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December 2024 Prepared for: MAG Properties Benchmarking study and Pricing Recommendations MAG City of Life Update - 2024 Dubai, UAE Colliers 2 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT 2 MENA Real Estate Solutions LLC (Dubai Branch) trading as Colliers (“Co ”) has been appointed by MAG Property Development LLC (“ h C ”) to conduct an additional services which includes market overview, benchmarking and pricing recommendations for its project MAG City of Life (“ h S dy”, or “ h R po ”) in Dubai, United Arab Emirates (hereafter referred to as the ‘P opo d P oj ”, or “ h P oj ”, or “P opo d D v opm ”). It is in the nature of this type of study that the reliability of the projections and conclusions presented are largely dependent upon the extent and quality of available information as well as market conditions at the time. It should be stressed that this report has been compiled in good faith. Colliers has attempted to provide projections and to present conclusions, which in our opinion are fair and reasonable and from which Colliers have been able to form a balanced view of the market under study. Colliers cannot guarantee the fulfilment of any of the estimates contained within the report and no allowance is made for unforeseen changes in the political or economic climate of the region. Introduction Colliers 3 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT 3 This report has been compiled through a combination of primary and secondary research, presenting analysis of comparable developments in the Proposed Development and how it will impact the Proposed Project, with the objective of allowing the client to make informed investment decisions. The Scope of work includes: 1. Residential Market Assessment 2. Benchmarking Analysis 3. Development Recommendations 4. Financial Analysis – Inputs to the Clients model The methodology will include: ➢Investigation of the market potential through primary and secondary market research ➢Providing comparable/best practice case studies for the selected asset class in Dubai, UAE. Report Content & Methodology Colliers 4 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT 4 Dubai Table of Contents 1 Introduction| 06 2 Residential Market Assessment | 08 3 Benchmarking Analysis | 15 4 Development Recommendations | 39 5 Financial Analysis – Inputs to the Clients Model | 48 6 Appendix | 51 7 Limitations | 57 Colliers 5 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT List of Abbreviations Acronym Definition % Percentage A Actual AED Emirati Dirham Avg. Average BR Bedroom BUA Built Up Area CAGR Cumulative Average Growth Rate Client or Company MAG of LIFE FZ - LLC DIFC Dubai International Financial Center DIP Dubai Investment Park Dup Duplex Est. Estimate GCC Gulf Cooperation Council JBR Jumeirah Beach Residences JVC Jumeirah Village Circle JVT Jumeirah Village Triangle m Million max Maximum MENA Middle East and North Africa N/A Not Available PH Penthouse Q Quarter Rec. Recommendation Sqft Square Feet SS Subject Site UAE United Arab Emirates Y-o-Y Year on Year Colliers 6 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Introduction 01. Colliers 7 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Project Overview Introduction Source: Client, Colliers, 2024 Key Features Height allowable in number of floors 7 Floors Max. allowable Built-Up Area 1.7 Million sqft Net Sellable Area 1.3 Million sqft Project Brief Located in Dubai Creek, MAG City of Life is a landmark project that epitomizes luxury living, combining unmatched quality with a prime location in the heart of Dubai Creek. The project offers three distinct asset types: The RITZ Residences, featuring sophisticated apartments with top-notch finishes and luxurious designs that redefine elegance; the Autograph Apartments, offering contemporary style and comfort; and the Villas, perfect for those seeking exclusivity and space. Situated along the serene waterfront, it provides breathtaking creek views that create a tranquil and immersive living experience. Every detail is crafted to perfection, making this development a harmonious blend of modern elegance and natural beauty. Comprehensive Amenities: The Project is designed to provide the residents various unique and exclusive benefits such as dedicated concierge services for a seamless living experience, access to a prestigious Swiss school, a secure gated environment, and personalized wellness amenities. Brand Differentiator: The Ritz-Carlton Residences will make their exclusive debut for residences in Dubai in the Project, which will redefine luxury living with their iconic blend of unmatched service and world-class accommodation standards. The residents will enjoy a lifestyle synonymous with elegance and refinement, supported by the globally renowned Ritz-Carlton brand. Colliers 8 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Residential Market Assessment 02. Colliers 9 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Introduction Residential Market Assessment Source: Colliers, 2024 Dubai City Expansion Map N E S W Downtown Deira Bur Dubai Palm Jumeirah Dubai Marina Jebel Ali Free Zone Dubailand DWC International Airport Dubai International Airport Dubai South Jumeirah Initial Expansion Majority Apartments Secondary Expansion Tertiary Expansion OLD DUBAI INITIAL EXPANSION Business Bay Legend Subject Site Dubai is the first emirate in the UAE to open freehold property ownership for foreign nationals (excluding GCC and UAE nationals). Between 1998 and 2000, Dubai Marina and Emirates Living Community were the first master-planned communities that were launched. With the onset of freehold ownership zones, the development of property shifted southwards towards Abu Dhabi initially, with developments such as Emirates Living and Dubai Marina being close to the coast. ▪ Initial expansion from the older city centre of Deira and Bur Dubai towards Jebel Ali: Traditional residential centers included portions of old Dubai such as Al Quasis, Deira, Satwa, Bur Dubai, and Trade Centre 1st. With the delivery of new freehold projects, residential communities took hold within newly established communities located along Sheikh Zayed Road off the 4th and 6th interchanges, such as JLT, JBR, and Dubai Marina. ▪ Secondary expansion towards Dubailand: Following the initial city expansion, a secondary expansion was launched and is still ongoing as of date. This expansion includes a large number of residential properties situated within Dubailand, with a mix of apartments, townhouses, and villas. ▪ Tertiary expansion towards Al Qudra Road: Tertiary expansion is also witnessing the development of new projects along Al Qudra Road such as Nshama and Mira. Colliers 10 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Performance Analysis – Apartments Residential Market Assessment Source: Colliers, 2024 Q3 2024 Average Q3 2023 Average Average Dubai Rents by Typology (AED/Annum) – Q2 2023 vs Q2 2024 Average Sale Rates in Key Areas in Dubai (AED/sqft) – Q3 2023 vs Q3 2024 Area Name Q3 2023 Q3 2024 Affordable / Middle Market JVC 1,010 1,210 Remraam 700 850 The Views 1,600 1,740 Motor City 770 1,040 The Greens 1,210 1,380 Jumeirah Golf Estate 1,110 1,350 Al Furjan 1,060 1,220 DIP 680 740 Dubai South 810 1,050 Average (Affordable/Middle) 990 1,180 Upper Market / Luxury Dubai Marina 1,770 1,990 Downtown 2,020 2,340 JBR 2,030 2,140 Palm Jumeirah 2,090 2,380 Business Bay 1,940 2,210 City Walk 2,240 2,520 Dubai Hills 1,970 2,270 DIFC 1,790 1,990 Average (Upper/Luxury) 1,980 2,230 D b ’ real estate sector has experienced a marked increase in both apartment rentals and sales over the past few years, driven by a combination of sustained economic growth, increased foreign investments and government-led initiatives aimed at enhancing the y’ appeal as a global hub. By Q3 2024, the average sale rate for affordable/middle market apartments in Dubai reached approximately AED 1,180 per sqft, reflecting a 18% y-o-y increase from the Q3 2023 average. Similarly, the sale rate for upper /Luxury market apartments in Dubai reached approximately AED 2,230 per sqft, reflecting a 13% y-o-y increase from the Q3 2023 average. This sharp rise is aligned with the broader market dynamics in the affordable to mid-market segment. Similarly, rental rates in Dubai have surged by nearly 20% during the same period, consistent with the overall trend observed across this category. 34,340 50,210 83,420 48,720 69,790 131,380 74,500 102,710 195,380 104,250 143,070 270,630 Average (Affordable) Average (Middle) Average (Upper / Luxury) 41,220 57,370 90,630 57,430 82,090 133,440 72,510 116,140 189,280 80,120 157,000 294,500 Average (Affordable) Average (Middle) Average (Upper / Luxury) 3 BR 2 BR 1 BR Studio Colliers 11 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Performance Analysis – Villas Residential Market Assessment Source: Colliers, 2024 Average Dubai Sales Rates (AED/sqft) – 2018 vs Q3 2024 Average Rents in Key Areas in Dubai (AED/Annum) – Q3 2023 vs Q3 2024 In Dubai, villa sales have surged significantly, with the overall market recording a 54% increase, from AED 830 per sqft in 2018 to AED 1,530 per sqft in Q3 2024. Notably, Jumeirah Island has experienced a remarkable year-on-year increase of 51% from 2023 to 2024, reaching AED 3,050 per sqft and outpacing the average market growth of approximately 15%. In terms of rentals, prominent developments in Dubai have seen average increase of 7% for 3, 4, and 6-bedroom villas, while 5-bedroom villas have increased by approximately 14%. Areas such as Jumeirah Park, Jumeirah Island, and Dubai Hills have seen rents rise by nearly 17% in Q3 2024 compared to Q3 2023, whereas Victory Heights and Falcon City have seen a rise of approximately 22%. Villas 2018 2019 2020 2021 2022 2023 Q3 2024 Jumeirah Park 1,050 960 880 1,030 1,200 1,340 1,540 Arabian Ranches 1,030 930 890 1,010 1,250 1,370 1,540 Jumeirah Island 1,250 1,160 1,090 1,240 1,560 2,030 3,050 Palm Jumeirah 2,100 1,860 1,690 2,310 2,860 3,980 3,890 Jumeirah Golf Estate 1,190 1,030 990 1,200 1,350 1,480 1,690 Meadows 1,140 1,010 950 1,180 1,450 1,720 1,880 Victory Heights 990 910 840 910 1,130 1,140 1,310 Falcon City 660 620 570 670 740 770 810 The Villa 770 690 660 740 860 920 1,000 Dubai Hills 990 1,220 1,440 1,770 2,170 Al Furjan 970 1,220 Mudon 870 770 730 850 960 1,040 1,120 International City 770 730 650 750 740 880 1,000 The Springs 980 920 770 960 1,190 1,350 1,650 Town Square 690 620 570 780 810 890 990 Mira 720 670 640 840 860 960 1,110 JVC 690 580 510 590 630 780 1,000 JVT 920 800 700 690 820 930 980 Dubai South 850 1,050 Average 830 750 740 890 1,040 1,320 1,530 Villas 3 BR 4 BR 5 BR 6 BR Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Jumeirah Park 290,000 335,000 380,000 417,500 450,000 550,000 • • Arabian Ranches 245,000 273,000 300,000 328,000 420,000 450,000 600,000 613,000 Jumeirah Island • • 520,000 600,000 750,000 880,000 • • Palm Jumeirah 750,000 750,000 1,100,000 1,075,000 1,250,00 1,350,000 • • Jumeirah Golf Estates 300,000 290,000 450,000 500,000 750,000 830,000 • • Victory Heights 200,000 250,000 250,000 320,000 380,000 450,000 • • Meadows 330,000 345,000 400,000 415,000 500,000 555,000 600,000 660,000 Falcon City 200,000 245,000 240,000 280,000 320,000 400,000 • • The Villa • • 280,000 315,000 330,000 350,000 400,000 440,000 Dubai Hills 345,000 380,000 430,000 460,000 500,000 650,000 • • Town Square 140,000 140,000 175,000 185,000 • • • • Average 254,550 273,460 411,360 445,050 513,640 587,730 145,460 155,730 Colliers 12 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Performance Analysis – Real Estate Transactions Residential Market Assessment Source: REIDIN I Dubai Land Development Transactions I Colliers 2024 ▪ According to the latest published data by REIDIN, the Dubai real estate market recorded around 51,854 off-plan sale transactions worth AED 116.3 billion in 2023, in addition to 36,587 sales deals of AED 57.8 billion. This represents an increase in the number of off-plan transactions by 48% and an increase of 28% in the number of sales deals. ▪ The off-plan market remains a significant and dominant force in Dubai's real estate landscape. The anticipation of continued high levels of new project launches suggests ongoing developer confidence and buyer interest in off-plan properties, although a shift in product offerings is expected. ▪ In 2022 and 2023, the real estate sector showed growth, with significant demand seen from Russian, Asian, European, and American investors, particularly from High-Net-Worth Individuals (HNWIs). Key Takeaway: Dubai Real Estate off-sale transaction volume nearly increased by 50% in 2023 compared to 2021, which shows demand from investors for real estate assets and the more recent launches in 2023. Dubai is also gaining traction from global investors due to its stable economy, infrastructure and supportive regulations. Number of Transactions (2016 – 2023) Transactions Value – AED Billion (2016 – 2023) 13,162 17,140 13,204 16,803 11,332 17,459 35,133 51,854 12,281 12,022 8,868 9,302 10,113 19,448 28,517 36,587 6,868 7,399 6,193 6,062 7,512 12,056 10,742 15,741 2016 2017 2018 2019 2020 2021 2022 2023 Off Plan Sales Sales Mortgage 18.4 22.2 15.7 22.8 14.6 31.9 77.3 116.3 15.2 15.4 10.7 11.3 11.3 27.7 45.0 57.8 9.3 10.5 7.2 9.4 7.1 13.5 19.1 19.1 2016 2017 2018 2019 2020 2021 2022 2023 Off Plan Sales Sales Mortgage Colliers 13 MAG of Life FZ-LLC | Dubai, UAE | Feasibility Study Update for MAG Creek, Dubai DRAFT REPORT Demand and Supply Analysis Residential Market Assessment Source: Colliers, 2024 A main driver of demand towards residential housing stems from the overall households in the city including its growth momentum which could be used to forecast future movements. Given Co ’ experience in both regional and local markets, healthy occupancy levels are generally between 80% and 85%. This implies still opportunities for development within the sector. Key Takeaway Demand is very closely linked to supply, and the market is expected to remain at almost equilibrium over the next years. The overall high occupancy rates suggest potential opportunities for development within the sector. 2018 2019 2020 2021 2022 2023 2024E 2025F 2026F 2027F 2028F 2029F 2030F Demand 543,475 580,049 598,593 624,195 669,750 695,679 718,657 740,425 762,857 788,099 811,994 836,619 864,353 Supply 524,992 550,715 572,391 594,935 617,675 643,004 677,379 699,140 723,067 740,345 747,219 775,378 804,598 Demand / Supply 104% 105% 105% 105% 1 …