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Jun 2014

Gemstone : Group presentation


Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

1
Gemstone
Gemstone- Current and Planned Activities

 BB003- Ongoing – Current Projected Cash income of AED 1.07


1 billion

Business Bay Plots  BB002- Future Planned - Current Projected Cash income of AED 390mm
Dev elopment  BB004- Future Planned - Current Projected Cash income of AED 325 mm
 Projections using Sales
es rate of AED 2,456/Sqft net area and Construction cost of about AED 500/Sqft BUA)

 This is a huge development comprising of 5.68mm Sqft of BUA.


 We project that this will need a cash infusion of about AED 1,370mm
1,370 and will generate about AED 2,513mm in net profit. Thus we
would not recommend at this point of time primarily because of the huge cash infusion it demands as well as the reason that we
w
think cash could be best employed for doing Business Bay projects.
projects Projections using Sales rate of AED 1,600/Sqft net area and
Sheikh Zayed Road Plot Construction cost of about AED432/Sqft BUA)
development
 We would however scout for future JV potential
tential with Investors/Funds who can invest cash into development. This after the
conversion to Freehold
 We would also scout
cout for an outright sale opportunity on this if that provides better returns.
returns However sale of the plot under current
C O N F I D E N T I A L

status would not be beneficial (around 300-400mm)

 Sharjah is a rental market since they are not freehold and the objective typically for any investor is to get some rental yield.
 Though rents have now started increasing in Sharjah too, the yields still hover around 5%. GCC Investors at this point of time still
prefers to buy in Dubai to get a similar or even lower yields rather
rat than Sharjah where the assets are very illiquid
 Surprising about current market in Sharjah is that a new development would be more expensive than existing one eg a good quality
qual
Sharjah Plots apartment overlooking the Sea on Al Khan can be purchased between AED 550-650/Sqft
550
 The investment required to construct towers on the 2 plots would be about AED 360mm and 270mm. The current net rental yield on o
A N D

this investment is about 4%. As mentioned earlier the construction cost (about AED 750/Sqft net area and exluding the plot price) is
greater then market price. The expected current price for the plots is about AED 50mm together which is equal to the price paid
pa to
purchase. We will analyze in more details in the following slides
P R I V A T E

 Aqua Project, Jeddah- Gemstone has taken over all the responsibility of developing the
t project for Takatuf
Provision of Development
 Yasmin Project, Riyadh- Gemstone will take over all the responsibility of developing this including sales and marketing
Services
 Start new development services agreement
S T R I C T L Y

2
Gemstone
Gemstone- Current and Planned Activities

 Gemstone is providing investment advisory services and recommendations to buy/sell/hold as well as effect those
recommendations to AlAjial Holding and the Group Companies and entities
Provision of Investment  Scout for new opportunities which meet
et the Group’s investment criteria
Advisory
 Perform market, legal, financial and technical evaluation on potential opportunities
opportunities. Complete due diligence on opportunities
chosen for investment including creating financial models for discounted cash flow (Comparable Property Sales Models and
Construction Cost Models), sales approach and cost approach valuation methods to arrive at fair market valuations

 Providing legal services to Building


ng Solutions Sector (eg Mabani Steel, MADA Gypsum, R
Romeo etc)
Provision of Legal Services
 Providing legal services to other entities such as The Land Qatar

The Land Qatar  Responsibility for The Land Qatar


C O N F I D E N T I A L

Newco for Tameer Towers- Current and Planned Activities

 Establishing a NewCo and transferring the assets and liabilities of Tameer Towers to NewCo
 Contracting and construction of the Towers A&B
NewCo for Tameer Towers
 Try and time the market to achieve Sales of current inventory and inventory expected from future terminations
 The other strategy to be to lease the apartments and then sell them later as yielding
yiel asset
A N D
P R I V A T E
S T R I C T L Y

3
Tameer Holding Investment
Tameer Holding Investment- Current and Planned Activities

 Sales of current inventory and inventory expected from future terminations (About 343,000 Sqft gross area with a current market
value of about AED 420mm)

Handed Over Projects  Handovers of all the units to the Customers – Remaining units to handover 28 units excluding Legal cases and Future Terminations)
(Princess, Elite, Silver,
 Collections of still due amounts- About 3.6mm
mm from Committed customers
Regal, Al Jawza, Palace)
 Legal cases which have been brought against THI- Net remaining of 102mm from these Legal
L cases customers
 Leasing of inventory held by Group entities

 Settlement with remaining TT customers – 1) Agreement with customers for consolidation 2) Cash settlemtn with remaining
customers
 Handover to existing customers and customers who have been shifted from other Towers into A&B post the completion

Tameer Towers  Legal cases which have been brought against THI- (172 Customers; 387 Units with payments made of about AED 270mm)
 Leasing of remaining Inventory after consolidation and cash settlement and
a post completion of Towers A&B
C O N F I D E N T I A L

 Close negotiation with Sorouh


 Future development of Towers C&D not included in Cashflow

 Finishing the project and handovers to customers as a Serviced Hotel Apartments


 Management Agreement with Auris

 Procurement & Installation of FF&E, OS&E. IT & other infrastructural requirement on account of conversion to Hotel Apartments
 Licensing from Authorities (Nakheel, DTCM, Municipality etc)
A N D

Imperial  Sales of current inventory and inventory expected from future terminations (About 370,000 sqft gross area with a current market
value of about AED 376mm)
P R I V A T E

 Establishment of Opco who will become the owning body of the Hotel Apartment Interest in Imperial post handover

 Collections of still due amounts (About AED 37mm)


 Legal cases which have been brought against THI (11 units with Net remaining AED 5.4mm)

Jordan  Close negotiations with HUDC


S T R I C T L Y

4
Topspot; UAQ
Topspot

 Provide sales and leasing brokerage services to Customers


 Sales of proprietary and third party inventory
Topspot  Leasing of proprietary and third party inventory as well as for the assets held by Group Entities
 Focus also on new launches from developers like Emaar, Damac
 Develop capabilities towards becoming a full service advisory firm providing research, valuations and due diligence services also

UAQ

Umm Al Quwain  Monitor


C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

5
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

6
Corporate Governance Structure
Corporate Governance Structure- To discuss and define the following

1. Vision Definition 4. Job description


C O N F I D E N T I A L

5. Authority Matrix
Corporate
2. Business Strategy
Governance
Structure

6. Reporting framework
A N D
P R I V A T E

3. Organization Chart 7. Implementation


S T R I C T L Y

7
Corporate Governance Practices
Good Corporate Governance practices which need to be rolled out Organization wise

 Board Structure and Executive Committee


 Board responsibilities
 Appointment of independent Board Members

 Risk Management process and Compliance


 Risk identification & definition, assessment and mitigation
 Assurance (Internal Audit and Compliance)

 Procurement Process (Contracting; Development related; IT and Infra related; Legal; General etc)

 Management reporting & Management Processes (Meetings)

 Succession Planning for Management


C O N F I D E N T I A L

 Intercompany Transaction (Cost Allocation & billing)

 Standardized communication (internal and external); Branding and Communication

 New Venture Assessment Process


 Development
 New Companies
 New Business
A N D

 Land Acquisition

 Divestiture Processes (incl Asset Disposal)


P R I V A T E

 Internal Audits- Development related; Sales & marketing related; Procurement etc related

 Human Resource Policies- Definition; Standardization

 Organizational Structure
S T R I C T L Y

 Roles and responsibilities (Job description)


 Authority Matrix

 Enterprise Resource Planning

 KPIs- Frame KPIs for the Business Divisions

8
Company Vision, Mission and Core Values
Corporate Governance: Vision Definition & strategy roadmap decisions to make

1 Status Quo
 Gemstone as a UAE focused real estate development company and also being the flagship real estate
development arm of the Group with development responsibilities of certain projects outside UAE (eg
(
Yasmine , Aqua) and management responsibility of other Group RE companies (eg
( The Land)
OR
2 Fully Integrated & multi country real estate brand
 To be a strong brand as private regional GCC wide real estate developer
 All Real Estate developments under one Brand irrespective of Ownership
C O N F I D E N T I A L

Irrespective of 1 and 2, we need to strategize on

3 Business strategy roadmap


 If Gemstone manages projects which we currently have or have been planned for in the future
 Or Gemstone is mandated to actively identify oppurtunities for further business development in the real
A N D

estate
P R I V A T E

4 Need to define ways to get recurring cashflow


 Need to define ways to get recurring cashflow like other big players such as Emaar and Nakheel.
 Emaar reported 46% of its total revenues in FY 2013 from Retail (malls) & Hospitality
 Similarly Nakheel , Deyaar and Union Properties are moving more and more towards Mall and Hotel
S T R I C T L Y

Development to increase percentage contribution from recurring sources


 However both Retail and Hotel investments are very capital intensive particularly if the defined objective is
recurring income which means no offplan sales
 We will analyze this more in detail in next slide

9
Discussion on recurring income- Self sustainance
Discussion on G&A needs and how those can be fulfilled through cash generation from different sources
Recurring Income Sources Annual Projected (AEDmm) Comments
Outflows Average General & Admin Expense (51.9) 1

Topspot 6.0
Retail- Princess, Elite Rental 8.0 Our Cashflow assumes selling the retail units
Al Shahed NOI 6.0
Inflows
Al Quoz 1 Warehouse NOI -(Al Arrab Al M ashrif) 1.4 Can Gemstone benefit from this?
Al Quoz 1 Labor Camp NOI -(Romeo) 2.3 Can Gemstone benefit from this?
Al Quoz 4 Labor Camp- (Al Jallaf) 4.4 Can Gemstone benefit from this?
Total Inflow 28.1

Deficit (23.8)
C O N F I D E N T I A L

Construct Labor Camps on the plots owned by the Group and rent them

Jebel Ali Industrial Area 1- Plot 5991752 & Plot 5991753 11.9 Needs Investment of about 57mm to construct
Jebel Ali Industrial Area 1- Plot 10.3 Needs Investment of about 56mm to construct

Deficit (1.6)

1 Taking into consideration projects in hand including 3 individual projects on Business Bay Plots, TT A&B as well as increased headcount in Topspot and thus needing the team ramp up
A N D

 We have a deficit and do not have such assets on Gemstone/THI books currently which can fulfill the deficit. Construction of the two
labor camps (as shown above) and leasing with proceeds going to Gemstone can reduce the deficit
P R I V A T E

 The above table captures the situation giving out the magnitudes. This is just so that we can deliberate on ideas to cover the deficits

 Another way to fulfill this is acquiring an asset which can generate recurring income (ie buy a tower and lease the units). However
similar to mall development or Hotels this is also an immediate cash outflow

 Management Fee to Group Entities– Gemstone charges a fee to the Group for managing the assets of the Group
S T R I C T L Y

10
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

11
Dubai Residential Supply projections
Dubai Residential Supply projections
C O N F I D E N T I A L

 Expectation of about 11% increase in residential inventory in CY 2014 and CY2015. Roughly 65,000 new units are penned for completion in
next 4 years, with 83% of these apartments, and villas and townhouses comprising the balance.
A N D

 Most of the upcoming residential supply will continue to be located on the peripheries in areas to the south and east of Dubai. The
largest proportion will be delivered in Mohammad Bin Rashid city, Business Bay and Dubailand
P R I V A T E
S T R I C T L Y

Source : JLL;

12
Dubai- Residential market summary
Residential market summary

 Dubai’s residential sales market has slowed down to more


moderate growth levels in the first quarter of 2014
following a spike in prices, after the Expo 2020
announcement at the end of last year, according to a
report

 The average apartment and villa sales prices increased by


just 3 per cent and 6 per cent with average rental
increases at 5 per cent and 3 per cent respectively in Q1
2014

 There were significant increases in unit prices in fourth


quarter following news of Dubai’s Expo 2020 win deals
floundered as sellers with genuine offers decided to wait in
C O N F I D E N T I A L

anticipation of further growth. Transactions slowed down


in established communities where surging prices went
beyond what buyers were willing to pay

 Potential buyers became increasingly reluctant to purchase


properties at peak prices and turned their interest to
secondary areas that had a lower asking rate, or to off-plan
properties with attractive payment plans.
A N D
P R I V A T E
S T R I C T L Y

Source : JLL; Asteco; CBRE; Broker reports


13
Dubai Residential Sales Prices
Dubai Residential- Percentage changes
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

Source : JLL; Asteco; CBRE; Broker reports


14
Dubai Residential Rental Market Summary
Dubai Residential Rental Market Summary

 Dubai’s residential property market growth has


returned to a moderate pace after prices surged in
2013.

 Average rents for apartments and villas rise to 5% and


3% in Q1 2014

 Despite the slowing pace of growth, rent currently 16%


up on this time last year

 However, we expect growth levels to be lower than


2013 performance as affordability becomes a more
influential driver of property moves. We expect to see
an increase in the flight to affordability, with occupiers
C O N F I D E N T I A L

starting to consider Sharjah and the Northern Emirates


as a cost sensitive alternative to Dubai
A N D
P R I V A T E
S T R I C T L Y

Source : JLL; Asteco; CBRE; Broker reports


15
Dubai Residential market outlook
Dubai Residential market outlook
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

Source : JLL

16
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

17
Remaining Assets- THI; Gemstone
Remaining Assets held by THI; Gemstone

Cost Provision
Valuation Valuation Valuation Valuation Total Carrying
(Incl.Commi Amount Balance against
Property Name Adjustm Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Valuation Gain Value - Dec
ssion & Paid Payable Land
ents ** 2011 2009 2008 Prior to 2008 (Loss) 31, 2013
Registration) Forfeiture
Anara (Shk.Zayed Road) 712,000 (168,000) 43,000 - (125,000) 587,000 712,000 - -
Jumeirah Village Plot 07HRA001 39,589 (24,089) - (24,089) 15,500 39,589 - -
Jumeirah Village, Plot 07HRA002 41,047 (25,047) (25,047) 16,000 41,047 - -
Jumeirah Village Plot 15DHRA001 28,869 (15,269) - (15,269) 13,600 28,869 - -
Jumeirah Village Plot 15DHRA002 29,150 (15,550) (15,550) 13,600 29,150 - -
Jumeirah Village Plot 15DHRA004 57,626 (34,026) (34,026) 23,600 57,626 - -
Jumeirah Village Plot 18TCP004 89,378 - - 89,378 27,959 61,420 27,959
Jabel Ali Palm 26 22,464 - - 22,464 11,511 10,954 11,511
Palm Jabel Ali- Crescent (3 Plots) 0 - - - - -
Reem Island, Abu Dhabi - 8 Plots 282,645 - 282,645 105,749 176,896 105,749
C O N F I D E N T I A L

Business Bay- BB002 87,475 (49,397) 27,786 (21,611) 65,863 87,475 - -


Business Bay- BB003 164,241 (90,000) 45,760 (44,240) 120,000 164,241 - -
Business Bay- BB004 87,242 (42,918) (40,174) 53,075 (30,017) 57,226 87,242 - -
Al Jawza -2 (R-3 & R6), Int'l City 11,507 (5,907) (1,203) 1,203 (5,907) 5,600 11,507 - -
Al Shahed Building 59,963 (25,000) 12,300 (12,700) 47,264 59,963 - -
Al Ameera, Sharjah Plot 20,264 (7,664) (18,193) 18,193 (7,664) 12,600 20,264 - -
Al Ameer , Al Khan 30,509 (15,209) (25,637) 25,637 (15,209) 15,300 30,509 - -
Jordan - 18 plots 48,079 - 48,079 48,079 - -
97 Plots, Syria 60,206 - 60,206 56,133 4,073 55,858
A N D

Al Moheit Ajman 6,072 (2,072) (2,072) 4,000 6,072 - -


Jumeirah Villa 4,650 (1,400) - 3,250 4,650 - -
P R I V A T E

TOTAL 1,882,977 (1,400) (169,833) (395,347) 133,705 53,075 (378,400) 1,503,177 1,629,634 253,342 201,076

Yellow Shaded Rows are assets not being managed by Gemstone


S T R I C T L Y

18
Al Rajhi Group Assets in UAE- Industrial
Summary, recommendations and directions received for Al Rajhi Group Assets
Recommendation Proceeds/(Investme
S.No Asset Type Usage Original Investment /Direction nt) -AEDmm NOI (AEDmm) Comments
Jebel Ali Industrial Area 1- Plot
1
5991752 & Plot 5991753 Plots Labor Camp (70.4) Build to lease (57.0) 11.9
Currently rented at AED 1.1mm per
2 annum and rent being collected by
Jebel Ali Industrial Area 1- 5990955 Warehouse Warehouse (22.0) Continue leasing - 0.7 Romeo
Rooms are being used by
Romeo(about 5% of the rooms) and
3 are also rented to 3rd parties (72%
of the rooms) with rest vacant. Rent
Al Quoz Industrial Area 1- 3640231 Labor Camp Labor Camp (35.0) Lease All Rooms - 2.3 being collected by Romeo
Settlement Agreement with Al
C O N F I D E N T I A L

Jallaf. We are also entitled to rent


4
collected in past since camp was
Al Quoz Industrial Area 4- 3690106 Labor Camp Labor Camp (66.0) Al Jallaf - 4.4 handed over in Mar-May 2010
5 Jebel Ali Industrial Area 1- Plot Plot Labor Camp (111.6) Build to lease (56.7) 10.3 Owned by ARC
6 Dubai Investment Park- 5970694 Labor Camp Labor Camp (47.2) Hold - Being used full capacity by ARC
DREC lease to Al Arrab Al Mashrif.
Currently vacant with some files and
7 IT equipments. DREC Lease expired.
New sublease agreed with Tenant
Al Quoz Industrial Area 1- 364367 Warehouse Warehouse NA currently Lease - 1.4 subject to signing MoU
A N D

8 Umm Al Quwain Plot Plot (1.1) Hold


Total of above (353.3) (113.7) 31.0
P R I V A T E

 The above recommendation had stem from purely current market perspective & portfolio asset objective

 One of the major reasons for our recommendations to sell DREC leased plot assets (particularly in Al Quoz) have been the risk
perspective associated with Al Quoz area. Al Quoz being a very premium location sitting between Business Bay and Al Barsha/Tecom,
there has been news floating of changing the land usage to residential/commercial.
residential/commercial Few blocks in Al Quoz (eg Al Khail Heights project
originally by Meraas) have already been converted to freehold and are being developed as residential project. Infact the lease agreement
S T R I C T L Y

with DREC very clearly specifies that the lease can be extended subject competent authorities in the Emirate not amending the lands
uses and area categorizations.

 The second major risk perspective is the annual leases with DREC. So the value of asset gets suppressed with the risk of getting annual
approval of leases and if DREC doesn’t renew them. There is nothing which stops DREC from doing that

 However with our research in market, this does’nt seem like an immediate priority for the Govt. So it can take a long time if not shelved

 We are now going ahead full steam on leasing the assets which are vacant and improving the leasing rates on the ones already leased
19
Jebel Ali labor camps – 2 Plots
Jebel Ali labor camps – 2 Plots
 Recommendation:
 Plot 1752 to be utilized for workers housing category 3
 Plot 1753 to be utilized for workers housing category 1 & 2 due to higher demand for larger housing Blocks.
 Each project to be rented as entire building to avoid micro managing hundred of contracts.
 To establish another company to own this project – not suitable for Gemstone-brand.
Gemstone
 Next Step:
 Executive direction to Tender for Consultancy Services received on 16 June 2014. Invitations issued on 18 June 2014. Await return
re of
proposals, evaluate and award.
 Executive direction to tender for Geotechnical Investigation received on 16 June 2014. Will commence pursuant to appointment Consultant.
 Engage with contractors (in particular KELE) and others.
 Engage with interested Parties to secure early Leasing commitments, long term hands-off
hands “Lease-Occupy-Operate” contracts.
C O N F I D E N T I A L

 No directions received for Plot 617 – to remain on hold till further notice.
A N D
P R I V A T E
S T R I C T L Y

20
Jebel Ali labor camps- Development Financials
Financials for developing the 2 Plots
Plot Number 1752 1753

Area [sq ft] 20,000 28,553

Purc hase Pric e [AED/sq ft] 1,350 1,350


Upgrade to G+4 [AED/sq ft] 100 100

Purc hase Pric e [AED] 27,000,000 38,546,550


Upgrade Pric e [AED] 2,000,000 2,855,300

Total Land Price [AED] 29,000,000 41,401,850

BUA [sq ft] 93,912 121,860


FAR 4.7 4.3
C O N F I D E N T I A L

Construc tion c ost/BUA [AED/sq ft] 225 225


Contingenc y 10.0% 10.0%
Consultanc y Fees 3.5% 3.5%
Authority Fees 4.0% 4.0%

Construc tion c ost [AED] 21,130,200 27,418,500


Contingenc y 2,113,020 2,741,850
Consultanc y Fees 739,557 959,648
A N D

Authority Fees 845,208 1,096,740

Total Cost Improvement Cost [AED] 24,827,985 32,216,738


P R I V A T E

Total Development Cost [AED] 53,827,985 73,618,588

BUA [sq ft] 93,912 121,860


No of Rooms 258 300
S T R I C T L Y

Avg M onthly Room Rent [AED/room] 1,800 1,800

Net Rental Income [AED] 5,572,800 6,480,000

Net Yield on Investment 10.4% 8.8%

21
Al Quoz Industrial Area 4 - Labor Camp (369-0106)
(369
Al Quoz Industrial Area 4 - Labor Camp (369-0106): Description

 The Property is located in Al Quoz Industrial Area 4. The Industrial Area 4 is further located to the South compared to Industrial Area 1 which is
closer to areterial Sheikh Zayed Road

 The plot area is about 75,000 sqft and there are about 315 rooms constructed

 There is about 1/4th of the plot which has had only piling works done on it

 On this plot we have an ongoing legal case with Al Jallaf and are trying to close the settlement agreement with them. As part of the agreement
with Saeed Bahjat we would also be entitled to rent since the camp was handed over to them in Mar-May 2010

Al Quoz Industrial Area 4 - Labor Camp (369-0106):


0106): Potential Net Operating Income (AED)

Heads No of Rooms Avg Room Rent Potential Financials


Rental Income 315 2250 7,654,500
C O N F I D E N T I A L

Salaries & Benefits (37,636)


Al Jallaf management fee -
DREC Lease Fee (300,000)
DREC Tax (1,530,900)
Repair & Maintenance (100,000)
Communication (500)
Utilities (937,500)
Sewerage (200,000)
A N D

Stationery (1,000)
Others (131,545)
P R I V A T E

Total Cost (3,239,082)

Net Operating Income 4,415,418


S T R I C T L Y

*In the above table we are still unaware about any management fee to be paid to Al Jallaf

22
Business Bay Plots
3 Plots in Business Bay

Plot BUA GFA Projected Dev Profit NPV at 7% Discount rate Per Sqft GFA
BB003 2,183,660 1,746,928 1,079,474,715 817,233,330 468
BB002 790,000 560,000 390,530,061 268,635,831 480
BB004 660,000 500,000 325,015,868 201,697,407 403
Total 3,633,660 2,806,928 1,795,020,644 1,287,566,568 459

 NPV calculated at 7% discount rate with assumption on developing same product as what we are contemplating currently

 In case of developing the 3 plots


 For BB003 we project that we would need a cash infusion of about AED 375mm and this would produce a net income of about AED 1.07
1 billion (Sales rate
of AED 2,456/Sqft net area and Construction cost of about AED 500/Sqft BUA)
 BB002 and BB004, we would recommend Serviced Hotel Apartments like BB003. We project that there would be needed cash infusions
infusion of about AED
135mm and 113mm and would produce a net income of about AED 390mm and 325mm respectively
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

23
Sharjah Plots- 2 Plots in Al Khan
Snapshot of the 2 Sharjah Plots including acquisition costs

Price Project Total


Plot No Title Plot Area Use Floors BUA (Sqft) NSA (Sqft) Efficiency Date bought Paid expenses expense
th
1227 Al Ameera 25,308 Res G+55 793,313 475,988 60% 7 Dec 2005 20,264,221 3,221,943 23,486,164

1230 Al Ameer 21,188 M ix G+42 593,474 356,084 60% 21st M ar 2006 30,509,370 2,141,590 32,650,960
Total 46,496 1,386,787 832,072 50,773,591 5,363,533 56,137,124

 The plots are situated in one of the good locations in Sharjah.. They are within close proximity from Al Khan Lake, Al Qasba Canal, Khled Lake and
Sharjah Expo

 The locality is situated on Al Taawun Rd., well connected to Dubai. In addition to further primary and secondary road networks providing linkages to
surrounding areas and main arterial roadways in Sharjah

 The project expenses were related to feasibility studies and Concept design costs
C O N F I D E N T I A L

Sharjah- Real Estate Market

 Sharjah is a rental market since they are not freehold and the objective typically for any investor is to get some rental yield.

 Though rents have now started increasing in Sharjah too, the yields still hover around 5% at the current selling and leasing rates. GCC Investors at this
point of time still prefers to buy in Dubai to get a similar or even lower yields rather than Sharjah where the assets are very illiquid and the real estate
market isnt as much evolved and well regulated as Dubai
A N D

 Surprising about current market in Sharjah is that a new development would be more expensive than existing one eg a good quality apartment
1
overlooking the Sea on Al Khan can be purchased between AED 550-650/Sqft
Sqft leasable area
P R I V A T E

 While the rents for similar good apartments are as low as about AED 40/Sqft
Sqft

 We will evaluate in the next slide our options including construction (and then selling or leasing) vis-à-vis
vis selling the plots
S T R I C T L Y

24
Sharjah Plots- 2 Plots in Al Khan
Development of the plots- Financials
Plot 1227- Per sqft costs Total AED Plot 1230 - Per sqft costs Total AED  Residential Towers
Per BUA Per NSA Per BUA Per NSA
development- Financial
Enabling Works 13 21 10,000,000 Enabling Works 13 22 8,000,000
projections on an incremental
Construction cost 350 583 277,659,550 Construction cost 350 583 207,715,900
basis and not assuming for the
Professional Fees 8% 26 44 20,824,466 Professional Fees 8% 26 44 15,578,693
land costs and other costs
Contingency 5% 18 29 13,882,978 Contingency 5% 18 29 10,385,795
already incurred
Statutory 20 33 15,866,260 Statutory 20 33 11,869,480
Land Cost - - - Land Cost - - -  Development Program of 3
M arketing 2% 6 11 5,073,030 M arketing 2% 6 11 3,795,112 years
M gmt Expense 15 25 12,000,000 M gmt Expense 17 28 10,000,000
Selling Expense 2% 7 11 5,340,032 Selling Expense 2% 7 11 3,994,855  Evaluation of both Selling and
Financing Cost 7% Interest rate - - - Financing Cost 7% Interest rate - - - leasing options post
Total Costs 455 758 360,646,316 Total 457 762 271,339,834 construction
Sales Price 561 267,001,594 Sales Price 561 199,742,729
C O N F I D E N T I A L

Net Profit (Loss) (197) (93,644,722) Net Profit (Loss) (201) (71,597,105)

Rental Income 40 18,824,551 Rental 40 14,082,565


Expenses 10 4,759,878 Exp 10 3,560,844
Net Income 14,064,673 Net Income 10,521,721
Total Costs 350,233,254 Total Costs 263,549,868
Net Yield 4.0% Net Yield 4.0%

 The investment required to construct towers on the 2 plots would be about AED 360mm and 270mm. The current net rental yield on
o this investment is
A N D

about 4.0%. As mentioned


1 earlier the construction cost (about AED 750/Sqft
Sqft net area) is greater than the current market price. Thus a new
development, in current market situations, is decretive.
P R I V A T E

 Therefore its better to exit these plots and use the money to either reinvest in a premium plot in Dubai or use the proceeds to fund the BB003
construction. However we think that the rentals are too low (particularly with Dubai getting more and more expensive) and thus
thu demand should
increase thus increasing the rental values

 The expected current price for the plots is about AED 50mm together which is almost equal to the price paid to purchase. Thus we would recommend
S T R I C T L Y

selling these 2 plots

25
Acquisition of Reem Island Plots
ACQUSITION OF REEM ISLAND PLOTS FROM TAMEER (Tameer Towers Plots)

 Land Holding Company

 In preparation for the acquisition of the Tamer Towers plots, the Gemstone family needs to establish 2 NEWCOS to hold the plots. The first
special purpose vehicle will be of the brothers Eng Faisal Al Rajhi and Dr Khalid Al Rajhi (NEWCO 1). NEWCO 1 will own 99% of NEWCO2,
with 1% owned by Eng Faisal Al Rajhi. NEWCO 2 will be the plot owner for the Tameer Tower Plots.

 This is a passive investment holding vehicle that is based on the following considerations:
 Plot owner must be a GCC National company to hold freehold
 Eng Faisal Al Rajhi and Dr Khalid Al Rajhi are not associated with any company or document that is associated with Omar Ayesh.
 A separate group of companies needs to be established under a different NEWCO name and parent so that the structure does not mirror
the previous landholding of Tameer and that one group of companies is not owning all of Tameer’s former assets.
C O N F I D E N T I A L

 Developer Company

 We have agreed that for the purpose of this development only, we will be proceeding the land holding company as the developer. It can
later be transferred to Gemstone once the issues of the customers are resolved.

 Establishment of Company
 To be determined after name reservation is completed.
A N D
P R I V A T E
S T R I C T L Y

26
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

27
BB003 Update
Under development: Updates – HH Shk Mohamed bin Rashid City – PLOT BB.003

 Plot realignment/reshaping approval secured on 24th April 2014, after extensive and exhaustive efforts to align DPG with TECOM
TECO and vv.
This occurrence has removed the single largest risk from the project

 Preliminary Design Submission to TECOM has received No objection with minor conditions.

 All Zoning Exemptions have now been secured to support the Project Design and feasibility.

 Planning and utility concerns submitted to DPG in October to secure development optimization. Key issues to addressed include:
includ
 Plot realignment now approved. Infrastructure Audit completed and supported the proposed plot realignment.
 Access provisions now approved.
 Use of public spaces/ROW in the area between the public road and the plot now approved.

 RTA has approved the scheme and the number of apartments (800). RTA Highways reviewing the geometry of the entry and new shared
shar
access configuration. This was approved in principle with the formal letter of approval expected by the end May/early June. (TIS
( NOC)
C O N F I D E N T I A L

 Pending items from the operator guidelines are progressively being closed-out.
closed 47 of 221 items remain with the majority to be formally
closed based on the Scheme Design submission.

 Scheme Design Presentation made to the Operator with minor comments addressed and with Operator for 50% Complete Design Approval
Appro

 Detailed Operational Agreements revised and returned from KRES, which should be re-prepared
re for execution.

 Relationship with Spa Operator Messrs.' Resence established (as per KRES requirements). Alternate Spa operators research directed and
have been reviewed with comparative business cases for presentation. In principle all Spa Operators operate such facility in the same
manner.
A N D

 Geotechnical investigation final report completed and issued to TECOM and approved.

 Enabling Works awarded 5th may 2014. Design mobilization and permitting commenced immediately. Expect Hoarding permit and Shoring
Sh
P R I V A T E

permit to be received in June.

 Scheme Design to be completed by end May. Design Development to proceed on direction.


S T R I C T L Y

28
Highlights – Imperial Residence
Highlights – Imperial Residence

 Construction progress for May is estimated to be 2.4% (3.5m) of BGCC contract, bringing cumulative progress since restart to 98% of BGCC
contract. The overall project progress including previous fair value of work is 100%
100 (PCR)
 All matters are now on the Critical Path (CP). Project continues to work towards Completion, now likely to occur around mid/end
mid/e June.
 DEWA Power supply went live on 22nd May 2014. Chillers and cooling towers are in operational mode, being tested and commissioned.
 Authorities approvals underway: received EHC conditional CC; applied for Nakheel’s Compliance Certificate (NCC) – approval expected 1st
week of June. The final step is BCC from Trakhees – (June update – BCC in hand 12 June 2014).
 Handover to customers will occur in two stages: First to the existing (residential) customers, which will occur at Completion;
Completion and Second
to the Hotel Apartments Customers which is planned for December, 2014.
 Manpower reduction continuing, site demobilization efforts reaching 90% as the project is approaching BCC.
 Customers’ pre-handover
handover inspections commenced in February and feedback remains excellent with little or no comments or snags.
 Conversion of the remaining inventory and anticipated termination (total 280 units) to hotel apartments received go-ahead.
go Operator
brief, FOH, BOH changes being designed.
C O N F I D E N T I A L

 The Operator agreement was signed this month. A procurement agent has been selected and effort underway to furnish the existing
existi
inventory.
 New SPA, BMS, JOPD, Operator Agreement and Pool Agreement drafting has been concluded
 Main Contractor (BGCC):
 Construction is on schedule (including fire delay), within budget and we see no risk for budget overruns, save the risk of an EOT-
request due to late payments. (and excluding any costs associated with conversion)
 Payment due to BGCC for Works executed in November is 7.7m, was due in February 1, 2014, partially paid in March and May, leaving
le
a balance of 4.8m. Payment due to BGCC for Works executed in December is 3.8m, due latest March 1, 2014, payment for January
A N D

Works of 2.8m was due March 31, and payment for February Works of 3.6m was due May 3 are still unpaid.
 Amount of payment certificate for Work executed in March 2014 is 3.6m; due June 6, 2014.
P R I V A T E

 Payment Certificate for Works executed in May is estimated at 3.5m, due July 2014.
 Total amounts paid as of May 31, 2014 is AED104,024,264 including advance
 In total THI owes BGCC AED25.6m and this situation is untenable. BGCC has every right to suspend the Works and dis-allow any
handover, conversion works or any other activities. This is a massive risk position. BGCC will not engage in conversion Works without
significant payment.
S T R I C T L Y

29
Imperial Residence Progress Photos
Imperial Residence Progress Photos – Update as of May 2014
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

30
Highlights – Tameer Towers
Highlights – Tameer Towers

 Project remains suspended since early February `12, with very low activity since mid December `11. Instructions received to reactivate
r
the project for mobilization in Oct. 2014.
 Preparatory meetings were undertaken with Hyder to re-assess
assess scope of Services required to re-activate
re the project proper, current
regulatory environment and available resources. Settlement of outstanding fees (AED500k) remain an impediment. Hyder engineers
concluded that a HSE inspection be undertaken and remedial works completed to make the site safe before access is permitted.
 Building Permit is technically expired and the ADM has the ability to suspend the existing permit and require a new application
applicati to be
made at the time of restarting construction. With the direction to investigate the projects reactivation preliminary discussions
discussi have been
held with the ADM to understand process. Fees sourced from Hyder to undertake this process of re-approval.
re
 Inspections have shown a progressive deterioration of the hoarding with gates and sections of the hoarding unsecured. Minor works
w
contractor Macadam briefed on scope. Offer pending HSE inspection report for additional remedial work.
 Hyder reconfirmed their fee proposals to undertake the scope for MEP design adoption and completion, VO9 completion,
Condition/Dilapidation Survey, recodification and other minor services, (AED3.22m) and, in addition, AOR services. Fees Proposal
accepted. Received direction to award on 16 June 2014.
C O N F I D E N T I A L

 Site reactivation is only possible after resolution of court attachments of plant and equipment ( cranes), refurnishing of jump
j form
systems and payment to Doka,, completion of a condition survey, removal of damaged/ derelict/ dangerous of form systems and access
ladders, repair and make-safe.
safe. It was communicated mid June that many legal matters have been closed by ARP. Main outstanding matter
ma
is the DOKA relationship @ AED13m liability.
 Full dilapidation survey to be conducted, to investigate project status after 30 months dormancy, to create baseline report for
f Contractor
taking over and identify areas of scope for pricing for the avoidance of contingent claims.
 Project Director recruited and Offer accepted on 22 may 2014; joined on 8th June 2014. Further resources being interviewed.
 Contractor bids expired finally on 31st December 2013. Kele (as low bidder) were asked to reconfirm their offer based on a Nov `14.
commencement. Other contractors ACC and Multiplex will be met in May/June. New parties external to the original bid may be
A N D

considered, subject to Program and Timing.


 ARP`s exit means the BP must find a new Owner quickly. A NEWCO establishment was directed end April 2014. Legal working on
P R I V A T E

progressing same. Alternatively, ADM may default into transferring the BP to the Developer. This will likely require active Trade
T License.
 Commercial Site Backfilling reactivated as backfill materials are sourced FOC. The latest agreement being the supply and placement
plac of
approximately 100K -130K
130K m3 through June to complete Stage B. This will cause cessation of the site`s dewatering progressively.
Approximately 30% backfilling remains.
 Commercial Plot return deal to Sorouh/ALDAR
/ALDAR requires settlement, to secure their cooperation in all permitting activities. PRECEDENT
S T R I C T L Y

condition.
 Insurance - CAR Policy remains under pressure from underwriters requesting confirmation of the project proceeding. CAR policy has
been requested to be reactivated awaiting Reinsurers feedback.

31
Highlights – Tameer Towers
Highlights – Tameer Towers
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

Site Inspection 18 May, 2014

32
Aldar/Sorouh discussion
Aldar/Sorouh discussion

 We have been pushing Aldar to respond back to us on our comments. They have apologized citing that the Sorouh and Aldar integration
issues have been taking all their time and resources and have promised to revert back to us soon
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

33
Highlights – Aqua Raffles (KSA)
Highlights – Aqua Raffles (KSA)

 Due Diligence performed on design, Cost Plan reviewed, consultants interviewed, Operator consulted and positions established in the period
Feb-Mar 2014
 Cost Plan update to FAR6.8, costs review, contingency and escalation created a CSI Cost Plan of SAR1.25b. Goal is to work towards SAR1bn. In
depth study, optioneering and revision of Concept needed.
 Amanah issued Development Consent on 25 February 2014, based on FAR6.0
FAR
 Jeddah Mayor approved FAR increase to 6.81 on 5th March 2014, subject to the construction of a public garden/park equal to 4400SQM
 GS appointed Development Manager on 26 March 2014
 DSA and CSI were extremely reluctant to engage in services without revision in fees. Repeated directions and requests resulted in confirmation
of need to revisit professional fees only. Basically consultants stopped work – not remobilized after long suspension period. Additional fees due
to escalating costs, Program/Authority delays and increased FAR. (and suspected scope creep)
 To restart the Design Services, revised fees were submitted by DSA on 20 April 2015, amounting to AED19.1m, up from AED13.9m. This excludes
C O N F I D E N T I A L

supervision, currently open ended. Final negotiation lead to acceptance and executive approval of revised fees of AED18.5m on 11th June 2014.
 DSA (and subs) unable to fully remobilize before 28 June 2014, and requires a 5% Advance Payment. Interim services commenced mid June in
preparation of full team deployment. Invoice received + Advance Payment security cheques in hand on 19 June 2014. GS certified accordingly
and transmitted Payment Application to Takatuf for direct processing/remittance.
processing/remittance
 To restart the Cost Consultant services, revised fees were submitted by CSI on 12 May 2014, amounting to AED6.1m, up from AED2.4m.
Rationalization and Final negotiation lead to acceptance and executive approval of revised fees amount @ AED3.9m on 10th June 2014. Services
recommenced thereafter.
 KCA have not requested a fee revision. Services placed on hold by GS, pending review of concept and associated de-risking process. GS has
A N D

stayed in close touch with KCA and they are aware of the status of the project. They have been made aware of the actual recent re-activation.
 Raffles also appraised of actual re-activation pursuant to the Consultant's acceptance of Notice to Proceed. Meanwhile we are creating a
Deviation Schedule to test/gauge opportunities for optimization of specification, identify frivolous requirements and de-risk scope to reduce
P R I V A T E

cost.
 Project requires resources. Recruitment under way. PD rejected offer last minute. New PD being interviewed. DM arrived 15th June 2014. New
Commercial Manager recruited to take on (part-time) role, will join 13th
13 July 2014.
 Formal full design team and stakeholders kick-off (design) meeting programmed for 1st July 2014.
S T R I C T L Y

34
Highlights – Al Yasmine (KSA)
Highlights – Al Yasmine (KSA)

 Received request to revalidate project Development Budget, based on existing development concept. No conceptualization, study or validation
of a design has been performed by GS team, as directed.
 Appointed RLB to perform quick, high level Order of Magnitude only comparative Cost Planning exercise on 4th March 2014.
 Created “road map” on 8th June 2014 to activate project development process, including steps to be taken pertaining to Market Study,
identification Services providers, local liaison and data collection, feaso calibration etc. No subsequent action taken.
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

35
Highlights – Regal Tower
Highlights – Regal Tower

 Rectification of damaged elevator doors are now taken over by THI as ACC have no staff or funds to complete the Works. The cost
co will be
deducted from ACC dues.

 Water damage was incurred to occupants of the tower, namely those facing the front elevation. This may become an insurance issue.
is

 The Contractor and Façade Sub-Contractor


Contractor continues to investigate the source of the rain water leakage. The DLP will be extended
extende for the
façade until June 2015 to ensure passing the next rain season without leaks.

 THI directed to assume AlArrab close out responsibilities. Façade matter dealt with by Development, other creditors by Management.

 Façade contractor threatening legal action over non-payment


payment retention. THI disinclined to recommend release.
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

36
Highlights – Al Majd City
Highlights – Al Majd City

 A Settlement Agreement between Tameer and HUDC is in the process of government ratification. Final execution postponed; more comments on
form and content received from Ministry by end December, re-negotiated
negotiated and agreed and again submitted for final execution.
 Tameer has officially invited HUDC for inspection during the month of report with no reply received till date.
 We understand from our Jordan team that no action will be seen from HUDC until such time the agreement is executed by the Prime
Pri Minister
 The agreement (plus revision) contemplates preparation and handing over of 208 housing Units over 23 buildings, city wide infrastructure
inf
repairs/testing/commissioning, clean-up
up of community, connect water mains, repair road damage, removal of rubble, renovate the old
o sales
center and other rectifications.
 All contracted and contemplated Works have concluded as of end February 2014.
 Final site cleaning on hold, pending confirmation of Inspection Date by HUDC. Created burn-pits,
burn as waste disposal in the community is non-
existent, for weekly organized incineration sessions.
 One building (G 4) belonging to the Jordan University has been added to the scope to allow final handover of the same. Pre-inspection
Pre done,
C O N F I D E N T I A L

Report received and reviewed as many items listed are not with the building standards delivered.
 Toolbox has provided office space for Tameer customer care consultant and “our fixer” within their office premises. The service is now
operational. Tameer office in Jordan is no longer in existence, save the above space use.
A N D
P R I V A T E
S T R I C T L Y

37
Imperial Sales
Imperial Sales- Impact of payment plan

1-Apr-14

1-Jun-14

1-Aug-14

1-Sep-14

1-Nov-14

1-Dec-14

1-Feb-15
1-May-14

1-Oct-14

1-Jan-15

1-Mar-15
1-Jul-14
Imperial- Sales of Current Inventory Projections

1 Imperial sales projections - Shared earlier


Absorption (Sqft Net) 214,642 24,000 20,800 12,800 12,800 12,800 24,000 24,000 24,000 24,000 24,000 11,442 -
Collections- AED 266,155,584 23,808,000 31,744,000 15,872,000 15,872,000 15,872,000 29,760,000 29,760,000 29,760,000 29,760,000 29,760,000 14,187,584 -
Collections-Cumulative 266,155,584 23,808,000 55,552,000 71,424,000 87,296,000 103,168,000 132,928,000 162,688,000 192,448,000 222,208,000 251,968,000 266,155,584 266,155,584

New Sales Projections- 2 Years payment plan


2 Absorption 220,990 17,918 29,864 29,864 35,836 35,836 35,836 35,836 - - -
Collections- AED 272,923,167 6,638,672 11,064,453 11,064,453 13,277,343 16,043,456 17,887,532 17,887,532 5,532,226 8,298,340 10,142,415
Collections-Cumulative 272,923,167 6,638,672 17,703,124 28,767,577 42,044,920 58,088,377 75,975,909 93,863,441 99,395,667 107,694,006 117,836,421

Difference between 1 & 2


Monthly Difference (23,808,000) (31,744,000) (9,233,328) (4,807,547) (4,807,547) (16,482,657) (13,716,544) (11,872,468) (11,872,468) (24,227,774) (5,889,244) 10,142,415
Cum Difference (158,461,578) (23,808,000) (55,552,000) (64,785,328) (69,592,876) (74,400,423) (90,883,080) (104,599,623) (116,472,091) (128,344,559) (152,572,333) (158,461,578) (148,319,163)
C O N F I D E N T I A L

1-Apr-15

1-Jun-15

1-Aug-15

1-Sep-15

1-Dec-15
1-Nov-15

1-Feb-16
1-May-15

1-Oct-15

1-Jan-16

1-Mar-16
1-Jul-15
Imperial- Sales of Current Inventory Projections

1 Imperial sales projections - Shared earlier


Absorption (Sqft Net) 214,642 - -
Collections- AED 266,155,584 - - - - - - - - - - - -
Collections-Cumulative 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584

New Sales Projections- 2 Years payment plan


2 Absorption 220,990
A N D

Collections- AED 272,923,167 10,142,415 5,532,226 8,298,340 10,142,415 10,142,415 5,532,226 8,298,340 10,142,415 10,142,415 5,532,226 5,532,226 5,532,226
Collections-Cumulative 272,923,167 127,978,836 133,511,063 141,809,402 151,951,817 162,094,232 167,626,459 175,924,798 186,067,213 196,209,628 201,741,855 207,274,081 212,806,307
1
P R I V A T E

Difference between 1 & 2


Monthly Difference 10,142,415 5,532,226 8,298,340 10,142,415 10,142,415 5,532,226 8,298,340 10,142,415 10,142,415 5,532,226 5,532,226 5,532,226
Cum Difference (158,461,578) (138,176,748) (132,644,521) (124,346,182) (114,203,767) (104,061,352) (98,529,125) (90,230,786) (80,088,371) (69,945,956) (64,413,729) (58,881,503) (53,349,277)
S T R I C T L Y

38
Imperial Sales
Imperial Sales- Impact of payment plan

1-Apr-16

1-Jun-16

1-Aug-16

1-Sep-16

1-Dec-16
1-Nov-16
1-May-16

1-Oct-16

1-Jan-17
1-Jul-16
Imperial- Sales of Current Inventory Projections

1 Imperial sales projections - Shared earlier


Absorption (Sqft Net) 214,642
Collections- AED 266,155,584 - - - - - - - - - -
Collections-Cumulative 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584 266,155,584

New Sales Projections- 2 Years payment plan


2 Absorption 220,990
Collections- AED 272,923,167 5,532,226 4,425,781 7,376,302 7,376,302 8,851,562 8,851,562 8,851,562 8,851,562 - -
Collections-Cumulative 272,923,167 218,338,534 222,764,315 230,140,617 237,516,918 246,368,481 255,220,043 264,071,605 272,923,167 272,923,167 272,923,167

Difference between 1 & 2


Monthly Difference 5,532,226 4,425,781 7,376,302 7,376,302 8,851,562 8,851,562 8,851,562 8,851,562 - -
C O N F I D E N T I A L

Cum Difference (158,461,578) (47,817,050) (43,391,269) (36,014,967) (28,638,666) (19,787,103) (10,935,541) (2,083,979) 6,767,583 6,767,583 6,767,583

 The peak impact on collection is about AED 158mm in Feb 2015. However by Dec 2015 this reduces to about AED 70mm

 By Oct 2016 this deficit is completely wiped out

 The 158mm was being used primarily to fund BB003 construction and Tameer Towers Construction in the current program envisaged for them

 BB003 Main Contractor mobilization – 103mm


A N D

 Tameer Towers Main Contractor Mobilization- 43mm

 Rest was being used to fund the construction of these 2 projects


P R I V A T E
S T R I C T L Y

39
THI CF Projections- Jun 2014
THI CF Projections- June 2014

Cash Surplus/(Deficit) Total 2013 2014 2015 Peak 2016 Rest of 2016 2017 2018 2019 2020 2021 2022
THI + TT AB (108.6) - 49.4 (282.6) (327.8) (40.8) (440.4) (18.2) 55.2 55.2 55.2 786.3
Cumulative - 49.4 (233.2) (561.0) (601.8) (1,042.1) (1,060.3) (1,005.2) (950.0) (894.8) (108.6)
BB003 1,079.5 - (251.2) 2.8 (123.9) 144.6 1,360.9 (53.7)
Cumulative - (251.2) (248.4) (372.3) (227.7) 1,133.2 1,079.5 1,079.5 1,079.5 1,079.5 1,079.5
BB002 390.5 - - (34.1) (43.0) (0.9) (51.6) 541.5 (21.4) - - -
Cumulative - - (34.1) (77.1) (78.0) (129.6) 411.9 390.5 390.5 390.5 390.5
BB004 325.0 - - - (1.2) (1.3) (77.3) 2.1 29.3 389.7 (16.2) -
Cumulative - - - (1.2) (2.6) (79.9) (77.8) (48.4) 341.3 325.0 325.0

Total 1,686.4 - (201.8) (313.9) (495.9) 101.5 791.7 471.6 63.1 444.9 38.9 786.3
Cumulative - (201.8) (515.7) (1,011.6) (910.1) (118.3) 353.3 416.4 861.3 900.2 1,686.4
C O N F I D E N T I A L

 Final Cash surplus- AED 1,686.4mm with peak investment needed of AED 1,011.6mm

 We have not accounted for SZR Plot, TT C&D Plot and Sharjah Plots

 Below table shows the P&L position as according to the different companies envisaged

 In the next slide we show the difference from the last cashflow version which we presented in April 2014

Cash Surplus/(Deficit) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total
A N D

Gemstone -Business Bay 002; 003; 004 - (251.2) (31.3) (25.9) 1,232.1 489.9 7.9 389.7 (16.2) - 1,795.0
NewCo (Tameer Towers) - (121.2) (330.9) (316.2) (152.7) 55.2 55.2 55.2 55.2 786.3 85.9
1
Tameer Holding Investment - 155.8 28.7 (70.7) (299.6) (77.9) - - - - (263.8)
P R I V A T E

Topspot - 14.8 19.6 18.4 12.0 4.5 - - - - 69.3

Total - (201.8) (313.9) (394.4) 791.7 471.6 63.1 444.9 38.9 786.3 1,686.4

1 THI takes care of Sorouh payments for TT plots and the associated payouts to TT Customers
S T R I C T L Y

40
THI CF Projections- Apr 2014
THI CF Projections- Apr 2014

Cash Surplus/(Deficit) Total 2013 2014 2015 Peak 2016 Rest of 2016 2017 2018 2019 2020 2021 2022
THI + TT AB (76.6) - 192.9 (332.5) (405.2) (40.1) (424.9) (18.7) 55.2 55.2 55.2 786.3
Cumulative - 192.9 (139.6) (544.8) (584.8) (1,009.7) (1,028.4) (973.2) (918.0) (862.9) (76.6)
BB003 1,079.5 - (251.2) 2.8 (123.9) 144.6 1,360.9 (53.7)
Cumulative - (251.2) (248.4) (372.3) (227.7) 1,133.2 1,079.5 1,079.5 1,079.5 1,079.5 1,079.5
BB002 390.5 - - (34.7) (42.4) (0.9) (51.6) 541.5 (21.4) - - -
Cumulative - - (34.7) (77.1) (78.0) (129.6) 411.9 390.5 390.5 390.5 390.5
BB004 325.0 - - - (1.2) (1.3) (77.3) 2.1 29.3 389.7 (16.2) -
Cumulative - - - (1.2) (2.6) (79.9) (77.8) (48.4) 341.3 325.0 325.0

Total 1,718.4 - (58.2) (364.4) (572.7) 102.2 807.2 471.2 63.1 444.9 38.9 786.3
Cumulative - (58.2) (422.6) (995.3) (893.2) (85.9) 385.3 448.3 893.2 932.2 1,718.4
C O N F I D E N T I A L

Cash Surplus/(Deficit) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total
Gemstone -Business Bay 002; 003; 004 - (251.2) (31.3) (25.9) 1,232.1 489.9 7.9 389.7 (16.2) - 1,795.0
NewCo (Tameer Towers) - (121.2) (330.9) (316.2) (152.7) 55.2 55.2 55.2 55.2 786.3 85.9
Tameer Holding Investment 1 - 299.4 (21.2) (147.5) (284.1) (78.4) - - - - (231.9)
Topspot - 14.8 19.6 18.4 12.0 4.5 - - - - 69.3

Total - (58.2) (363.8) (471.1) 807.2 471.2 63.1 444.9 38.9 786.3 1,718.4
A N D

 The primary reason for difference is because of the impact of Imperial sales through payment plan

 Though the overall requirement remains slightly changed (increases to 1,011mm from 995mm earlier) the funding need in 2014 increases
in by 140mm.
P R I V A T E

 By end of 2015 we would have recovered some of this deficit to finish the year at marginal deficit of about 90mm over the earlier
ear scenario.

 By Nov 2016 we would have recovered all of the Imperial collection deficit and thus the peak would stand at about 1,011mm like
lik the earlier case

1 THI takes care of Sorouh payments for TT plots and the associated project payouts to TT Customers
S T R I C T L Y

41
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

42
CF- Actual Vs Projections (YTD 2014)
CF- Actual Vs Projections (Jan – May 2014)

Heads (AED) Projected- May 2014 Actuals- May 2014 Delta Projected YTD Actual-YTD Delta
Palace 2,724,021 6,000 (2,718,021) 9,523,282 111,000 (9,412,282)
Princess 4,864,461 134,100 (4,730,361) 17,386,772 5,623,200 (11,763,572)
Elite 11,862,511 1,077,600 (10,784,911) 20,190,734 5,890,700 (14,300,034)
Silver 5,519,640 3,042,700 (2,476,940) 8,933,376 9,303,700 370,324
Regal 7,515,568 1,693,300 (5,822,268) 27,175,062 6,120,500 (21,054,562)
Al Jawza 2,090,504 509,700 (1,580,804) 6,211,465 1,571,100 (4,640,365)
Imperial 39,744,000 986,100 (38,757,900) 71,552,000 13,783,400 (57,768,600)
Other Rev- Brokerage/Leasing/Signage 1,000,000 73,079 (926,921) 3,800,000 2,542,603 (1,257,397)

Total Inflows 75,320,705 7,522,579 (67,798,126) 164,772,691 44,946,203 (119,826,488)


C O N F I D E N T I A L

G&A (3,300,000) (2,562,761) 737,239 (16,500,000) (14,169,878) 2,330,122


Legal (327,553) (203,612) 123,941 (2,182,659) (1,942,037) 240,622
Marketing (255,491) 255,491 (1,277,457) (30,564) 1,246,893
Creditors - (150,000) (150,000) - (1,865,923) (1,865,923)
ADIB - (591,940) (591,940) (3,235,614) (2,661,104) 574,510
Mashreq - - - - (117,206) (117,206)
Tameer Towers - - - - (1,460,000) (1,460,000)
MADA - - - - (610,489) (610,489)
A N D

TT Refunds - (9,249,875) (9,249,875) - (11,664,343) (11,664,343)


BB003 (20,381,923) (1,773,231) 18,608,692 (42,623,063) (3,470,166) 39,152,897
Palace (1,489,566) 1,489,566 (3,552,612) (74,993) 3,477,619
P R I V A T E

Princess (65,625) (176,845) (111,220) (3,830,448) (771,755) 3,058,693


Elite (1,454,033) 1,454,033 (4,011,832) (253,726) 3,758,106
Al Ameera - (1,573,852) (1,573,852) - (4,315,584) (4,315,584)
Silver (649,790) 649,790 (1,624,543) (27,875) 1,596,668
Regal (1,507,846) 1,507,846 (5,771,451) (53,557) 5,717,894
S T R I C T L Y

Al Jawza (153,583) (443,915) (290,332) (1,082,199) (443,915) 638,284


Imperial (5,255,529) (3,129,080) 2,126,449 (32,108,716) (18,551,368) 13,557,348
Miscellaneous - (640,020) (640,020) (547,007) (1,927,855) (1,380,848)
Imperial recovery from Escrow - - 5,038,000 - (5,038,000)
Total Outflows (34,840,939) (20,495,129) 14,345,810 (113,309,600) (64,412,337) 48,897,262

Net 40,479,766 (12,972,550) (53,452,316) 51,463,091 (19,466,134) (70,929,225)

43
CF- Actual Vs Projections (YTD 2014)
CF- Actual Vs Projections (YTD 2014)

 Difference between the actuals and projection inflows


 Close to 50% of the difference is because of Imperial. The sales in Imperial got delayed because of the exercise to convert the
t Tower into
Hotel Serviced Apartments by about 3 months. Also the collections from existing customers have been delayed as earlier we were
we
assuming handovers starting April 2014
 Another 20% of the deficit is on account of slower sales in Regal. This was because of terminations which we were expecting to
t give us
inventory and which couldn’t not happen.
 Another about 20% has been on account of lower sales in Princess/Elite-
Princess/Elite These are on account of lower inventory coming through delayed
terminations as well as some sales being deferred for want of better offers

 Difference between the actuals and projection outflows


 The major reason for difference (and accounting for almost 81%) is because of lower spending on BB003. In our original projections
projec we had
C O N F I D E N T I A L

assumed enabling works to start in April 2014


 Another major reason are customer refunds on Tameer Towers and Al Ameera. Though we have accounted for these payments we had
assumed that the payments could be pushed to a later date which unfortunately is unavaoidable in lost court cases
A N D
P R I V A T E
S T R I C T L Y

44
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

45
Minutes of meeting- Apr 30th 2014
Minutes of meeting- Apr 30th 2014

 Hard Rock Café Plot: Review the possibility of subdividing the plot to make it attractive to individual investors

 Establish a “Gate” process before starting spending money of a new project

 Establish KPIs for the Brokerage and Development activities

 Tameer Towers should not be associated with Gemstone

 Sorouh Agreement: Target to close end of May

 Imperial: Review of Legal Cases

 Tameer Jordan: Provide Legal Cost detail and review open cases

 Tatweer UAQ:
 Will the obligation to invest persist in the MOA?
 Transfer of Shares?
C O N F I D E N T I A L

 Expenses?
 Need to review full financial information

 JVT plots: We should not settle with Nakheel at this moment. First we need to sort out the title deeds and the authority to sell the plots.

 Keep Review of Assets: Check the 2 plots in Al Jawzaa

 Jordan Plots: Legal status. Action plan

 Corporate Governance: Recover files with Advice from E&Y


A N D

 Imperial Sales: Approved initial list of 20 apartments

 BB002 and BB004: Prepare Goals/Budget to get the approvals to maximize the potential of the plots
P R I V A T E

 Appoint Design Reviewer

 Present Business Model of Spa Operators

 Court Case of ARP/Attachment of TT equipment: The case is settled? Check with Al Rajhi Holding

 Close Hanna Mourey case paying 8.5 million and transfer Sharjah Plots
S T R I C T L Y

 HUDC: Follow up with Zaidan on the Prime Minister approval

46
Other Commercial Revenues
New Commercial Revenues segregated into Revenue Sources- Mar 2013 : May 2014 (AED)

Net to
Sources Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13
13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14
THI
Brokerage- Resales 182,068 84,708 105,312 56,694 285,333 49,212 77,880 160,100 116,722 - 200,367 42,521 28,750 47,520 63,899 1,501,086

Brokerage Leasing 42,006 25,787 37,775 16,294 9,350 8,525 44,550 33,542 5,638 20,796 17,875 2,869 14,981 9,180 341,575
52,408
Leasing Income - - - - 310,414 482,700 69,441 620,208 1,253,527 2,736,289

Signage Income - - 162,000 48,000 162,000 162,000 - 534,000


Total THI Income
224,074 110,495 305,086 120,988 294,683 530,151 122,430 193,642 767,059 20,796 218,242 114,832 663,938 1,353,455 73,079 5,112,950
From Above
C O N F I D E N T I A L

Net Income to THI


A N D
P R I V A T E
S T R I C T L Y

47
Tameer: General & Administrative expenses
Following is the break down of G&A expenses by nature of expense

Month Ended May 31, 2014


Month Ended Month Ended
Tameer
Tameer UAE Budget 2014 Total April 30, 2014 March 31, 2014
Jordan
Salaries & Allowances
Salaries -Existing Employees
Basic, HRA, Conveyance & Others 816 - 816 1,288 1,494
School Fee Reimbursement 34 - 34 - 18
Other Allowances - - - - -
Mobile Phone Allowance 7 - 7 9 12
Overtime 5 - 5 7 5
861 - 861 1,305 1,528
Other Benefits- Existing Employees
C O N F I D E N T I A L

Staff Visa 41 - 41 - 7
Other Staff Related Expenses (15) - (15) - -
Conveyance & Transportaion 3 - 3 - 2
Medical Insurance 25 - 25 58 58
Life Insurance - - - - -
54 - 54 58 67
Payroll Related Provisions- Existing Employees
Gratuity Provision 15 - 15 83 83
A N D

Leave Salary Provision - - - - -


Air Passage Provision 20 - 20 50 50
P R I V A T E

35 - 35 133 133

Total Salaries & Benefits- Existing Employees 949 - 949 1,496 1,728
S T R I C T L Y

G&A expenses continued in next slide

48
Tameer: General & Administrative expenses
Following is the break down of G&A expenses by nature of expense

Month Ended May 31, 2014


Month Ended Month Ended
Tameer
Tameer UAE Budget 2014 Total April 30, 2014 March 31, 2014
Jordan

Rent 13 - 13 13 11
Office Maintenance/Utilities 5 - 5 7 9
Business Travel 4 - 4 30 4
Security Service 27 - 27 27 27
Recruitment - - - - -
Insurance - - - - 18
Communication 12 - 12 29 8
Courier and Postage - - - - 15
C O N F I D E N T I A L

Stationary and Other Supplies 7 - 7 - 0


Business Entertainment - - - - 2
Pantry and Staff Expenses 6 - 6 - 7
Audit and Professional Fees 16 - 16 10 10
Collection Incentive - - - - 10
Legal 1,246 - 1,246 723 875
Trade Licence and Government Fees 3 - 3 101 114
A N D

IT Maintenance & Software License 0 - 0 10 17


Vehicle Fuel, Maintenance and Insurance 28 - 28 7 17
Others 1 - 1 401 406
P R I V A T E

1,368 - 1,368 1,357 1,550

2,317 - 2,317 2,853 3,278


S T R I C T L Y

49
Gemstone: General & Administrative expenses
Following is the break down of G&A expenses by nature of expense

Month Ended May Month Ended April Period Ended May


31, 2014 30, 2014 31, 2014

Salaries & Allowances


Salaries -Existing Employees
Basic, HRA, Conveyance & Others 690 242 1,753
School Fee Reimbursement 24 - 24
Other Allowances - -
Mobile Phone Allowance 5 1 9
Overtime 2 1 8
720 244 1,793
Other Benefits- Existing Employees
C O N F I D E N T I A L

Staff Visa 11 - 30
Other Staff Related Expenses 5 5 13
Medical Insurance 10 3 22
26 8 64

Payroll Related Provisions- Existing Employees


Gratuity Provision 26 9 65
A N D

Leave Salary Provision - 53 70


Air Passage Provision 7 2 17
32 63 152
P R I V A T E

Total Salaries & Benefits- Existing Employees 778 315 2,010


S T R I C T L Y

G&A expenses continued in next slide

50
Gemstone: General & Administrative expenses
Following is the break down of G&A expenses by nature of expense

Month Ended May Month Ended April Period Ended May


31, 2014 30, 2014 31, 2014

Rent 37 37 299
Office Maintenance/Utilities 12 - 14
Business Travel 2 - 2
Security Service - -
Recruitment 17 - 130
Insurance - -
Communication 10 - 34
Incorporation Expense - - 171
Trade Licence and Government Fees - 61 61
C O N F I D E N T I A L

Courier and Postage - -


Stationary and Other Supplies 5 11 16
Business Entertainment - -
Pantry and Staff Expenses 5 - 5
Audit and Professional Fees 12 6 47
Training- Manangement and Staff - -
Collection Incentive - -
A N D

IT Maintenance & Software License 14 7 34


IT Maintenance & Software License - -
P R I V A T E

Vehicle Fuel, Maintenance and Insurance 1 - 1


Legal Expense 130 - 130
Others 500 0 510
745 122 1,453
S T R I C T L Y

1,524 438 3,462

51
Top Spot: General & Administrative expenses
Following is the break down of G&A expenses by nature of expense

Month Ended May Month Ended April Period Ended May


31, 2014 30, 2014 31, 2014

Salaries & Allowances


Basic, HRA, Conveyance & Others 218 243 461
School Fee Reimbursement - - -
Other Allowances 9 2 11
Mobile Phone Allowance 1 1 2
Overtime - - -
228 246 473
Other Benefits- Employees
Staff Visa 22 22
Other Staff Related Expenses 3 3
Medical Insurance 4 4
29 - 29
C O N F I D E N T I A L

Payroll Related Provisions


Gratuity Provision 8 9 17
Leave Salary Provision 16 16 32
Air Passage Provision 2 2 3
26 27 52

Total Salaries & Benefits 283 272 555


A N D

Rent 46 46 229
Office Maintenance/Utilities 3 3 10
Incorporation Expense - - 40
P R I V A T E

Recruitment Advertisement - - 8
Stationary and Other Supplies 8 9 18
Pantry and Staff Expenses 3 - 3
Audit and Professional Fees 2 2 10
IT Maintenance & Software License (71) 9 17
S T R I C T L Y

Others 1 - 2
(8) 70 337

274 342 891

52
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

53
Current inventory pricing
Current Inventory pricing Vs proposed prices in June 2013
New
Proposed Current
Price/Sqft - Weighted Avg
proposed in Price/Sqft of
Project (AED) June 2013 Inventory
Princess 1,430 1,600
Princess Retail 6,500 7,000
Elite 1,400 1,600
Elite Retail 3,250 3,500
Palace Residential 660 750
Palace Retail 498 550
C O N F I D E N T I A L

Palace Commercial 451 450


Silver 800 900
Silver Retail 1,500 1,000
Regal 1,050 1,250
Regal Retail 1,700 1,500
Jawza 550 700
Jawza Retail 400 500
A N D

Imperial1 720 1,240


Imperial Retail 1,000 1,200
P R I V A T E

1 Branded Hotel Apartments


S T R I C T L Y

54
New Sales: May 2014
New sales- May 2014- THI & MADA inventory

Project Unit Code Final Selling Price Net Area Price / Sqft
Elite Residence ELTRS-054-5402 2,800,000 1,318 2,125

Palace Tower PLCTO-012-1203 960,000 2,360 407


Total 3,760,000 3,678
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

55
New Sales; Leasing: May 2014- Secondary market
New sales- May 2014- Secondary market sales

Primary Agent Commision


Project Unit Code Final Selling Price Net Area Price / Sqft Tameer Commission
Commission Earned
Silver Tower SLVTS-025-2502 1,328,630 1,131 1,175 18,601 7,972 26,573
Silver Tower SLVTS-025-2503 1,217,457 1,036 1,175 17,044 7,305 24,349
Silver Tower SLVTS-025-2504 1,362,652 1,160 1,175 19,077 8,176 27,253
Total 3,908,739 3,327 54,722 23,452 78,175

Leasing May 2014- Secondary market leasing

Building Unit Number BR Price % Amount


C O N F I D E N T I A L

Princess Tower 4810 1 100,000 2.5% 2,500


Regal Tower 1108 Office 174,570 2.5% 4,364
Princess Tower 2502 1 95,000 2.5% 2,375
Silver tower 1704 Office 115,100 2.5% 2,878
Total 484,670 12,117
A N D
P R I V A T E
S T R I C T L Y

56
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

57
Customer Status
Board
Net
Sellable Sale Price / NR/ Approved
Current Status Units Sales Paid Paid / sqft Paid % Remaining BaP/sqft
Area sqft sqft Value
NR
BaP
Al Jawzaa 186 157,146 93,168,191 593 88,712,323 565 95% 4,455,868 34 61,200,615 389
Fully Paid 161 138,432 80,846,260 584 80,838,942 584 100% 7,318 0 53,715,175 388
Committed - Paid Off 154 126,907 76,978,039 607 76,970,721 607 100% 7,318 0 50,762,720 400
MADA 6 11,052 3,868,221 350 3,868,221 350 100% 0 0 2,763,015 250
Tameer Inventory 1 474 0 0 0 0 #DIV/0! 0 0 189,440 400
Committed 8 5,855 4,066,950 695 3,246,111 554 80% 820,839 155 2,341,800 400
Legal 2 2,013 1,252,323 622 1,136,135 564 91% 116,188 65 805,160 400
Termination 15 10,846 7,002,658 646 3,491,135 322 50% 3,511,523 330 4,338,480 400
Silver Tower 265 350,281 468,450,466 1,337 423,902,739 1,210 90% 44,547,727 127 239,323,860 683
C O N F I D E N T I A L

Fully Paid 221 292,036 361,670,301 1,238 361,670,301 1,238 100% 0 0 201,201,265 689
Committed - Paid Off 214 278,710 349,608,078 1,254 349,608,078 1,254 100% 0 0 182,849,212 656
MADA 7 13,326 12,062,224 905 12,062,224 905 100% 0 0 18,352,053 1,377
Legal 42 55,620 100,853,110 1,813 60,208,880 1,083 60% 40,644,230 731 36,522,910 657
Termination 2 2,626 5,927,055 2,257 2,023,558 771 34% 3,903,496 1,425 1,599,684 609
Regal Tower 266 401,652 506,397,064 1,262 481,846,525 1,200 95% 24,550,539 60 304,279,628 758
Fully Paid 239 360,544 446,833,613 1,240 446,800,201 1,240 100% 33,413 0 274,306,104 761
Committed - Paid Off 214 315,856 403,157,999 1,276 403,124,586 1,276 100% 33,413 0 233,130,251 738
A N D

MADA 25 44,688 43,675,614 983 43,675,614 983 100% 0 0 41,175,853 927


Committed 5 8,019 10,935,009 1,364 8,912,360 1,111 82% 2,022,649 247 5,857,680 730
P R I V A T E

Legal 9 12,917 16,993,389 1,316 12,820,839 993 75% 4,172,550 329 9,398,715 728
Termination 13 20,172 31,635,053 1,568 13,313,125 660 42% 18,321,928 903 14,717,128 730
Elite Residence 700 1,090,962 1,514,102,773 1,388 1,430,560,767 1,311 94% 83,542,506 71 1,309,802,903 1,201
Fully Paid 661 1,023,691 1,388,821,565 1,357 1,388,822,064 1,357 100% 1 0 1,228,386,577 1,200
Committed - Paid Off 654 997,296 1,338,580,557 1,342 1,338,581,057 1,342 100% 1 0 1,180,606,759 1,184
S T R I C T L Y

MADA 7 26,395 50,241,008 1,903 50,241,008 1,903 100% 0 0 47,779,818 1,810


Legal 24 46,403 85,349,717 1,839 31,125,574 671 36% 54,224,143 1,253 57,194,877 1,233
Termination 15 20,868 39,931,491 1,914 10,613,129 509 27% 29,318,362 1,300 24,221,450 1,161

58
Customer Status
Board
Net
Sellable Sale Price / NR/ Approved
Current Status Units Sales Paid Paid / sqft Paid % Remaining BaP/sqft
Area sqft sqft Value
NR
BaP
Princess Tower 771 1,325,994 1,414,209,730 1,262 1,390,971,888 1,242 98% 23,242,420 25 1,632,004,203 1,457
Fully Paid 757 1,303,026 1,373,785,160 1,248 1,373,789,739 1,248 100% 0 0 1,603,037,133 1,457
Committed - Paid Off 749 1,291,816 1,340,716,073 1,231 1,340,720,652 1,231 100% 0 0 1,575,012,483 1,446
MADA 8 11,210 33,069,087 2,950 33,069,087 2,950 100% 0 0 28,024,650 2,500
Committed 2 3,902 7,602,575 2,352 6,842,318 2,117 90% 760,257 235 5,703,280 1,764
Legal 2 4,046 6,597,822 1,971 3,679,692 1,099 56% 2,918,130 1,111 4,719,405 1,410
Termination 10 15,021 26,224,172 1,997 6,660,139 507 25% 19,564,033 1,662 18,544,384 1,412
Palace Offices 165 392,331 278,637,940 710 272,394,994 694 98% 6,242,966 18 202,162,265 515
Fully Paid 159 379,890 268,304,279 706 268,304,299 706 100% 0 0 195,717,076 515
C O N F I D E N T I A L

Committed - Paid Off 156 359,457 258,864,113 720 258,864,133 720 100% 0 0 184,607,671 514
MADA 3 20,434 9,440,166 462 9,440,166 462 100% 0 0 11,109,406 544
Legal 1 2,035 1,666,258 819 1,666,258 819 100% 0 0 1,115,797 548
Termination 5 10,406 8,667,403 833 2,424,436 233 28% 6,242,966 598 5,329,392 512
Palace Residences 422 287,409 207,249,105 721 206,062,725 717 99% 1,186,380 6 156,707,727 545
Fully Paid 416 284,328 204,921,681 721 204,921,681 721 100% 0 0 154,985,175 545
Committed - Paid Off 416 284,328 204,921,681 721 204,921,681 721 100% 0 0 154,985,175 545
Legal 3 1,588 1,219,874 768 698,024 439 57% 521,850 330 893,154 562
A N D

Termination 3 1,493 1,107,550 742 443,020 297 40% 664,530 447 829,398 556
Imperial Residence 318 388,907 367,433,190 945 267,462,587 688 73% 99,970,603 258 194,399,697 500
P R I V A T E

Fully Paid 40 50,406 47,221,994 937 47,131,582 935 100% 90,413 2 24,556,714 487
Committed - Paid Off 40 50,406 47,221,994 937 47,131,582 935 100% 90,413 2 24,556,714 487
Committed 211 253,460 228,185,161 900 191,244,664 755 84% 36,940,496 151 126,941,162 501
Legal 11 16,743 17,942,177 1,072 12,496,800 746 70% 5,445,377 321 8,511,182 508
Termination 56 68,299 74,083,858 1,085 16,589,541 243 22% 57,494,318 833 34,390,638 504
S T R I C T L Y

1
Grand Total 3,093 4,394,683 4,849,648,458 1,158 4,561,914,548 1,089 94% 287,739,008 69 4,099,880,898 979

1 Grand Total of All Dubai Projects including previous slide

59
Change of customer status since last month
Change of customer status since last month on account of terminations barring Imperial

Net Remaining Net Remaining


Current Status Difference
NR- May 30 2014 NR- Apr 30 2014
Al Jawzaa
Committed - Paid Off 7,318 3,659 3,659
Committed 820,839 863,214 (42,374)
Legal 116,188 116,188 -
Termination 3,511,523 3,511,523 -
Al Jawzaa Total 4,455,868 4,494,583 (38,715)
Silver Tower
Committed - Paid Off 0 0 -
Committed - - -
Legal 40,644,230 40,644,230 -
Termination 3,903,496 3,903,496 -
Silver Tower Total 44,547,727 44,547,727 -
Regal Tower
Committed - Paid Off 33,413 - 33,413
Committed 2,022,649 2,261,358 (238,709)
Legal 4,172,550 4,172,550 -
Termination 18,321,928 18,321,928 -
C O N F I D E N T I A L

Regal Tower Total 24,550,539 24,755,835 (205,296)


Elite Residence
Committed - Paid Off 1 2 (1)
Committed - - -
Legal 54,224,143 54,224,143 -
Termination 29,318,362 29,318,362 -
Elite Residence Total 83,542,506 83,542,507 (1)
Princess Tower
Committed - Paid Off - - -
Committed 760,257 760,257 -
Legal 2,918,130 2,918,130 -
A N D

Termination 19,564,033 19,564,033 -


Princess Tower Total 23,242,420 23,242,420 -
Palace Offices
Committed - Paid Off - - -
P R I V A T E

Legal - - -
Termination 6,242,966 6,242,966 -
Palace Offices Total 6,242,966 6,242,966 -
Palace Residences
Committed - Paid Off - - -
Legal 521,850 521,850 -
S T R I C T L Y

Termination 664,530 664,530 -


Palace Residences Total 1,186,380 1,186,380 -

Committed - Paid Off 40,731 3,661 37,071


Committed 3,603,746 3,884,829 (281,083)
Legal 102,597,090 102,597,090 -
Termination 81,526,839 81,526,839 -
All Projects Total 187,768,406 188,012,418 (244,013)
60
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

61
Terminations Summary
Summary of Defaulting Customers Terminations – Current status & Updates since May 31 2014
Units with No Units with Units On-
On Units Currently
Total Units with Units Address and Recent Sales Units
No Address - hold Due to Units Paid Units Paid 71% to Units for "Deals" in Process for
Project Name Overdue - Paid incorrect/not in Incomplete Docs -
Legal Cases Legal/Other 61% to 70% 79%
- Units Sold
in process
Available for
DLD
less than 80% Oqood/Deceased Pending for in 2011 Termination
settlement with CC Filed Issues Termination

Princess Tower 11 3 0 6 1 - - 0 1 1

Elite Residence 33 6 0 5 21 - - 0 1 1

Silver Tower 21 - 0 1 2 - -
-
18 18

Regal Tower 16 0 0 3 8 - - 0 5 5
C O N F I D E N T I A L

Palace Towers 11 1 0 2 4 - -
-
4 4

Al Jawzaa 18 - 0 0 8 - - 0 10 10
Subtotal 110 10 0 17 44 0 0 0 0 39 39
Imperial 58 7 24 0 1 0 0 5 21 21
Category # of Units Comments on Terminations
A+B 39 Should be terminated in 60-90 days
A N D

C 0 Should Not Default


D 44 Legal- On Hold
E 27 Working on them
P R I V A T E

F 58 Imperial

General Notes on Terminations- As of May 31 2014

 We have successfully managed to terminate 3 units (2 Regal - Dubai Courts and 1 Imperial Residence), they are already moved to Tameer's name.
S T R I C T L Y

 Dubai Land Department has de-registered 2 Regal units from the Oqood system after receiving the termination decision from Dubai Courts. Till now we
have received SPA termination decision from Dubai Courts for 5 units (4 Regal Tower and 1 Princess) out of which 2 Regal units
unit are already terminated.
There are 14 units remaining for termination in Dubai Courts, we have received judgment for 11 units (5 Princess, 3 Elite, 1 Regal, 1 Silver and 1 Palace)
and these units are expected to move in Tameer's name once the court procedures for SPA termination is complete.
 In compliance to DLD's requirement we have dispatched revised payment reminders to all the customers shortlisted for termination.
terminat Once the 30 days
notice period is expired we will process these cases for DLD's first termination notice. Recently DLD has revised its unit terminations
t procedure and now
they are only considering the Sales Price as the outstanding amount without any penalties.
 DLD is in process of implementing an online termination process for the units which are not in Oqood. Once this system is in place we will be terminating
the Al Jawzaa units through this system. It is expected to be implemented by the end of next month.

62
Terminations Summary
Breakdown of Units Currently in Process of Termination at DLD - As of May 31 2014

Princess Elite Silver Regal Palace Imperial


Projects Al Jawaza Total
Tower Residence Tower Tower Towers Residence

Terminated / Resolved
Final Termination through DLD 1 33 3 22 14 4 18 95
Settled / Resolved 2 19 - 17 2 1 8 49
Total 3 52 3 39 16 5 26 144

Termination in Process
Payment Reminder sent 1 1 18 5 4 10 21 60
C O N F I D E N T I A L

First DLD Termination Notice Issued 0


Newspaper Notification Published 0
Submitted for Final Removal -
Total 1 1 18 5 4 10 21 60
A N D
P R I V A T E
S T R I C T L Y

63
Summary of “No Address” Units
Summary of “No Address” Units- As of May 31 2014
Princess Elite Silver Regal Palace Imperial Al Jawzaa Total
Total No Address units - As of April 2012 19 35 5 5 4 0 0 68

New Cases discovered with No Address 7 41 30 14 20 60 17 189


Total units with No Address 26 76 35 19 24 60 17 257

Status of Units Resolved


Unit Termination through DLD (6) (58) (8) (15) (25) (4) (116)

Incomplete Documents/Incorrect in Oqood/Customer Deceased (1) (2) (1) (4)

Unit Termination through Dubai Courts (2) (2)


C O N F I D E N T I A L

Address found/Contact established and passed on to RMs (for settlement) (3) (3) (4) (3) (3) (16)

Resolved/Paid (6) (6) (1) (3) (8) (7) (31)

Legal cases filed by Customers (4) (2) (15) (2) (3) (1) (27)
Total (20) (71) (16) (16) (22) (36) (15) (196)

Cases Pending
Customers Unreachable - Processed Through Dubai Court (6) (5) (1) (3) (2) (17)
A N D

Customers with No Address but reachable - CC discussing settlement (24) (24)

Customers Unreachable - Processed Through Dubai Land Department (18) (2) (20)
P R I V A T E

Units with Difference


1 in mailing address and SPA

Total Cases Pending (6) (5) (19) (3) (2) (24) (2) (61)
S T R I C T L Y

64
Terminations- All units expected timeline
Expected timeline for the terminations to be achieved on all the units which are candidates for terminations

Project # of Unit Sum of Area Average of % Paid Market Price


Al Jawzaa 10 6,456 38 3,615,248
30-Sep-14 2 979 45 548,240
31-Oct-14 2 882 10 493,920
31-Jan-15 2 2,087 40 1,168,944
28-Feb-15 4 2,507 48 1,404,144
Elite Residence 6 7,752 25 9,923,072
31-Aug-14 1 1,562 9 1,999,104
30-Sep-14 3 3,493 32 4,471,296
30-Nov-14 2 2,697 23 3,452,672
Imperial 51 64,189 23 63,675,131
31-Jul-14 1 2,205 10 2,186,904
C O N F I D E N T I A L

31-Aug-14 5 5,344 23 5,301,060


30-Sep-14 11 14,148 22 14,034,558
31-Oct-14 8 9,416 27 9,340,285
30-Nov-14 1 1,397 45 1,385,368
31-Mar-15 25 31,680 21 31,426,957
Palace Tower 6 4,899 45 2,939,220
30-Sep-14 2 2,914 31 1,748,418
31-Dec-14 4 1,985 53 1,190,802
A N D

Princess Tower 7 7,956 24 10,183,424


30-Jun-14 2 2,080 25 2,662,413
31-Jul-14 4 4,995 23 6,393,165
P R I V A T E

30-Sep-14 1 881 30 1,127,846


Regal Tower 8 12,917 37 12,916,780
30-Jun-14 1 1,625 40 1,625,360
31-Jul-14 1 1,808 40 1,808,350
31-Aug-14 5 7,858 38 7,857,710
S T R I C T L Y

31-Oct-14 1 1,625 26 1,625,360


Silver 19 25,218 34 18,157,032
31-Jul-14 1 1,387 10 998,482
30-Nov-14 9 11,968 20 8,617,298
31-Jan-15 9 11,863 50 8,541,252
Grand Total 107 129,386 29 121,409,907

65
Collections Summary:2014
Collections summary as per different projects: YTD

Actuals Collections Palace Tower Princess Regal Tower Silver Tower Elite Residence Imperial Al Jawzaa Dubai Projects Al Ameera TT Grand Total
January 2014 2,500 4,670,900 2,214,600 436,900 380,200 Residence
847,900 1,200 8,554,200 Village - - 8,554,200
February 2014 90,500 419,200 618,400 2,780,900 2,647,900 4,480,300 538,000 11,575,200 - - 11,575,200
March 2014 6,000 134,100 1,537,400 3,042,700 1,205,300 986,100 483,000 7,394,600 - - 7,394,600
April 2014 6,000 264,900 56,800 500 579,700 6,483,000 39,200 7,430,100 - - 7,430,100
May 2014 6,000 134,100 1,693,300 3,042,700 1,077,600 986,100 509,700 7,455,500 - - 7,455,500
Total 111,000 5,623,200 6,120,500 9,303,700 5,890,700 13,783,400 1,571,100 42,409,600 - - 42,409,600

Imperial Al Ameera
Actuals Collections Palace Tower Princess Regal Tower Silver Tower Elite Residence Al Jawzaa Dubai Projects TT Grand Total
Residence Village
January 2013 18,000 7,311,400 17,457,200 966,500 17,800,800 - 157,800 43,711,700 - - 43,711,700
February 2013 9,900 5,943,300 9,869,700 88,300 17,395,800 - 568,000 33,875,000 - - 33,875,000
March 2013 305,500 1,523,400 2,266,500 - 4,571,600 43,400 635,500 9,345,900 - - 9,345,900
C O N F I D E N T I A L

April 2013 432,200 4,919,100 8,288,100 167,200 5,942,600 - 732,500 20,481,700 - - 20,481,700
May 2013 1,032,500 1,692,000 8,073,200 209,600 2,313,000 150,800 116,200 13,587,300 - - 13,587,300
June 2013 17,400 1,860,700 3,363,200 1,000 3,557,400 4,000 1,143,700 9,947,400 - - 9,947,400
July 2013 4,800 1,885,900 1,888,000 63,800 9,304,200 799,100 101,000 14,046,800 - - 14,046,800
August 2013 267,400 829,600 1,252,500 132,500 9,304,800 46,000 244,800 12,077,600 - - 12,077,600
September 2013 42,900 282,100 1,424,600 3,444,200 4,434,100 50,000 351,100 10,029,000 - - 10,029,000
October 2013 10,000 122,400 736,500 1,240,500 2,899,900 83,700 38,300 5,131,300 - - 5,131,300
November 2013 88,100 787,000 448,300 106,900 2,534,700 - 307,700 4,272,700 - - 4,272,700
December 2013 12,100 449,600 112,400 709,600 10,100 369,700 223,000 1,886,500 - - 1,886,500
A N D

Total 2,240,800 27,606,500 55,180,200 7,130,100 80,069,000 1,546,700 4,619,600 178,392,900 - - 178,392,900
P R I V A T E
S T R I C T L Y

66
Agenda

Gemstone; THI; Topspot; NewCo – Current & Planned Activities


Corporate Governance Structure; Vision , Mision and Core Values
Dubai Real Estate Market Summary
Gemstone; THI- Assets discussion

Gemstone; THI- Development Updates; Dev Strategy & Cashflow Projections


Gemstone; THI; Topspot- Actuals Vs Projected for YTD 2014
Other Issues
Other Revenues; G&A expenses

Inventory Pricing; New Sales; Leasing


THI Current Projects – Customer Status; Handovers
M A T E R I A L

THI Current projects- Terminations; Collections


Appendix
D I S C U S S I O N

67
Units- Legal Cases Summary
Units- Legal Cases Summary
Values
Project Customer legal Comment Proposed Action Plan SPA Area Sale amount Amount paid % PMT Net Remaining Legal Date
Al Jawzaa Mohamad Elsamad Agreed with the Bank to refund Agreed
- waiting
withfor
thebank
Bank to refund 893 580,623 464,435 80% 116,188 30-Jun-15
Omar Barikhan Client not willing to negotiate(blank) 1,120 671,700 671,700 100% -
Al Jawzaa Total 2,013 1,252,323 1,136,135 90% 116,188 30-Jun-15
Elite Residence Adel Atta Atta To continue in court To continue in court 3,692 6,576,652 5,247,681 80% 1,328,971 31-Jul-15
Adel Bukhowa To continue in court To continue in court 14,652 33,700,520 6,740,004 20% 26,960,516 30-Jun-14
Elena Tselishcheva Reselling 2 small units as first Resell
settlement
small units 5,917 8,395,234 5,037,137 60% 3,358,097 30-Jun-15
Georges Chikhani Under negotiation Meeting with client 1,136 1,374,076 1,374,076 100% - 30-Dec-14
Ioannis Fekkas To continue in court To continue in court 1,562 2,014,722 1,813,250 90% 201,472 31-Jul-15
Nagham Kaouk Not willing to negotiate To continue in court 1,136 1,324,110 1,324,106 100% 4 30-Apr-14
Ravin Sakhrani Client does not want to settleContinue
on Tameer
legal
terms 18,309 31,964,404 9,589,321 30% 22,375,083
Elite Residence Total 46,403 85,349,717 31,125,574 39% 54,224,143 31-Jul-15
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

68
Units- Legal Cases Summary
Units- Legal Cases Summary
Project Customer legal Comment Proposed Action Plan SPA Area Sale amount Amount paid % PMT Net Remaining Legal Date

Princess Tower
Kamyar Siavakhshirad Offer 250k? FT to confirm Offer 250k? FT to confirm 2,034 3,132,542 3,132,542 100% -
offer 200k - Client rejected
RIAD ALASADI the offer will continue legal Continue legal 1,314 3,465,280 547,150 16% 2,918,130 30-Jun-15
Princess Tower Total 5,381 9,637,100 6,718,970 72% 2,918,130 30-Jun-15
Client does not want to
Regal Tower Antoine Massad settle on Tameer terms 1.5mm in discussion FT 8,073 10,413,951 7,289,769 70% 3,124,182 30-Jun-15
Client does not want to
Ebrahim Al Sada settle on Tameer terms Continue legal 1,808 2,336,391 1,752,293 75% 584,098 30-Jun-15
Mohammad-Reza Arefpour Target Termination Target Termination 1,593 4,619,909 1,385,973 30% 3,233,936 30-Jun-15
Olexandr Olenyev Waiting for expert report to discuss in June 1,518 2,118,888 2,079,450 98% 39,438 30-Jun-15
Client wants to waive net
Panchenko Igor remaining Continue legal 1,518 2,124,159 1,699,327 80% 424,832 30-Jun-15
C O N F I D E N T I A L

Regal Tower Total 14,510 21,613,298 14,206,812 70% 7,406,485 30-Jun-15


Offer 10mm to settle the
Silver Tower Abdel-Hamid Alhashlmoun Client refuse deal case 13,303 19,288,698 19,145,198 99% 143,499 30-Jun-15
AOS Investment Corporation Under negotiation Seek advice from DLD 5,158 7,652,082 7,652,082 100% - 30-Aug-14
GTS Property Holding Limited 0 (blank) 2,672 3,574,398 3,574,398 100% -
Mohammad Sajwani Continue legal case Continue legal case 13,040 20,341,789 10,170,893 50% 10,170,897 30-Jun-14
SALEH BENIS Target Termination Target Termination 13,303 37,912,296 7,582,462 20% 30,329,834 30-Jun-15
Silver Tower Total 55,620 100,853,110 60,208,880 69% 40,644,230 30-Jun-15
Grand Total 125,488 220,785,866 115,476,689 61% 105,309,176 31-Jul-15
A N D
P R I V A T E

Grand Total including the projects shown in previous slide


S T R I C T L Y

69
Handovers Process
Handovers Process

Handed Over Units Handovers Remaining


Al Jawzaa,
Regal, 237 157
Regal, 7
Silver, 221

Al Jawzaa, 12

Princess, 756 Princess, 3


Elite, 655

Silver, 0
C O N F I D E N T I A L

Elite, 6

Total Handovers Remaining Handovers


Till Date – 2026 Till Date – 28
Handover Analysis
A N D

Al Jawzaa Silver Elite Princess Regal Total Total %


P R I V A T E

Total Units 186 100% 265 100% 700 100% 771 100% 266 100% 2,188 100%
Handover Complete 157 84% 221 83% 655 94% 756 98% 237 89% 2,026 93%
Termination 15 8% 2 1% 15 2% 10 1% 13 5% 55 3%
Legal 2 1% 42 16% 24 3% 2 0% 9 3% 79 4%
S T R I C T L Y

Remaining 12 6% 0 0% 6 1% 3 0% 7 3% 28 1%
Fully Paid 4 2% 0 0% 6 1% 1 0% 2 1% 13 1%
Not Fully Paid 8 4% 0 0% 0 0% 2 0% 5 2% 15 1%
70
Al Jawza Units- Pending Handovers
Al Jawza Units- Pending Handovers

Adjusted 1
Net
Row Labels Sum Sellable Sale amount Amount paid
Remaining
Area

Al Jawzaa 186 157,146 93,168,191 88,712,323 4,455,868


Committed - Paid Off 161 138,432 80,846,260 80,838,942 7,318
Handover Finished 157 135,290 78,944,192 78,944,192 0
Handover Not Done 4 3,142 1,902,068 1,894,750 7,318
Blocked by Court 3 2,077 1,219,256 1,211,938 7,318
Client Not Reachable/Wrong Contact Details 1 1,065 682,812 682,812 0
Committed 8 5,855 4,066,950 3,246,111 820,839
Handover Not Done 8 5,855 4,066,950 3,246,111 820,839
Blocked by Court 5 3,078 1,993,686 1,558,542 435,144
C O N F I D E N T I A L

Client requesting payment schedule to settle amount due & take Handover 1 538 322,344 196,627 125,717
Bank Finance 1 1,120 1,120,000 896,000 224,000
Other Reasons 1 1,120 630,920 594,941 35,979
Legal 2 2,013 1,252,323 1,136,135 116,188
Termination 15 10,846 7,002,658 3,491,135 3,511,523
A N D
P R I V A T E
S T R I C T L Y

71
Silver Units- Pending Handovers
Silver Units- Pending Handovers

Adjusted
1 Net
Row Labels Sum Sellable Sale amount Amount paid
Remaining
Area

Silver Tower 265 350,281 468,450,466 423,902,739 44,547,727


Committed - Paid Off 221 292,036 361,670,301 361,670,301 0
Handover Finished 221 292,036 361,670,301 361,670,301 0
Legal 42 55,620 100,853,110 60,208,880 40,644,230
Termination 2 2,626 5,927,055 2,023,558 3,903,496
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

72
Elite Units- Pending Handovers
Elite Units- Pending Handovers

Adjusted
Net
Row Labels Sum Sellable Sale amount Amount paid
Remaining
Area

Elite Residence 700 1,090,962 1,514,102,773 1,430,560,767 83,542,506


Committed - Paid Off 661 1,023,691 1,388,821,565 1,388,822,064 1
Handover Finished 655 1,015,810 1,378,375,179 1,378,375,679 0
Handover Not Done 6 7,880 10,446,386 10,446,385 1
Out of Country 2 3,124 4,318,188 4,318,188 0
Client Not Reachable/Wrong Contact Details 2 2,271 2,792,747 2,792,746 1
Bank Finance 2 2,486 3,335,451 3,335,451 0
Legal 24 46,403 85,349,717 31,125,574 54,224,143
Termination 15 20,868 39,931,491 10,613,129 29,318,362
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

73
Princess Units- Pending Handovers
Princess Units- Pending Handovers

Adjusted 1
Net
Row Labels Sum Sellable Sale amount Amount paid
Remaining
Area
Princess Tower 771 1,325,994 1,414,209,730 1,390,971,888 23,242,420
Committed - Paid Off 757 1,303,026 1,373,785,160 1,373,789,739 0
Handover Finished 756 1,301,437 1,372,406,373 1,372,410,952 0
Handover Not Done 1 1,589 1,378,787 1,378,787 0
Re-Schedule Handover 1 1,589 1,378,787 1,378,787 0
Committed 2 3,902 7,602,575 6,842,318 760,257
Handover Not Done 2 3,902 7,602,575 6,842,318 760,257
Client Not Reachable/Wrong Contact Details 2 3,902 7,602,575 6,842,318 760,257
Legal 2 4,046 6,597,822 3,679,692 2,918,130
C O N F I D E N T I A L

Termination 10 15,021 26,224,172 6,660,139 19,564,033


A N D
P R I V A T E
S T R I C T L Y

74
Regal Units- Pending Handovers
Regal Units- Pending Handovers

Adjusted 1 Net
Row Labels Sum Sellable Sale amount Amount paid
Remaining
Area
Regal Tower 266 401,652 506,397,064 481,846,525 24,550,539
Committed - Paid Off 239 360,544 446,833,613 446,800,201 33,413
Handover Finished 236 355,980 440,919,361 440,919,361 0
Handover Not Done 3 4,564 5,914,252 5,880,840 33,413
New Sale 1 1,808 1,922,904 1,922,904 0
Client Not Reachable/Wrong Contact Details 1 1,593 2,479,223 2,479,223 0
Payment Plan Confirm 1 1,163 1,512,126 1,478,713 33,413
Committed 5 8,019 10,935,009 8,912,360 2,022,649
C O N F I D E N T I A L

Handover Not Done 5 8,019 10,935,009 8,912,360 2,022,649


Payment Plan Confirm 1 1,206 1,650,013 1,582,678 67,335
Re-Schedule Handover 3 4,908 6,577,433 5,019,875 1,557,559
Re Sale 1 1,905 2,707,563 2,309,807 397,756
Legal 9 12,917 16,993,389 12,820,839 4,172,550
Termination 13 20,172 31,635,053 13,313,125 18,321,928
A N D
P R I V A T E
S T R I C T L Y

75
Imperial- Project Facts
Imperial- Project Facts

 Imperial is located in Jumeirah Village South on Al Khail Road

 Imperial consists of 1B, 1G, 5P, & two-24 levels towers

 Plot size: 106,993 ft2

 Built Up Area: 1,040,135 ft2

 Units:

Podium 138 Apartments


Podium 26 Retail shops
C O N F I D E N T I A L

Tower A 188 Apartments


Tower B 188 Apartments
Total 540 Units
A N D
P R I V A T E
S T R I C T L Y

76
Recent Facts – Imperial Residence
Imperial Residence Recent Facts

Event Date
Retendering March 2012
MC Award (LOA) to Bhatia July 2012

Construction Re-commencement September 2012

Contractual Completion 22 February 2014

Anticipated Completion 15 May 2014


Customer communications at completion commenced
C O N F I D E N T I A L

Conversion to Serviced Apartments initiative December 2013

Due Diligence with Messrs.' AURIS. LOI signed 14 January 2014

Creation report of requirements by AURIS completed


A N D

Secure consent from DTCM – NOC Achieved completed


P R I V A T E

Secure consent from Nakheel, Trakhees, EHS completed

Award consultants for ID, BOH, procurement completed


S T R I C T L Y

Design, Tender, Procurement and Modifications August 2014

Tentative completion and hand over Units November 2014

77
Imperial- Sales Status & Development Costs
Sales Status & Development Costs

Collected
Sales Revenue Avg
Total Total SqFt Units Sold Sold SqFt to Date –
to Date – AED AED/SqFt
Units (000) to Date (000) AED
In millions Sold
In millions

Podium 138 225 63 84 105 49 1,250


Tower A 188 227 158 190 160 114 842
Tower B 188 227 119 142 134 98 1,000
C O N F I D E N T I A L

Total 514 679 340 416 399 261* 959

Original Cost AED – Current Cost AED – Difference AED –


Cost Description
in millions in millions in millions
Land 65 66 1
Professional Fees 30 32 1
A N D

Construction 433 302 (130)


P R I V A T E

Statutory Fees 38 17 (21)


Commissions 37 34 (3)
Other (incl. marketing) 28 9 (19)
S T R I C T L Y

Total 631 460 (171)

* For current existing sales

78
Imperial- Soft Facts & Product
Positive impact matters for consideration
 The completion and near full occupancy of the adjacent Nakheel’s villa community

 The public parks and play areas newly completed within short walking distance of the project

 The vastly improved access to the area and Al Khail Road

 Completion of the infrastructure – streets, sidewalks, streets lighting, greenery, parks, play grounds

 A new large community mall recently announced adjacent to the site will have massive impact on the salability.

 Central location on main highway corridor /ring road

The Product
 The VE/cost cutting resulted in lowering the product class into the lower-middle
lower income category
C O N F I D E N T I A L

 The current market responds positively to higher quality products

 To increase the marketability; additional features/value were added, such as:


 Design enhancement of the common areas, lobbies
 Significant improvement of leisure amenities, podium experience and kids & gymnasium facilities
 Provide full package of appliances/white goods
 Discrete upgrades of finishes, kitchen tops, bathroom cabinets, modest ceiling treatment and light fixtures
A N D

 Introduction of some common area furnishing/palette


P R I V A T E
S T R I C T L Y

79
MADA Loan Account- LC, Cash payments and repayments
Details of MADA account in terms of amount paid to THI and repayments done by THI; Summary of new LCs to be opened

Item Description (Until M ay 31st 2014) Values- AED


LCs for ACC (327,932,173)
Cash for ACC (53,000,000)

Total Borrowing for ACC (380,932,173)

LCs for DEWA (Princess & Elite) (45,347,544)


Cash given to Tameer (57,196,211)

Total existing loan to Tameer (483,475,928)


Accrued Profit Payable to M ADA on loan (29,595,148)
C O N F I D E N T I A L

Thus Total Payable to M ADA (513,071,076)

Cash repaid to M ADA 228,545,588


1
Inventory Already Transferred to M ADA 364,011,577
Invetory Title charges recoverable from M ADA 8,464,555
Inventory Sales commission to Agents & Staff 2,989,075
Inventory Service charges paid by Tameer 2,516,377
A N D

Thus total consideration paid or transferred in Stock 606,527,173


P R I V A T E

Thus Recoverable from M ADA at M ay 31, 2014 93,456,096


S T R I C T L Y

1 Against the transferred stock of ~ 364mm, THI has already sold stocks worth 210mm (as of May 31st 2014) and the cash has been remitted to MADA in MADA’s bank account

80
Payments to the Group: MADA; Al Arrab; ARP
Payments summary made to MADA, Al Arrab and ARP till May 31st , 2014 : About 487mm transferred

DATE PAID TO FUND TRANSFERRED


DATE PAID TO FUND TRANSFERRED DATE PAID TO FUND TRANSFERRED
13-M ay-13 Al Arrab 2,500,000.00
30-Oc t-12 Al Arrab 1,000,000.00
30-Sep-12 M ADA 7,000,000.00
DATE PAID TO FUND TRANSFERRED 29-Oc t-12 M ADA 2,000,000.00
20-Sep-12 M ADA 2,000,000.00
21-M ar-13 M ADA 2,700,000.00 23-Oc t-12 M ADA 2,750,000.00
20-Sep-12 M ADA 8,000,000.00
22-Oc t-12 M ADA 2,200,000.00
DATE PAID TO FUND TRANSFERRED 20-Sep-12 ARP 2,000,000.00
18-Oc t-12 M ADA 2,500,000.00
22-Jan-13 M ADA 1,200,000.00 19-Sep-12 M ADA 7,500,000.00
18-Oc t-12 M ADA 1,600,000.00
21-Jan-13 M ADA 5,100,000.00 19-Sep-12 M ADA 7,155,382.00
14-Oc t-12 M ADA 4,000,000.00
13-Jan-13 Al Arrab 3,200,000.00 15-Sep-12 M ADA 4,500,000.00
10-Oc t-12 M ADA 4,000,000.00
C O N F I D E N T I A L

12-Jan-13 Al Arrab 1,700,000.00 13-Sep-12 M ADA 5,000,000.00


7-Oct-12 M ADA 5,000,000.00
5-Jan-13 M ADA 10,000,000.00 9-Sep-12 Al Arrab 500,000.00
21,200,000.00 4-Oct-12 M ADA 2,500,000.00
Total- Jan 2013 9-Sep-12 M ADA 4,000,000.00
Total- Oct 2012 27,550,000.00
6-Sep-12 Al Arrab 500,000.00
DATE PAID TO FUND TRANSFERRED
6-Sep-12 Al Arrab 2,000,000.00
19-Dec-12 M ADA 1,950,000.00
19-Dec-12 M ADA 515,208.10 4-Sep-12 M ADA 5,000,000.00

19-Dec-12 M ADA 1,450,000.00 5-Sep-12 Al Arrab 3,000,000.00


19-Dec-12 M ADA 1,300,000.00
Total- Sep 2012 58,155,382.00
A N D

12-Dec-12 Al Arrab 3,000,000.00


3-Dec-12 M ADA 2,500,000.00 FUND
10,715,208.10 DATE PAID TO
Total- Dec 2012
P R I V A T E

TRANSFERRED

6-Aug-12 M ADA 10,000,000.00


DATE PAID TO FUND TRANSFERRED
28-Nov-12 M ADA 1,900,000.00 6-Aug-12 M ADA 2,000,000.00
27-Nov-12 M ADA 8,100,000.00
26-Nov-12 M ADA 8,000,000.00 13-Aug-12 Al Arrab 4,000,000.00 FUND
S T R I C T L Y

DATE PAID TO
25-Nov-12 Al Arrab 2,000,000.00 13-Aug-12 Al Arrab 2,000,000.00 TRANSFERRED
4-Nov-12 M ADA 2,025,000.00
25-Jul-12 M ADA 3,000,000.00
1-Nov-12 M ADA 600,000.00 26-Aug-12 M ADA 6,000,000.00
1-Nov-12 M ADA 3,000,000.00 26-Jul-12 M ADA 4,000,000.00
26-Aug-12 ARP 2,000,000.00
Total- Nov 2012 25,625,000.00
26-Jul-12 M ADA 3,000,000.00
30-Aug-23 M ADA 9,000,000.00

Total- Aug 2012 35,000,000.00 Total- Jul 2012 10,000,000.00

81
Payments to the Group: MADA; Al Arrab; ARP
Payments summary made to MADA, Al Arrab and ARP till May 31st, 2014 : About 487mm transferred

FUND DATE PAID TO FUND TRANSFERRED


DATE PAID TO 23rd M ay 2012 Al Arrab 20,000,000
TRANSFERRED
Total- May 2012 20,000,000.00
7-Jun-12 M ADA 3,760,555.69

7-Jun-12 M ADA 7,639,444.31 FUND


DATE PAID TO
TRANSFERRED
7-Jun-12 M ADA 2,299,088.74
30-Nov-11 M ADA 12,000,000.00
7-Jun-12 M ADA 12,320,863.32 30-Nov-11 M ADA 5,000,000.00

7-Jun-12 M ADA 8,132,566.00 Total- Nov 2011 17,000,000.00


C O N F I D E N T I A L

7-Jun-12 M ADA 9,549,358.86

11-Jun-12 M ADA 3,698,123.08

Total- Jun 2012 47,400,000.00

Summary of payments with respect to total dues (Till May 31st 2014)
Project Total due Amount Paid Inventory sold Total Paid
A N D

M ADA 483,475,928 228,445,590 210,018,701 438,464,291


Al Arrab- Jawza 27,000,000 7,000,000 - 7,000,000
Al Arrab- Regal 82,999,667 38,400,000 - 38,400,000
P R I V A T E

ARP-Silver 93,086,126 4,000,000 - 4,000,000


Total 686,561,721 277,845,590 210,018,701 487,864,291
S T R I C T L Y

82
1

Remaining assets to be transferred


1. EMIA Plots

Comment Name Block Plot Status

Legal Case. Paid 630K. We should


Client paid 25% Mohammed Riddha A. Saheb Mohamed SaeedAl Ali 4 4121 offer 150K to close the case
Paid 577K. Value of plot 650K.
Offer 150K cash or 500K for the
ShahidMahboobSheikh 5 5020 plot
C O N F I D E N T I A L

Unreachable AmirMohamedYusuf 5 5237 Paid 100% (2.2mm). Unreachable


REGAL ESTATE DEVELOPERS 5 5001 100% Paid. Agreement closed
REGAL ESTATE DEVELOPERS (FZE) 5 5014 100% Paid. Agreement closed
Closed Deal , pending for registration DHAMESH VASHDEV ADNANI/YOGESHSURENDER 5 5034 Done. Already transferred
Paid 100%. Not willing to pay
transfer fee. We offering to pay
Not willing to pay registration fees Avais Ahmad 5 5238 50% of transfer fee which is 45K
A N D

2 Villa- Jumeirah Island


P R I V A T E

3 Tameer Towers
4 Tatweer Shares
S T R I C T L Y

83
Legal Statistics for Cases and Executions
Summary - Statistics for Cases and Executions

 Active status includes OA VS Bassam Freha case, ADIB case which is pending case
closure certificate and recently closed cases of Alfred Mouray, Maha Misto and Arif
Abdul Rehman; Al Sayyah Block A attachment has been removed.

 Al Ameera Village includes the recently closed case of Arif Abdul Rehman.
C O N F I D E N T I A L

 Tameer Towers includes OA VS Bassam Freha case and recently closed cases of Alfred
Mouray and Maha Misto.
Misto

 Al Sayyah Block A execution has been paid and removed from this calculation.
A N D
P R I V A T E

 Closed arbitrations waiting enforcement - are future litigations


S T R I C T L Y

84
Legal Statistics for Cases and Executions
Summary - Statistics for Cases and Executions
C O N F I D E N T I A L

 Non Customers includes ADIB as we are awaiting the case closure certificates; Al
Sayyah Block A has been removed.
A N D
P R I V A T E
S T R I C T L Y

85
Legal Trend Analysis (2013-2014)
TT, Dubai and Non-Customer Trend Analysis (2013-2014)

 We are noting a downward trend in arbitration and litigations in Tameer Towers. We suspect this is due to the increased fees in the Abu
Dhabi courts and customer reports advising that judgments are not being enforced. The entire arbitration pipeline is an indicator of the
future pipeline for litigation. Therefore, we are expecting 80+ litigations in Tameer Towers in the next year. There are already 12
finished arbitrations where we are expecting litigations.
C O N F I D E N T I A L

 We expect this downward trend to continue as our projects are delivered.


delivered However, we still have litigious customer situations in Regal,
Imperial and the Al Jawza recovery cases for the 42 units (we are not managing these on the main customer litigation tables so they are
A N D

not part of this trend analysis).


P R I V A T E
S T R I C T L Y

 Overall, we expect this to continue to decrease as activity for Tameer dies down. Any remaining litigation in this area would come from
subcontractors of the Alliance.

86
Annual Legal Budget
Annual Legal Budget- shift to monthly expenditure (instead of per case cost)
C O N F I D E N T I A L
A N D
P R I V A T E

 We have changed the presentation of the budget to reflect the shift to monthly expenditure (instead of per case cost)
S T R I C T L Y

 Eng Ahmad requested that we shift to a monthly budget of cost to adjust to the high volume of cases instead of using the fixed fee
format of AED 50,000. We shifted to this format for Tameer Towers. We have kept the AED 50,000 benchmark for Dubai Cases and as
much as possible, non customer cases that we think are simple.

87
Annual Legal Budget
Annual Legal Budget- shift to monthly expenditure (instead of per case cost)
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

88
Summary of Imperial Settlements-with
with CC Final Comments
Imperial Settlements

Month Project and Anticipated Net Area


Customer( Purchase Amount Paid Percentage Case
No. Referred to Unit(s) / Case No. Case Summary Settlement Status CC's Final Comments Market Price on Sellable (sq.
s) Price (AED) (AED) Paid (%) Type
Settlement Floor(s) Handover (AED) ft.)

1 August, 2012 Karim Imperial 1,486,698.20 1,338,027.82 90% Litigati 81/2012 C filed case on 12.02.2012 in relation to Imperial Note - please be careful in interactions with this No deal; on 25.03.2014 C 1,300,000.00 866.80
Koraytem Podium B on Dubai Court Podium B Unit 103 which is financed by C as this is a bank financed C – we do not want expects to win the case when
Unit 103 of First Emirates Islamic Bank where 90% of the other EIB-financed Cs to start insisting on a the judgment is issued on
Instance Purchase Price is paid. The SPA does not have deal. 29.05.2014.
an arbitration clause.
C asking for full refund or an apartment in
Favorable expert report issued in April, 2013 Princess or Elite. In May 2013 George told him
stating: the project was delayed but the delay that site is mobilized and project will delivered
was due to the contractor and market conditions; after 14 months or so and going legal will take
the project is active and will be completed as longer time. in June 2013, C refused to do the
scheduled by March, 2014; and Plaintiff paid site visit. Lawyer said they have a strong case.
AED 148,669.82 only and the remaining AED No deal. GC informed on 17 November 2013
1,189,358.53 was paid by EIB. that he will speak again to the C once
Development confirms that the damage from
Hearing is on 29.05.2014 for judgment in First fire has been taken care of. On 24/25 March
Instance court. 2014, C was contacted again and was unwilling
STRICTLY PRIVATE AND CONFIDENTIAL

to negotiate with T, he expects to win the case.

2 September, Chernov Imperial B 2,643,198.62 2,378,879.60 90% Litigati 752/2012 First Instance Court ruled against T on C agreed but wants a site visit once Under negotiations; on 1,250,000 and 793.60 and
2012 Alexander Units 1207 on Dubai Court 23.05.2014 to terminate the SPA and for T construction activity starts; GC was to take him 25.03.2014 C is willing to settle 1,500,000 1,111.10
and 1308 of First refund the amount paid with 9% interest because once a new contractor is appointed. GC but only at the time of handover.
Instance the C has paid 90% whereas the project is only scheduled Site Visit in June 2013 but he is on The client is out of town, and will
65% complete. Appeal Court rejected T's Appeal vacation. In September 2013, GC tried to come back only after Ramadan
and upheld the First Instance judgment on convince him to drop the case. C refused to
30.04.2014. T to file cassation by 30.06.2014 to settle due to uncertainity of by when the project
return the case to First Instance to obtain an would be delivered and decided to proceed with
expert report which shows project status as case. No deal. C was contacted again on
complete. 24/25 March 2014 to come for snagging but he
refused as he lives abroad and asked to be
contacted only at time of handover. T to try to
settle again during handover.

3 December, Riad Imperial 3,025,941.00 308,769.49 10% Litigati 752/2012 Plaintiff filed a case on 9 September 2012. C does not have the money and wants a big No deal; on 9.01.2014 C is 2,200,000.00 1,783.30
2012 Alasadi Podium D on Dubai Court Tameer filed counterclaim on 19 May 2013 to discount which is outside T's parameter. asking for a 50% discount which
Unit 301 of First terminate and keep 40% or for Plaintiff to pay net GC met with his lawyers on 9th January 2014. is outside of our parameters.
Instance remaining. They asked for a huge discount, the client to
First Instance judgment in T's favor on pay AED 700 p/ sq ft (which is a discount of
22.01.2014 to terminate SPA and for Plaintiff to 49%) No deal as our position is strong in court.
pay balance amount. Case currently in Appeal
stage.

89
Summary of Imperial Settlements-with
with CC Final Comments
Imperial Settlements

Month Project and Anticipated Net Area


Customer( Purchase Amount Paid Percentage Case
No. Referred to Unit(s) / Case No. Case Summary Settlement Status CC's Final Comments Market Price on Sellable (sq.
s) Price (AED) (AED) Paid (%) Type
Settlement Floor(s) Handover (AED) ft.)

4 April, 2013 Sobhy Imperial 1,026,301.50 923,670.00 90% Litigati 1066/2011 C filed case in Dubai Court on 31.10.2011 requesting (i) C not reachable. Lawyers Under negotiations; on 1,150,000.00 770.80
Shokry Residence A on Dubai Court termination of the SPA, and (ii) full refund of AED 923,671.00 plus contact details were provided in 20.04.2014 C is willing to settle
Unit 1703 of First AED 300,000 compensation for damages incurred. Expert report early June, 2013. GC spoke with after he went to site for
Instance submitted on 16.07.2013 stating that: (i) Eng. Ahmed Ghaffat the C again in September, 2013 Snagging. The client said to
DLD confirmed that the project is in progress, completion is at as part of regular followup. C contact him mid of July to
68% and project will complete in 18 months; (ii) new RERA went for snagging on 20 April schedule a final inspection.
Realpoint report states the completion is 72.27% as of 2014 and was happy with the Upon this visit, he will decide if
11.07.2013; (iii) delay of 15 months is accepted as beyond T's unit. Under negotiations for he takes handover, and
control but the remianing delay of 30 months is not acceptable; settlement. withdraw his legal case.
and (iv) project will be completed by October, 2014
First Instance judgment against T to cancel SPA and refund on
29.09.2013. Appeal court upheld First Instance judgment on
26.02.2014. T has filed cassation and awaiting first hearing to be
scheduled. In the interim, Plaintiff has filed execution which is in
notification.
STRICTLY PRIVATE AND CONFIDENTIAL

5 April, 2014 Gulmira Imperial 2601 1,207,147.20 548,415.44 45% Litigation209/2011 Plaintiff filed case for unit 2601, but claimed refund for two units Recently refered case. Unit has Unreachable; CC has been 1,250,000.00 820.20
Mukhtarova Dubai Court (2601 & 601). Plaintiff's units were terminated through DLD. T been terminated. C has been trying to contact C for atleast 6
of First had a favorable expert report which was issued on 18.04.2012 unreachable for last 6 months. months.
Instance stating: (i) project was registered with the DLD; (ii) anticipated
completion date with the 180 days extension was January 2011;
(iii) C was terminated through RERA and an appropriate period of
time was given to respond; and (iv) delay and suspension of the
project is due to the lack of chilled water supply.
First Instance judgment against T to reject our counterclaim,
terminate the SPA and refund C on 14.07.2013. Case in appeal
stage and has been refered to expert; awaiting appointment of the
expert.

6 April, 2014 Ulughbek Imperial A 1,471,260.00 1,180,254.25 80% Litigati 966/2013 P filed case in conciliation for expert report. Expert report was
Recently refered case on 11 May Under negotiations; CC is in 1,500,000.00 1,111.30
Fayziyev 2205 on Dubai Court submitted on 18.09.2013 stating that: (i) project is 65-68% 2014. GC could not reach C on discussions with C since
of First complete and active; (ii) Plaintiff paid 80%; (iii) project is delayed
their UAE number. Numbe in 11.05.2014 to offer to resell the
Instance by 3 years; and (iv) project needs another 1.5 years to complete.
Russia was asnwered by unit. The client is not reachable
Russian speaking person. To be for the time being. We will ask
First Instance judgment was against T to cancel SPA and refund contacted again to offer a resale. one of our russian speaking
with interest on 27.03.2014. Case is currently in appeal stage colleaugue to call him in Russia.
where the first hearing was on 20.05.2014.

Total Refund Liability (AED) 6,678,016.60

90
Legal Execution update
Expected Execution within 30 to 60 Days
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

91
Legal Execution update
Expected Execution within 30 to 60 Days
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

92
Legal Execution update
Expected Execution within 30 to 60 Days
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

93
Legal Execution update
Expected Execution within 30 to 60 Days
C O N F I D E N T I A L
A N D
P R I V A T E

Total Claims Under Execution Process: 619,531,120.70 (including ADIB’s claim for AED 533,638,888)
S T R I C T L Y

94
Legal Execution update
Key summaries

 Alfred Hana Mourey, TT A 44 floor – Tameer paid to court in full on 15 May 2014 and case is now closed and attachment on Sharjah plots
removed. On 2 April 2014, Tameer had found out that there is an attachment on the Sharjah plots with relation to this case. The amount
in execution is AED 7,284,453.99 (plus 9% interest).

 Maha Mahmoud Moustafa Misto, Tameer Tower Termination - TT B Unit 2411 – Tameer paid to court in full on 15 May 2014 and case is now
closed and attachment on Sharjah plots removed. On 2 April 2014, Tameer had found out that there is an attachment on the Sharjah plots
with relation to this case. The amount in execution is AED 257,995.61 (without interest).

 Arif Abdul Rehman, AAV Plot 98 - Tameer paid to court in full on 14 May 2014 and case is now closed and travel ban on Federico and
capture warrant have been removed. We are in process of removing previous attachments on bank account and Tameer vehicles.

 Mohammad Qamber Al Mulla Al Ali, Tameer Tower D Unit 3411 - Tameer found an attachment on Tameer’s license on 28 April 2014, which
was incorrectly made after an order for inquiry was issued by Abu Dhabi court. Tameer has requested Abu Dhabi court to issue letter to
confirm it has only inquired and did not order attachment.
C O N F I D E N T I A L

 Raafat Mohammed Ali, Tameer Tower A Unit 3903 – T learned on 5 May 2014 that there was an attachment on THI license re this case.
Prestige submitted request to court to permit renewal, but judge refused and instead scheduled hearing on 3 June 2014 for the reviewing
the same. Prestige re-submitted request to schedule hearing earlier.

 Al Sayyah, DSO Block B (Attachment on the Trade License) - Tameer obtained License renewal letter from the court on 2 April 2014. We
re-submitted a further request for change of manager on 7 April 2014,
2014 which after which we were advised to use the same letter for
both. We will use the license renewal letter to proceed with the renewal and change of manager procedures at Dubai Economic
Department.

 Mohamed Zadeh, TT A Floor 37, B Floors 42 & 50 – Tameer filed Ishkal on 22 May 2014 as we learnt on 19 May 2014 that the case has been
A N D

delegated to Dubai and the court was inquiring assets to attach. Previously, Tameer found a notice published in the newspaper on 12
March 2014, notifying Tameer of the execution. Previously, Prestige confirmed on 10 February 2014 that there are no updates since the
Plaintiff filed execution procedures in March, 2013 and Abu Dhabi court requested Dubai court to notify Tameer. Mohammed Zadeh
P R I V A T E

contacted Commercial Dpt. on 19 November 2013 requesting AED 18..9 million plus 5% interest per year or he will continue with the
execution. The amount in execution is AED 18,966,920.00 (without any calculation of interest).

 Adel Bukhowa, Elite Floor 57 – Tameer learnt on 30 May 2014 that Plaintiff started execution procedures. On 20 April 2014 cassation court
decided to stay the execution proceedings. Tameer to request court to issue letter for the same.
S T R I C T L Y

95
Summary of Omar Ayesh matters
Summary of Omar Ayesh matters

 1 Enforcement of the Arbitration Award against Omar Ayesh

 1.1 Enforcement Case


 At the hearing on 16/4/14 OA’s lawyers submitted the Arabic translation of the arbitration file in DIAC Case No 252/2009.
 At the same hearing both parties asked the Court of Appeal to move to judgment. However, the Court adjourned again requesting the
Arabic translation of the entire arbitration file in DIAC Case No 252/2009.
 On 22/4/14 Al Tamimi sent a lawyer to ask the judge why a further adjournment had been exercised by the Court of Appeal. The lawyer
was advised that the tribunal had been changed and therefore could not obtain any feedback on the issue.
 At the hearing of 5/5/14 the Tribunal adjourned for final judgment.
 Next Hearing: 18/6/14, for final judgement.

 1.2 General Precautionary Attachment (DIB) and Substantive Claim


C O N F I D E N T I A L

 On 23/4/14 Omar Al Sheik of Hadef & Partners attended a hearing on behalf of Eng Ahmad Al Rajhi. OA nor his representatives attended.
Omar Al Sheikh advised the Court of our exhaustive efforts to serve Omar Ayesh but our extensive efforts had been unsuccessful to date.
He also submitted a newspaper extract showing that we had summoned Omar Ayesh and yet he has nether responded nor attended the
hearing. Omar Al Sheikh requested an adjournment to re-summon
summon Omar Ayesh through newspaper publication. This adjournment was
granted. If Omar Ayesh fails to respond he will be considered served.
 At the hearing on 7/5/14, Omar Al Sheikh attended Court and submitted a newspaper publication showing that we have re-summoned
re
Omar Ayesh by publication and requested the Court to reserve the case for judgment.
 At the hearing on 21/5/14 the Dubai Court of First Instance passed an ex parte judgment in our favour confirming the attachment and
A N D

ordering to attach whatever monies, amounts and bank guarantees that might be deposited in the execution file no. 347/2013 for
fo the
benefit of the defendant (Omer Ayesh)) to be used for payment of the “One Hundred Eighteen Million, Six Hundred Ninety Two Thousand,
P R I V A T E

Three Hundred Seventy Two Dirhams”.”. The court ordered the defendant to pay the legal fees and AED 1,000 in advocacy fees.

 1.3 Garnishment Order and Substantive Claim


 The last hearing was on 16/4/14 during which Hadef responded to a memo submitted by DIB disputing the order.
 At the hearing on 14/5/14 Omar Al Sheikh attended Court on our behalf, as did Ali Al Zarooniu of Horizons & Co on behalf of Dubai Islamic
Bank. No advocate attended for Omar Ayesh. Omar Ayesh’s lawyers have refused to receive the summons. The matter was adjourned
S T R I C T L Y

again until 28/5/14.


 Next Hearing: 28/5/14.

 1.4 Precautionary Attachment on Central Bank Funds and Substantive Claim


 On 13/4/14 the Court granted the Precautionary Attachment Order. This attachment is a supplementary attachment to the main
attachment referenced in paragraph 1.2 above.

96
Summary of Omar Ayesh matters
Summary of Omar Ayesh matters

 On 17/4/14 the Court Order was sent by Dubai Courts to the UAE Central Bank confirming the attachment on the funds in the amount
amo of
AED 118,692,372.99.
 On 12/5/14 the Dubai Courts wrote to UAE Central Bank in order to expedite their reply of informing the judge of the status of
o the
attachment issued in paragraph 1.2 above. To date no reply has been received. Hadef are continuing to follow up regularly.

 1.5 Related Matters


 Petition for Review
 DIB submitted a Petition for Review of the Court’s decision made in favour of Omar Ayesh.
 Next Hearing: 28/5/14. Although we are not a direct party to this matter, the result of this hearing is important to the success
succ of our
applications. If DIB’s Petition for Review is successful there will be no money from which to enforce the General Precautionary
Precautiona
Attachment (DIB), Garnishment or Precautionary Attachment Against Central Bank Funds. However, Omar Al Sheik has advised that tha in his
25 years working as a lawyer in the UAE, he has never known such an application to be successful.
C O N F I D E N T I A L

 Enforcement of the Arbitration Award against Omar Ayesh:


 We require the successful enforcement of the Arbitration Award against Omar Ayesh to be able to effect the orders mentioned in
Paragraphs 1.2, 1.3 and 1.4 above.

 2. 24/26 Million
 On 5/4/14 the Court Expert submitted his report detailing his findings in regards to our counter-claims.
counter The Expert’s report was biased
towards Omar Ayesh and the Expert had failed to consider the evidence presented by us.
 On 22/4/14 Galadari attended a hearing and submitted our memorandum in response to the Court Expert’s report. Omar Ayesh also
A N D

submitted a memorandum in response to the Court Expert’s report.


 Next Hearing: 29/5/14, for the delivery of judgment. We believe that the judgment related to the additional claims and requests
reques raised
P R I V A T E

by Omar Ayesh in his memo dated 18/2/14, regarding the additional claims and requests raised by Omar Ayesh in his memo dated 18/2/14

 3 Jordan Cases

 3.1 Omar Ayesh v Mahmood Marfatia


 15/4/14: The Court held to follow the decision of the Court of Appeal to set aside the Court judgement as the judge had failed to sign the
S T R I C T L Y

draft decision. Therefore, it is highly probable that the Court will reconfirm its previous decision to reject the personal claim
c against
Mahmood Marfatia.
 At the hearing on 29/4/14 the Court adjourned the hearing to 29/5/14 for final judgment.
 Next Hearing: 29/5/14, for judgment.

97
Summary of Omar Ayesh matters
Summary of Omar Ayesh matters

 3.2 Omar Ayesh v Federico Tauber


 7/4/14: The Court filed the Court Expert report and held to rule of its contents at the end of the proceedings. Omar Ayesh repeated his
pleadings and Federico’s counsel repeated their objections thereto and his final pleading requesting the case to be withdrawn.
withdrawn
 At the hearing on 13/5/14 the Court adjourned the hearing to 8/6/14 for final judgment.
 Next Hearing: 8/6/14, for judgement.

 4 Correspondence from Omar Ayesh


 Omar Ayesh allegedly sent a letter to THI on 24/3/14, signed and sent by Rabab Biko.
 Tamimi responded to this letter on 24/3/14 stating that we do not recognise the signature on the letter as being that of Omar Ayesh.
 Omar Ayesh wrote an e-mail
mail on 8/4/14 to Federico Tauber and Aasma Khan, attaching a Power of Attorney from Omar Ayesh to Rabab
Biko. He stated that this Power of Attorney authorised Rabab Biko to sign correspondence on his behalf. However, this Power of Attorney
C O N F I D E N T I A L

did not authorise Rabab Biko to sign letters regarding the 2007 SPA on Omar Ayesh’s behalf.
 THI responded on 17/4/14 stating that the Power of Attorney attached my Omar Ayesh does not authorise Rabab Biko to sign letters
regarding the 2007 SPA on Omar Ayesh’s behalf.
 Omar Ayesh wrote to Tameer Group on 22/4/14 requesting financial information from 2008 to the present day, stating that he is a
shareholder of Tameer Group.
 On 4/5/14 we responded to Omar Ayesh’s letter dated 22/4/14 and have received no further communication from him in this regard, to
date.
A N D
P R I V A T E
S T R I C T L Y

98
Active cases table of Omar Ayesh matters
Summary of Omar Ayesh matters
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

99
Active cases table of Omar Ayesh matters
Summary of Omar Ayesh matters
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

100
The Land restructuring
Qatar Corporate restructuring

 RESTRUCTURING UPDATE

 Pursuant to the report submitted on 10 March 2014, the Legal Department recommended that the Qatar restructuring should follow Option 2,
the “Three Brother Option”.

 In follow up to that report, Nazir and Mansour asked the following questions:
questions

 In follow up that report, Nazir and Mansour have asked the following:

 1. Can we use the ACC-owned SPC to take ownership of the plots?


 The Legal Department is in the process of conducting due diligence regarding the activities of ACC Qatar (on behalf of Semeco). We have
requested the Taking Over Certificates for several of the projects that Semeco have worked on under the name ACC Qatar, as these will
have a material impact on the affect of the contractual warranty periods agreed between Simplex and ACC Qatar (on behalf of Semeco).
At this time we can draw a preliminary conclusion that the Warranty Period runs for 24 months after completion of the works and
a
C O N F I D E N T I A L

therefore residual liability will attach to ACC Qatar until at least June 2016 in respect of the projects undertaken.
 We will issue our full report by 1 June 2014 but our preliminary advice is not to use ACC Qatar to take over ownership of any of the plots.

 2. What is the status of bank secured land in execution?


 On evaluation of the advice received from Sultan Abdullah & Partners, we can advise the following:
 The banks rights under the QNB and Doha Bank Assignment Agreements are not enough to prevent an attachment.
 The bank’s exercise of its rights cannot remove an attachment, only stay auction of the asset in enforcement of the attachment.
attachmen
 The protection afforded by sale of the assets prior to execution of an award depends on the type of Award issued. If the Award
Awar
A N D

affirms a right to own the assets sold the enforcing party can seek the annulment of such a sale on the execution of the Award.
Awar If
the Award is provides for compensation, the enforcing party may only seek enforcement against the assets owned at the time of
P R I V A T E

the execution.

 In consideration of the above information, the Legal Department preliminarily recommends the following:
 (i)) we should not use ACC Qatar to take over ownership of any of the plots; and
 (ii) appointment of Addleshaw & Goddard to assist in the restructure of Qatar Operations into the “Three Brother Option” (as
S T R I C T L Y

outlined in the 10 March 2014 Restructuring Report); and


 (iii) consider the use of local counsel to achieve the necessary approvals in the Qatar Government, which we understand were
achieved last time with the assistance of Majdalani law firm. We would have to revisit the evaluation of this because Mr
Majdalani is nearing retirement and may not have the same clout.

101
The Land - Bridge Arbitration and Settlement Update
Summary of Bridge Arbitration and Settlement Update

 Settlement update regarding Bridge Cases

 On 16 April 2014, the CEO of The Land received and update from Xaiver Landrin (banking liaison of The Land). At that meeting, Donald
Jordan of Ocean Advisory told Xavier that he wanted to be in touch to settle the Bridge related cases. This is the same gentleman that
contacted Danny Rifat of Al Misnad. Aasma, Nazir, Paul and Mansour had a conference call and agreed that no further action should be taken
as this Donald Jordan did not appear to be an authorized communicator since he had been provided the correct avenue and did not follow it.

 Donald Jordan contacted Aasma Khan and requested a meeting which took place on 18 May 2014. At the meeting Mr Jordan advised he would
provide a POA, board resolutions for his authority, and a proposal.
proposal Since then, Donald Jordan has provided proof of his authority to
negotiation through proper board resolutions from the different Bridge entities and a POA which is not attested for use in Qatar. He has
since provided the attached proposal.

 Aasma then had a follow up conversation as he advised that he wanted to give the “real” numbers verbally as well as further observations.
The summary of the conversation is below:
C O N F I D E N T I A L

 1. The Bridge payment of US $123 million in the proposal can be brought down. Mr Jordan recommended ACC come back and offer US $80
million.
 2. Mr Jordan noted that theThe Salam Group just sold a tower for QR 423 million / US $115. Million. As an incomplete Tower, US $120
million is a fair number. Al Asmakh wants to get a deal. Therefore, Mr Jordan is asking that we please come back at US$105 or US$110
million for a Tower. (US $110 million is Al Asmakh resistance number according to Mr Jordan and he does not think he will pay fair market
value)
 3. Mr Jordan wants to achieve a deal everyone can live with.
 4. He keeps emphasizing that Al Asmakh's ability to solve problems with UDC should be counted.
A N D

 5. Al Asmakh has every intention of taking the TCSAs and continue the litigation to keep the Towers.
 6. [Donald is advising this confidentially and does not want to have this get back to Badr Al Meer of UDC] Donald thinks that VB plots will
P R I V A T E

be taken away from Al Rajhi and that UDC may only give some compensation back to Al Rajhi for the plots. He is purporting that th UDC is
giving us a fake carrot that if we build PA we will get VB .... UDC does not want us on VB building anything (this is what Donald
Do is saying).

 Arbitration update on Bridge Cases


 We are currently engaged in a delay strategy to the commencement of the arbitrations. We have delayed payment of the arbitration
arbitra fees
S T R I C T L Y

to 8 May 2013. We are delaying the conference call to initiate the proceedings and we have confirmed that we will not be filing
fil the
Statement of Claim on 30 April (which would be normal time frame for filing). The lawyers of Bridge have failed to provide a POA which
we can later use to try and overturn the arbitral award, so neither Deborah or I are flagging this at this time. We have completed
comp our
POAS.
 The Tribunal has confirmed that the Respondents have not paid their share of arbitration costs. The Tribunal has asked us to provide
when we will submit our statement of claim and we are debating what time frame to put in.
 The lawyers have received the ARHG emails now and are still in the process evaluating them to assess if anything of value is being
produced.
102
The Land- Qatar TVL / TVC Settlement
Summary of Settlement Status with TVL / TVC

 1 Status of the Negotiations


 On Tuesday, 20 May 2014, the ACC lawyers in the Court of Urgent Matters (Al Misnad) wrote to Aasma advising that, informally and
unofficially and without commitment, Sami Abu Shaikha,, the lawyer of TVL had approached them for a settlement offer of QR 10
million. No response has been made to this communication yet.
 On 22 April, TVL and TVC offered a final settlement offer of QR 40 million Qatari Riyals with the threat to go to arbitration.
arbitration Previous to
that, TVL and TVC have rejected ACC’s offer to pay to ACC QR 20 million, offer by ACC on 3 April 2014.

 2 Options- The management discuss four main options (although other were also raised and discussed)
 ACC can decline the offer and proceed to arbitration.
 ACC can make a counter offer for example of one million Qatari Riyals (QR 1,000,000).
 ACC can take a commercial decision to accept the payment of forty million Qatari Riyals (QR 40,000,000) subject to conditions which
would ensure that TVL/TVC leave the site forthwith and allow ACC to recommence work.
C O N F I D E N T I A L

 ACC can counteroffer around QR 20 million as final offer before going to arbitration.

 3 Cashing the TVL Cheques


 ACC holds QR 43 million of checks from TVL that can be encashed..
 The legal department obtained a written advice from Sultan Al Abdullah advocates who confirmed that under the terms of the contract
co as
well as the law of the State of Qatar, ACC is able to draw down on the checks.
 The venue for settling any dispute over the drawing down of the checks would be during the course of contemplated arbitration.
arbitration Further
to the previous discussion on 27th April 2014, another discussion on the 12th May 2014 took place where the issue of what would happen if
A N D

the checks bounced arose. Free written advice was obtained from Nada Al Suliaiti, a lawyer with over 15 years of practicing experience in
Qatar, who confirmed that Criminal action is taken against the signatory of a bounced check. The time bar for taking criminal action is
P R I V A T E

thirty days from the date the check bounced. Civil action in respect of a bounced check can also be taken against the company (in this
case TVL and TVC), the signatory and directors of the company. This civil action is separate to any arbitration proceedings despite the
arbitration clause in the agreement and the time bar arises six months from the date of the bounced check.
check

 4 Legal Department Recommendation


 We are looking at a slow summer before the court of urgent matters Towers 10b and 2b are proceeding more slowly through the courts,
c
S T R I C T L Y

and we are hoping that they will submit on 27 May. We expect that Tower2B will be finished in November 2014 and by UDC deadline, we
should finish by 31 August. With respect to Tower 10 B, we expect it to be finished September 2014 and this is within the UDC deadline
d of
31 October. We expect to finish Tower 14B by mid-June to 3rd week of June. UDC wants it done by December 2014 and we expect it to be
done by mid-2015.
 We will deliver Towers 16A, 10B and 8A before the deadline and we expect to finish later than deadline for Towers 2B and 14B.
 TVL is currently holding onto the keys of Towers 10B and 2B – but we think the UDC will break that deadlock without criminal
repercussions, which is what is feared on the ground.
 Overall, we do not see incentive to settle at this time as the damage
103 to the delivery dates is done.
Perl Blu Investigation
Summary of Perl Blu Investigation

 Evaluation of Perla Blu Case


 Summary of possible avenues for further investigation were provided to Group CEO Mansour Al Kharboush on 20 April 2014.

 Avenues of Investigation

 Option 1 – Recover money paid by the Land in connection with the Consultancy Agreement

 The additional information or questions that need to be answered to progress Option 1 are as follows:
 Are we able to ascertain financial details in relation to Rockyview and also Mr Tareq and Mr Khuskusha?
 Is there any evidence to support Ziad’s understanding that Mr Tareq was “unable to refund the $10.5 million to the Land”?
 What is the legal status of Rockyview?
 Do we have registration details of Rockyview to confirm where they are registered? I note Ziad’s memo is inconclusive on this point, but we
C O N F I D E N T I A L

are not sure whether this has in fact been investigated?


 Is Rockyview still in existence?
 Are we able to ascertain the contact details of Mr Tareq and also Mr Khuskusha? Do we know their whereabouts?

 Option 2 – Recovery of the Yacht


 The additional information and questions we have are summarized as follows:
 Do we know who received this letter in ACC? Are they still around?
 Is Russell S Homer, Managing Director (the person whose name appears on the bottom of the letter) available to discuss this letter
l with?
A N D

Have we previously attempted communication with him? [it appears that communications were made with Helm Trust, but not with Lincoln
directly. Is this because the directors stated in this letter they wish to resign?]
 In the [executed] stock transfer form that is enclosed with the letter, we need to confirm whose signature appears as signatory
signato for Lincoln.
P R I V A T E

Presumably if this person executed the stock transfer form on behalf of Lincoln, they also intended to execute the letter itself.
its Has this
been investigated?
 Did any discussions between ACC and Lincoln (the writer of the letter) take place after this letter was received by ACC?
 What happened internally after this letter was received? According to Ziad file note, the Land board of directors were not involved
in in this
S T R I C T L Y

transaction/aware of it. What happened internally in ACC? Anything? Are there any board minutes etc regarding this matter?
 Do we know when the trustee of Wesley (Lincoln) changed to Helm Trust Co Ltd?
 In relation to the 11 November 2009 email from Helm Trust to Bridge Partners and was this condition agreed upon previously by any parties?

 If this evidence is not readily available, we need the full documents that were provided by Ziad to the law firms and need to review the raw
evidence and pull data from the servers to see what contemporaneous evidence we can discover to answer the above questions and
progress a recommendation regarding either of the above legal options.
options

104
BAPCO Strategy and Recommendations
Summary of BAPCO Strategy and Recommendations

 Appointment of Lawyer
 We recommended Fehaid Al Dousary and despite his fees being much higher, we all agreed that as an ex Police investigator in the Qatari
police he had the right connections to fight this case.
 After receiving approval to instruct Al Dousary on 6 May 2014, he managed to apply enough pressure on the Public Prosecutor to close the
file in 13 days on 19 May 2014. He did this when the case dragged for more than 14-15
14 months, dragging since March 2013. The Public
Prosecutor has transferred the file to the misdemeanors court and the first hearing is scheduled on 1 June 2014. We expect that this case
will be dismissed in 2-3 hearings, as per Mr Al Dousary.

 The Case
 The legal department has undertaken a detailed analysis of the criminal case based on the charge that has been brought against
agains The Land,
Mansour Al Karboush, Emad Barameh and Melven Boutrous Zion (the “employees”).
 Mr Al Dousary has confirmed that only Mansour Al Karboush and Melven Boutrous Zion are subject to travel bans, no one else is.
C O N F I D E N T I A L

 Mr Nabil Essi has alleged fraud against the employees by re-selling


selling two residential apartments knowing that those apartments had already
been sold to BAPCO. BAPCO’s case has been assessed by Mr Al Dousary to be weak because the title of the apartments did not pass to
BAPCO, given their failure to fulfill the terms of the SPA.
 The civil case, already filed and being run by Qatari legal counsel Hind al Mirri, supports this position. The expert report finding is positive in
the Land’s favour as the expert has confirmed that the title never passed to BAPCO and as such it has no rights over the residential
apartment. Our strategy is to use the judgment in the civil dispute to prove the criminal case as non-existent
non as the underlying right is a civil
right.
A N D

 Strategy
 Mr Al Dousary agrees with our proposed strategy to: (i)) prepare a proper legal submission for the Court explaining that true ownership rests
with the UDC and the Main Contractor (ACC) has proper custody over the Tower and all its units (both law and fact support this;
thi and (ii)
P R I V A T E

prepare an independent audit report to prove that Mr Essi did not complete the payment. Approval for the quote has already been sought to
instruct the auditor. We have already instructed Basel to conduct the due diligence and expect the report by 29 May 2014. The memo
defending the title of the residential units will be prepared by 29 May as well.
 On 1 June 2014, Mr. Al Dousary will submit a memo that has been prepared by the legal department and given to him along with the audit
report demonstrating that effectively there is no criminal case of any nature whatsoever and that all charges against all employees
emp should
S T R I C T L Y

be dropped. Mr. Al Dousary will also apply to have the travel bans lifted and is confident of successfully achieving this.

 Regarding Updates to Employees


 The Legal Department notes that it is getting multiple requests for updates all the time in relation to this case. Therefore we are instituting
weekly reporting on the civil and criminal case to the following people (although nothing happens that frequently): Melven, Emad, Mansour,
Paul, Federico, Aasma, Rahul, Maheen and Khizer.
 This will be done every week on Thursday of the week and if here is no update, that is what we will report.

105
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B

 Summary of Proceedings
 There e are looking at a slow summer before the court of urgent matters Towers 10b and 2b are proceeding more slowly through the
courts, and we are hoping that they will submit on 27 May. We expect that Tower2B will be finished in November 2014 and by UDC
U
deadline, we should finish by 31 August. With respect to Tower 10 B, we expect it to be finished September 2014 and this is within the
UDC deadline of 31 October. We expect to finish Tower 14B by mid-June
mid to 3rd week of June. UDC wants it done by December 2014 and
we expect it to be done by mid-2015.
 We will deliver Towers 16A, 10B and 8A before the deadline and we expect to finish later than deadline for Towers 2B and 14B.
 TVL is currently holding onto the keys of Towers 10B and 2B – but we think the UDC will break that deadlock without criminal
repercussions, which is what is feared on the ground.
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

106
[The Land] Court of Urgent Matters; 4 Tower 16A, 10B, 2B, and 14B
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B

 The same Towers that are heading for arbitration, are also in the court of urgent matter of Qatar as well. Below is the update for each Tower

 HEARING DATES AND SCHEDULE TO START WORK


C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

*This denotes that the milestone has been achieved

107
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B

 Preparation of Reports for Tower 10B, 2B and 14B


 Last week, the development and legal teams worked day and night complete all 3 reports in parallel based on the template now
submitted for Tower 16 A.
 Below are the only remaining outstanding actions in preparation of the report for each tower. We are optimistic to deliver all
a of the as
set forth below.
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

108
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B
C O N F I D E N T I A L

[i]] ALL ANTICIPATED DATES ARE BASED ON THE PREVIOUS RECENT PATTERNS IN TERMS OF TIMEFRAMES OF ADJOURNMENTS THAT THE COURTS HAVE BEEN GIVING.
A N D
P R I V A T E
S T R I C T L Y

109
[The Land] Preparation for Arbitration for 4 Towers
[The Land] Preparation for Arbitration for Towers 2b, 10b, 16a and 14b

 As negotiations are not proceeding in an expedited fashion with TVL/TVC, the legal team is preparing for arbitration. Below are the timeline
of the due diligence and the appointment of counsel process.

 Arbitration Preparation for ACC in the TVL/TVC cases (all towers)

 Preparation Stage June – July 2014


C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

110
[The Land] Preparation for Arbitration for 4 Towers
[The Land] Preparation for Arbitration for Towers 2b, 10b, 16a and 14b

 APPOINTMENT OF COUNSEL PROCESS June – July 2014


C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

111
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B
[The Land] Court of Urgent Matters; Tower 16A, 10B, 2B, and 14B

 Observation of Al Misnad Law Firm


 Please note that the legal department will not recommend working with the law firm Al Misnad, the appointed firm in these cases. We
have found the following:
 (1) they are not able to advise on the law. We take separate advice from Sultan Al Abdulla and Partners and follow that advice
advi which has
been found to be accurate and reliable
 (2) they have objected to attendance at expert meetings and did not attend on 26 May
 (3) all the memos are being drafted by legal department in Dubai with extensive assistance from the technical team in Qatar
 (4) they have not followed orders to object when instructed and have objected on issues where we have told them not to
 (5) they are unable to even print documents to take to court and we have to print, assemble and send them all submissions
 (6) they are not capable of handling the translated documents even when told how to submit them
C O N F I D E N T I A L

 The legal department “inherited” this law firm that was selected by lawyers in KSA. Given the urgency of the matter and the fact that
hearings were very close together in multiple cases, we have decided to continue with them rather than risk disruption of the legal process
while transitioning law firms.

 This same law firm is behaving the same way in the Bridge litigations..
A N D
P R I V A T E
S T R I C T L Y

112
[The Land] Alpha Pearl / Overturning the Arbitral Award
[The Land] Alpha Pearl / Overturning the Arbitral Award

 Status of Arbitration Evaluation

 Under Qatari law, we have evaluated the following potential grounds of for overturning the arbitral award that may apply (subject to further
review by Qatari counsel:
 That the award has to be published in the name of the Emir of Qatar, failing to write this in the first sentence of the arbitration
arbit award
will result in overturning the award. This applies to our case as do the below.
 The award is voidable for procedures flaws (the arbitrator gave the Claimant consistently longer periods to respond than Respondent)
Resp
 The arbitrator made his decision on grounds that were not pleaded by either Party
 The arbitrator failed to specifically address certain claims of the Respondent
 Real estate disputes are a matter of public order
 The arbitrator has failed to sign every page of the award.
C O N F I D E N T I A L

 Jurisdiction over The Land may have been improper


 We may have the right to set aside the arbitration award pursuant to Article 207/208

 We recommend working with Sultan Al Abdulla to get our preliminary advice and later to overturn the arbitral award. However, we have now
concluded that our own analysis is quite thorough and incorporates Deborah Ruff’s observations.

 We are now looking to retain Sultan Al Abdulla to initiate overturning the arbitral award.

 Sultan Al Abdullah only works on an hourly basis. We have managed after considerable negotiation to agree that they undertake this work on
A N D

a fixed fee basis. They advise that under normal circumstances, if they were pushed for a fixed fee amount, they would charge between 5-
10% of the claim amount. This equates to $1,252,500 (US Dollars) if estimated on the middle of that range at 7.5%.
P R I V A T E

 However, given that they are trying to create a long term relationship with us, we have managed to agree with them that they would be able
to work on a fixed fee of 3% of the claim amount which would equate to approximately $500,000 (US Dollars). Once they properly evaluate
the case and see how much work we have done, there may be further scope to bring down the amount even further.

 As stated previously, we have also reviewed Saudi grounds, which are less clear and therefore still recommend proceeding in Qatar at the
earliest.
S T R I C T L Y

 The Legal Department requests approval to proceed with Sultan Al Abdulla on the basis outlined above.

113
Establishing the NEWCOs for Imperial Residences
Establishing the NEWCOs for Imperial Residences

 Asset Management Company

 In preparation for the transition of Imperial Residences to an Auris run hotel residence, the Gemstone family needs to establish 2 NEWCOS in
order to establish the operating company for this venture. The first special purpose vehicle will be of the brothers Eng Faisal Al Rajhi and Dr
Khalid Al Rajhi (NEWCO 1). NEWCO 1 will own 99% of NEWCO2, with 1% owned by Eng Faisal Al Rajhi. NEWCO 2 will be the asset management
company for the Imperial Residences that will also contract with Auris.
Auris

 This structure will protect the brothers from direct exposure and will secure the revenue stream from the operating company in favor of the
shareholders and away from Tameer Real Estate Free Zone Company that is owned by Omar Ayesh.

 We have reserved the following two names:


 Lazuli Asset Management Company [99% Lapis Lazuli Asset Management Company and 1% FAR]
 Lapis Lazuli Asset Management Company [50% KAR and 50% FAR]
C O N F I D E N T I A L

 Aasma needs a formal written approval to proceed with formation from Mansour Al Kharboush, as advised to her before Eng Faisal will sign
prepared paperwork.
A N D
P R I V A T E
S T R I C T L Y

114
Sharjah Plot Transfer Update
TRANSFER OF SHARJAH FROM TAMEER TO MOONSTONE

 The Sharjah plots are now in the name of Moonstone Investment LLC. The transaction will be completed upon the completing the following:
 Renewal of Moonstone Investment LLC license.
 Remortgaging of 2 Plots in the name of ADIB
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

115
EIGBL (Pakistan Arbitration) - Merits of Settlement
EIGBL - Merits of Settlement

 Best Case Scenario of Recovery


 Claim amount: $11,334,000 USD
 Legal fees and costs as set out below $ 1,599,345.00, we would have to foot these costs for at least 5 years through enforcement
enforcem as till
date Respondent is not paying their fees. See Point [___] below for details
 Assuming that the Centre apportions the costs on an even split basis the estimated recoverable amount could be:[ $11,334,000 USD-
1,599,345.00)]= $9.734,755 USD
 We may be able to recover up to 50% of the arbitration costs, but that is uncertain at this time and we would have carry that cost through
the enforcement stage of proceedings which is why we have deduced it from the claim amount.

 Legal Concerns – Weakness in the Legal Case and Time Value of Money
 Relevant Legal Considerations
C O N F I D E N T I A L

 The Put Option has been poorly drafted in the SPA. This opens up an avenue for the Respondents to challenge it.
 The Respondents have denied their signature on the SPA and therefore the Respondents have raised a Jurisdictional Objection (“JO”)
(
which could send us to Pakistani courts if we fail.
 The burden of proof for overcoming the JO falls on us, the Claimants.
 The Put Option has an expiration date in October 2014 as per Pakistani law since the put option was exercised on 31 October 2011.
2
 In the event that we do not face issues with the expiration date before the Pakistani Courts, litigation in Pakistan is very slow and there is
no prospect of enforcing a Pakistani Litigation Judgment in the UAE as no bilateral treaty exists.
 It is likely that enforcement in Pakistan of a Court Judgment would take substantially longer than enforcement in the UAE of an ICC
A N D

arbitration award.
 In light of the factors above, the prospects of success are medium to low and our best hope to enforce an award where we can execute on
P R I V A T E

the UAE Respondents is through arbitration, not litigation.


 We may have to commence litigation at the same time as arbitration and are looking to protect our rights. We are consulting Pakistani
P
counsel on this.
 Relevant Commercial Considerations
 The time value of the money. We believe it will take 2-3
3 years to get an arbitral award and another 2-3
2 years to enforce in the UAE. We
S T R I C T L Y

are looking at 6 years, assuming we overcome all the above legal hurdles.
 There is a degree of certainty with settling now. If the jurisdictional objection is not overcome, the only other avenue of legal
l recovery
would be before the courts of Pakistan, where even assuming we won, enforcement of a Pakistani litigation is most likely to be
b
unsuccessful as per the advice we have taken from Hadef & Partners regarding foreign litigation judgments.
 There is considerable commercial risk attached in proceeding legally for the reasons outlined above.
 Legal Recommendation
 The legal recommendation is therefore to give serious consideration to settlement as per the settlement offer detailed above.

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EIGBL (Pakistan Arbitration) - Merits of Settlement
EIGBL - Merits of Settlement

 Settlement Offer Amount Legal Recommendation


 We have assumed for the purposes of this analysis that Zubair’s Group is offering is a similar value to the Put Option – Approximately
$11,000,000 USD.

 Estimated Itemized Costs of Arbitration


C O N F I D E N T I A L
A N D

 Estimated time taken to obtain arbitral award and for enforcement


P R I V A T E

 The approximate time frame for obtaining a favorable award is: 18 months – 24 months
 The approximate time frame for enforcement proceedings to conclude is: 24 months – 36 months
 It is therefore possible that actual enforcement of the award would not happen for almost five years. (This assumes the arbitration
arbit
proceeds and overcomes the jurisdictional objection and that we win on the merits)
S T R I C T L Y

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Summary of Al Jawza B Attachment & Table of Costs
Summary of Al Jawza B & Table of Costs

 Of the first 10 customers that we identified as likely to cooperate in filing case; 3 customers (with 4 units) issued a POA and Releases in
April, 2014. Prestige Law Firm confirmed that they filed the Real Estate Recovery cases on their behalf for these 4 units on 22 May 2014 and
are due to provide the court confirmation shortly.

 None of the other customers agreed to provide a POA and Release. Legal has therefore prepared a list of the second 10 customers that are
likely to cooperate as they have paid in full 100% (please see attached the table with both the lists).

 1. Background: Main Case and General Execution


 The Arbitral tribunal has not yet been established.
 Bassam Freha filed a case against Mr Omar Ayesh and Tameer requesting AED 12,000,000 in relation to Tameer Tower A Floor 20. First
instance court decided on 29 April 2010 that Mr Omar Ayesh should return AED 12,000,000, dismiss Tameer from the case and required
C O N F I D E N T I A L

Tameer to change its records to show that Tameer Tower A Floor 20 is registered under Mr Omar Ayesh’s name. Appeal court confirmed
the first instance judgment on 24 August 2012 but included AED 100,000 as compensation to be paid by Mr Omar Ayesh. At this stage
Tameer was no longer a party to the case. Bassam Freha filed execution procedures against Mr Omar Ayesh. During the execution judge’s
search for Mr Omar Ayesh’s assets, the Court decided on 15 May 2012 to attach 44 Al Jawza B units because the Land Department
incorrectly reported to the court that the Al Jawza B units were solely in the name of Mr Omar Ayesh and that units were not registered
as having any owners in the Oqood.. However, the title deeds (in reality) state the owner of each unit is Mr Omar Ayesh and Eng Ahmad Al
Rajhi jointly. Following Tameer’s request, Court decided on 10 February 2013 to stop the execution procedures until the judgments are
issued in the Ishkals. Bassam Freha requested the court to continue the execution procedures on 8 October 2013 following the rejection
of the Ishkals and the court will begin notification procedures starting from guidance, enquiry with DED and publishing notice in
A N D

newspaper. Global found on 23 December 2013 that court issued an attachment on the execution of OA VS DIB and decided to put the
execution on hold until the money is received from the OA execution. Global updated on 17 February 2014 that DIB manager appeared
appe
P R I V A T E

before the judge, the court refused his appeal and ordered them to pay by Sunday, 23 February 2014. OA law firm’s PRO informed
informe
Global’s PRO unofficially that they intend to file a Request to attach the Bank Guarantee. The judge verbally advised in early May, 2014
20
that there are many claims for these funds and it is better for the customers to file separate Ishkal and Recovery cases.
 BACKGROUND EVIDENCE: Tameer obtained a letter from the Dubai Land Department on 22 April 2013 stating that all the units are sold to
customers and the amounts were deposited in the ESCROW account. Tameer obtained a “True Copy” from DLD on 20 May 2013 in order to
S T R I C T L Y

file a Request to remove the attachment on the units.

 2. Eng Ahmad Al Rajhi’s Ishkal


 Eng Ahmad Al Rajhi filed an Ishkal on 10 February 2013 requesting to remove the attachment on the units which he partially owns. The
court rejected the Ishkal on 18 March 2013 but made a number of mistakes of law in the judgment. Eng Ahmad Al Rajhi filed an appeal
where the next hearing is on 26 February 2014 to notify Mr Omar Ayesh in Jordan through diplomatic channels. The hearing in the appeal
is on 10 June 2014 for judgment.

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Summary of Al Jawza B & Table of Costs
Summary of Al Jawza B & Table of Costs

 3. Tameer’s Ishkal in Dubai


 Tameer filed its own Ishkal on 27 March 2013 with the Al Jawza protection letter which states that registration procedures are complete
for all the units, but the court rejected the Ishkal and our request to re-open
re the case to notify Mr Omar Ayesh in Jordan on 8 September
2013. Tameer filed an appeal with the DLD letter. The next hearing in the appeal is on 4 June 2014 to notify Omar Ayesh by diplomatic
channels.

 4. Tameer’s Ishkal in Abu Dhabi


 Following Dubai court’s decision to reject Tameer’s Ishkal on 8 September 2013, we also filed an Ishkal in Abu Dhabi court which was also
rejected on 12 November 2013. Global filed an appeal and the next hearing is on 10 June 2014 for judgment.

 5. Tameer’s Requests in Dubai and Abu Dhabi


 Tameer filed the Request in Dubai court with the “True Copy” of the DLD letter on 10 June 2013 and the court has not issued a decision
decisi
C O N F I D E N T I A L

till date. Tameer filed a second Request (since a judgment has now been issued in the Ishkal and we have filed Appeal with our
objections) and Dubai court rejected this on 6 October 2013 stating that it should be filed in Abu Dhabi. Global confirmed on 10 October
2013 that they have also filed a request in Abu Dhabi where the judge verbally informed Global on 24 October 2013 that the customers
cu
should file individual recovery cases.

 6. Preparations for filing the customer cases


 Similar to the preparations that were done in the Murad case, Tameer is organizing to contact customers to arrange for them to file ishkal
and recovery cases. The Legal Department is recommending (given the costs) and the law firm (Prestige) has concurred with the
approach, that we will file the ishkal and recovery cases for customer in tranches of 10 customers (or less) per tranche to disrupt the
A N D

execution and auction process and hopefully get the courts to make the right decision.
 The Legal Department has already negotiated aggressive fee pricing (please see attached fee schedule). Tameer has also prepared:
P R I V A T E

customer release letters and POAs to the law firm. These customers have also been approved by the commercial team to approach.
approac
From a legal standpoint, we selected customers with title deeds and/or handover and occupation of the actual unit. These are the
customers with the strongest cases and we are presenting them first and moving to the last, weakest cases at the end of this process. We
hope at that point to have accumulated judgments in our favor to convince others to also issue POA and Release and use these judgments
in the weaker cases to support the customer’s position.
S T R I C T L Y

 Tameer reviewed with 3 law firms (Tamimi,, Global and Prestige) if Tameer needs to sued (as in the Murad case) and 2 of the law firms
(Prestige and Tamimi) said that Tameer does *not* need to be sued as part of the recovery case and can, instead, simply issue a letter
(stamped with the company stamp) in favor of the customer confirming their rights. The Legal Department agrees with Tamimi and
Prestige. Prestige will be doing the customer representations for Tameer and under Tameer instructions for all customers that waive
their rights against Tameer.

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Al Jawza B - Attachment Summary & Table of Costs
Table of First 10 Customer Cases in Al Jawza B attachment
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

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Al Jawza B - Attachment Summary & Table of Costs
Table of Second 10 Customer Cases in Al Jawza B attachment
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

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Costs for Recovery Cases and Ishkals for Al Jawza
Table of Costs for Real Estate Recovery Cases and Ishkals for Al Jawza B units
C O N F I D E N T I A L
A N D
P R I V A T E
S T R I C T L Y

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Al Jawza B Attachment- Breakdown of costs per cases
Table of Costs per case breakdown

Ishkal - Professional Recovery Case - Recovery Case - Sub-total for every


Customers Ishkal - Court Fees Total
Fees Court Fees Professional Fees 10 cases
1 700.00 3,000.00 30,000.00 9,000.00 42,700.00
2 1,400.00 6,000.00 60,000.00 18,000.00 85,400.00
3 2,100.00 9,000.00 90,000.00 27,000.00 128,100.00
4 2,800.00 12,000.00 120,000.00 36,000.00 170,800.00
5 3,500.00 15,000.00 150,000.00 45,000.00 213,500.00
6 4,200.00 18,000.00 180,000.00 54,000.00 256,200.00
7 4,900.00 21,000.00 210,000.00 63,000.00 298,900.00
8 5,600.00 24,000.00 240,000.00 72,000.00 341,600.00
9 6,300.00 27,000.00 270,000.00 81,000.00 384,300.00
10 7,000.00 30,000.00 300,000.00 90,000.00 427,000.00 427,000.00
11 7,700.00 33,000.00 330,000.00 99,000.00 469,700.00
12 8,400.00 36,000.00 360,000.00 108,000.00 512,400.00
C O N F I D E N T I A L

13 9,100.00 39,000.00 390,000.00 117,000.00 555,100.00


14 9,800.00 42,000.00 420,000.00 126,000.00 597,800.00
15 10,500.00 45,000.00 450,000.00 135,000.00 640,500.00
16 11,200.00 48,000.00 480,000.00 144,000.00 683,200.00
17 11,900.00 51,000.00 510,000.00 153,000.00 725,900.00
18 12,600.00 54,000.00 540,000.00 162,000.00 768,600.00
19 13,300.00 57,000.00 570,000.00 171,000.00 811,300.00
20 14,000.00 60,000.00 600,000.00 180,000.00 854,000.00 854,000.00
21 14,700.00 63,000.00 630,000.00 189,000.00 896,700.00
A N D

22 15,400.00 66,000.00 660,000.00 198,000.00 939,400.00


23 16,100.00 69,000.00 690,000.00 207,000.00 982,100.00
24 16,800.00 72,000.00 720,000.00 216,000.00 1,024,800.00
P R I V A T E

25 17,500.00 75,000.00 750,000.00 225,000.00 1,067,500.00


26 18,200.00 78,000.00 780,000.00 234,000.00 1,110,200.00
27 18,900.00 81,000.00 810,000.00 243,000.00 1,152,900.00
28 19,600.00 84,000.00 840,000.00 252,000.00 1,195,600.00
29 20,300.00 87,000.00 870,000.00 261,000.00 1,238,300.00
30 21,000.00 90,000.00 900,000.00 270,000.00 1,281,000.00 1,281,000.00
S T R I C T L Y

31 21,700.00 93,000.00 930,000.00 279,000.00 1,323,700.00


32 22,400.00 96,000.00 960,000.00 288,000.00 1,366,400.00
33 23,100.00 99,000.00 990,000.00 297,000.00 1,409,100.00
34 23,800.00 102,000.00 1,020,000.00 306,000.00 1,451,800.00
35 24,500.00 105,000.00 1,050,000.00 315,000.00 1,494,500.00
36 25,200.00 108,000.00 1,080,000.00 324,000.00 1,537,200.00
37 25,900.00 111,000.00 1,110,000.00 333,000.00 1,579,900.00
38 26,600.00 114,000.00 1,140,000.00 342,000.00 1,622,600.00
39 27,300.00 117,000.00 1,170,000.00 351,000.00 1,665,300.00
40 28,000.00 120,000.00 1,200,000.00 360,000.00 1,708,000.00 1,708,000.00
41 28,700.00 123,000.00 1,230,000.00 369,000.00 1,750,700.00
123
42 29,400.00 126,000.00 1,260,000.00 378,000.00 1,793,400.00
43 30,100.00 129,000.00 1,290,000.00 387,000.00 1,836,100.00
44 30,800.00 132,000.00 1,320,000.00 396,000.00 1,878,800.00 1,878,800.00
New cases since last update
New cases (as of 20th May 2014) since last updates provided (20h Apr 2014)

Purchase Price Amount Paid/Claim


No Type Claimant Project/Unit Case No % Paid Law Firm
(AED) Amount (AED)

7,580,856.1 [as per


283/2014 Dubai arbitration award;
Tameer Towers
1 Litigation Hill International Court of First N/A claim amount stated N/A Prestige
Consultant
Instance in enforcement to be
confirmed].

727/2013
Mohammed Al Al Ameera Village Plots 7
2 Litigation Ajman Court of 4,805,050.00 4,805,050.00 100 Yousuf Al Sharif
Awawdeh and 8
First Instance
287/2012 UAQ
Court of First
C O N F I D E N T I A L

Fatima Pirbhai and EMIA Warehouse 17A Instance and


3 Litigation 876,480.00 660,295.00 75 Al Suwaidi
Zohrein Pirbhai and 18A 149/2013 UAQ
Execution

Mohamed Amin 2029/2013 Abu


4 Litigation Abdelkader Abdel Tameer Towers C 2011 Dhabi Court of 2,652,563.60 265,257.00 10 Prestige
Aal First Instance
90/2014 Abu
5 Litigation Saeed Aksandari Tameer Towers A 4112 Dhabi Court of 2,051,114.20 512,767.06 25 Prestige
A N D

First Instance
1005/2013
6 Litigation Olexandr Olenyev Regal Unit 802 Dubai Court of 2,118,888.00 2,079,450.18 98 Yousuf Al Sharif
First Instance
P R I V A T E

 We received 6 new cases in the last month which are all litigations and include the following
 2 Tameer Tower cases;
 1 Regal case;
S T R I C T L Y

 1 Al Ameera Village case;


 1 EMIA case; and
 1 non-customer – Hill International

 The total number of cases this year is 24.

124