The Collection @ St Regis Saadiyat Island Resort Abu Dhabi Trade Area Analysis Introduction PROJECT ESSENTIALS The Collection is a retail offering at The St Regis Saadiyat Island Resort which Project Details includes a 5-star hotel with 376 keys, 259 residential apartment complex & 33 villas which is surrounded by the Saadiyat Beach Golf Club with a 18-hole course very strategically located on Saadiyat Island, Abu Dhabi. Operator Abu Dhabi United Hospitality LLC The retail offering comprises 29 units of retail, services and F&B located mainly on ground level of the apartment buildings. Units are arranged in both enclosed air-conditioned mall space and an open courtyard with space for terrace seating Project Name The Collection is available for several F&B units. Customers may use the 3-level basement parking facility with a current Project Location St Regis Saadiyat Island Resort allocation of 350 bays, although capacity is available for over 1,200 vehicles. Coordinates 24°32'18.3"N 54°25'28.0"E GLA 85,144 sq ft (7,910 m²) including health club Units 29 Main Retail Levels Ground Retail Parking 350 Opened 2013 The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 2 Market Background KEY FINDINGS ▪ In current value terms, Abu Dhabi’s GDP growth rebounded into positive territory in late 2017 and continued into 2018 owing to higher average oil prices and production. ▪ The IMF expects real GDP growth of 0.5% and 2.6% in full year 2018 and 2019 respectively, following a 1.6% drop last year, supported by the ongoing diversification of the economy into non-oil sectors, such as financial services, retail and tourism. ▪ The population of Abu Dhabi Region stood at around 1.7 million at the end of 2018 and, driven by robust birth rates among the citizen population and an expected pick up in the demand for foreign workers after decline and depopulation during 2016-2018, is expected to reach 2.0 million by 2028. ▪ Expansion in the population and a shift toward the nuclear family model among some Emirati citizens will drive growth in the number of households in Abu Dhabi from 283,000 in 2018 to reach around 342,000 by 2028. ▪ Average household spending on retail, dining and entertainment (RDE) in urban Abu Dhabi stood at around AED303,000 for Emirati households in 2018 and around AED58,000 for non-Emirati households. This figure is expected to rise to AED402,000 by 2028 for Emirati households and around AED77,000 for non-Emirati households. ▪ The number of hotel guests in Abu Dhabi City climbed to 4.3 million in 2017, and is expected to reach 4.4 million for 2018. Average length of stay dropped slightly in 2017 and is stagnant for 2018, leading to an expected small rise in overall guest nights to just over 11.6 million. Year on year, guest nights rose strongly for customer from UAE, India, China and UK. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 3 Site Analysis KEY FINDINGS Location ▪ The Collection is located at The St Regis Saadiyat Island Resort complex in the Saadiyat Beach district of on Saadiyat Island, Abu Dhabi which includes a 5-star hotel with 376 keys, 259 residential apartments and 33 villas and is surrounded by the Saadiyat Beach Golf Club with 18-hole course. ▪ Saadiyat Island is a 27 sq km residential, leisure, educational and cultural hub, hosting Louvre Abu Dhabi, Saadiyat Beach Golf Club, New York University Abu Dhabi, Saadiyat Public Beach and other attractions. Further major residential development is under construction and in the pipeline. Access & Visibility ▪ Access to the project from the nearby communities as well as the E12 highway is relatively straightforward and convenient with a good quality road network and, typically, a low level of traffic. ▪ The retail offering has good visibility to passing traffic outside the hotel grounds and, as such, options to implement wayfinding signage directing customers to the retail offering from the local roads should be explored. Arrival experience and parking ▪ The branding and identity of ‘The Collection’ is good and promotes the retail offering inside. The name has connotations of luxury brand collections and and includes a supermarket, everyday services and F&B. The parking garage has ample provision for retail visitors. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 4 Site Analysis CONTEXT MAP ABU DHABI PROJECT SITE AL MARYAH SAADIYAT ISLAND ISLAND YAS ISLAND EMIRATES REEM PALACE ISLAND ABU DHABI ISLAND KHALIFA CITY SHK ZAYED ABU DHABI INT. AIRPORT MOSQUE MUSSAFAH 5km Source: Google Maps; McARTHUR + COMPANY Analysis The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 5 Site Analysis ACCESS / EGRESS ABU DHABI RESORT HOTELS PROJECT SITE MAMSHA AL SAADIYAT LOUVRE ABU DHABI SAADIYAT ISLAND AL MINA ACCESS FROM WEST ACCESS FROM EAST EGRESS TO WEST NYU ABU DHABI EGRESS TO EAST Source: Google Maps; McARTHUR + COMPANY Analysis The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 6 Site Analysis SITE PHOTOS The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 7 Site Analysis SITE PHOTOS The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 8 Site Analysis SITE PHOTOS The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 9 Supply Analysis ABU DHABI CITY: MAJOR RETAIL DEVELOPMENTS MAP ABU DHABI PROJECT SITE 62 60 61 58 59 Source: McARTHUR + COMPANY Analysis; Esri, HERE, DeLorme, © OpenStreetMap. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 10 Demand Analysis KEY FINDINGS ▪ We expect the primary trade area (PTA) of the project to include the resident households and hotel guests of Saadiyat Island’s Saadiyat Beach district roughly equivalent to a 5-10mins drive time from the project. ▪ The primary trade area includes the relatively low density neighbourhoods surrounding the project, including 1,200 households and 5,600 local residents. Forthcoming residential developments within in the area include 83 units at Jawaher Saadiyat and 29 plots at Saadiyat Beach Golf Views. By 2023, we forecast that the number of housing units will exceed 1,300 households and 6,200 residents. ▪ The population consists of mainly ex-patriate couples and families working in Abu Dhabi. The income bracket of resident households is upper-middle to upper income with an average annual spending budget of AED900,000. ▪ Average spending on categories relevant to retail developments is estimated at AED385,000 in 2019, yielding a forecast total household spending on retail, dining & entertainment (RDE) within the PTA of AED474 million. ▪ We also expect the primary trade area of the project to include the hotel guests of Saadiyat Island’s Saadiyat Beach district, which currently offers 1,693 rooms. Nearly 700,000 hotel guest nights are expected to be spent during 2019 and with an average daily RDE spending of AED307, hotel guests are expected to generate total RDE spend of AED213 million in 2019. ▪ Assuming the primary trade area households will generate 60% of the development’s total revenue and hotel guests generate a further 20%, this equates to 10% of total RDE spending by PTA residents and 7% of PTA hotel guests spending. We consider these to be achievable targets if the recommendations in the report are implemented. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 11 Demand Analysis PRIMARY TRADE AREA: DEFINITION Conclusion We expect the primary trade area of the project, therefore, to include the resident households and hotel guests of Saadiyat Island’s Saadiyat Beach district east of the Nudra Saadiyat, north of the E12 highway and west of the Hidd al Saadiyat development. This area includes the following residential neighbourhoods and hospitality developments: ▪ St Regis Saadiyat Island Resort ▪ St Regis Saadiyat Island Residences ▪ Saadiyat Beach Villas St Regis Residences: an apartment development and part of the trade area ▪ Saadiyat Beach Residences ▪ Saadiyat Rotana Resort & Villas ▪ Rixos Saadiyat Island Abu Dhbai Hotel ▪ Park Hyatt Abu Dhabi Hotel & Villas ▪ Jumeirah at Saadiyat Island Resort & Hotel ▪ Jawaher Saadiyat (under construction) ▪ Saadiyat Beach Golf Views (under construction) ▪ Future hospitality plots along the Saadiyat Beach previously designated as Hilton, Ritz Carlton, Mandarin Oriental and Shagri-La. Saadiyat Beach Golf Views: upcoming villa development within the trade area The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 12 Demand Analysis PRIMARY TRADE AREA MAP SAADIYAT ISLAND HIDD AL SDYT JUMEIRAH HOTEL PROJECT SITE SDYT BEACH RESIDENCES PARK HYATT RIXOS ROTANA MAMSHA AL SDYT (U/C) JAWAHER SDYT (U/C) SDYT BEACH GOLF VIEWS (U/C) Source: McARTHUR + COMPANY Analysis; Esri, HERE, DeLorme, © OpenStreetMap. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 13 Demand Analysis DRIVE TIMES MAP SAADIYAT ISLAND PROJECT SITE Source: McARTHUR + COMPANY Analysis; Esri, HERE, DeLorme, © OpenStreetMap. The Collection @ St Regis Saadiyat Retail: Project Review: Draft Report: 20 December 2019 14 Demand Analysis PRIMARY TRADE AREA: RESIDENTIAL The number of residential housing units within the primary trade area is Units per Development 2019f 2023f expected to be 1,367 during 2019. This includes St Regis Residences 292 292 ▪ St Regis Residences: 259 apartments and 33 villas Saadiyat Beach Villas 580 580 ▪ Saadiyat Beach Villas: 580 3-6 bed villas and townhouses Saadiyat Beach Residences 495 495 ▪ Saadiyat Beach Residences: 495 1-4 bed apartments Jawaher Saadiyat 0 83 Forthcoming residential developments within in the area include 83 units at Jawaher Saadiyat and 29 plots at Saadiyat Beach Golf Views. By 2023, Saadiyat Beach Golf Views 0 29 therefore, we forecast that the number of housing units will reach 1,479.