NBK Capital 2015

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Real Estate – Mazaya December 21, 2015
Figure 4 Queue Point Average Selling Price per Sqft (AED)
678
720
743
400
480
560
640
720
800
1Q2015 2Q2015 3Q2015
Source: Mazaya, NBK Capital
Figure 5 Overview of Major Investment Property in Dubai – Sky Gardens
Sky Gardens Description
Location DIFC
Size Around 270 units, 275K sqft
B ook value/sqft. (AED) 1,500
Current market price/sqft. (AED)* 1,600 - 2,100
Current annual rent KD 1.9 million or AED 23.4 million
As % of Mazaya's total rental income Around 35%
Contribution to our gross EV Around 20%
Source: Mazaya, NBK Capital
Figure 6 Rental Performance of Apartments in Dubai (Average YoY Change During 9M2015)
6%
5%
2%
-1%
-2%
-2% -2%
-3% -3% -3%
-4%
-2%
0%
2%
4%
6%
8%
Palm Jumeirah
DIFC
Greens
Downtown Dubai
JLT
Business Bay
JBR
Discovery Gardens
Dubai Marina
SZR
Source: Asteco, NBK Capital
Average selling price gradually
increasing, as pace of delivery
accelerates
Sky Gardens continues to be fully
occupied given its prime location
in Dubai. We assume average
rent growth of 1-2% p.a. over our
forecast horizon for the property
DIFC has generally bucked the
trend in terms of residential
rents, which we see as reassuring
for Mazaya’s Sky Gardens