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Background Key Features Shareholding Structure & Project Timeline Financial Projections Capital & Investment Structure for Initial Investors A Truly Unique Investment


Background Dubai Pearl is being developed by Pearl Dubai FZ LLC incorporated in November 2006 by the consortium of investors led by the Al Fahim Group of Abu Dhabi, UAE. The Company is currently located in the Dubai Media and Technology Free Zone (“TECOM”) for the development of a high end, mixed use real estate project offering an unparalleled combination of convenience, luxury, sustainability and technology. Dubai Pearl’s long term strategy/objective is to develop a diversified portfolio of world-class real estate projects that focus on offering a rich experience to its patrons. Dubai Pearl is at the centre of New Dubai in the Dubai Media and Technology Free Zone overlooking the Palm Jumeirah Island. This fully integrated enclave of luxury and leisure is where every facet of life reflects a new level of excellence. Comprising of elegant residences, distinctive retail, exquisite restaurants and entertainment venues, internationally renowned hotels and thoughtfully designed offices, Dubai Pearl caters to the urban sophisticate and is designed for living. It is a new global landmark on Dubai’s skyline that redefines simplicity of design and efficient use of space.


Background (Contd)

Dubai Pearl will comprise of four iconic towers, premium offices, international retail and dining options, five star-hotels, a 1,800seat theatre, upscale ballroom facilities, as well as pedestrian walkways. It will be a ‘walkable’ city within a city with its master plan ensuring energy efficiency and use of space to optimize energy. This integrated urban community is designed for WORK PLAY STAY LIVE, an unparalleled combination of convenience, luxury, sustainability and technology.


Background (Contd)

Dubai Pearl will be an integrated destination where well-being is balanced through a sequence of work, play, stay, live experiences in an environment that facilitates interaction and inspires body and mind. The Project will offer the best in entertainment, dining, shopping, playing, working, hospitality and living within a few steps of wherever you are in the vibrant living city. Dubai Pearl is truly a global destination. The various components of Dubai Pearl are as follows: » Branded Residences » Five star luxury hotels » Commercial office space and Retail outlets » 1,800 seater Royal Hall » Wellness spa and Sports club


Key Features The rationale and choice of brands associated with Dubai Pearl development is to leverage strong partnerships with brands to develop value that extends into unique experiences and enhances the value of the surrounding real estate. The essence of each brand will be fully integrated with the Dubai Pearl DNA standards. In addition the Dubai Pearl Society for Creativity and Art itself will promote the very values that have been incorporated into the project brand DNA.


Key Features (Contd)

Dubai Pearl Project is associated with following brands: » Baccarat Hotel & Residences » McLaren Hotel & Residences » Valentino Hotel & Residences » Bellagio Hotel & Residences » MGM Grand Hotel & Residences » Fashion Hotel & Residences (under negotiation) » Salvador Dali Residences (under negotiation) » Lifestyle Hotel & Residences (under negotiation)


Current Legal & Shareholding Structure The Company is jointly owned by Abdul Majeed Ismail Al Fahim and other Al Fahim’s family members (51%) and by Al Shams Investments Limited, a British Virgin Island (“BVI”) Company (49%). The Company was incorporated as a Freezone Limited liability Company (“LLC”) in November 2006 by the consortium of investors led by the Al Fahim Group of Abu Dhabi, UAE.

Abdul Majeed Ismail Al Fahim & Al Fahim Family (51%)

Al Shams Investments Ltd. (49%)

Abduk Majeed Ismail Al Fahim (50%)

Santosh Joseph (50%)

Pearl Dubai FZ LLC


Financial Projections Project Financials: » The Project is expected to generate a gross sales revenue of AED 23.6 billion » Total cost of the project, excluding finance charge, is expected to be AED 14.9 billion » Net profit expected, before finance charges, is AED 8.7 billion

Proposed New Investment: » The Project is expected to be completed by Dec 2013 » Total peak funding gap expected is AED 2.2 billion during 2011 » The current proposal is to raise AED 1,800 million starting from 3rd quarter 2009 through mid 2010. The balance AED 400 million will be raised as short term loan in 2011.


Cash Flow

(before raising the proposed new funds and finance charges for the same)

In-Flow: Collection Less, escrow retention Shareholders’ Equity Other Equity Others Bank Loan – ST New Funds – equity New Funds – debt Total

To Dec ’08 1,380 (53) 525 28 88 200 2,167

Dec ’09 177 36 200 413

Dec ’10 425 (81) (28) 316

Dec ’11 2,218 (111) 2,107

Figures in AED million

Dec ’12 5,225 (261) 4,964

Dec ’13 14,231 (712) (50) 13,469

Dec ’14 1,183 (525) (28) 630

Total 23,657 10 400 24,067

Figures supplied by Dubai Pearl Management


Cash Flow (Contd) (before raising the proposed new funds and finance charges for the same)

Out-Flow: Land Development Project Acquisition/Buy-back cost Sales Commission Business Development Marketing OH Admin OH Capex Bank Loan – ST– repayment Finance charges Total Net Cash Flow – pre new funds: Cumulative

Figures in AED million

835 220 770 121 93 50 23 7 2,118

15 310 289 22 50 30 52 6 17 791

120 1,038 22 2 50 60 60 6 200 13 1,571

200 1,727 159 50 70 60 6 200 6 2,478

316 3,471 90 50 75 60 6 4,068

654 3,141 137 122 72 160 3 4,289

-

2,140 9,908 1,218 515 200 400 442 50 400 44 15,316

49 49

(378) (329)

(1,255) (1,585)

(371) (1,955)

896 (1,059)

9,180 8,121

630 8,751

8,751

Figures supplied by Dubai Pearl Management


Capital & Investment

Structure for Initial Investors Proposed Structure: » The proposed new investment of AED 1,800 million will be in the form of debt linked equity. » The Company’s present equity capital is AED 270 million and an additional AED 30 million is proposed to be raised from new investors. » Out of total proposed new investment of AED 1,800 million, AED 30 million will be the additional equity and the balance AED 1,770 will be in the form of debt. Every initial investment of AED 180 million will comprise of AED 3 million as equity and the balance AED 177 million as debt. For subsequent investments, the debt component will be slightly more so that initial investors will have an advantage. » With the additional equity of AED 30 million, the company’s total equity will be AED 300 million.


Capital & Investment Structure for Initial Investors (Contd)

» The total projected net profit of the company will be distributed to the new investors in the respective share holding percentage. » The loan (debt component in the new investment) will bear a simple interest at 15%, of which 6% p.a. will be paid every year end and the balance will be accumulated and paid along with the debt at the time of completion of the project. » The new investment is expected to fetch an IRR of around 20%. » The new investors shall have priority of payment over the promoters.


A Truly Unique Investment

Premium Location » The project is located within the Dubai Technology & Media Free zone, overlooking the Palm Jumeirah with a short commute to Dubai Marina and a 20 minute drive from Dubai International Airport Promoters » The Al Fahim family, Promoters of the Project are well know and reputed business family of the UAE. The family business is established across a number of Middle Eastern markets with a diverse portfolio of business interests Experienced Management team » The promoters have appointed a experienced management team and advisors who have the requisite experience of undertaking similar developments


A Truly Unique Investment (Contd)

Brand Association » The project will be the only one of its kind where known brands such as the likes of Baccarat, Valentino, Dali, McLaren, MGM, Bellagio and many others will come together Project Consultants » The promoters have appointed various internationally reputed and renowned consultants, architects to advice on various aspects of the project development. Attractive returns » The Project would offer an attractive returns to the new investors against their investment with certain fixed interest payment and priority of payments over the Promoters


www.novaar.com A Dubai International Financial Centre Registered Company

Dubai Pearl  

Dubai Pearl Investor Teaser Document

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