdin Palace Kids Salon Salon

Al Ansari Exchange Money Exchange Services

Chowking QSR

Southern Fried Chicken QSR

Subway QSR

London Dairy Impulse Food

Supply Analysis


26%

20%

3%16%

3%

2%

3%

7%

17%


Hypermarket FashionKids & Maternity FECVacant

Department Store Jewellery & Watches Perfumes & Cosmetics QSR

Electronics

Optics / Sunglasses ServicesImpulse Food

72%

6%

3%2%


17%

Retail

Entertainment

F&B

Services

Vacant/TBC

54

Supply Analysis

KEY PLAYER PROFILES: LULU HYPERMARKET

LuLu Hypermarket is located in the heart of Ajman in the Liwara 2 district, on thecorner of Sheikh Rashid Bin Abdul Aziz Street and Masfoot Street. Onsite streetparking as well as underground parking is available for customers visiting thehypermarket.

LuLu Hypermarket is made up of four departments, all spread across threelevels; Digital, Fashion & Lifestyle, Grocery & Fresh Food, Home Décor &Household.


LIWARA 2

LULU HYPERMARKET

55

Project Data LuLu Hypermarket

Developer Line Investments & Properties LLC

Opening 2003

GLA (m²) 7,500

Retail Levels 3

Units 10

Parking -


Typical Dwell Times 20mins – 1hr

Opening Times 8am – 12am

Supply Analysis

KEY PLAYER PROFILES: LULU HYPERMARKET

56

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: MALL OF UMM AL QUWAIN

Mall of Umm al Quwain will be located on King Fasial Rd on the western outskirtsof Umm al Quwain.

The project will be anchored by a 9,122m² LuLu Hypermarket, and include adepartment store, a 7-screen cinema and a 2,313m² FEC. The F&B offering willconsist of restaurants, cafés and fast food, including drive through.

The offering is laid out over a single level as a horseshoe-shaped strip mall.


MALL OF UAQ

UMM AL QUWAIN

NATIONAL BANK OF UAQ

57

Project Data Mall of Umm al Quwain

Developer Line Investments & Properties LLC

Opening 2018

GLA (m²) 20,000

Retail Levels 1

Units 59

Parking 1,000

Footfall n/a

Typical Dwell Times n/a

Opening Times n/a

Supply Analysis


58

Supply Analysis


59

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: AJMAN WATERFRONT RESTAURANT COMPLEX

Ajman Waterfront Restaurant Complex will be located near the Ajman Cornicheon plot 1151, Nakheel 2 at the city centre sector of Ajman.

The project will consist of 47 restaurants, 21 stores, sea views, landscaped gardens, a variety of shops, and onsite parking space for 150 vehicles.

AJMAN WATERFRONT

RESTAURANT COMPLEX

AL NAKHIL 2


60

Project Data Ajman Waterfront Restaurant Complex

Developer Ajman Municipality

Opening March 2018

GLA (m²) 5,700

Retail Levels 1

Units 68

Parking 150

Footfall n/a

Typical Dwell Times n/a

Opening Times n/a

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: AJMAN WATERFRONT RESTAURANT COMPLEX

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: CIT Y MALL, UMM AL QUWAIN

City Mall is a neighbourhood shopping centre project located in the Al Salamahresidential area of southern Umm al Quwain.

The centre will focus on everyday essentials with a supermarket, ser vices and abasic F&B offering.

The developer initially stated that brands would include Babyshop, Patchi andfast-food outlets such as KFC and McDonald’s, as well as UAQ debutantsStarbucks, TGI Friday’s, Guess, H&M, Emax, Sharaf DG and Virgin Megastore.We were unable to confirm these tenancies.

AL SALAMAH

SHK KHALIFA HALL

CITY MALL


62

Project Data City Mall

Developer UAQ Municipality

Opening 2018

GLA (m²) 8,667

Retail Levels 1

Units 30

Parking 150

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: CIT YLIFE AL TALLAH

CityLife Al Tallah will be a community mall by R Holding aimed at catering to theeveryday needs of the neighbourhood.

The 7,000m² will be anchored by one of the world’s leading supermarkets, witha carefully planned tenant mix which will provide a range of café’s, restaurantsas well as essential services and popular fashion outlets.

CITYLIFEAL TALLAH

AL TALLAH 2


63

Project Data CityLife Al Tallah

Developer R Holding

Opening 2018

GLA (m²) 7,000

Retail Levels 2

Units 60

Parking 475

Supply Analysis


Ground floor mix

Supply Analysis


First floor mix

Supply Analysis


66

FUTURE SUPPLY: KEY PLAYER PROFILES: MIRKAAZ

Mirkaaz is a proposed shopping centre that would be the first mall in the UAE tofeature a sprawling Atrium Roof. The mall will have 174 retail units spread over37,000m² of retail space and 850 parking spaces.

Mirkaaz will be strategically located at the juncture of Sharjah and Ajman, easilyaccessible via Sheikh Mohammed Bin Zayed Road and just 20 minutes fromDubai International Airport.

The centre plans a 15,000m² hypermarket, 6-screen cinema, health club,2,600m² FEC, foodcourt, restaurants and retail.

AL TALLAH 2

MIRKAAZ

Project Data Mirkaaz

Developer Ajman Holdings

Opening 2020

GLA (m²) 37,000

Retail Levels 2

Units 174

Parking 850

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: MIRKAAZ

Ground floor mix First floor mix

Supply Analysis

FUTURE SUPPLY: KEY PLAYER PROFILES: SOUQ EXTRA! AJMAN

Souq Extra!, which operates several neighbourhood centres in Dubai, has proposed a centre for Ajman’s Safia district.

Souk Extra! centres focus on everyday essentials with a supermarket, ser vices and a basic F&B offering.


SAFIA

SOUQ EXTRA! AJMAN

68

Project Data Souq Extra! Ajman

Developer Souq Extra!

Opening 2022 est

GLA (m²) 5,000

Retail Levels 1

Units 18 TBC

Parking TBC

Demand Analysis

Demand Analysis

DEMAND SUMMARY

Key Demand Generators

Primary Trade Area Secondary Trade Area

▪ Residential family households in the adjacent districts of

Ajman

▪ Al Jerf 1, Al Hamidiyah, Al Raqaib

▪ Affluent household income levels

▪ Single family villa housing

▪ Predominantly Emirati families

▪ 5,085 households by 2020

▪ Residential households in the rest of Ajman and Umm al

Quwain

▪ Ajman, Hamriyah (Sharjah), Umm al Quwain

▪ Ajman population fastest growing of all Emirates

▪ 137,000 households by 2020

71

uired

Demand Analysis

TRADE AREA: GUIDELINES

With a proposed GLA of around 35,409m² and a focus on retail, dining andentertainment in an enclosed air-conditioned environment, the projectdevelopment is classified as a community centre in international terms.

As such, according to international standard guidelines, we can expectcustomers to arrive from not more than around 5-10km radius from the centre or10-20mins drive.

Determining the actual geographical trade area for each individual developmentmust, however, take into account additional relevant factors, such as land uses,household income levels, topographical features, road network and quality,typical traffic conditions as well as existing and future competitive retail supply.

Source: McARTHUR + COMPANY based on ICSC, Urban Land Institute

Shopping Centre

Types

Typical Anchors GLA (m²)

Typical

GLA range (m²)

Lower UpperRadius (km)

Drive time Population support

req (mins) Lower Upper

Super Regional Hypermarket, 3+ dept stores 120,000 100,000+ - 10-35 30 300,000+

Regional Hypermarket, 1-2 full-line dept stores 60,000 40,000 100,000 10-25 20 150,000 300,000

Community Supermarket, discount dept store 18,000 10,000 40,000 5-10 10-20 40,000 150,000

Neighbourhood Supermarket 5,000 3,000 10,000 5 5-10 3,000

40,

0

00

Convenience/ Strip Convenience store/ mini-market 1,250 - 3,000 2 0-5 1,000 3,000

Power centre Category killers 40,000 25,000 55,000 10-15 15-20 100,000 200,000

Lifestyle Upscale specialty stores/dining in outdoor setting 30,000 5,000 45,000 10-20 15-25 300,000+

Outlet Manufacturer and retailer outlets 20,000 5,000 35,000 40-100 30-60 300,000+

Theme/ Festival Specialist retailers and restaurants 20,000 7,500 30,000 40-100 30-60 300,000+

Demand Analysis

72

PRIMARY TRADE AREA DEFINITION

The guideline parameters for the trade area of a community mall are a 10kmradius or 20mins drive from the site. This radius corresponds approximately toborder of Ajman and Sharjah to the south and east, and stretches as far asHamriyah (Sharjah Emirate) and the suburbs of Umm al Quwain surrounding theE311 highway in the north.

Competitive environment

However, the project has direct competition in the form of existing and soon-to-be-delivered retail developments located throughout this territory. These rivalcentres will pull customers from their own respective catchment areas, which willimpact the consumer spending potential available for the project. Customerstend to shop at the most convenient location when it comes to groceries andeveryday essentials shopping and this is usually driven by proximity to home. Assuch, residents of neighbourhoods lying closer (in terms of distance or drivetime) to existing successful projects are likely to be more frequent visitors tothese other destinations.

We envisage customers living south of University Street to be drawn to the closerCity Centre Ajman. Residents of Hamriyah (Sharjah Emirate) will continue to bedrawn to Sharjah Coop store and residents of Umm al Quwain are more likely tofrequent the forthcoming Mall of Umm al Quwain.

Primary trade area definition

We expect the actual primary trade area of the project development, therefore,to include the residential family households in the Ajman municipal districts ofAl Jerf 1, Hamidiyah, Raqaib 1 and Raqaib 2. We expect that the residents of theprimary trade area will account for up to 60-70% of revenue generated by thecentre’s tenants in line with international shopping centre trade area guidelines.

Villa in Al Jerf

Apartments in Al Jerf

Demand Analysis

SECONDARY TRADE AREA DEFINITION

Secondary trade area definition

We expect the remaining 30-40% of revenue for MyMall to be generated by theresidential households living in Ajman and Umm al Quwain.

The positioning and proposed scale of the centre and its combination of retail,dining and entertainment is matched in Ajman only by City Centre Ajman. WithLuLu Hypermarket as the grocery anchor, the project will be able to attractcustomers from across the city, as the brand enjoys a high degree of loyalty,particularly among the South Asian expatriate family household community.

We expect the residents of the Sharjah enclave of Hamriyah to be customers ofthe centre, owing to the wider proposed retail, dining and entertainment offeringavailable at MyMall.

Residents of Umm al Quwain will also form occasional customers for the project,although the expanded City Centre Ajman is expected to be more popular giventhe lack of a Carrefour hypermarket anchored development in Umm al Quwain.

We have excluded the residents of labour camp staff accommodation in theIndustrial Areas of Ajman and Umm al Quwain from the calculation of trade areaspending potential, given the low level of personal discretionary incomeavailable to these individuals and lifestyle priorities (high propensity to saveand/or remit funds) determining spending patterns that are not well catered toby shopping centres.

The secondary trade area for the project is therefore defined as the residentialhouseholds of Ajman and Umm al Quwain beyond the primary trade area.

Flamingo Villas at Al Zorah, Ajman

Ajman

73

Demand Analysis

PRIMARY AND SECONDARY TRADE AREA MAP

AJMAN & UMM AL QUWAIN

PROJECT

Source: McARTHUR + COMPANY Analysis; © OpenStreetMap contributors, and the GIS User Community

E611

E311

UMM AL QUWAIN

74

AJMAN

Demand Analysis

DRIVE TIME ANALYSIS

PROJECT

UMM AL QUWAIN

75

AJMAN

Demand Analysis

HOUSEHOLD INCOME LEVELS

PROJECTUMM AL QUWAIN

76

AJMAN

Demand Analysis

LAND USES


77

AJMAN

Demand Analysis

POPULATION DENSIT Y 2016


AJMAN

78

Demand Analysis

POPULATION DENSIT Y 2026


AJMAN

79

Demand Analysis

POPULATION OF AJMAN AND UMM AL QUWAIN

0.2

0.02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: McARTHUR + COMPANY Analysis based on Sharjah Dept for Statistics and Community Development (DSCD), UAE National Bureau of Statistics, Ajman Research & Statistics Dept, Fujairah Statistics Centre

0.4

0.6


Ajman and Umm al Quwain: Total Population

1.0

0.8

UAQ

Ajman

The population of Ajman was significantly revised upwards by the government in2017 following the release of preliminary census results. The Emirate recorded504,800 residents in 2016 becoming the fastest growing of the five over the2006-2016 period.

The population is expected to continue its rapid growth through 2026, althoughgrowth rates will likely slow as the economies mature. In this conservativescenario of maturing growth, we forecast the Ajman population will reach741,000 by 2026. Umm al Quwain is expected to grow at a slightly slower rate ofaround 4% annually to reach 119,000 by 2026.

Emiratis represented around 11% of the population of Ajman and Umm al

Quwain in 2017.

Ajman and Umm al Quwain: Population by Nationality

2017e

11%

89%

Nationals

Non-Nationals

80

Demand Analysis

81

TRADE AREA POPULATION

We expect the primary trade area (PTA) of the project to include the residentialneighbourhoods of Jerf 1, Hamidiyah, Raqaib 1 and Raqaib 2 in Ajman.

We estimate that the population of the PTA will be around 31,581 in 2018.

The district of Jerf 1 and Hamidiyah are relatively mature, while Raqaib iscurrently more under-developed. We expect growth in the district of Raqaib 2over the coming years to be a key driver of population growth in the PTA. Weforecast the population will reach around 40,693 by 2026.

The PTA is characterised by low density single family villa residential units.Residents are among the most affluent in Ajman.

The secondary trade area (STA) will comprise the remaining residentialhousehold population of Ajman (ie excluding labour camp staff accommodationdwellers), Hamriyah in Sharjah and Umm al Quwain.

We expect the population to rise from around 524,000 in 2018 to reach around707,000 by 2026.

Source: McARTHUR + COMPANY.

City Districts Pop

2018

Pop

2022

Pop

2026

Ajman Jerf 1 * 4,713 5,102 5,522

Ajman Hamidiyah * 14,576 15,778 17,078

Ajman Raqaib 1 * 5,540 5,997 6,491

Ajman Raqaib 2 * 6,752 8,851 11,602

Ajman Zorah ** 79 576 4,247

Ajman Jerf Industrial 18,156 19,740 21,925

Ajman Ajman Uptown ** 500 1,037 1,813

Ajman Emirates City ** 5,099 8,919 15,599

Ajman Jerf 2 ** 7,764 9,189 10,938

Ajman Rawda ** 8,219 9,990 12,143

Ajman Muiahat ** 7,243 8,804 10,702

Ajman Al Tallah 2 ** - - -

Ajman Ajman Industrial 54,696 64,140 75,426

Ajman Nuaimia ** 138,241 167,229 199,414

Ajman Rashidiya / Bustan ** 209,300 237,857 267,710

Ajman Rumailah ** 1,456 1,576 1,706

Ajman Nakhil ** 55,488 62,452 70,291

Ajman Meshairef ** 7,441 8,054 8,718

Ajman Ajman Total 545,264 635,290 741,325

Sharjah Hamriyah ** 2,704 2,836 2,974

UAQ Old Town Area ** 18,588 19,497 20,449

UAQ Villa communities ** 56,449 63,172 71,078

UAQ Apartments w. of King Faisal Rd** 5,688 7,739 10,144

UAQ Industrial Area 10,008 13,615 17,847

UAQ Umm al Quwain Total 90,733 104,023 119,518

* PTA Total 31,581 35,727 40,693

** STA Total (excl labour camps) 524,261 608,927 707,927

Demand Analysis

EVERYDAY ESSENTIALS: PRIMARY TRADE AREA POPULATION & HOUSEHOLDS

The number of households in the PTA is expected to reach around 4,785 in2018, rising to 6,166 by 2026.

We estimate, based on country-wide averages for the size of non-Emirati familyhouseholds that the average household will comprise around 6.6 people.

The number of households in the STA is expected to reach around 127,868 in

2018, rising to 172,665 by 2026.

We estimate, based on country-wide averages for the size of family andcollective households that the average household will comprise around 4.1people.

Source: McARTHUR + COMPANY Analysis. Note * Assumption based on UAE standards for Emirati households(PTA) and overall average family households(STA) .

82

Trade Area Item 2018 2019 2020 2021 2022 2023 2024 2025 2026

Primary Population 31,581 32,551 33,563 34,621 35,727 36,884 38,095 39,363 40,693

Primary Average People per Household 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6

Primary Households 4,785 4,932 5,085 5,246 5,413 5,588 5,772 5,964 6,166

Secondary Population 524,261 544,988 564,535 586,536 608,927 632,454 657,246 681,743 707,927

Secondary Average People per Household 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1

Secondary Households 127,868 132,924 137,692 143,057 148,519 154,257 160,304 166,279 172,665

Demand Analysis

83

PRIMARY TRADE AREA INCOMES AND EXPENDITURE

There is no official data on incomes and spending patterns for Ajman. In order todetermine the likely future spending capacity and breakdown for the residents ofthe PTA, we have based our estimates on historical Household Expenditure andIncome Survey data published by Dubai Statistics Centre for 2014/2015.

We have taken as the basis our estimates for the spending capacity of the PTA,the spending capacity and breakdown for the average Emirati family householdin Dubai. Although average households incomes (as suggested in terms of GDPper capita) are much higher in Dubai than in Ajman, the primary trade areacomprises mainly upper-middle and upper income households. In order to takeaccount of income level discrepancies, we have multiplied the Dubai spendingtotals by a factor of 70%.

We have forecast the historical data forward based on an expected annualaverage increase in incomes and prices in the range of 2-3%. The data yields anaverage spending per household on Housing (ie mortgages, rent, inputed rentpayments and household utility bills in the region of AED136,000 by 2020,which we believe will be approximately in line with the average for the PTA.

In order to determine the amount of spending that can be targeted by a retailoffering such as that of the project, we have summed together all spending ofFood (including food, drink and tobacco), Apparel, Home, Recreation,Restaurants and Miscellaneous (which includes other groceries, personal goodsand services such as hairdressing). We have called this total the Retail, Diningand Entertainment Spending (RDE Spend).

By 2020, we expect residents of the PTA to spend an average of AED112,987per year on RDE, rising to AED139,689 by 2026.


PTA Average Annual Expenditure

per Household (AED)

2020 2023 2026

Food * 49,557 55,507 61,269

Apparel * 8,322 9,321 10,289

Housing (actual and inputed value) 136,131 152,473 168,302

Home * 25,666 28,747 31,732

Healthcare 3,438 3,851 4,251

Transport 38,568 43,198 47,682

Comms 18,760 21,012 23,194

Recreation * 6,205 6,949 7,671

Education 14,982 16,780 18,522

Restaurants * 11,152 12,490 13,787

Misc * 24,171 27,073 29,883

TOTAL 336,952 377,402 416,581

RDE Spend* 112,987 126,551 139,689

Demand Analysis

SPENDING POTENTIAL ESTIMATION METHODOLOGY

To better understand the market feasibility of the subject site, an analysis of thespending potential for the primary trade area was undertaken.

The number of households in the zone was calculated using information fromproperty developers. Average households expenditure levels are based on thelatest available Household Budget Survey (2012).

Average expenditure on retail, dining and entertainment (RDE) per household,was then calculated. To calculate the total spending potential for the PTA, thenumber of constituent households was multiplied by the average household RDEexpenditure.

Number of

Households

HouseholdSpending on

RDE

Total RDEspending

84

Demand Analysis

PRIMARY TRADE AREA SPENDING POTENTIAL

In order to determine the total amount of spending on retail, dining andentertainment within the primary trade area of the project, we have multipliedthe household count for each year by the average annual spending perhousehold.

As such, we expect the total spending on RDE by residents of the primary tradearea to increase gradually over time, from AED541 million in 2018 to AED861million by 2026.


Rendering of Al Waab Residential District

85

Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026

Households # 4,785 4,932 5,085 5,246 5,413 5,588 5,772 5,964 6,166

Average RDE

Spending per

Household

AED 112,987 116,377 119,868 123,464 126,551 129,715 132,958 136,282 139,689

Total RDE Spend AED

million

541 574 610 648 685 725 767 813 861

Demand Analysis

PRIMARY TRADE AREA REQUIRED CAPTURE RATE

METHODOLOGY AND ASSUMPTIONS:

A. The proposed GLA for the project (A) is 35,409m². We expect the averagebase rent (B) to be in the region of AED796 per m² per annum by 2020, rising toAED870 by 2026 with an increment of 3% every second year. This equates to anannualised rental revenue (C) of AED28.2 million by 2020 (C = A x B).

Given that retailers generally need to keep rent payments to around 10% ofsales in order to operate comfortably, this gives a minimum total turnoverrequirement for the entire centre (D) of AED282 million by 2020 (D = C x 10).

As per industry standards, we expect the development to derive around 60% ofits trade from the primary catchment area, with the remaining 40% beingderived from residents of the surrounding areas and visitors (such as residentsof other Emirates and international tourists). We estimate that the primary tradearea will need to generate around AED169 million of trade for the project. (E = Dx 60%).

In total, we anticipate that the spending on retail, dining and entertainmentgoods & ser vices (RDE spending) from residents within the primary trade area(E) will reach AED610 million by 2020 (see previous slide).

The project would therefore need to capture around 28% of RDE spending withinthe primary trade area (G = E÷ F) in 2020, falling to 21% by 2026.

We consider a capture rate of 28% to be above normal for a community centre ofthis size, but given the low level of direct modern retail development competitionthe target should be achievable. To achieve the target rental rates, the projectmust, however, be executed according to the highest expectations to positionthe centre as the go to place for the people of the area. A flexible approach torents may be needed in the initial years while tenants establish a customer base.


86

Item Unit 2020f 2026f

A GLA Sqm 35,409 35,409

B Average Base Rent per sqm AED 796 870

C Total Base Rent AED 28,196,817 30,811,423

D Total Revenue Required AED 281,968,167 308,114,229

E Revenue Required from PTA

(60% of Total)

AED 169,180,900 184,868,538

F PTA Total RDE Spending

Potential

AED 609,564,653 861,262,956

G PTA Capture Rate Required % 28 21

H Weekly Spend per PTA

Household

AED 640 577

Demand Analysis

DEMAND SOURCES AND REVENUE POTENTIAL

Based on industry benchmarks, we expect around 60% of average combinedsales turnover for tenants at the project to be derived from the primary tradearea.

With a total revenue target for the project of AED282 million, 60% equates toAED169 million. Each of the 5,085 households in the PTA, therefore, would needto spend an average of AED640 per week at the project.

In addition, to account for a further 30% of revenue, or AED85 million, theresidential households of the secondary trade area would need to spend anaverage of AED51 per month at the project.

The remaining approx. 10% of revenue or AED28 million for the project would bederived from visitors to the development, such as visitors from other emiratesand international tourists and business travelers.


87

Source of Demand Customer Groups Target Revenue

Potential (AEDmillion)

Proportion of Target

Revenue Potential(%)

Customers Required Spend at

the Project (AED)

Primary Trade Area Residential family households living in Al

Jerf 1, Humaidiyah, Al Raqaib 1, Al Raqaib

2 (approx. 60% of total)

169 60 5,085 households 640 per

household per week

Secondary Trade Area Residential households in the rest of

Ajman, Hamriyah and Umm al Quwain

(approx. 40% of total)

85 30 137,000

households

51 per

household per month

Others Residents of other Emirates; international

tourists and business visitors.

28 10 - -

TOTAL 282 100 - -

SWOT Analysis

SWOT Analysis

PROJECT SWOT

Strengths

•Visibility – the project enjoysgood and direct visibility topassing traffic along Sh Moh’d bin Rashid al Maktoum Rd.

•Access – road infrastructure provides convenient access to/from the city’s arterial routes.

•Parking – availability of surface parking and drop-off zones will enhance the convenience for visitors.

•Advisors - with international reputation.

Weaknesses

•Industrial area location – theproject has a 180 degreeprimary catchment area owingto its location within anindustrial zone.

•Building design – the linear nature of the property, meansit is less than optimal for convenient customercirculation, due to thedistances the customers haveto walk.

•Retail unit design – the designcalls for units with amezzanine levels that are not viewed as desirable by most operators.

Opportunities

•China Mall – capitalise on thetraffic generated by thepopular China Mall by offering a complementary superior dining and entertainmentoffering.

•City-wide destination - drawcustomers from across the cityand neighbouring Umm al Quwain by delivering apleasant public realm withextensive landscaping andwater features – a first for thearea.

•Soft opening – expand theoffering in stages with the hypermarket opening at theinitial launch.

•Area dominance– the low level of direct competition, particularly in terms of dining and entertainment, creates anopportunity for the project to become the go-to destination for the primary trade area.

Threats

•Future competition – several projects in the pipeline, including City Centre Ajmanand Mall of Umm al Quwain will strengthen the competitive environment.

•Operator caution – Lack of appetite among large retail groups in the UAE for further expansion. Operatorsbecoming more selective regarding location and takinglonger to commit to projects.

89

Space Plan &

Merchandise Mix

Space Plan & Merchandise Mix

91

PROPOSED SPACE PROGRAMME AND MERCHANDISE MIX

No. Level Unit # Size

(SQM)

Size

(SQFT)

Category Sub-Category Option 1 Option 2 Option 3 Option 4 Budget Rate

AED psqf

Target Rate AED

psqf

Budg Year 1 Rent Service Charge

AED psqf

Total Service

Charge per

Year

1 GF HM 8,961 96,420 Hyper/Supermarket Hyper/Supermarket LULU Hypermarket 57 57 5,495,961 - -

2 GF BB1 1,626 17,496 F&B Restaurants - Arabic Cuisine Al Roof Restaurant Brands for Less Yas Mart 60 72 1,049,746 10 174,95

8

3 GF BB2 1,642 17,668 Mob, Elect & Comp Mob, Elect & Comp Daiso Emax Yas Mart Dollar Plus 60 72 1,060,075 - -

4 GF BB3 1,642 17,668 Fashion Fashion - Dept Store Safeer Joanna Yas Mart 60 72 1,060,075 - -

5 GF BB4 5,846 62,903 Home Furnishings Home Furnishing - Home Furn Danube Home Box Ideas 45 54 2,830,633 - -

6 GF FEC 1,915 20,605 Entertainment Ent- FEC/Play Area FabyLand Cheeky Monkey 60 72 1,236,324 - -

7 BF Cinema 1,812 19,497 Cinema Cinema Cinema City Cinepolis Stars Cinema 50 60 974,856 - -

8 BF WH1 476 5,122 Warehouse Unassigned Yas Mart 40 48 204,870 - -

9 BF WH2 1,583 17,033 Warehouse Unassigned Yas Mart 40 48 681,323 - -

10 BF WH3 791 8,511 Warehouse Unassigned Yas Mart 40 48 340,446 - -

11 FC FU-01 51 549 F&B FC - Arabic/Lebanese/Iranian Albaiq Safeer Hatam 250 300 137,190 38 20,57

9

12 FC FU-02 52 560 F&B FC - Burger Buger King McDonald's Hardee's 250 300 139,880 38 20,98

2

13 FC FU-03 52 560 F&B FC - Chicken KFC SFC Chicking 250 300 139,880 38 20,98

2

14 FC FU-04 52 560 F&B FC - Chinese Magic Wok Chinese Place Panda 250 300 139,880 38 20,98

2

15 FC FU-05 52 560 F&B FC - Indian/Pakistani Spice Garden Shamiana Nawab Biryani Hut 250 300 139,880 38 20,98

2

16 FC FU-06 58 624 F&B FC - Indian/Pakistani Barbq Bombay Chowpaty Biknarwala 250 300 156,020 38 23,40

3

17 FC FU-07 58 624 F&B FC - Pizza Pizza Hut Express Papa John's 250 300 156,020 38 23,40

3

18 FC FU-08 58 624 F&B FC - Impulse Baskin Robbins Coldstone London Dairy 250 300 156,020 38 23,40

3

19 FC FU-09 57 613 F&B FC - Fish London Fish & Chips 250 300 153,330 38 23,00

0

20 FC FU-10 71 764 F&B FC - Arabic/Lebanese/Iranian Mandi Shami Orchestra Halabi 250 300 190,990 38 28,64

9

21 GF G-01 192 2,066 F&B F&B - Café Gloria Jean's Caribou Coffee Second Cup 125 150 258,240 19 38,73

6

22 GF G-02 102 1,098 Eyewear Eyewear - Sunglasses Barakat Al Jaber Just Optics 150 180 164,628 23 24,69

4

23 GF G-03 102 1,098 Services Services - Exchange UAE Exchange Al Ansari Exchange Wallstreet Exchange 150 180 164,628 23 24,69

4

24 GF G-04 102 1,098 Services Services - Repair Minutes Seconds 150 180 164,628 23 24,69

4

25 GF G-05 104 1,119 F&B Impulse - Ice Cream/Yoghurt Haagen Dazs Chocolate Hut Yogurberry MiniMelts 150 180 167,856 23 25,17

8

26 GF G-06 26 280 Services Services - Salon Aladdin Kids Trimmer 250 300 69,940 38 10,49

1

27 GF G-07 117 1,259 Services Services - Pharmacy Life Pharmacy Aster Pharmacy Bin Sina Pharmacy 150 180 188,838 23 28,32


PROPOSED SPACE PROGRAMME AND MERCHANDISE MIX (CONT’D)

92

No. Level Unit #Size

(SQM)

Size

(SQFT)Category Sub-Category Option 1 Option 2 Option 3 Option 4

Budget Rate TargetRate AEDBudg Year 1 Rent

Service Charge

AED psqf psqf AED psqf Charge per Year

Total Service

29 GF G-09 139 1,496 Entertainment Ent- FEC/Play Area Stay & Play 75 90 112,173 11 16,826

30 GF G-10 151 1,625 Perfumes & Cosmetics Perf/Cosm/Health/Beauty Ajmal Perfumes Rasasi Perfumes Swiss Arabian 150 180 243,714 23 36,557

31 GF G-11 139 1,496 Jewellery & Watches Jewellery & Watches Kalyan Malabar Pure Gold 150 180 224,346 23 33,652

32 GF G-12 142 1,528 Fashion Fashion - Shoes & Handbags Payless Pavers England Sixteen London 150 180 229,188 23 34,378

33 GF G-13 103 1,108 Fashion Fashion - Dept Store Redtag Max Fashion Joanna 150 180 166,242 23 24,936



36 GF G-16 108 1,162 Perfumes & Cosmetics Perf/Cosm/Health/Beauty Exquisite Flormar Face Shop 150 180 174,312 23 26,147

37 GF G-17 111 1,194 Fashion Fashion - Sports Global Sports 2000 Sports City 150 180 179,154 23 26,873




41 GF G-21 126 1,356 Fashion Fashion - Trad Ladies Hanaya First Lady 150 180 203,364 23 30,505

42 GF G-22 85 915 Jewellery & Watches Jewellery & Watches Trend Time Police 150 180 137,190 23 20,579

43 GF G-23 26 280 Services Services - Health & Nutrition Lifestyle Nutrition Dr. Nutrition GNC 250 300 69,940 38 10,491

44 GF G-24 54 581 Mob, Elect & Comp Mob, Elect & Comp Geekay Games King 250 300 145,260 38 21,789

45 GF G-25 103 1,108 Fashion Fashion - Unisex Reflex Giordano Aeropostale 150 180 166,242 23 24,936



48 GF G-28 102 1,098 Fashion Fashion - Accessories Carter's Accesorize 150 180 164,628 23 24,694

49 GF G-29 102 1,098 Perfumes & Cosmetics Perf/Cosm/Health/Beauty Arabian Oud Swiss Perfumes Nabeel Perfumes 150 180 164,628 23 24,694

50 GF G-30 192 2,066 F&B Restaurants - Indian/Pakistani Makani BarBq 150 180 309,888 23 46,483

51 GF G-31 192 2,066 F&B F&B - Café Second Cup Dome Café 150 180 309,888 23 46,483

52 GF G-32 102 1,098 Eyewear Eyewear - Sunglasses Vision Express Dubai Optics La moda 150 180 164,628 23 24,694

53 GF G-33 102 1,098 Fashion Fashion - Trad Men Pierre Cardin Gio Ferrari Brands 150 180 164,628 23 24,694

54 GF G-34 128 1,377 Fashion Fashion - Dept Store Mira Fashion Al Hajis Joanna 150 180 206,592 23 30,989




93



(SQM)

Size

(SQFT)


AED psqf

Target Rate AED

psqf


AED psqf

Total Service

Charge per

Year

57 GF G-37 102 1,098 Jewellery & Watches Jewellery & Watches Ice Watch Icing 1915 by Seddiqi & Sons 150 180 164,628 23 24,69

4

58 GF G-38 102 1,098 Eyewear Eyewear - Optical Yateem Just Optics 150 180 164,628 23 24,69

4

59 GF G-39 102 1,098 Fashion Fashion - Accessories I am Charming Charlie Accessorize 150 180 164,628 23 24,69

4

60 GF G-40 192 2,066 F&B F&B - Café FilliCafé PappaRoti French Bakery 150 180 309,888 23 46,48

3

61 BF UG-01 119 1,280 F&B Restaurants - International Chilli's Applebee's 150 180 192,066 23 28,81

0

62 BF UG-02 179 1,926 F&B Restaurants - Lebanese Operation Falafel Shami Baitoon Samad 150 180 288,906 23 43,33

6

63 FF FF-01 23 247 F&B Impulse - Conf/Nuts/Candies Sweet Factory Magic Corn 150 180 37,122 23 5,56

8

64 FF FF-02 69 742 Eyewear Eyewear - Sunglasses Barakat Al Jaber Just Optics 100 120 74,244 15 11,13

7

65 FF FF-03 78 839 Perfumes & Cosmetics Perf/Cosm/Health/Beauty The Body Shop Lush Inglot 100 120 83,928 15 12,58

9

66 FF FF-04 90 968 Toys/Hobb/Gifts/Sports THSG - Toys & Hobbies The Toy Store Sanrio Toys for Less 100 120 96,840 15 14,52

6

67 FF FF-05 95 1,022 Fashion Fashion - Children Babyshop Mothercare The Children's Place 100 120 102,220 15 15,33

3

68 FF FF-06 95 1,022 Fashion Fashion - Children Babyshop Mothercare The Children's Place 100 120 102,220 15 15,33

3

69 FF FF-07 65 699 Jewellery & Watches Jewellery & Watches Agatha Zopini Pure Gold Hour Choice 100 120 69,940 15 10,49

1

70 FF FF-08 142 1,528 Mob, Elect & Comp Mob, Elect & Comp E-City I Style Comp Eros Axiom 100 120 152,792 15 22,91

9

71 FF FF-09 72 775 Fashion Fashion - Shoes & Handbags Nicoli Just Accessories 100 120 77,472 15 11,62

1

72 FF FF-10 81 872 Fashion Fashion - Men Marco Borraco Ted Lapidus Wrangler 100 120 87,156 15 13,07

3

73 FF FF-11 116 1,248 Fashion Fashion - Trad Men Abu Haleeqa Al Madani 100 120 124,816 15 18,72

2

74 FF FF-12 72 775 Services Services - Telecom Etisalat Du 100 120 77,472 15 11,62

1

75 FF FF-13 73 785 Services Services - Tailoring Abdul Samad Tailoring 100 120 78,548 15 11,78

2

76 FF FF-14 74 796 Toys/Hobb/Gifts/Sports THSG - Toys & Hobbies Hallmark ELC 100 120 79,624 15 11,94

4

77 FF FF-15 79 850 Services Services - SPA Al Shifa SPA GoCo Spa 100 120 85,004 15 12,75

1

78 FF FF-16 59 635 Services Services - SPA Al Shifa SPA GoCo Spa 100 120 63,484 15 9,52

3

79 FF FF-17 28 301 Perfumes & Cosmetics Perf/Cosm/Health/Beauty GNC Dr. Nutrition Nabeel 100 120 30,128 15 4,51

9

80 FF FF-18 78 839 Services Services - Car Rent/Auto Show Yellow Hat 100 120 83,928 15 12,58

9

81 FF FF-19 79 850 Services Services - Car Rent/Auto Show Yellow Hat Aster GMC 100 120 85,004 15 12,75


94



(SQM)

Size

(SQFT)


AED psqf

Target Rate AED

psqf


AED psqf

Total Service

Charge per

Year

85 FF FF-23 79 850 Services Services - Travel Rostamani Al Sharaf 100 120 85,004 15 12,75

1

86 FF FF-24 79 850 Services Services - Photo/Stationery/Print Kinko Desco 100 120 85,004 15 12,75

1

87 FF FF-25 79 850 Services Services - Office Regus 100 120 85,004 15 12,75

1


1


1


1

91 FF FF-29 79 850 Services Services - Clinic/Medical Thumbi Aster GMC 100 120 85,004 15 12,75

1


1


1


7


7


7


1


1


1


1


1


1


1


1


1


1


1


1



PRELIMINARY MERCHANDISE MIX – GROUND FLOOR

95


PRELIMINARY MERCHANDISE MIX – UPPER GROUND FLOOR

96


PRELIMINARY MERCHANDISE MIX – LEVEL 1

97

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