mongol tower project in mongolia - by tom tsogt
DESCRIPTION
Dear Viewers, This project understanding has been prepared for Mongol Tower project in Ulaanbaatar city. I have been working on this since it was just an idea and developed it. Now the project is in concept drawing with arch company from Japan. If you liked you can use the info and please do not distribute or misuse the file. Thanks, TomTRANSCRIPT
Developer: Mon-Uran LLC Prepared by: Mr. Tom TsogtProject leader: Mr. Anar
Ulaanbaatar, Mongolia 2014
MON-URAN DEVELOPMENTMixed use high rise building in Ulaanbaatar
December 20, 2013
PROJECT UNDERSTANDING
FULL VERSION
Ulaanbaatar in 1913
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
This unique opportunity now exists for a
select-few investors to invest in a property
development in Ulaanbaatar, Mongolia.
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
THE PURPOSE OF THIS PRESENTATION IS FOR DISCUSSION ONLY!
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STIRCTLY CONFIDENTIAL
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
TOPICS
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA
Ulaanbaatar city in early days
Mongolia is one of the most exciting investment opportunities
currently available in the world.
The economy is forecast by the IMF to grow 14% yearly through
to 2016, underpinned by a thriving mining industry and China’s
increased demand for coal.
Mongolia remains the FINAL FRONTIER for investors to benefit
from continual and rapid growth.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA - OVERVIEW
Tiny population rich in mineral wealth
Construction of world class mines
Located between two World’s Biggest Economies
Experiencing a high annual GDP growth rate
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA - OVERVIEW
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA – EASE OF DOING BUSINESS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA – EASE OF DOING BUSINESS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA – ECONOMIC FREEDOM
Mongolia is recognized as one of the world’s fastest growing economies.
Mongolia
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOLIA
Old ancient city in 1913
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
2
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE
Ulaanbaatar today
Mongolian real estate is proving to be an attractive portfolio
diversifier for a growing number of private and institutional
investors worldwide. This is an incredibly exciting time to be
entering the market that offers rare first-mover advantages.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE – MARKET OVERVIEW
VIEWAsia Pacific Investment Partners
HOW
MONGOLIAN REAL ESTATE MARKET
1. Fastest growing economies in the world
2. Democratic and politically stable
3. Strong protections for real estate ownership, even for foreigners
4. Skyrocketing Demand for Property
5. Constrained Supply
Asia Pacific Investment Partners
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE – MARKET OVERVIEW
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEWM.A.D. Investment Solutions
HOW
MONGOLIAN REAL ESTATE MARKET
REAL ESTATE – MARKET OVERVIEW
1. Economic Growth
2. Significant FDI Inflows
3. Rapid Urban Growth
4. Lack of Urban Infrastructure
5. Upwardly Mobile, Young population
M.A.D. Investment Solutions
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE – MARKET OVERVIEW
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEWMongolia Growth Group
HOW
MONGOLIAN REAL ESTATE MARKET
REAL ESTATE – MARKET OVERVIEW
Mongolia Growth Group
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE – MARKET OVERVIEW
1. Next emerging economy
2. Blessed with natural resources
3. Bordered with China and Russia
4. Experiencing similar types of growth as Qatar and Kazakhstan
5. GDP growth to attract more foreign investors in near future
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
REAL ESTATE – MARKET OVERVIEW
With the expansion of the mining and financial services industries,
including the country’s insurance and lending sectors, the demand
for high quality Grade A office space, residential apartments and
hotels is expected to grow substantially.
Ulaanbaatar today
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
3
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE TEAM
Our management team has an exceptional on-the-ground mix of local
and international EXPERIENCE. We strongly focus on the accurate
operational execution of the projects within the competitive
marketplaces of the local economy.
Our team source ideas and investment OPPORTUNITIES for the
investors and collaborate closely to design ways of growing the
business on long-term relationship.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE TEAM
Anar
Erdene
Erdenetuya
Amarzaya
Orgil
Tsolmon Uyanga
Tom
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE TEAM - INTRODUCTION
TeamLeader
BusinessDeveloper
Marketing& Sales
BusinessDeveloper
Local relations
AssociateArchitect
ConstructionMonitoring
Coffee boy
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
4
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE
Mongolia in 1913
The following slides will show our future development location and the
comparison with surrounding buildings in the city. The placement of
our project in Ulaanbaatar city will be another pearl on the string of
high rises in the main road of Chinggis Avenue.
The building itself will become a landmark of modern architecture in
the city and will be the generator for a new and positive development.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – DEVELOPMENT AROUND THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
Blue Sky Tower
Central Tower
Shangri-La MCSAltai TowerMonnis Tower
ICC Tower
THE SITE – DEVELOPMENT AROUND THE SITE
MU
DEV
ELO
PM
ET
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONGOL TV TOWER
MONNIS TOWER BLUE SKY
TOWERNA
ICC TOWER
SHANGRI-LA HOTEL
FROM THE PEACE BRIDGE SIDE – CHINGGIS AVENUE STARTS HERE
THE SITE – DEVELOPMENT AROUND THE SITE
MU
DEV
ELO
PM
ET
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MONNIS TOWER
BLUE SKY TOWER
MONGOL TVTOWERICC TOWER
NA
NA
SHANGRI-LA HOTEL
NA
OLYMPICRESIDENCE
CHINGGIS SQUARE (FORMER: SUKHBAATAR SQUARE) – CITY CENTER STARTS HERE
THE SITE – DEVELOPMENT AROUND THE SITE
THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – WITHING 500 M RADIUS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE
5 min
N
City CenterChinggis Khaan Square
THE SITE – WALKING RADIUS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE
N
THE SITE – MAIN ROADS
Sun Road
THE SITE11.000 sm (1.1 Ha)
TDB BANKMIAT
TICKETINGOFFICE
TDB BANKS
BAYANGOLHOTEL
BUS STOP
BUS STOP
SUPERMARKET
CORPORATEHOTEL
SEOULRESTAURANT
GOLOMT BANKS
N
NCP SPORT HALL MONGOLIAN NATIONAL SONG & DANCE ENSEMBLE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HUNNU AIRTICKETING
OFFICE
SKYTEL
THE SITE - SURROUNDINGS
THE SITE11.000 sm (1.1 Ha)
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE - ACCESS
To the city center
To the Airport
N
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE – LAND INFORMATION
SITE AREA 1.1 Ha / 11.000 sm
CONSTRUCTION To be started in 2014
PLOT RATIO 70%
BUA (Built-Up Area) 110.000 including parking
TOWER NEIGHT 68 Floors / 254* meters
PROGRAM
Observatory deck 1000 sm
Residential Area for sale 20’000 sm
Serviced Apartments 17’760 sm
Hotel 19’500 sm
Offices 16’770 sm
Commercial Area 16’170 sm
Parking indoor 12’320 sm
Parking outdoor 990 sm
* http://goo.gl/kWKt0
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE – CURRENT BUILDING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – SITE VIEWS
NORTH VIEW
EAST VIEW
SOUTH VIEW
WEST VIEW
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (NORTH) FROM THE SITE
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (NORTH) FROM THE BRIDGE – PEACE BRIDGE OVER TO THE CITY CENTER
OUR OFFICE
THE SITE
THE SITE – VIEW FROM THE BRIDGE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (EAST) FROM THE SITE – CHILDREN’S PARK
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (WEST) FROM THE SITE – BAYANGOL HOTEL
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
N
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (SOUTH) FROM THE SITE
THE SITE – VIEW FROM THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VIEW TO (SOUTH) FROM THE BRIDGE – PEACE BRIDGE OVER TO THE AIRPORT
THE SITE – VIEW FROM THE SITE
THE SITE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE – SURROUNDING AREAS (AERIAL VIEW)
Central Business District
THE SITE
Center Area
PARLIAMENT BUILDINGAND
CITY CENTER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE – SURROUNDING AREAS
N
INTE
RN
AL
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE SITE – INITIAL S.W.O.T ANALYSIS
EXTE
RN
AL
STRENGTHS
OPPORTUNITIES THREATS
WEAKNESSES-Located on one of the main roads of Ulaanbaatar-No adjacent towers to obstruct views-Central location (CBD)-Close to every locations by foot
-Less than 0.5 kms away from the City Center-Within walking distance from the Public but stop
-Only one road to access the site
-Unknown future development of adjacent plots might affect views from tower
Ulaanbaatar today
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
5
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
AMBITION
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
AMBITION
Our company owns the land and there is no investment needed to
acquire the land. And by using this opportunity we are also plan to
set few records in Mongolia by developing this ambitious project
in the heart of Ulaanbaatar city.
68Floors
ERTEarthquakeResistant
Technology
SBSmart Building
ODObservation Deck
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
AMBITION – FIRST EVER IN MONGOLIA
2017 Projected finish year
MU Mixed Use Development
WS World Standard Development
BM Best Management Team
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
AMBITION – DEVELOPMENT INFORMATION
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
AMBITION – SUITABLE DEVELOPMENT
S ML
XL
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
6
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY – 6 STEPS
2. WORLD FAMOUS
COMPANIES
3. EXTENSIVE EXPERIENCE
4. BRAND5. INCREASE
SALE AND RENT
6. WORK GLOCALLY
1. HIT THE GOAL
PRE-CONSTRUCTION CONSTRUCTIONHOMEWORK
PRELIMINARY MARKET RESEARCH
ORGANIZE DEVELOPMENT TEAM
FIND POTENTIAL PROPERTIES
CREATE CONCEPT SITE PLAN
INITIAL FEASIBILITY ANALYSIS
1
2
3
4
SEED FINANCING PROCESS
HIRE DEVELOPMENT TEAM
REDO FEASIBILITY STUDY
MEET CONTRACT REQUIREMENTS
BEGIN PERMITTING
5
6
7
8
CONSTR BIDS
MARKETING AND SALES STRATEGY
CONFIRM MARKET ASSUMPTIONS
COMPLETE FINAL FEASIBILITY STUDY
START CONSTRUCTION
9
10
11
12
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY – 6 DEVELOPMENT PROCESSES (PART 1)
POST HOMEWORK 1 POST HOMEWORK 2POST-CONSTRUCTION
SALES/RENT
LOAN DUE
MAINTANANCE
OPS MGNT
1
INCREASE SALE/RENT
ROI MANAGEMENT
FINANCIAL STATEMENT FOR SHAREHOLDERS
TBA
TBA
TBA
TBA
TBA
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY – 6 DEVELOPMENT PROCESSES (PART 2)
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY - PARTNER COMPANIES
International Law firm will be our legal partner on all of our development projects
One of the world’s top architectural company from Japanwill design the building on this development
Water feature designer company who designed Burj Khalifafountain will work on our project and design the fountain
We see CBRE as our reliable source for conducting research in Mongolian market
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
STRATEGY - PARTNER COMPANIES
Our local architectural company will work with internationalarchitecture company as AoR.
International hotel and resort management company will manage our hotel and residential apartments
We are looking forward to work with Ritz Carlton Hotel on this project as the management company
We are looking forward to work with Executive Apartments on this project as the management company
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
7
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VISION/CONCEPT
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Central business districts are examples of mixed use developments
around the World and it will be generally developed for over long
periods of time. A very early example is Rockefeller Center in New
York City.
VISION/CONCEPT
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1
2
3
4
5
6
Above ground
Below ground
VISION/CONCEPT - 6 DIFFERENT AREAS
HOTEL AREARitz Carlton luxury hotel has been chosen according to the research of CBRE
RESIDENTIAL 2This area is planned to be a serviced apartment managed by Marriott Executive Apartments
OFFICE AREA“A” grade office will be installed for foreign companies penetrating into Mongolian market
COMMERCIALAn opportunity exist for high quality intl. and local retail brands
CAR PARKINGFirst and biggest indoor parking in Ulaanbaatar, Mongolia
RESIDENTIAL 1This area is planned to be sold and leased
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
VISION/CONCEPT - AREA INFORMATION
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
SROUCE: MAD PropertiesMongolian PropertiesCBRE
1 RESIDENTIAL MARKET
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Across the Ulaanbaatar residential property market
prices have shown almost consistent growth rate at
a remarkable 27% over the past eight years.
PRELIMINARY MARKET STUDY
RESIDENTIAL APT - GROWTH RATE
2005 2006 2007 2008 2009 2010 2011 2012
27%0
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Sukhbaatar District is the heart of
Ulaanbaatar city. It encompasses
the Parliament of Mongolia, the
central business district and the
earliest residential real-estate in
the city.
PRELIMINARY MARKET STUDY
RESIDENTIAL APT – SUKHBAATAR DISTRICT
SUKHBAATARCHINGELTEI
BAYANGOL
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The price curve charts
below have been upon a
basket of over 700
transactions between
2003 and 2012, with a
total transacted value in
excess of US$ 30 million
for residential properties
alone.
$2217
RESIDENTIAL APT – PURCHASE PRICES
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Sukhbaatar district
averaged a remarkable
37% annual growth in per
square meter sales
prices, whilst Khan-Uul
district saw average
growth of 27.9% over the
past seven years.
$2217
$317
RESIDENTIAL APT – PURCHASE PRICES
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In Q3 2012 study showed
that average pricing in
the upper-end of the
market stand at US$2,050
pSM for pre-sales. High
end projects featuring
low-density housing
maintain higher price
points at an average of
US$3,228 pSM.
134
RESIDENTIAL APT – MARKET FOCUS
346
LUXURY MARKETS
9 (1.8%)
5 (1%)
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Current stocks of low-
density apartments and
housing units around
Ulaanbaatar presently
stand at around 1,088
units based upon City of
Ulaanbaatar data for
numbers of families living
in stand-alone or town-
housing that is not based
in ger areas of the city.
1088
878
771
567
501
RESIDENTIAL APT – HOUSEHOLDS
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
By Q3 of 2012 residential
units were selling from an
observed 143 new-build
(completed). The graph
below indicated that this
new construction activity
has been concentrated in
just two districts of
Ulaanbaatar, Bayanzurkh
and Khan-Uul.
12
41
47
2117
5
RESIDENTIAL APT – CURRENT SUPPLIES
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Known future supply of
high end residential real
estate in Ulaanbaatar is
calculated at 7,920 units
by 2015. The majority of
these units are already
available for purchase
despite handover dates
two to three years in
advance.
614749
4096
2461
RESIDENTIAL APT – FUTURE SUPPLIES
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In 2012 there were an
estimated 13,480 new
residential units coming online
within Ulaanbaatar, across all
segments of the market, with
up to 27,000 planned until the
end of 2015 around 7,900 of
these will be in the high-end
of the market.
RESIDENTIAL APT – FUTURE SUPPLIES
860
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Only around 12% of the
future supply listed is in the
high-end and low-density
market segment,
representing a slowdown in
luxury developments as
developers focus upon higher
density mid-end projects.
RESIDENTIAL APT – FUTURE SUPPLIES
1603
5395
6482
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In terms of pricing on the
future supply market, pre-
sales rates for future supply
average at around 85% of the
secondary and primary
market transaction rates per
square meter of completed
apartments.
RESIDENTIAL APT – FUTURE SUPPLIES
$2234
$3833
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
For purposes of more fine-grained analysis, the residential markets have been split into three segments. Such a classificatory system enables us to provide a more detailed and nuanced view of diverse residential real estate markets operative in Ulaanbaatar.
SOURCE: M.A.D.
RESIDENTIAL APT – SEGMENTATION
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT – SEGMENTATION
RESIDENTIAL PROPERTY BASKET – SUKHBAATAR DISTRICT
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT – SEGMENTATION
WAGE BRACKETS
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT – BENCHMARKING
$11455
$8808
$6814
$5722
$1744$1551$1538
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT – BENCHMARKING
$8236
$1994$1538$1488
$1000
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT - SummaryProposed apartment size
155 APTTotal pot. selling apt
20.000smTotal pot. selling area
TOTAL 18FTotal pot. selling floors
APT FLOOR DATA
223 sm
111 sm
5 APT pFloor
10 APT pFloor
PenthouseApartments
25 APT 05F
130 APT 13F
TOTAL 155 APT
APT SEGMENTATION
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT - SummaryProposed apartment offer
PENTHOUSE SELLING OPTION
223 sm - US$ 55,750,000
APARTMENT SELLING OPTION
111 sm - US$ 144,300,000
PROJECTED SELLING PRICE PER SQM
US$ 10,000
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
RESIDENTIAL APT - SummaryPotential total income
Potential income $200,000,000from the RA pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
2 SERVICED APPARTMENT MARKET
SROUCE: MAD PropertiesMongolian Properties
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Immigration Authority
figures indicate that the
total number of foreign
workers resident in
Mongolia in 2012 was
27.000 and so this is
taken to be our
benchmark.
14200
27323 27000
SERVICED APT – FOREIGN RESIDENTS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The numbers of foreign
investors, professionals
and employees in the
mining supply and
financial sectors will be
increasing to fill the gap
and quickly surpass
numbers of expats
presently in Mongolia on
mining projects.
2295
5778
1917 1890
12.393
486
2241
2012
PRELIMINARY MARKET STUDY
SERVICED APT – FOREIGN RESIDENTS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Expatriates in the Senior
Executive category are
usually on longer-term
contracts and will usually
remain in Mongolia for
two or more years.
For this reason they often
travel with family
members, therefore
requiring larger, family
friendly accommodation.
PRELIMINARY MARKET STUDY
SERVICED APT – RENTAL MARKET SEGMENTS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The rental markets in the
upper end of the
residential market
continuing to show
robust demand and
rental prices rising
annually.85 89 96 106
28
143 165
47
10
1
5222
PRELIMINARY MARKET STUDY
SERVICED APT – SA SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
52 serviced apartments as
part of phase 1 of the
Shangri-La project coming
online in 2014 and MAK
Group also just announced
their MAK Tower project
would include a stock of 22
serviced apartments as part
of the Hyatt Regency hotel
that is currently on hold.
70
25
95
PRELIMINARY MARKET STUDY
SERVICED APT – SA SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Representatives of various famous companies have been visiting Mongolia
numerous times in recent years in search of partner developers with whom
to construct dedicated serviced apartment facilities. However, a majority of
developers have not been able to meet the exact standards of these
international serviced apartment operators.
PRELIMINARY MARKET STUDY
SERVICED APT – SOME FAILURE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The ability to rent an
apartment on a short
term basis (nightly to
weekly) is only
systematically offered by a
limited number of agents
and management
companies in Ulaanbaatar.
The pricing structure of serviced apartment stocks in Ulaanbaatar
PRELIMINARY MARKET STUDY
SOURCE: M.A.D.
SERVICED APT – SA COMPANIES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The serviced apartment market in Ulaanbaatar still remains in its
growing stages. During the past six years a number of companies and
facilities have entered into the serviced apartment markets. These
have been largely tentative and the city still lacks a full-scale serviced
apartment facility that will meet the exacting demands of the business
sector.
PRELIMINARY MARKET STUDY
SERVICED APT – SA MARKET GROWTH
This chart shows the forecasted
appreciation of per square meter
rental prices in the mid and
luxury residential market in
central Ulaanbaatar out to 2018.
PRELIMINARY MARKET STUDY PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
SERVICED APT – FORECAST
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
SERVICED APT - SummaryProposed potential target population
PRELIMINARY MARKET STUDY
27.000Residents pY 2012
2.700Residents pY
225Residents pM
Foreign Residents in Ulaanbaatar
2.6 YAvg duration of stay
60Max Month
3Min Month
Duration of stay
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
SERVICED APT - SummaryProposed potential target population
PRELIMINARY MARKET STUDY
52APTNew supply in 2014
143APTSA 2013
28APTSA 2012
Current Apartment supply
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
2000-7000PER MONTH IN USD
Rental price range
150-300PER DAY IN USD
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
SERVICED APT - Summary
192 APTTotal pot. rentable apt
17.760 smTotal pot. rentable area
TOTAL 16FTotal pot. rentable floors
130 sm100 sm
80 sm60 sm
370 smPer Floor
3 APT3 APT3 APT3 APT
12 APTPer Floor
2 BR luxury1-2 BR studio
2 BR studio1 BR studio
390 sm300 sm240 sm180 sm
1.110 smPer Floor
PRELIMINARY MARKET STUDY
Proposed apartment capacity
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
$504.000Potential Income pM
$5.000.000Potential Annual NOI
10 %Vacancy rate pM
PRELIMINARY MARKET STUDY
SERVICED APT - SummaryPotential NOI per Annum
130 sm
100 sm
80 sm
60 sm
3 APT
3 APT
3 APT
3 APT
$5000 pM/pA*$3000 pM/pA*$1500 pM/pA*$1000 pM/pA*
2 BR luxury1-2 BR studio
2 BR studio1 BR studio
* Weekly and per night rent fee could be offered as well.
$15.000 pM/pF
$9000 pM/pF
$4500 pM/pF
$3000 pM/pF
$31.500 pM/pF
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
SERVICED APT - SummaryPotential total income
Potential income $5,700,000from the SA pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
SERVICED APT - SummarySelected management company
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
3 HOTEL MARKET
SROUCE: MAD Properties CBRE | Hotels
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The inbound tourism decreased by 12.8% in the
first 10 months of 2013 compared to the same
period of the previous year. Tourists visiting
Mongolia reached 366,000
PRELIMINARY MARKET STUDY
HOTEL MARKET – 2013 INBOUND TOURIST
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In 2012 numbers of visitors grew dramatically across all sectors of the hotel markets. Across all accommodation types numbers of visitors rose by 24%, while at the upper end of the market they rose by 32% over figures for the same period of 2011.
224.693
72.937
13.242
208.080
12.950
104.557
26.866
138.953
239.824
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Additional Intl. flights:
1. Turkish Airlines is
flying between
Ulaanbaatar and
Istanbul via Bishkek
since 2012
2. Hunnu Airlines is
operating intl. routes
including Hong Kong,
Shanghai and
Thailand
1.202.476
218.016
156.837
124.971
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The numbers of tourists
dropped sharply in 2010
compared to 2009
figures, as a result of the
global downturn. In 2011
a slightly recovery could
be seen with over four
hundred thousand
inbound tourists
recorded into Mongolia.
446.446
492.836
456.090
460.360
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Around 43.4% of all foreign
tourists entering Mongolia
in 2011 were from China.
The U.S. tourists account
for just 3.4% of the total,
while tourists from Europe
represent just over 5%.
Russia, Japan, Kazakhstan
and the Republic of Korea
make up 36.9%.
CHINA200.010 (43.4%)
KOREA43.994 (9.6%)
USA15.423 (3.4%)
OTHER40.270 (8.7%)
JAPAN14.988 (3.3%)
RUSSIA102.738 (22.3%)
KAZAKHSTAN7973 (1.7%)
UK7120 (1.5%)
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The reported net income of the tourism sector in 2010.
$222.000.000
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
POTENTIAL INCOME FROM TOURISM SECTOR
$6.660.000
POTENTIAL TARGET
3%
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
20
10
$3.2 Million
+HOTEL
20
09
94% more than
20
08
$4.4 Million
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
1
2
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The tourism and hospitality industry in Mongolia will continue
upward growth between 2012 and 2015.
The two Indications will be:
The changing demographic focus of the tourism industry of the
country and increasing presence of internationally recognized
brands in the hospitality sector.
The international media interest, which in turn is increasing the
numbers of investors and international company
representatives traveling into Ulaanbaatar.
PRELIMINARY MARKET STUDY
HOTEL MARKET – DEMAND DRIVERS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Among high-end hotels
occupancy may fall as low
as 24 – 27% during the
winter months, rising as
high as 75% during the
mid-summer season.26
26
48
51
53
67
7275
64
44
27
24
PRELIMINARY MARKET STUDY
HOTEL MARKET – OCCUPANCY REPORT
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The occupancy rates in the high-end of
the market 4 Star and higher are
observed at around
65%
PRELIMINARY MARKET STUDY
HOTEL MARKET – OCCUPANCY RATE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
HOTEL MARKET – OCCUPANCY RATE
70%
The top performing hotels in terms of occupancy:1. Kempinski Khaan Palace,2. Corporate Hotel,3. Blue Sky (competing for this title)
Average occupancy recorded:1. Kempinski Khaan Palace,2. Corporate Hotel,3. Ramada Hotel
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Occupancy rates in the
capital do tend to be
higher, particularly within
4 Star+ facilities.
34
28
36
24
44
PRELIMINARY MARKET STUDY
HOTEL MARKET – OCCUPANCY RATE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
HOTEL MARKET – AVG LENGTH OF STAY
AVERAGE DURATION OF STAY IN ULAANBAATAR
4 STAR OR UP HOTELS - 2012
04-14 DAYS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Hotel markets in Ulaanbaatar
indicate that there are
presently 37 hotels of between
domestic 3 Star – 5 Star
standard in and around
Ulaanbaatar alone.
3%
35
25
33
34
PRELIMINARY MARKET STUDY
HOTEL MARKET – HOTEL SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
14% of the current supply
falls within the domestic 5
Star classification.
306
1034
823
PRELIMINARY MARKET STUDY
HOTEL MARKET – HOTEL SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
5 Star hotels currently in the
market contain on average 168
rooms.
The ratio of beds available in
Ulaanbaatar by star rating will
shift dramatically up until 2017
as a result of new supply
coming onto the market. It is
estimated that 1,235 new
rooms projected until 2017.
1087
1197
1034
PRELIMINARY MARKET STUDY
HOTEL MARKET – HOTEL SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
MU LLC land is located in
Sukhbaatar district. Thus
we have only taken into
account this district for
the review401
55 61
725
200
261
398
PRELIMINARY MARKET STUDY
HOTEL MARKET – HOTEL SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Out of 37 hotels that exist in Ulaanbaatar today classified as 3 Star
or above, we have selected 7 in order to deliver little more about
potential competitive environment. These are listed below:
1. Ulaanbaatar Hotel
2. Bayangol Hotel
3. Blue Sky Hotel
4. Kempinski Khan Palace
5. The Corporate Hotel and Corporate Hotel Nukht
6. Terelj Hotel
7. Ramada Hotel
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Ulaanbaatar Hotel
- Doors opened first time in 1961.- Previously Government owned - now a public listed company on the MSE.- Domestic 5 Star (Intl. 4 Star rating)- Reopened in 2006 after renovating 106 new refurbished rooms in over 6 floors. - 4 restaurants with a total capacity of 610 person- Function facilities including a 720 sm main hall (400 person dining)- 320 sm of meeting rooms- 90 external parking spaces available in front of the building- Business facilities for 240 people and few small retail spaces. - Employs around 95 staff at a time. - Total GFA of 13,800 sm- Per night prices for the lowest priced room began at US$120 in 2012- Occupancy rates now peak at around 75% during the course of the year.
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Bayangol Hotel
- Opened in 1964 was the second large-scale hotel in Ulaanbaatar at the time- Privatized and is currently listed on the MSE- Domestic 4 Star (Intl. 3 Star rating) - Located to the south of the current CBD, along Chinggis Avenue- The GFA of 16,200 sm and consists of two towers, each 12 floors in height- Total current room 215- 65 parking spaces (all open-air) in front of the hotel- Contains 6 restaurants, a bar and wine house catering- Exhibition room for up to 80 persons, as well as a business centre. - Employs around 155 staff at a time- Occupancy rate across the year of around 65%.
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Blue Sky Hotel
- The Blue Sky Hotel was completed in 2011- Opposite of Sukhbaatar Square and offers international 4 Star- Contains 200 rooms, including 33 suites- 4 restaurants, alongside a lounge bar on the 23rd floor of the building- Cuisine from Japanese to French and European - One grand ballroom and five banquet halls (490 PAX for dining) - 700 persons with theatre style seating- A member of Preferred Hotels group- Moved away from a partnership with Intercontinental Hotels- Primarily serves international business travelers- Occupancy rates above 70%
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Kempinski Khan Palace
- Operated by Tavan Bogd Group and managed by Kempinski- Doors are opened in 2005 under its present management structure- First hotel under international management to enter the Mongolian market - International 4 Star hotel- Serves to high end tourists and business travelers since operation begin - Minimum price per room per night was US$110 in 2012 - 5,000 sm of GFA with 102 rooms across 9 levels - Kempinski establishments may not be available here- 4 restaurants with seats a combined 90 - 110 persons- 45 dedicated parking spaces (outdoor)- 3 conference rooms with seats up to 260 persons- 160 staff annually - Location of this hotel is over 2 km east of Sukhbaatar Square- Occupancy remains high, above 65%
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The Corporate Hotel
- Opened in 2007 and domestically owned and run- 11 storeys with the location close to Bayangol hotel- Contains 55 rooms - With GFA of over 5,000 sm - low season rates are US$ 110 per room-night- Mid- to high- end bracket for business and tourist travelers- Restaurant with seating of 80-100 persons - Only 8 exterior parking spaces and 5 underground parking spaces- Conference facilities seat a maximum of 40 person
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Corporate Hotel at Nukht
- This hotel contains a total of 12 rooms- Rates are from US$300 to US$1,500- The facility boasts an exquisite location within the Nukht Valley - Innovative features such as a geo-thermal heating system- Spa facilities include a sauna and Jacuzzi, a fitness center, indoor heated swimming
pool, outdoor play areas and sporting courts
A third Corporate Hotel opened its doors in 2013. Situated next to the Mongolian Chamber of Industry and Commerce building in the Khan-Uul district of Ulaanbaatar, this new facility will contain 162 rooms in the upper- end of the domestic market, as well as conferencing facilities.
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Terelj Hotel
Not strictly situated within Ulaanbaatar, situated around an hour’s drive east of Ulaanbaatar. Constructed by a Korean construction firm, this hotel, firmly placed within the high end of the domestic market, remains a favorite summer retreat among domestic clientele.
- 52 rooms - Rates start from 225,000 MNT for executive room during the low season- Presidential Suite with the rate of 4.875 million MNT during the high season- Located in Terelj national park - Facilities include a spa, swimming pool, fitness center, restaurants, cafes, several
lounges and a meeting hall- Banqueting facilities as well as business facilities for over 200 persons
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Ramada Hotel
- Second newest entrant to the Ulaanbaatar Hotel market- Opened in 2011 - Features 128 rooms across 11 levels - Total GFA of the hotel is 6,600 sm - Lobby bar/restaurant as well as a sky lounge - 50-60 exterior parking spaces and limited underground parking- Focusing on high-end tourists and business travelers- Standard 4 Star hotel
Heavy traffic along Peace Avenue makes this location less than convenient for business travelers seeking swift access to the CBD.
PRELIMINARY MARKET STUDY
HOTEL MARKET – CURRENT HOTELS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Between 2013 and 2017 an average of
247 new hotel rooms will be coming
online each year, with 415 entering the
market in 2013 alone.
A number of hotels are also planning
renovations and expansions, including:
-196 room Chinggis Khan Hotel,
-215 room Bayangol Hotel,
-106 room Ulaanbaatar Hotel
PRELIMINARY MARKET STUDY
HOTEL MARKET – FUTURE SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
New supply of over 1,235
rooms will increase the
market by an impressive 54%.
The majority of these new
rooms will be of international
4 Star standard or above, and
will mostly be clustered to
the south of Ulaanbaatar’s
Central Business District,
within Sukhbaatar District.
415
261
398
161
PRELIMINARY MARKET STUDY
HOTEL MARKET – FUTURE SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
At present the 5 Star
market is limited to
Bayangol, Bayanzurkh and
Sukhbaatar districts, with
just:
-Ulaanbaatar Hotel,
-Blue Sky Hotel,
-Ramada Hotel
-Corporate Hotel
-Kempinski Khan Palace
From$120
To$180
From$154
To$667
From$113
To$777
PRELIMINARY MARKET STUDY
HOTEL MARKET – ROOM RATES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Given the small size of
Ulaanbaatar’s market and
the upcoming challenges of
oversupply , CBRE|Hotels
suggests a slightly smaller
scale hotel of 5 star (upper
up-scale) standard for,
amongst others for three
reasons:
Please read on the next page
PRELIMINARY MARKET STUDY
GAP-A in the market
GA
P-B
in th
e market
350
325
300
275
250
225
200
175
150
125
100
75
50
25
00 Mid-scale Upper Mid-scale Up-scale Upper Up-scale Luxury
PROPOSED POSITIONING OF HOTEL by CBRE|Hotels
Bayangol
Ulaanbaatar
Chinggis Khaan
Ramada
Corporate
Hyatt Regency
Best Western
Radisson Blue
Sunjin Grand
Kempinski Khaan
Sheraton
Shangri-La
Hilton
Blue Sky ProposedHotel
HOTEL MARKET – POSITIONING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
3PRODUCT DIFFERENTIATION
2INVESTMENT
1MARKET
Ensure relatively high and sustainable level of occupancy in this competitive market
Such a hotel will require less investment than a large scale hotel with the same or similar standard and may generate higher returns
A hotel as suggested can occupy a unique space in the market, differentiating itself from the potential competition
PRELIMINARY MARKET STUDY
HOTEL MARKET – POSITIONING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
1. UNIQUE & TRENDY
2. HIP & COOL
3. DESIGN ORIENTED &
HI-TECH
4. PERSONALIZED
SERVICE
5. EXCLUSIVE EXPIRIENCE
1. Willing to pay a premium for experience and lifestyle
2. Trend seekers who seeks out COOL and HIP environments. They might be attracted by exclusive clubs/bars and interested in the COOL factor
3. Unique in design, amenities and cuisine to reflect the local culture, featuring locally-inspired murals ,music, scent and menu items but all of international standard
4. A feeling of staying at home and served by attentive and professionally trained staff
5. Guests who stay in a hotel as a part of their travel experience or treat the hotel as a distinctive destination
HOTEL MARKET – CUSTOMER BEHAVIOUR
GROUP TOURS:
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
LEISURE FIT:Free Independent Traveler
MICE:Meetings, Incentives, Conferences, Exhibitions
CORPORATE: The major demand will be generated by corporate travelers who will usually pay a higher room rate and are more sensitive to location and service quality; CBRE estimates around 70-75% of such business will originate from such sector.
As a “lifestyle” hotel is more focused on personalized service and unique experiences CBRE expects MICE demand for the rooms will only be around 10-15% of the total, although the meetings and conferences themselves may generate independent business for the F&B facilities.
There will be some demand from Leisure FIT guests owing to the hotel’s central location being easily accessible to offices, commercial areas, exhibition centers and the airport as a place of interest: CBRE has estimated such demand at 8-10% of the total.
Typically leisure groups are the most price-sensitive amongst all segments of demand. However the increasing number of high-end and small scale tour groups traveling for experience may become a potential market for the proposed hotel; CBRE has estimates such demand at 5-7% of the total.
HOTEL MARKET – MARKET SEGMENTATION
by DEMAND
PRELIMINARY MARKET STUDY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
112105114
44
137
250
203
216
HOTEL MARKET – BENCHMARKING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
HOTEL MARKET – BENCHMARKING
112
100
7564
134
179
195
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummarySuggested Room Mix by CBRE | Hotels
185Total rooms
19.500Total GFA in sm
18Total floors
PRELIMINARY MARKET STUDY
GUESTROOMS ROOM # ROOM SIZE/SM % OF ROOMS
Standard Twin Room 65 42 35%
Standard King Room 86 42 46%
Executive Rooms 25 42 14%
Suite 8 84 4%
Presidential Suite 1 168 1%
1118Per floor in sm
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummarySuggested F&B Areas by CBRE | Hotels
PRELIMINARY MARKET STUDY
F&B OUTLETS SEATS # AREAS/SEATS NET AREA/SM
All day dining/Coffee Shop 120 2.0 240
Western/Asian Restaurants 60 3.0 180
Specialty restaurants (x2) 110 4.0 400
Lobby Lounge 30 2.0 60
Bar (x2) 40 4.0 160
TOTAL / AVERAGE 360 2.89 1.040
185Total rooms
19.500Total GFA in sm
18Total floors
1118Per floor in sm
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummarySuggested Banquet & Meeting Facility by CBRE|Hotels
PRELIMINARY MARKET STUDY
MEETING & FUNCTION AREAS NO. AREAS/ROM/SM NET AREA/SM
Ballroom (Sub dividable) 1 600 600
Meeting rooms (6) 6 80 480
Pre-function space 216
Business center 1 50 50
TOTAL / AVERAGE 1.346
185Total rooms
19.500Total GFA in sm
18Total floors
1118Per floor in sm
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummaryOther Facilities suggested by CBRE | Hotels
185Total rooms
19.500Total GFA in sm
18Total floors
PRELIMINARY MARKET STUDY
OTHER PUBLIC AREAS NO. AREA/SM NET AREA/SM
Fitness (incl. swimming pool) 1 500 500
Spa & Health Center 6 20 120
Reception area 1 80 80
Games room / other 3 42 126
Retail Outlets (Lobby Shops) 1 30 30
Total 856
1118Per floor in sm
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummaryPrice by CBRE | Hotels
PRELIMINARY MARKET STUDY
185Total rooms
19.500Total GFA in sm
18Total floors
1118Per floor in sm
$308.372TOTAL DEV COST PER ROOM
Per CBRE|Hotels suggestion this cost calculation needs to be verified by a reputable QS company
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
HOTEL MARKET - SummarySelected Hotel
PRELIMINARY MARKET STUDY
Advanced discussions have been in process with the hotel
185Total rooms
19.500Total GFA in sm
18Total floors
1118Per floor in sm
The information provided in this presentation are all taken from the research conducted by CBRE|Hotels according to our request. Further research will be done with CBRE|Hotels in the future.The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
4 OFFICE MARKET
SROUCE: MAD PropertiesMongolian Properties
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
As the transition to democracy and a liberal economy got
underway in Mongolia, new offices began to spring up
around the capital. The first office spaces in the city were
located in converted apartments situated along the city’s
main thoroughfares.
PRELIMINARY MARKET STUDY
OFFICE MARKET – 1991 AND NOW
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In most jurisdictions ceiling height indicates something of the
quality of a property and the market intended by developers.
Ceiling heights in Ulaanbaatar offices typically range from 2.1m
to 3.5m.
Average ceiling heights across a cross-section of selected A and B
grade offices was calculated as
PRELIMINARY MARKET STUDY
2.8m
OFFICE MARKET – SEILINGS HEIGHT
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Elevator services are a
defining technical feature
of office classifications.
International classificatory
schemes dictate that in A
grade office space the
available lifts must be
capable of servicing 15%
of the average human
capacity of the building at
any time.
6 6 6
22 2 2 2 2
3 3
Elevators count in various office buildings in Ulaanbaatar city
PRELIMINARY MARKET STUDY
OFFICE MARKET – ELEVATORS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In terms of amenities the majority of Ulaanbaatar’s stock of office
space falls well below A grade status. Facilities such as raised floors
for cabling, suspended ceilings, intelligent climate control, carbon
neutral status and one-way transparency windows are not
standard features in the upper end of the market.
PRELIMINARY MARKET STUDY
OFFICE MARKET – AMENITIES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Across Ulaanbaatar
parking is at a premium.
Most offices across the
city have extremely
limited indoor and off-
street parking available to
its tenants. Removal of
parking spaces on roads
around the city as part of
traffic calming measures
has worsen the problem
further.
66
35
75
33
23
19
26
12
44
30
18
16
80
40
620
88
30
18 16
33 33
PRELIMINARY MARKET STUDY
OFFICE MARKET – PARKING SPACES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Floor area is another
determinant of A grade
status.
Internationally, office
buildings which fall below
a certain floor-plate size
are not considered grade
A facilities.
For a building to be
classed as A grade it
should have a floor plate
of over 1,000 sm size.
2000
1200
840
828
640
600
600
450
895
1200
1454
PRELIMINARY MARKET STUDY
OFFICE MARKET – GROSS FLOOR AREA
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
OFFICE MARKET – DEMAND
1564
509280%
Financial services establishments in 2012 and active
1262 Financial services establishments in 2011 and active
Total registered companies and active
Responsible for the national GDP
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The majority of companies
operating within these
facilities were either
mining companies or part
of the mining supply
chain. A further 9% were
operative directly to the
financial services sector,
whilst 11% were involved
in trading and logistics.
2%1%7%
6%
11%
9%
52%
12%
PRELIMINARY MARKET STUDY
OFFICE MARKET – TENANT MIX
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
In 2011, concerns were
raised about oversupply in
the office market.
However by 2012 it
became all but impossible
to find office space in
Ulaanbaatar. All but a few
offices reported nearly
100% occupancy, with
limited space for sale or
rent.
42300
28800
17700
14275
25000
18700
24700
20250
PRELIMINARY MARKET STUDY
OFFICE MARKET – SUPPLY VS UPTAKE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
The observations indicate
a total A, B and C grade
office supply in
Ulaanbaatar as of 2012
are at just over 410,000
sm, with over 184,100 sm
already in the pipeline and
projected to come online
by 2017.
42300
17691
16151
3114024947
54500
24700
PRELIMINARY MARKET STUDYSq
uar
e m
eter
OFFICE MARKET – SUPPLY BY GRADE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Central Tower
• Completed in 2010 as a joint venture by MCS and Shangri-La (Shangri-La Ulaanbaatar Ltd)
• Only true A grade office facility with 30,000 sm of office (4-16 floors)
• Floor plate plan for each office covers 1,700 square meters (NFA) with 85% space efficiency
• 6 KONE lifts have been installed / 1 service elevator is also in place
• 81 underground parking spaces available
• Monthly parking charges 260,000 MNT pM / weekday for 350,000 MNT for 24/h parking
• The entire building is air cooled through a central air-conditioning system
• 0.15m raised floors / 2.9m ceilings
• The minimum lease period for office is two years with minimum rental size of 110 sm
• During Q3 of 2012 the office space therein was at 100% occupancy
• Typical asking rent per square meter per month is US$ 60, plus VAT incl. all management fees
• Standard handover condition is with fine decoration included
PRELIMINARY MARKET STUDY
OFFICE MARKET – CURRENT OFFICES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Monnis Tower
• Monnis Tower was completed by Monnis Properties in 2009
• Total of 15,050 square meters of office space over 13 floors
• 3 SIGMA lifts and one service elevator
• Floor-plate of this development is 828 square meters (GFA)
• Does not offer raised floors but does provide a light and spacious working environment
• 3.1m tall ceilings and a central air conditioning system
• 27 underground parking spaces with a very limited on-street parking spaces
• Parking charges typically rise to around 250,000 pM
• In Q3 of 2012 occupancy stood at 100%
• Rent price is around US$ 45 to US$ 55 per square meter pM plus VAT.
• Management fee of US$ 4 per square meter is charged on top monthly rent
• Minimum lease period is between 1-3 years and the minimum leasable space is 30 sm
PRELIMINARY MARKET STUDY
OFFICE MARKET – CURRENT OFFICES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Blue Sky Tower
• One of the latest entrants to the upper end of the market in Ulaanbaatar, Blue Sky Tower was
completed in 2011
• Total of 9,947 square meters of office space, spread across 5 floors in this mixed use development
• Contains leisure facilities, two floors of food and beverage facilities and a large, international
standard, domestically run hotel
• Situated directly opposite Sukhbaatar Square, a prime location
• Despite the fact that the 9,947 sm of office space in this building was initially slow to rent
• Per square meter prices well above US$ 50 even during 2011, reaching as high as US$ 90
(reported) per sm per month in late 2012.
• The most expensive office space in the city
• Bloomberg TV Mongolia now bases their operations
PRELIMINARY MARKET STUDY
OFFICE MARKET – CURRENT OFFICES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
International Commerce Centre
• In early 2012 the ICC project found renewed funding from the Mongolian International Capital
Company (MICC) a 10 million Euro loan
• Situated in downtown Ulaanbaatar within a few hundred meters both Central Tower and Blue
Sky Tower
• Development just opened its door in 2013
• Will contain two separate underground parking lots
• A large lobby with a small commercial area dedicated to food and beverage
• Potentially high end retail anchor stores, office space and conference rooms
• The top floor of this 21 story building will contain an upscale lounge bar
• ID transponder systems for staff and smart car-park management
• ICC will contain 18 floors of office space
PRELIMINARY MARKET STUDY
OFFICE MARKET – CURRENT OFFICES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Mongolia, with its pipeline
supply of 44% of existing
office stock, will certainly
be a contender among the
world’s fastest growing
office markets if demand
holds and favorable
economic conditions
allow.
PRELIMINARY MARKET STUDY
OFFICE MARKET – FUTURE SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
International Finance Centre
The IFC will have a GFA of 45,000 sm covering a footprint of 3,772 square meters in a prime location
along Chinggis Avenue, in the heart of Ulaanbaatar’s business district. In terms of office space it is
expected that it will contain 20 out of an initially proposed 24 floors of office space. However, it is
expected that plans for this building may be amended to make it the tallest building in Ulaanbaatar
by the time of its completion, tipping above the 26 levels of Shangri-La. Situated just opposite the
current Monnis Tower, this commercial property is expected to be a key A Grade office facility within
the Ulaanbaatar market. The project has yet to initiate full construction and is expected to come
online during 2015.
This development has already seen considerable delays. With construction expected to begin in
2011, the only movement at the construction site to date has been the embedding of pylons. The
developer spent some of 2013 seeking renewed international financing for the project and expected
to begin construction in during 2013.
PRELIMINARY MARKET STUDY
OFFICE MARKET – FUTURE SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
GS Tower
Situated in a prime location along Chinggis avenue (Sukhbaatar district), GS Tower is the flagship
commercial construction of developer “German Standard”. This commercial project contains over
7,100 square meters of office space. Purported use of German engineering techniques has led
significant interest in this building, although the building’s lack of parking spaces – with only 10
indoor parking spaces available – reduce the attractiveness of it as a commercial location. It is
reported that the developer has approached neighboring buildings asking to purchase indoor
parking spaces therein in order to offer them to prospective tenants.
PRELIMINARY MARKET STUDY
OFFICE MARKET – FUTURE SUPPLY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Out of 87 office facilities
across Ulaanbaatar the
following average rates
were calculated. Highest
rents are achieved within
Sukhbaatar district. The
CBD itself (within around
150-200 m radius).
PRELIMINARY MARKET STUDY
OFFICE MARKET – RENT PRICE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
At US$ 57 per square
meter per month the
city’s majority stock of A
grade is renting in 2012 at
a full 21% higher than in
2011.
PRELIMINARY MARKET STUDY
31USD
57USD
29USD
22USD
25USD
21USD
OFFICE MARKET – RENT PRICE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Transaction rates of office space accelerated upward again in
2012. With per square meter purchase prices for A grade retail
surpassing the US$5,500 mark.
PRELIMINARY MARKET STUDY
OFFICE MARKET – PURCHASE PRICE
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
OFFICE MARKET – BENCHMARKING
$20674
$19600
$9010$8136
$5000$4500
$2500
$20000
$16000
$8205
$7200
$2700$3500
$1944
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
OFFICE MARKET – BENCHMARKING
$13389
$11250
$4500
$1800$1900$1000
$12794
$11000
$3500
$1750$1269
$950
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
OFFICE MARKET - SummaryPotential office space calculation
PRELIMINARY MARKET STUDY
16770Total GFA in sm
15Total floors
1118NFA in sm
AGRADE
OFFICE FLOOR DATA
0.15Raised floor (m)
840Parking spaces
4.35Ceilings (m)
Amenities suitable for an A grade office
OFFICE AMENITIES
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
OFFICE MARKET - SummaryPotential office space calculation
PRELIMINARY MARKET STUDY
$55-$60Target rent price pSM/pM
$5500Target sell price pSM
50%Selling space
PRICE RANGE FOR RENT AND SELL
8385 smTotal square meter for rent
RENT AND SELL SQUARE METER
8385 sm50% square meter for sell
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
OFFICE MARKET - SummaryPotential rent and sale forecast
PRELIMINARY MARKET STUDY
$900,000Monthly potential rental income
including vacancy rate of 10%
$4,800,000Annual potential rental incomeincluding vacancy rate of 10%
RENT - OPTION
8385 smWe have the potential to sell the
50% of the total office space
$46.000.000Potential total income from
50% office space
SELL - OPTION
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
OFFICE MARKET - SummaryPotential total income
PRELIMINARY MARKET STUDY
Potential income $50,000,000from the office pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
5 COMMERCIAL MARKET
SROUCE: MAD PropertiesMongolian Properties
The retail sector in Ulaanbaatar has transformed
dramatically in the transition from a centrally planned to
a liberal economy. Prior to the 1990s all private trade
was prohibited.
During the 1980s semi-legal exchange sites grew up on
the outskirts of provincial capital and other large cities.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – PRE HISTORY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – B-GRADE SALES PRICE
TODAY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
http://goo.gl/sQOiW
COMMERCIAL – GLOBAL RETAIL
Market average sales prices for new and existing B-grade
retail space peaked in 2012 at around US$3,500-
US$4,500 pSM based upon reported transactions.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – AVERAGE SALES PRICE
The selling prices are expected to rise above the
US$5,000 mark for space in new retail constructions as
we come into 2014.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – FUTURE SUPPLY
Example: The new market entrants Peace Tower (B-
grade) selling retail spaces are at up to US$6,000 pSM
for prime locations on street-accessible floors.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – PEACE TOWER
Studies of trade mix for existing high-end retail projects in
Ulaanbaatar shows below listing:
- 19% to supermarket,
- 8% to food and beverage,
- 1% to entertainment facilities and
- 72% to retail.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – ZONING PRACTICES
NOTE: Entertainment facilities remain scarce and F&B facilities
are only occasionally well organized into dedicated food
courts and dining areas (MCS Central Tower and Blue Sky
Tower).
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL – RENTAL BASKET
The table below indicates the spread of prices per square meter across 17 retails stores and shopping centers in Ulaanbaatar, ranging from A to C grade.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDYsqm
The upper end of the market
(A and B grade space) saw
reasonably limited growth in
2012 as the market gears up
to see a dramatic jump in
new retail space completed
during 2014 with new
entrants including the IFC
and flagship Shangri-La
project.
COMMERCIAL – SUPPLY vs. UPTAKE
CENTRAL TOWER
• Situated on the south-eastern corner of Sukhbaatar Square
• Completed in 2010, this 17 floor development houses 3 floors of retail space and a further one floor of
entertainment space at the top of the building
• The net retail GFA is 6,700 square meters and exclusively targets the high end of the market
• Brands: Louis Vuitton, Apple, L’Occitane, Goyo Cashmere, Esprit, Emporio Armani, Omega, Hugo Boss, Burberry,
Swarovski, Ermenegildo Zegna, Montblanc, Vertu and many more
• MCS operate on a profit sharing agreement with the management firm
• In 2012 price for rent varied from around 90,000 MNT pSM pM
• Price for rent on the 3rd floor vary from 63,000 MNT pSM pM
• The third floor is reserved for dining and contains a coffee shop, as well as five restaurants catering everything from
Korean to American food
• Around 75% of total floor space is given over to retail with 22% allocated to food and beverage
• In late 2012 occupancy was around 95%
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL - BENCHMARKING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
COMMERCIAL - BENCHMARKING
180
132123
98
4845
30
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
316
168140
6448
2521
COMMERCIAL - BENCHMARKING
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
COMMERCIAL - SummaryPotential retail space
PRELIMINARY MARKET STUDY
16,170Total GFA in sm
3Total floors
5390NFA in sm
AGRADE
RETAIL FLOOR DATA
TENANTS IN ADVANCED DISCUSSIONS
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
$60-$90Target rent price pSM/pM
$6000Target sell price pSM
50%Selling space
PRICE RANGE FOR RENT AND SELL
8000 sm50% square meter for rent
RENT AND SELL SQUARE METER
8000 sm50% square meter for sell
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
COMMERCIAL - SummaryPotential rental and selling ranges
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
$400.000Monthly potential rental income
including vacancy rate
$5.000.000Annual potential rental income
including vacancy rate
RENT – OPTION *
8000 smWe have the potential to sell the
50% of the total retail space
$48.000.000Potential total income from
50% retail space
SELL – OPTION *
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
* Vacancy rate of 10% has been calculated
COMMERCIAL - SummaryPotential income
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
COMMERCIAL - SummaryPotential total income
PRELIMINARY MARKET STUDY
Potential income $53,000,000from the retail pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
6 PARKING AND GARAGE MARKET
SROUCE: MAD Properties
Parking & Garage
Parking is already at a premium and any developer who produces large-scale
parking will certainly be able to sell spaces at a cost now approaching the
square meter prices for mid-end apartments in the city. Within high-end
developments heated parking spaces can sell for over US$ 30,000 each an
impressive US$ 1,740 per square meter. Rental of an inner-city parking space
is even more of an expense.
Central Tower presently offers parking during weekdays only for a monthly
fee of 260,000 MNT with overnight and weekend parking incurring extra
costs.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
PARKING AND GARAGE
Average building GFA to
indoor and outdoor parking
available is around 173.5
square meters per parking
space. This certainly does not
meet A grade standards.
Aware of the problem,
developers are increasingly
seeking to offer greater
numbers of parking spaces in
forthcoming developments.
66
35
75
33
23
19
26
12
44
30
18
16
80
40
620
88
30
18 16
33 33
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
PARKING – PARKING SPACES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
475
Presently 67% of all vehicles
registered in Mongolia are
registered in Ulaanbaatar.
This capital city’s share of the
total number of vehicles in
Mongolia has steadily grown
in the past two decades as
urban migration continues
and more cars are purchased
within the city centre.
PARKING – TOTAL SQM PARKING SPACES
Parking is already at a
premium and any developer
who produces large-scale
parking will certainly be able
to sell spaces at a cost now
approaching the square
meter prices for mid-end
apartments in the city.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
209,791
312,542
102,751
PARKING – NUMBER OF VEHICLES
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PARKING & GARAGE - SummaryPotential parking tech data
PRELIMINARY MARKET STUDY
66|30%Possible parking spaces
PARKING SPACE OUTDOOR
From total of 3300sm only 30% could be used for parking lots.
820|4FPossible parking spaces
PARKING SPACE INDOOR
From total of 30800sm only 40% are used for indoor parking lots.
$200Monthly rent fee per garage
$30,000Purchase price per garage
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PARKING & GARAGE - SummaryPotential parking space
PRELIMINARY MARKET STUDY
66Possible parking spaces
PARKING SPACE OUTDOOR – RENT ONLY
RENT - US$ 158,000 pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PARKING & GARAGE - SummaryPotential parking space
PRELIMINARY MARKET STUDY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
410Possible parking spaces
PARKING SPACE INDOOR - RENT
RENT - US$ 900,000 pY
410Possible parking spaces
PARKING SPACE INDOOR - SELL
SELL - US$ 12,000,000 pY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PARKING & GARAGE - SummaryPotential total income
PRELIMINARY MARKET STUDY
Potential income $13,000,000from the garage pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
8
TOPICS
PRELIMINARY MARKET STUDY
7 OBSERVATION DECK
Astonishing panoramic view over the city and beyond could be offered to
incoming tourists and local community. The observation deck could house a
famous local restaurant and a small art gallery or a meeting room. There are
many options how to use the top floors.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
OBSERVATION DECK
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
OBSERVATION DECK - SummaryPotential pricing strategy
PRELIMINARY MARKET STUDY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
10000 MNTEntrance fee for 6 PAX
35000 MNTEntrance fee for 6 PAX
2000 MNTEntrance fee for children
5000 MNTEntrance fee for adults
50000 MNTEntrance fee for 8 PAX
14000 MNTEntrance fee for 8 PAX
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
18,000AVG Tourist per year
FROM ADULTS
7000AVG children per year
FROM CHILDREN
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
US$ 57,000 pY
US$ 8,000 pY
OBSERVATION DECK - SummaryPotential income per year
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
PRELIMINARY MARKET STUDY
Potential income $ 65,000from the OD pY
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
OBSERVATION DECK - SummaryPotential total income
PRELIMINARY MARKET STUDY
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
9
TOPICS
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
COST ESTIMATION
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
COST ESTIMATION – EXECUTIVE SUMMARY
RESIDENTIAL $ 200,000,000
OBSERVATION DECK $ 65,000
PARKING $ 13,000,000
OFFICE $ 50,000,000
SERVICED APARTMENTS $ 5,700,000
RETAIL $ 53,000,000
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
COST ESTIMATION – EXECUTIVE SUMMARY
$320,000,000TOTAL PROFORMA ANNUAL INCOME (excluding Hotel)
~~
The information provided in this presentation are all approximate. The prices are all projected rates according to the preliminary research we have conducted and are not final. The information are subject to change without any prior notice.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
1. MONGOLIA
2. REAL ESTATE
3. THE TEAM
4. THE SITE
5. AMBITION
6. STRATEGY
7. VISION/CONCEPT
8. PRE-STUDY
9. COST
10. OFFER
TOPICS
10
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE OFFER
Old paintings - city
This unique development would not only benefit our
company, but potential partner companies as investors,
our shareholders, the surrounding neighborhoods and
most of all our country.
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
THE OFFER
$187,000,000 USDTo invest approximate lump sum can be safely managed through our law firm which will be spent in stages according to the request from both side. We can offer company share as a take-a-serious partner. Shares are open for discussions.
INVESTMENT OPTION - 1
110,000 smTo build the whole tower with own fund according to the design we have selected. We will take care of the whole sale/management and pay back the invested fund as per agreed terms and conditions to funder or developer.
INVESTMENT OPTION - 2
THANK YOU FOR YOUR KIND ATTENTIONTHE PURPOSE OF THIS PRESENTATION IS FOR DISCUSSION ONLY!
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
Old paintings - city
Thank you for your consideration. I will be happy to answer any questions you may have.
S. Tom TsogtDunjingarav LLC - Director of Foreign Relation & Research
Sukhbaatar district | 1st khoroo | Chinggis avenue | Ulaanbaatar | MongoliaE: [email protected] | M: +976 9909 0722 | T: +976 11 315353 | F: +976 11 323023
PROJECT UNDERSTANDINGMixed use high rise building in Ulaanbaatar
CONTACT DETAILS