The document invites Malaysian institutions to participate in the proposed Jabal Khalil property development project in Makkah, Saudi Arabia. It outlines plans to develop the 17-acre site located 1.2 km from the Masjid al-Haram into hotels, retail, and other facilities with a total built-up area of over 1 million square meters and capacity for 75,000 guests. The estimated total cost of the project is 7.3 billion Saudi Riyals. The landowner seeks a 50-50 joint venture partnership with a Malaysian consortium to develop, own and operate the facilities together in perpetuity.
7. Religious Tourism
Factor
Population
Growth
+ =
Declining of
International travel
cost
Increase of religious
tourists
5.3 7.7 MILLION
2006 2007 2008 2009 2010
TOTAL HAJJ / UMRAH VISITOR
From
MILLION
8. Religious Tourism
Factor
Growing number of pilgrims
will provide significant
opportunities for an expansion
of existing hotel room supply
11. Prospect &
Potentials
- Religious Tourism is on a steady linear rise (current to future)
- Need to match accommodation demand (ongoing)
- Scarcity of strategic land for development (location and distance from Haram)
- Appreciating land and property value
- Saudi Government active and hands on approach
13. An Exclusive Window of
Opportunity
MALAYSIAN ECONOMICS
OUTREACH PROGRAM
*new job and placement opportunity
*repatriation of new money supply
*new sources of revenue and income stream
15. Jabal Khalil Property Development Project
- hotels / retail & other facilities
- 72,000 sq
- approx. 17 acres
16. Indicative Development
Content
total built up area of approximately 1,000,000sm
3-4 star accommodation
up to 15,000 units of self sufficient hotel / apartment
estimated peak capacity of 75,000 guests
average unit size up to 45 sm per room
5 persons per Unit
22. Indicative Development
Cost
Mean Development Cost
Indicative Land
Total VInadluicea tive Land Development
Cost
SR 5,332,633,920
SR 2,000,000,000
SR 7,332,649,920
Source: ABD&C, Jones Lang LaSalle, and Deloitte
23. BUILT UP
AREA
TOTAL BUILT UP AREA IN M2: 1,058,000
Source: ABD&C, Jones Lang LaSalle, and Deloitte
24. LAND DEVELOPMENT COST
Land Cost/m2 (SR)
Construction cost/m2 (SR)
Infrastructure cost/m2 (SR)
FF & Finishing cost/m2 (SR)
Consulting & Design costs
Supervision costs
Project services
27,778
3,500
1,667
1,510
3%
3%
2%
RETAIL AREA ASSUMPTION
Retail Area (m2)
Net Leasable Area (%)
Net Leasable (m2)
Yearly Lease Rate /m2 (SR)
Retail Area Occupancy (%)
60,000
70%
42,000
2,000
85%
OTHER PROJECT
ASSUMPTIONS
Source: ABD&C, Jones Lang LaSalle, and Deloitte
25. DEVELOPMENT COST Rate/m2 SR
Construction Cost
Infrastructure Cost
Furniture, Fittings, Finishing & Electrical
3,500
1,667
1,510
3,703,000,000
120,024,000
1,114,600,000
Sub-total Construction, Infra & Fittings 4,937,624,000
Consulting & Design costs
Supervision costs
Project services
3%
3%
2%
148,128,720
148,128,720
98,752,480
Subtotal Professional & Services 395,009,920
TOTAL INDICATIVE PROJECT COST 5,332,633,920
Land SR
Estimated Land Value 2,000,016,000
TOTAL COST Inclusive of Land 7,332,649,920
Source: ABD&C, Jones Lang LaSalle, and Deloitte
26. Revenue Assumptions (Base
Case)
ROOM PACKAGES No Days
Occupancy
Rate
Rate/Room/
Night (SR)
Haji Season (5 Per room)
Ramadhan 1st 20 days
Ramadhan last 20 days
Umrah Season
Low Season
30
20
10
185
85
100%
80%
90%
80%
30%
4,600
305
940
100
85
330
Retail Space Assumptions Basis
Gross Retail Area
Net Leasable Retail Area
Net Leasable Retail Area
Estimated Average Occupancy
Estimated Average Occupancy
Yearly Lease Rate (SR/m2)
m2
%
m2
%
m2
SR
60,000
70%
42,000
85%
35,700
2,000
Source: ABD&C, Jones Lang LaSalle, and Deloitte
31. Land Owners
Intent
The land owner is desirous of directly and jointly developing the land on
a 50:50 ratio with the ARB led consortium
The ownership of the project and units shall be retained by the joint developer
/ investor and proposed to be jointly operated or leased out to third parties
preferably in bulk and termed
32. Pulling
Factor
LOCATION
Near to Masjid Al-Haram – approximately 1.2 Km i.e. walking distance
On main artery street direct to Masjid Al-Haram – easy access by haj pilgrims
MAKKAH EXPANSION
PLAN Project site shall be a direct beneficiary of the current spate of demolition, expansion and redevelopment program
of of the surrounding area of Masjidil Haram
Highly promising outlook with the anticipated increase of pilgrims for the Hajj season, umrah performers and
religious tourists due primarily to the significantly extended capacity of Masjidil Al Haram
PERPETUAL BENEFICIAL
OWNERSHIP The land owner opt to jointly develop, own and operate the envisaged development with the developer /
investor on a 50:50 ownership with the land owner