tilal al naseem complex - makkah...the population of makkah reached around 2.0 million in 2016 and...

Tilal Al Naseem Complex - Makkah

Introduction

Tilal Al Naseem, Makkah is part of a hospitality complex that includes fiveseparate, but clustered, buildings which is located to the southwest of theintersection of the 3rd Ring Rd (Muzdalifah Rd) and Al Hada Rd, adjacent to theAl Rajhi Grand Mosque.

The hotels include: Novotel with 480 keys, Adagio with 450 keys & Ibis Styleswith 1,535 keys in Bldg 1, Park Inn by Radisson with 459 keys, which will have aproposed 1,229 m² of retail GLA on the ground floor, housed in Bldg 2 with 136parking bays; Millennium Hotel and Copthorne Hotel with 1,307 keys, 12,559m² of retail GLA spread over three levels and 378 parking places, housed in Bldg3A & 3B; and Four Points by Sheraton with 1,140 keys, 6,077 m² of retail GLA onthe ground floor and 468 parking bays housed in Bldg 4. The Complex alsoboasts over 800+ residential units which are a walking distance to the entireTilal Al Naseem project & 30,000 m2 office spaces adjoining to theseresidential units

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PROJECT ESSENTIALS

Complex Details

Client Al Rajhi Investments

DeveloperSulaiman bin Abdulaziz Al Rajhi Real

Estate Investment Co

Complex Name Tilal Al Naseem

Complex Location Intersection of 3rd Ring Road and Al

Hada Rd, Makkah, KSA

Coordinates 21°22'51.5"N 39°52'22.1"E

Bldg Hotel Keys Future Keys GLA Retail Levels Parking Status

1 Novotel 480

10,193 2 1,210

Under construction

1 Adagio 450 Under construction

1 ibis Styles 1,535 Under construction

2 Park Inn by Radisson 459 1,229 1 136 Completed

3 Millenium Hotel 815 12,559 3 378

Completed

3 Copthorne Hotel 492 Completed

4 Four Points by Sheraton 1,140 6,077 1 468 Completed

TOTAL 2,906 2,465 30,058 2,192

Introduction

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CONTEXT MAP

Source: Google Maps & McARTHUR + COMPANY Analysis

PROJECT SITE

MAKKAH

AL MASJID AL HARAM

JEDDAH EXPRESSWAY

Introduction

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PROJECT SITE MAP AND SURROUNDING RESIDENTIAL AREAS

MAKKAH

Introduction

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PROJECT SITE MAP AND BUILDING LAYOUT

MAKKAH

BUILDING 1 BUILDING 2

BUILDING 3

BUILDING 4

Introduction

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PROJECT SITE MAP AND BUILDING LAYOUT

Introduction

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SITE PHOTOS

Introduction

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SITE PHOTOS (CONT’D)

Introduction

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▪ The primary trade area of the project will extend to the guests of the hotel andthe 235,000 or so residents of the surrounding neighbourhoods. Thesoutheast of the city, where the project is located, is an establishedpopulation centre with the population of Al Aziziyah reaching around 215,000by 2016. The southern neighbourhoods of An Nasim and Ash Shishah arecurrently home to around 20,000 people and development of the area isongoing.

▪ There were around 43,000 residential households in the primary trade areain 2016, which is expected to rise to nearly 52,000 by 2022, including the800 residential units within the Complex.

▪ Retail, Dining and Entertainment (RDE) spending per household per annumin 2016 is SAR60,000 in Makkah and this is expected to rise to nearlySAR66,000 by 2022. This yields a total spending potential for the 52,000households in the PTA of SAR3.4 billion by 2022.

▪ Around 12 million people are estimated to have visited Makkah in 2016,which is expected to rise around 19 million by 2022. We expect that the hotelcomplex will see around 1.8 million annual guest nights by 2022.

▪ Total spending by guests at the hotel complex (excluding accommodation) isexpected to reach SAR3.0 billion by 2022.

▪ The residential household spending potential is more consistent and reliable,as hotel guest spending is subject to seasonality fluctuations, occupancy rateforecasts and other external factors that may affect overall tourism levels andinternational visitor numbers to Makkah.

▪ As a result, we expect the proportion of residential household spending at theproject to be around 60-70% of the total, while spending by hotel guests andother visitors will account for around 30-40%.

KEY DEMAND DRIVERS – KEY ESSENTIALS

Introduction

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The population of Makkah reached around 2.0 million in 2016 and is expectedto grow to around 2.47 million by 2022. There were around 382,000 householdsin the city in 2016.

Around 55% of the population of Makkah are Saudi nationals and 57% of thecity’s residents are male.

The Hajj and Ummrah pilgrimages underpin the economy of the city with mostemployment being geared towards servicing the visitors in terms ofadministration, hospitality, catering, retail, etc. The Hajj season alone isreported to generate around SAR32 billion in annual revenue.

KEY DEMAND DRIVERS – MAKKAH POPULATION

Source: McARTHUR + COMPANY Analysis, General Authority for Statistics (GAS)

0

500

1,000

1,500

2,000

2,500

3,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Tho

usa

nd

s

Makkah City: Population

Introduction

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The pilgrimage to Makkah attracts Muslims from all over the world. The Hajj, the'greater' pilgrimage, is performed annually at sites in and around the city duringthe run up to Eid al Adha. Every adult, healthy Muslim who has the financial andphysical capacity to travel to Makkah and can make arrangements for the care ofhis/her dependents during the trip, must perform the Hajj at least once in alifetime. The rites of the pilgrimage are spread over several days, and theaverage length of stay for international visitors in five days.

Ummrah, the lesser pilgrimage, is not obligatory and usually involves theperformance of fewer rites and thus the average length of stay in Makkah forinternational visitors is three days.

According to the Vision 2030 development plan, the Kingdom will increase thecapacity of Makkah to accommodate 15 million annual visitors by 2020, upfrom the 12 million that are estimated to have visited in 2016.

In 2016 there were around 1.2 million visitors from Egypt followed by more than900,000 from Pakistan and around 655,000 Indonesians.

During the peak Hajj period, of September 2016, the city received 1.86 millionvisitors, of which 1.33 million were from overseas. Of the international pilgrims,54.6% were male.

Among the 5327,000 domestic pilgrims, 66% were male, and 73% Saudis(Egyptians and Pakistanis accounted for the bulk of the foreign residents). Atotal of 29,169 vehicles transported the domestic pilgrims to the city during Hajj2016 season, including over 14,000 small private vehicles.

MAKKAH VISITORS

Source: McARTHUR + COMPANY Analysis, GAS, MAS Tourism Statistics and Information Centre

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10

15

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25

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Mill

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Makkah: Visitors 2006-2022f

Ummrah and Other Hajj

Introduction

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PRIMARY TRADE AREA MAP

Source: McARTHUR + COMPANY Analysis; Esri, HERE, DeLorme, © OpenStreetMap. Note: See table on previous slide for reference numbers

PROJECT SITE

MAKKAH

AL AZIZIYAH

ASH SHISHAH

3rd RING ROAD

AL MASJID AL HARAM

Introduction

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DRIVE TIMES ANALYSIS


PROJECT SITE

MAKKAH

AL MASJID AL HARAM

Introduction

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DRIVE TIMES ANALYSIS


PROJECT SITE

MAKKAH

AL MASJID AL HARAM

10-15MINS

AVERAGE DRIVE TIME

TO/FROM AL HARAM

15MINS

AVERAGE DRIVE TIME

TO/FROM JEDDAH

EXPRESSWAY

JEDDAH EXPRESSWAY

Introduction

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Residents

Al Aziziyah is an established and densely populated neighbourhood bordered onthe west by mountains and on the east by the Mina camp. Running through theneighbourhood is the main commercial strip, Al Masjid Al Haram Rd, which isthe focus of local economic activity. The area comprises mainly mid-riseapartment accommodation with middle income households as well ascommercial offices, showrooms and hotel accommodation.

The population is very diverse with residents from a wide variety of nations, andis sometimes referred to as Little Pakistan, due to the concentration ofimmigrants in the area.

The population of Al Aziziyah reached an estimated 215,000 by 2016 and isexpected to rise to around 250,000 by 2022.

To the south of 3rd Ring Road, the neighbourhoods of An Nasim and Ash Shishahare less dense with predominantly single family housing. Households in the areaare largely upper middle income with a large proportion of Saudi nationals.

The southern neighbourhoods of An Nasim and Ash Shishah are currently hometo around 20,000 people and development of the area is ongoing. Thepopulation is expected to rise to around 26,000 by 2022.

There are 92 residential apartment buildings expected to be completed by 1st

Sept 2019 in close proximity to the project site, which upon completion areexpected to deliver 828 three-bed & four-bed apartments which will house apopulation of nearly 5,000 people.

PRIMARY TRADE AREA

Introduction

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PRIMARY TRADE AREA – HOUSEHOLDS

The population of the primary trade area, as mentioned above, is expected togrow from around 236,000 in 2016 to around 275,000 million by 2022.

Meanwhile, the average household size for Makkah is 5.3 people, according todata from the General Authority for Statistics, which yields around 44,000households.

Item Unit 2016 2017 2018 2019 2020 2021 2022

Population # 235,905 242,111 248,484 255,030 261,752 268,657 275,748

Average Household Size # of people 5.3 5.3 5.3 5.3 5.3 5.3 5.3

Households # 43,626 45,398 46,593 47,821 49,081 50,376 51,706

Source: McARTHUR + COMPANY Analysis

Floor Plans & Merchandise Mix

Floor Plans & Merchandise Mix - Bldg 2

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Floor Plans & Merchandise Mix - Bldg 3 L1

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Floor Plans & Merchandise Mix - Bldg 4

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Floor Plans & Merchandise Mix – Off Bldg 1 GF

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Floor Plans & Merchandise Mix - Off Bldg 1 MZ

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Floor Plans & Merchandise Mix - Off Bldg 2 GF

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Floor Plans & Merchandise Mix - Off Bldg 2 MZ

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Leasing Information

The creation of shopping centres that generate strong returns for the investor and profitable sales for the retailers is at the heart of

McARTHUR+COMPANY’s approach to shopping centres and mixed use development, leasing and operations advisory.

Our strategies develop well-planned, highly popular shopping destinations with long-term financial growth in value and leverage international

best practices combined with local knowledge of retail markets and shopping influences to meet each project’s goals.

Dubai-based McARTHUR+COMPANY boasts a talented team of over 30 industry professionals with decades of shopping centre development

experience all over the world. The firm has provided valuable strategic advice as well as development, leasing, marketing and management

services to projects in the UAE, Saudi Arabia, Bahrain, Qatar, Iran, Iraq, Malaysia, Azerbaijan, Lebanon, Kuwait, Jordan, Oman as well as USA

and Canada.

Contact:

Mr. Furqan AtharManaging Director

Mob: +971 556543910

Email: [email protected]

Mr. Omar Al AmoudiLeasing Director- KSA

Mob: +966 566000479

Email: [email protected]

tilal al naseem complex - makkah...the population of makkah reached around 2.0 million in 2016 and...

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