2019 Industrial and Logistics Report - End of Year Review

END OF YEAR REVIEW

2O19 INDUSTRIAL AND LOGISTICS REPORT

END OF YEAR REVIEW

ABOUT Established in 2008, Cavendish Maxwell is one of the largest and most respected property consultancies in the region.

An influential partner and trusted advisor to key stakeholders in real estate markets throughout the Middle East and North Africa, we offer a comprehensive range of exceptional property services across a diverse mix of sectors and asset classes.

Cavendish Maxwell is a fully certified member firm of the Royal Institution of Chartered Surveyors (RICS), bringing together a world-class team of handpicked property consultants and surveyors, unmatched elsewhere in the region.

Our team of highly qualified professionals is trusted by real estate market stakeholders, including international and domestic banks, property developers, governments, owners and investors, asset managers and professional services firms. We service a diverse mix of specialist property sectors including retail, offices, hospitality, healthcare, education, industrial and logistics.

Cavendish Maxwell also publishes independent reports, prepared to globally accepted standards, for loan security, bank lending, audit, insurance reinstatement, dispute resolution, risk management, debt recovery, performance analysis, purchase and sale advice, and third-party reliance purposes.

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FOREWORD Since the inaugural edition of this report, we have provided leading insight and analysis of Dubai’s industrial and logistics market.

Now in our fourth edition, regular readers will have recognised our commitment to sharing reliable market data and information to the benefit of all industry stakeholders.

The following report explores the Dubai industrial and logistics market at both a local and global level. There are several recurring themes based upon previous releases, including area-specific pricing, supply and demand data, the impact of e-commerce, market challenges and opportunities as well as Dubai’s competitiveness in an international context.

Andrew Love MA (Hons) Partner Head of Investment and Commercial Agency

CONTENTS 04 06 08 09 10 11

Industrial Market Summary Weichai Case Study UAE and Dubai Economy Market Challenges and Opportunities E-commerce Focus

12 13 14 15 16

Real Estate Investment Investment Case Study Dubai’s Global Competitivity Market Outlook Track Record

Supply Versus Demand

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INDUSTRIAL MARKET SUMMARY Throughout 2019, market participants displayed higher levels of cooperation. Pricing stability experienced in the preceding 12 months was largely a result of inactivity due to a pricing ‘stand-off’ between occupiers and landlords. With supply continuing to outweigh demand, landlords are having to align price points with occupier budgets. As a result, an increasing number of transactions continued, despite vacancy levels still rising.

Enquiry levels increased substantially, rising 26% year-on-year for 2019. Whilst a significant proportion were opportunistic, seeking ‘distressed sales’, it is evident that appetite is increasing. The general trading sector remained the most active accounting for 35% of all enquiries. The logistics and distribution sector, typically the second greatest source of demand, halved to 7%, whilst manufacturing jumped, taking a 14% share. Other sectors including oil and gas, engineering, and food and beverage (F&B) all posted notable gains. Mirroring findings in our previous report, the bulk of demand has been for facilities under 50,000 sq ft built-up-area (BUA). Somewhat surprisingly, our data illustrates markedly more enquiries for facilities over 100,000 sq ft BUA. This was driven by scaling up exercises to improve efficiency, speculators capitalising on discounted prices, and a wave of foreign direct investment (FDI) - notably China frontlining the international commitment to the wider MENA region with several sizable requirements. According to a statement released by Dubai Customs, China has been Dubai’s top trading partner since 2014, with AED 139 billion of bilateral trade taking place in 2018 and anticipated to hit AED 257 billion by 2020. This has translated into more real estate interest from diverse companies - the Weichai case study below is one example of diverse investment.

A gap yet to close is the two-tier quality division that has become synonymous with Dubai’s onshore (nonbonded) industrial market. Whilst free zone stock is good quality, non-bonded stock remains poor overall.

This is creating a market adjustment lag, as occupiers continually seek to modernise operations and, by necessity, their real estate portfolio. This flight-to-quality has placed demand pressures on the finite amount of Grade A ‘European specification’ onshore stock, whilst the supply side of traditional warehouses is fighting for lean demand. Older properties struggle to keep up with evolving Dubai Civil Defence (DCD) regulations, and prospective occupiers are considering the potential financial commitment required after transfer of such properties to become operationally compliant with new regulations.

Whilst demand is showing signs of improvement, it is not outstripping supply, thus there remains a disequilibrium. However, the rate at which supply was coming to market appears to have slowed. At its height, we saw several properties entering the market every week. Certain sub-sectors, such as Light Industrial Units (LIUs) are heavily overloaded with supply, whereas modern, Grade A stand-alone facilities in onshore locations are still in relatively short supply. This has been exacerbated particularly within core industrial areas, where land for speculative development is limited in supply, or too expensive for a logistics park development to be financially viable.

ENQUIRY INCREASE

26%

04

CHINA

#1

TRADE PARTNER

LOGISTICS

50%

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INDUSTRIAL PROPERTY SUPPLY AND ASKING RATES (AED) SALE

LEASE

LOCATION

SALE

HIGH

LOW

AVERAGE

(SQ FT)

(PPSF*)

(PPSF)

(PPSF)

VACANCY (SQ FT)

HIGH (PPSF)

LOW (PPSF)

AVERAGE (PPSF)

Al Quoz

445,998

400

200

248

1,753,244

45

22

34

Dubai Industrial Park

525,745

350

151

266

1,299,377

30

18

24

2,538,423

400

149

241

3,570,596

35

20

28

795,337

492

251

326

1,491,790

35

25

30

JAFZA

10,845,607

320

58

101

4,108,440

30

20

25

National Industries Park / Techno Park

3,927,516

362

56

202

1,567,741

28

18

23

Dubai Investment Park Dubai South / Dubai World Central

Total

13,791,190

19,078,627

*Price per sq ft (exclusive of authority fees) Asking rates are typically overstated by 10-25% to allow for negotiation.

Listings at the top end of the range typically reflect higher quality, including modern assets with attractive features such as DCD-compliant fire safety installation, high eaves and high-grade flooring suitable for racking, modern artificial light fittings, high power capacity, provisions for temperature control and ample loading for Heavy Goods Vehicles (HGVs).

Listings at the lower end of this range reflect assets that are the least desirable in the current market. which may include older properties in a state of disrepair requiring significant capex to bring the property up to the minimum regulatory requirements, and/or modernise operations. Lower specification facilities typically have restricted eaves heights, inefficient light fittings, damaged or no insulation panelling, unsuitable flooring for heavy loads, and poor HGV access.

INDUSTRIAL PROPERTY DEMAND BY SECTOR The general trading and manufacturing industries accounted for approximately 50% of demand, with logistics and distribution also showing positive enquiry levels - a testament to the competitiveness of Dubai for business.

Education 1%

E-commerce 3%

Commodities 3%

Others

Engineering 6%

Logistics and Distribution 7%

12%

Services 9%

Oil and Gas 3%

Manufacturing 14%

General Trading 35%

ARE YOU AN INVESTOR OR DEVELOPER? If you are interested in the exact breakdown of enquiries by size and location, please contact us agency@cavendishmaxwell.com

F&B 7%

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CASE STUDY The growth of Chinese companies entering the market In 2018, Weichai Middle East approached Cavendish Maxwell to assist with their Middle East expansion mandate. Having been located in JAFZA for several years, renting a light industrial unit directly from the authority, Weichai asked Cavendish Maxwell to critically analyse their current real estate holding against other opportunities available in the market.

The decision was made that purchasing a facility would be preferred over leasing due to the capital gain prospects (as a result of soft market conditions), a twenty-year land lease offering from the authority, occupational savings throughout the term, and a clear exit strategy.

Cavendish Maxwell then set out to identify suitable options available that fit the operational requirements of Weichai and oversaw the due diligence process to ensure the properties of interest to Weichai were legally, economically, and occupationally fit for purpose.

Having been involved in more than 300 transactions inside the free zone over the last five years, Cavendish Maxwell were well placed to assist with the drafting and negotiation of heads of terms and sale and purchase agreement, liaise with the authority, and make the necessary preparations for a smooth execution on the transfer day.

The property detailed below was shortlisted as Weichai’s ideal solution to support their continued growth and prosperity and was purchased successfully within their competitive budget.

· · · · · ·

Plot area extending to approximately 10,000 sq m (107,639 sq ft) Built up area extending to approximately 2,827 sq m (30,440 sq ft) Fully-fitted G+M office extending to approximately 704 sq m (7,577 sq ft) Full fire sprinkler system Demag gantry cranes Covered car parking

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UAE AND DUBAI ECONOMY Notwithstanding market conditions, the UAE economy has reassuring projections. According to the International Monetary Fund (IMF), the UAE is set for GDP growth of 2.5% in 2020, while the DED takes a more optimistic position for 2020 with an anticipated growth of 3.7%. This economic growth is being driven by public infrastructure spending in the lead up to Expo 2020, a resurgence in FDI, business initiatives such as long-term visas for certain expatriates, 100% foreign ownership for select industries, reducing government fees, and offering employees bank guarantee refunds and replacements via a low-cost insurance scheme. A total of AED 2.4 billion is expected to be released for the logistics and manufacturing sectors alone.

Dubai, the largest contributor to the UAE economy, is set for GDP growth of 3.8% in 2020, according to Dubai Economic Department (DED).

The UAE has approved a federal budget of AED 196 billion for the next three years (2020-2022). The 2020 budget was approved at AED 66.4 billion, with a focus on the core areas of community development; education and healthcare apart from supporting the organisation of the Expo 2020 in Dubai. With volatile oil prices, this top-down investment supports the continuing need for a diverse economy.

Geo-politics continues to be a thorn in the side for stakeholders. Tit-for-tat trade wars between the US and China and tensions between the US and Iran could have significant financial and diplomatic implications in the region.

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MARKET CHALLENGES AND OPPORTUNITIES This year, master authorities were more accommodating with their land lease terms than in recent years, which is having a positive impact on both existing and prospective lease holders. Land rents have reduced which is partially countering the margin erosion experienced, particularly by logistics and general trading operators. Sub-lease fees are also becoming less onerous, which has resulted in more sub-lets; a popular asset management strategy for owner-occupiers with surplus space, and those looking to avoid overheads by way of leasing as opposed to purchasing.

Industrial land and high-quality buildings in central, non-bonded areas such as Al Quoz, Ras Al Khor and Dubai Investments Park (DIP) are limited in availability. However, industrial hubs further afield such as National Industries Park (NIP) and Dubai Industrial Park (DI) are being recognised for delivering modern, higher grade stock, seldom offered in these areas. As incentives for redevelopment within older locations are limited, developers seeking to capitalise on this gap in the market, and occupiers in need of modernising their portfolio, should consider these up-and-coming areas. NIP and DI are attracting a cascade of multi-nationals, who are drawn in by the incentives offered by master authorities and alternative solutions such as build-to-suit, and sale and leasebacks.

In our last report, we discussed the impact of dampened global trade on logisticians.

Volumes of trade have diminished and bidders on high priority contracts have been prepared to concede a loss on storage, while seeking to make their margins on value-added services such as freight forwarding, repackaging and handling. It was expected that some smaller operators would succumb to these pressures, whilst more established companies would look to mergers and acquisitions as a survival strategy.

A noteworthy example of this was the DSV-Panalpina merger in April 2019, with the former purchasing the Swiss company in a reported USD 4.6 billion transaction. We expect the continued closure of smaller, local logisticians who have failed to adopt modern practices, and potentially more mergers and acquisitions between the larger regional and international 3PL players. Other examples of this include the tie up between Hellmann, Indu Chemical and RSA Talke.

With sustainability being a core agenda for the UAE following its ratification of the Paris Agreement and the lead up to Expo 2020, the environmental impact of real estate is going to play an increasing role in demand and therefore, value. Efficiency ratings such as Leadership in Energy and Environmental Design (LEED) are gaining recognition in Dubai, following its successful implementation elsewhere in the world. However, experts acknowledge a standardised property sustainability grading system is unlikely to be set in place imminently, as payback in terms of efficiency savings usually takes at least five years, which is considered too long for most investors. Nonetheless, savvy occupiers and developers should consider this position ahead of time, and the potential capital gain or loss if they were to purchase or develop a property today.

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E-COMMERCE FOCUS 34%

2.2%

USD 300

of UAE e-commerce transactions are conducted on mobile devices

of UAE retail purchases are conducted online

average basket size for cross border purchases

70%

57%

30-35%

of e-commerce transactions in the UAE are by people under age 31

of online purchases are made with overseas suppliers

return rate for e-commerce vs 8% for physical stores

In the wake of retail unit closures in malls, e-commerce has moved from strength to strength, propelled by consumer behaviour and demographic shifts. According to market research firm eMarketer, e-commerce sales worldwide were expected to hit USD 3.5 trillion in 2019, with an expected uplift of 40% by 2021 to just under USD 5 trillion.

Existing retailers and new market entrants are investing heavily, not just in their real estate but across the supply chain, to provide customers a wider selection of products, more targeted sales and improved delivery times. Consequently, distribution centres that support digital infrastructure, and last mile hubs within proximity to their increasingly time conscious end-consumers, are highly sought after.

Within MENA, it was forecast that only 2.2% of all shopping expected for 2019 would be via e-commerce, compared to the global average of 12.2% (eMarketer). The UAE has the potential to be an e-commerce hotspot due to its young demographic, high population density, and residents’ disposable income. According to Bain & Company, the UAE and Saudi Arabia have some of the highest levels of internet, mobile and social media penetrations globally, and Egypt’s population also spends one of the highest amounts of time online. Egypt and GCC countries account for 80% of all e-commerce sales within the MENA region. According to a study

by Dubai Economy and digital payment solutions provider Visa last year, the UAE is expected to record e-commerce transactions of AED 59 billion for 2019, and grow 23% annually between 2018 and 2022.

However, we predict that existing onshore supply will not fulfil future demand, with insufficient supply of good-quality, nonfree zone warehousing. In the short term, we expect retailers to reconfigure their existing outlets to provide additional storage to assist with last mile delivery and provide collection points for click-and-collect orders. A likely medium to long-term solution is redevelopment of older, core industrial areas such as Al Quoz and Umm Ramool, as well as architectural developments including multi-storey distribution centres, such as those recently pioneered in the US and Japan.

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As a response to this increasing demand, authorities including JAFZA, Dubai South and DAFZA have developed schemes and are working with relevant government departments, such as Dubai Customs, to support business growth, eliminate red tape and enable easier access to the local market. If this happens, free zones have sufficient supply to fulfil demand from e-commerce and e-retailers. However, at the time of writing, the complexity of serving the local market from a free zone still makes it an unattractive proposition vs non bonded warehouse areas. We are optimistic that companies responsible for delivering products can rely on these authorities to address, improve and facilitate cross-border transactions. According to Neilson, 57% of online purchases are made overseas and the UAE’s traders and logisticians facilitating movement of goods can certainly benefit from this, 700 with timely support from authorities. Efforts are underway at 600 a federal level too, , with the UAE Cabinet recently declaring 100% foreign ownership in 122 economic activities, 500 most notably e-commerce, supply chain and logistics.

400 Significant growth expected in e-commerce, but not without 300 challenges. Lack of street addresses and use of PO boxes, 200 in combined with poor infrastructure in some areas, results a protracted delivery process, often with the delivery driver 100 having to call the customer to confirm delivery details. Albeit, this is changing with increased drop box, click-and-collect 0 locations and the increasing use of Makani.

The logistics industry serving the Middle East e-commerce sector is also currently subject to a relatively unique issue of low order quantities. This results in couriers taking few parcels out on a delivery route, subsequently leading to increased costs. These two characteristics contradict the growing expectations from customers for quick and free delivery.

Further challenges include the tendency for customers to pay using cash, and the issue of product returns. This creates another hurdle for the retailer to provide a cash refund to the customer and arrange return of the products, potentially pushing up costs further.

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SUPPLY VERSUS DEMAND Since 2017, there is an apparent inertia in the relationship between supply and demand for industrial space. Both supply, as measured by total available sq ft, and demand, as measured by the number of enquiries, are increasing at comparable rates. This is counterintuitive and would not be the case with highly liquid markets, such as leading stock exchanges.

However, with an understanding of real estate characteristics, speculators may recognise what is known as ‘lag time’ – this is the time the market takes to adjust to establish equilibrium between supply and demand factors. As we have highlighted in previous reports, higher due diligence has protracted transaction times, sometimes in excess of 12 months. Hence, despite year-on-year improvements in demand, an overwhelming proportion of this has yet to translate into completed deals, which inevitably absorbs some of the excess supply.

Other factors may also be at play, such as the heavily-weighted demand for properties under 20,000 sq ft BUA, resulting in larger facilities accumulating on the market with little appetite for uptake, and opportunistic purchasers that are looking to convert well below market rates through sellers who are under pressure. Nonetheless, the increase in demand is a positive sign and we estimate that by our next report we will begin to see supply stabilisation.

20,000,000 19,000,000 18,000,000

2019 Demand

12,000,000 10,000,000 8,000,000

0

2017 Year End

2018 Year End

Sale Supply

Lease Supply

13,791,190

19,078,627

7,594,728

2,000,000

6,117,547

4,000,000

12,130,675

6,000,000

700 650 600 550 500 450 400 350 300 250 200 150 100 50 0

DEMAND (NO. OF ENQUIRIES)

14,000,000

6,937,938

SUPPLY (SQ FT)

16,000,000

2019 Year End

Demand

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REAL ESTATE INVESTMENT Appetite for investment into the industrial and logistics sector of the property market remains largely from funds, Real Estate Investment Trusts (REITs) and high net worth individuals all looking for attractive opportunities. However, barriers to such deals also remain, including onerous land lease terms and expensive land lease rates.

In addition, high transfer fees and sub-lease charges, which are typically passed on to the tenant, are therefore eroding the net yield, making it an unattractive proposition for investors. This is changing with JAFZA and Dubai South introducing a cap on sub-lease fees.

In the absence of good-quality investment opportunities, investors are increasingly reviewing options which would not have been considered 12-18 months ago. These high-yielding opportunities inherently carry more risk, with the underlying occupational lease given to a poor covenant tenant, being over-rented, or with a short unexpired term.

With bank debt now more expensive and harder to obtain, we may also see investors looking at alternative ways to enter the market and fill this void. For instance, they might look at providing private development finance, or forward funding projects, and will be supported by continuously improving transparency in the market along with changes in regulations.

RENTAL YIELDS IN GLOBAL CITIES 10 8.5% Rental Yield

8

6.9%

6 4

3.4%

3.9%

4%

4%

Tokyo

Munich

London

4.5%

4.75%

5%

4.75%

5.7%

2 0 Hong Kong

Paris

Chicago

Beijing

Stockholm

Sydney

Singapore

Dubai

Based on a Grade A logistics facility leased to a long-term institutional tenant on a full repairing and insuring (FRI/Triple Net) 10+ year lease. Land tenure freehold or 50-year leasehold.

Yields in Dubai remain very attractive in comparison to other global cities. Accordingly, industrial and logistics investment within the UAE has become an attractive manifesto. It is however, not without risk, with the increased possiblity of lengthy void periods, exposure to market volatility, variable sub-lease fees and onerous leasehold terms along with tenant friendly laws.

It is therefore unlikely to attract overseas investment in the immediate future from institutional investors, but rather through third party platforms, private equity houses and funds.

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INVESTMENT CASE STUDY

LOGISTICS SALE AND LEASEBACK A longstanding client approached Cavendish Maxwell to review their existing real estate holdings. The client aimed to move towards an asset-light business model that allowed them to focus on their core business and avoid any potential balance sheet fluctuations.

Cavendish Maxwell advised and structured a sale and leaseback, the first of its kind in the region. The structure allowed the client to sell the real estate elements, but remain in occupation as an operational entity by simultaneously leasing back the premises at the time of transfer.

The transaction allowed the client to free up a substantial amount of previously blocked equity, allowing them to reinvest into their core business and facilitate expansion without requiring external debt financing.

WAREHOUSE SALE AND LEASEBACK

Details of the transactions were as follows: Location: Dubai Price: Confidential Yield: 8.25%

Use: Records Management Built-Up Area (BUA): 75,000 sq ft Purchaser: Institutional Closed Ended Fund

To learn more about sale and leaseback or income producing assets, please contact

agency@cavendishmaxwell.com

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DUBAI’S GLOBAL COMPETITIVITY According to the World Bank Group, the UAE was ranked 14 th on the aggregated Logistics Performance Index (LPI) for 2018, up three places from 2017. On the other hand, according to the World Economic Forum’s Global Competitiveness Report (GCR), the UAE fell 10 places taking the 27 th spot in 2018.

However, a competitive economy is work in progress and the potential of the UAE is yet to be fulfilled. Current lag in technology (ranked 35 th) and human capital factors such as available pool of talent (ranked 61 st) are two important areas that are poised to display improved results with the substantial investments they are attracting.

COUNTRY PERFORMACE ON LOGISTICS PERFORMANCE INDEX (LPI) 14

14

LPI Rank

12

12 10

10

14

13 13

12

11

9

8

7

7

6

5

6

5

4

3

2

1

10

9

1

6

2

2

0 Finland

Germany

Hong Kong

Japan

Singapore

Sweden

Switzerland

2018

Netherlands

UAE (Dubai)

UK

USA

2017

Source: World Bank

Jebel Ali

Singapore

2016

Rotterdam

2017

Los Angeles

20,760

19,600

8,730

8,910

8,860

9,460

9,430

19,810 Antwerp

8,857

11,100

10,451

10,037

14,510

12,385 Shanghai

13,734

36,600

33,666

30,904

42,010

40,233

37,133 14,950

15,730

45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000

15,040

TEUs in Thosands

LEADING GLOBAL CONTAINER PORTS

Hamburg

Hong Kong

2018

Source: World Shipping Council

The above port volumes are measured in Twenty-Foot Equivalent Units (TEU) across several major port locations around the world. In 2018, Jebel Ali, Hamburg and Hong Kong found port volumes to be lower than 2017. This has been caused by a drop in global trade volumes and further complicated by tit-for-tat tariff retaliation and uncertainty stemming from political watersheds in developed economies. We predict more of these ports will experience a downturn in volumes in 2019.

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MARKET OUTLOOK Cavendish Maxwell’s Investment and Commercial Agency team recorded a significant increase in vacancy levels for H1 2019, largely due to a proactive approach to identify new available spaces. For the latter part of 2019, we witnessed an improvement in take up as demand increased toward the year-end. Modern facilities, which are in relatively high demand, will be largely resistant to increasing vacancy levels, with some of this space likely to be absorbed in the absence of speculative new-build developments. In comparison, older stock nearing the end of its lifecycle will remain on the market. Both landlords and owneroccupiers of these older assets are reluctant to invest capital for renovation purposes – which can often be substantial due to DCD regulations – as bottom lines are ultimately under pressure considering current market conditions.

Demand is expected to rise substantially, with general trading, manufacturing, F&B and e-commerce capturing the lion’s share. Logistics and distribution, and oil and gas real estate-related activity is unlikely to see a distinct upturn, due to subdued global trade and oil price volatility. Demand should continue for smaller-sized stock; however, we anticipate this trend to change slightly as larger assets become more accessible to participants who were previously priced out of the market.

Pricing aspirations will continue to realign, with sellers and landlords agreeing to rates closer to offer levels from purchasers and tenants. We predict that poorer quality assets and LIUs will witness the largest price and rental decreases, whereas premium-grade stock will continue to present a more evenly balanced duel between negotiating parties. Tenants with upcoming renewals and break-clauses are expected to seek cost-saving options, using competitive pricing elsewhere in the market as a negotiation tactic with landlords, to often remain at their current location on more favourable terms.

Landlords will continue to offer incentives to provide additional value in a competitive landscape. Popular options include longer-rent free periods, multiple cheque payments, and ‘rentalised’ mechanisms, such as installing air conditioning with no upfront charges. In return, landlords will expect to secure tenants for longer terms, with gradual uplifts in rents of typically 3-5% annually.

INVESTMENT AND COMMERCIAL AGENCY KEY SERVICES Sales and acquisitions

Market research

Lease structuring

Feasibility studies

Asset disposal

Investment advisory

Sale and leasebacks

Marketing strategies

Location strategies

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TRACK RECORD ONSHORE

Below is a selection of onshore transactions our Investment and Commercial Agency team has concluded over the last 24 months.

SOLD

Dubai Industrial Park - Warehouses

SOLD

Al Quoz

Features: Corporate Office, High Electrical Load, Eaves Height 10 m

Features: Excellent Location, 10 years old, Interlocked Yard, High Power

7,341.39 sq m (79,022 sq ft) BUA: Plot Size: NA

3,612.60 sq m (38,886 sq ft) BUA: Plot Size: 13,935 Sq m (150,000 sq ft)

Price: Date:

AED 15,000,000 April 2019

Price:

AED 7,000,000

Date:

April 2019

SOLD

RENTED

National Industries Park - Warehouses Features: Brand New, Corporate Office, Eaves Height 9 m BUA: Plot Size:

5,174.89 sq m (55,702 sq ft)

Price: Date:

NA

Dubai Investments Park - Light Industrial Units Features: Fully Air Conditioned, Epoxy Flooring, Mezzanine, Industrial-style Office

AED 9,000,000

223.15 sq m (2,402 sq ft) BUA: Plot Size: NA

April 2019

Price: Date:

AED 108,090 per annum March 2019

RENTED

Dubai Investments Park - Light Industrial Units Features: Good Condition, Eaves Height 9 m BUA:

506.34 sq m (5,450 sq ft)

Plot Size: NA

16

RENTED

Dubai Investments Park - Warehouses Features: Prominent Location, Fully Air Conditioned, High Electrical Load

Price:

AED 119,900 per annum

BUA:

Date:

January 2019

Plot Size: NA

11,172.25 sq m (120,257 sq ft)

Price: AED 2,645,654 per annum Date: August 2018

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TRACK RECORD FREE ZONE

Below is a selection of free zone transactions our Investment and Commercial Agency team has concluded over the last 24 months.

SOLD

JAFZA Features:

SOLD

JAFZA

Eaves Height 8 m, 2 X Gantry Cranes, High Specification Offices,

Features:

Eaves Height 6.5 m, High Grade Flooring, 2 X Ground Level Loading Doors, 1 X Loading Bay, Corner Plot

Wash Bay, Corner Plot BUA:

1,880 sq m (20,237 sq ft)

Price:

AED 4,000,000

Plot Size:

11,978 sq m (128,930 sq ft)

Date:

November 2019

BUA: Plot Size:

1,898 sq m (20,430 sq ft) 7,392 sq m (79,567 sq ft)

Price: Date:

AED 4,200,000 May 2019

RENTED

SOLD

JAFZA

JAFZA Features: Brand new, sprinkler system, 4 x loading bay, air conditioning BUA:

4,819.81 sq m sq m (51,880 sq ft)

Plot Size: 47,225.35 sq m (77,773 sq ft)

Price:

Confidential

Date:

December 2019

Features: Eaves Height 7.5 m, 3 X Gantry Cranes, Partially Racked, Interlocked Yard, High Specification Offices, 3 X Ground Level Access Doors 3,289.5 sq m (35,408 sq ft)

Price:

Confidential

Plot Size: 7,797.17 sq m (83,928 sq ft)

Date:

January 2020

BUA:

SOLD

RENTED

JAFZA Features: Fully Racked, Sprinkler System, 5 X Loading Bay, Partly Temperature

JAFZA Features: Eaves Height 7 m, Corner Plot, Dual Road Access, 1 X Loading Bay, 1 X Ground Level Access Doors, Good Location

Controlled, Large HQ-style Office BUA:

7,432 sq m (80,000 sq ft)

Plot Size: 11,148 sq m (120,000 sq ft)

Price:

Confidential

BUA:

1,849 sq m (19,907 sq ft)

Price:

AED 5,700,000

Date:

June 2018

Plot Size: 3,095 sq m (33,314 sq ft)

Date:

April 2018

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Are you looking to sell, buy or rent an industrial unit/warehouse?

Cavendish Maxwell’s Industrial and Commercial Agency team has expert knowledge of industrial and commercial properties ranging from 1,000 sq ft workshops to factory/ warehouse units in excess of 250,000 sq ft. The team has recently been involved in a variety of transactions for industrial properties including open storage sites, development sites, logistics facilities, manufacturing premises, modern distribution warehouses, showrooms and more.

We advise clients on selling/leasing vacant industrial buildings, best utilisation of vacant land plots and acquisition/disposal of both freehold and leasehold space. With increasing diversification in the economy and the changing needs of the industrial sector, Cavendish Maxwell operates at the forefront of the market, providing our clients with expert advice and solutions tailored to their specific requirements.

Andrew Love MA (Hons) Partner Head of Investment and Commercial Agency T: +971 50 859 2734 E andrew.love@cavendishmaxwell.com

Adam Wynne BSc (Hons) MRICS Senior Surveyor Investment and Commercial Agency

D U BA I 2205 Marina Plaza Dubai Marina P.O. Box 118624 Dubai United Arab Emirates T: +971 4 453 9525

ABU DHABI 605 West Tower, Abu Dhabi Mall Tourist Club Area P.O. Box 126609 Abu DhabiUnited Arab Emirates T: +971 2 448 4677

T: +971 50 117 5347 E adam.wynne@cavendishmaxwell.com

M U S CAT Villa 836, Way 3012 Al Sarooj P.O. Box 3438 MuscatSultanate of Oman T: +968 24 694 150

Disclaimer: The information and analysis contained in this report has been obtained from or is based on information from a variety of sources generally regarded to be reliable and assumptions which are considered reasonable, and which was current at the time of undertaking market research, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons.

The report and analysis does not purport to represent a formal valuation of any property interest and must not be construed as such. Such analysis including forward looking statements are opinions and estimates only and are based on a wide range of variables which may not be capable of being determined with accuracy. Variation in any one of these variables can have a material impact on the analysis and we draw your attention to this. Cavendish Maxwell does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this report.