October 2018 Private & Confidential Disclaimer This - PowerPoint PPT Presentation

October 2018 Private & Confidential

Disclaimer This presentation contains information based on forecasts and roll outs, all statements contained in this presentation are made without responsibility on the part of Manazel Real Estate (MRE) and its subsidiaries (including directors, officers and employees) or its advisors. All statements made in this presentation are based on expectation and are subject to a number of uncertainties and risks that could differ materially from any expected outcome expressed or implied in these statements. None of the statements contained in this presentation is to be relied upon as a statement or representation of fact. All parties must satisfy themselves as to the correctness of each of the statements contained in this presentation. Manazel Real Estate (MRE) and its subsidiaries (including directors, officers and employees) or its advisors do not have any authority to make or give, any representation or warrantyor guarantee, whatsoever in relation to this presentation. This presentation may not be copied, distributed, transmitted, reproduced or stored, in whole or in part, in any form or medium without the express permission of Manazel Real Estate PJSC. 1 1

Building Communities Together

Manazel At-a-Glance

Introduction to Manazel A unique fully integrated real estate developer in the UAE with a focus on the underserved middle class in the UAE High Quality Diversified Properties Development Projects Over 7500 Units delivered across 8 Market Cap Projects since inception $330mn UAE & MENA 5,000 + > 130,000 Sqm. Investment Portfolio Residential units delivered Retail GLA Al Reef Retail Area Issued Capital $236m Revenue | $62m EBITDA $715m FY 2017 Cooling, and Facilities and Development Management Invest Portfolio Valuation 2,000+ Affordable / Underserved / Local Population Units in the Pipeline* 4

Business Overview Strategically aligned business verticals capture opportunities across the real estate value chain Development Property Management  Large, landmark projects developed across Abu  Providing comprehensive administrative services Dhabi, the capital of UAE covering all aspects of real estate consultancy,  Niche market targeting affordable housing design and implementation of related procedures including property sales services, resale, leasing  Integrating development business to ensure and management steady cash flow and controlled capex Investment Properties Facility Management Retail and Commercial  Portfolio of strategically located properties with high Assets  Currently managing all of Manazel Real Estate’s cumulative gross rental yield of Build to Lease Residential projects by offering a multitude of facilities management  Utilization across key retail / mall assets expected to Assets services serving all classes of the real estate sector with grow significantly Manazel Healthcare customers across Abu Dhabi.  Expansion of assets across education and healthcare Manazel Education District Cooling Others  Efficient cooling solutions for large commercial and  Government sponsored housing development scheme Development residential developments Management Fee  Manazel’s involvement limited to development of  Plants are currently operating at 50% capacity with the allotted land plots for landed (villa) style housing for the Dari Initiative option to scale-up without any incremental CAPEX beneficiary families 5

Evolution and Key Milestones  Launch of Al Reef 1  Completion of Dunes  Hand over of all the villas in Al Reef 1  Launch of Al Reef 2 Village Project, Dunes Village, and  Handover of Al Reef Downtown  Launch of Ghantoot Waterfront Prestige Towers  Hand over of the first phase  Participated in the government’s Dari initiative  Completion of Al Reef Cooling and Capital  Launch of Al Reef Cooling of the Al Reef 1 Villas Cooling  Creation of Manazel Education and Capital Cooling project  Launch of Capital Mall  Delivery of Capital Mall  BOT for Manazel Medical City  Listed on ADX Secondary Market Incorporation of Manazel Real Estate Development Execution / Recurring Revenue Initial Years Recurring Revenue Asset Delivery / Creation Phase  Launching new projects and Growth Phase  Delivering launched projects commencing development  Delivery of existing projects providing recurring  Raised equity through market listing  Focus on creating a brand name cash flows for future growth  Expanding into new segments like education, and a niche for itself  Low risk high returns approach : De – risked healthcare, etc development strategy  Entering into strategic partnerships for future  Focus on operational efficiency, returns & cash development flow optimization  Reached Gross Asset size of ~AED 5bn Transformed the business over the years from a pure developer to a well diversified company with a strong focus on recurring revenue 6 6

Policy, Governance and Strategy

Strategy Overview 1 2 3 De-Risked Access to Diversified Sources Growing Recurring Revenues Development Strategy of Funding    Build on the existing Co-Development and Diversification of capital investment portfolio & Preselling is the key structure to optimise services businesses strategy in development investments    Develop the portfolio using Landlord to be paid on Strong relations with local “Build Operate Transfer” completion of the Co- & regional banks to support model Development Project growth    Further diversify recurring Capital commitment only Conserve cash and enhance revenue sources by after the Pre-selling liquidity to capitalise on the undertaking minimal capex threshold is reached market opportunities Ensures long term cash flow visibility while maintaining growth and conserving cash 8 8

Growth Drivers – Recurring Revenues A Build on the existing investment portfolio and services businesses  Expand Property Management and Facility Management operations to offer additional services (house maid services, parcel services etc.,) and catering to third party projects  Entry of cinemas and new retail operators coupled with new developments in the surrounding areas (defense colony) would lead to increased customer footfall in the Capital mall  Increase capacity utilization of capital cooling by tapping into the new hospital and mall development Develop the portfolio using “Build Operate Transfer (BOT)” Model – Zero capex B  Develop long term revenue generating asset with minimal capital deployment  Manazel healthcare project agreement finalized to develop hospital Commercial Manazel Plots Healthcare  Al Reef commercial plot leased under BOT agreement for clinic development Further diversify recurring revenue income stream – minimal capex C  Deploy capital to develop an asset with a long term recurring revenue potential  Leveraging on our expertise of developing residential assets, enter into “Build to Lease” segment  Al Reef 1 and Al reef 2 schools being developed with a long term operator agreement - revenue being Leased Schools generated through land lease and asset rental Residential Assets Increased focus on developing recurring revenue generating streams with minimal investment 9 9

Credit Highlights: Future De-Risked Development Strategy Co-development, pre-selling and lump sum turnkey contracts to ensure minimal cash flow risks A B C Acquire Land Pre-Sell Develop  Lumpsum turnkey contract  Leverage existing land bank with Main Contractor  Ensure pre-selling Manazel (Or) (And) benchmark of 20-30% is Strategy reached  Manage construction on  Co-Development agreement behalf of the Land owner  Flexibility to time the project  Total contractor cost is  Minimal capital required to completion to optimise unit capped Key purchase the land sales  Always in the money if directly Advantages  Accommodates both build to  Enough cash flows to pay the constructing on behalf of land sell and build to lease models contractor owner 10