Moncler Dubai Mall Lease Renewal Strategic Analysis

Dubai Mall: Lease Renewal

Management Discussion

January 2026

Executive Summary

Comparison of Dubai Mall Commercial terms Vs Mall of the Emirates.

Dubai Mall Lease Renewal Commercials.

Discussing Counter Offers and Financial Impact.

Review of counter proposal.

Sales Projections: 2025 - 2029

Steady revenue growth justifies location investment despite costs.

Commercial Terms Comparison

Note: MoE 6% escalation also applies to Service, Chilled Water, & Marketing charges.

Dubai Mall: Renewal Terms Analysis

Initial Offer

Fixed Charges

Final Offer

Rent Growth: 12%

TOR: 14%

Service Charges: 85 AED/sqft

Chilled Water: 20 AED/sqft

Rent Growth: 12%

TOR: 12% (Reduced)

Dubai Mall Lease Renewal Commercials

Marketing Charges: 2.5% of Base Rent

NER% : 100%

Total Leasable Area: 2,654 sq ft

Annual Service Charge: ~225.6k AED

Annual Chilled Water: ~53k AED

Turnover Rent Rate:

12%

100%

Strategic Options for Counteroffer

Dubai Mall Final Offer

12% Escalation

Option A (Aggressive)

8% Escalation

Option B (Moderate)

10% Escalation

Financial Analysis: Counter Proposal Scenarios

1. Primary: Base Rent 8% & TOR 12%

<table style="width:100%; border-collapse:collapse; text-align:right; white-space:nowrap;"> <tr style="background:#333; color:#fff;"> <th style="padding:4px; text-align:left;">Period</th><th>Base Rent</th><th>Svc Charges</th><th>Chilled Water</th><th>Marketing</th><th>Total Rent</th><th>Sales Forecast</th><th>TOR Sales</th><th>TOR Rent</th><th style="border-left:2px solid #555;">Total Rent - Emaar</th> </tr> <tr> <td style="text-align:left; padding:4px;">2026-2027</td><td>6,918,978.00</td><td>225,590.00</td><td>53,080.00</td><td>172,974.45</td><td>7,370,622.45</td><td>62,863,140.97</td><td>7,543,576.92</td><td>624,598.92</td><td style="border-left:2px solid #555; font-weight:bold;">7,995,221.37</td> </tr> <tr> <td style="text-align:left; padding:4px;">2027-2028</td><td>7,471,010.00</td><td>225,590.00</td><td>53,080.00</td><td>186,775.25</td><td>7,936,455.25</td><td>64,749,035.20</td><td>7,769,884.22</td><td>298,874.22</td><td style="border-left:2px solid #555; font-weight:bold;">8,235,329.47</td> </tr> <tr> <td style="text-align:left; padding:4px;">2028-2029</td><td>8,068,160.00</td><td>225,590.00</td><td>53,080.00</td><td>201,704.00</td><td>8,548,534.00</td><td>66,691,506.25</td><td>8,002,980.75</td><td>-</td><td style="border-left:2px solid #555; font-weight:bold;">8,548,534.00</td> </tr> <tr style="border-top:1px solid #555; font-weight:bold; color:#4bc0c0;"> <td style="text-align:left; padding:4px;">Total Leased Area:</td><td colspan="3" style="text-align:left; padding:4px;">(See Summary)</td><td>Total - AED</td><td>194,303,682.41</td><td>23,316,441.89</td><td>923,473.14</td><td style="border-left:2px solid #555;">24,779,084.84</td> </tr> </table>

2. Secondary: Base Rent 10% & TOR 12%

<table style="width:100%; border-collapse:collapse; text-align:right; white-space:nowrap;"> <tr style="background:#333; color:#fff;"> <th style="padding:4px; text-align:left;">Period</th><th>Base Rent</th><th>Svc Charges</th><th>Chilled Water</th><th>Marketing</th><th>Total Rent</th><th>Sales Forecast</th><th>TOR Sales</th><th>TOR Rent</th><th style="border-left:2px solid #555;">Total Rent - Emaar</th> </tr> <tr> <td style="text-align:left; padding:4px;">2026-2027</td><td>7,046,370.00</td><td>225,590.00</td><td>53,080.00</td><td>176,159.25</td><td>7,501,199.25</td><td>62,863,140.97</td><td>7,543,576.92</td><td>497,206.92</td><td style="border-left:2px solid #555; font-weight:bold;">7,998,406.17</td> </tr> <tr> <td style="text-align:left; padding:4px;">2027-2028</td><td>7,749,680.00</td><td>225,590.00</td><td>53,080.00</td><td>193,742.00</td><td>8,222,092.00</td><td>64,749,035.20</td><td>7,769,884.22</td><td>20,204.22</td><td style="border-left:2px solid #555; font-weight:bold;">8,242,296.22</td> </tr> <tr> <td style="text-align:left; padding:4px;">2028-2029</td><td>8,521,994.00</td><td>225,590.00</td><td>53,080.00</td><td>213,049.85</td><td>9,013,713.85</td><td>66,691,506.25</td><td>8,002,980.75</td><td>-</td><td style="border-left:2px solid #555; font-weight:bold;">9,013,713.85</td> </tr> <tr style="border-top:1px solid #555; font-weight:bold; color:#ff6384;"> <td style="text-align:left; padding:4px;">Total Leased Area:</td><td colspan="3" style="text-align:left; padding:4px;">(See Summary)</td><td>Total - AED</td><td>194,303,682.41</td><td>23,316,441.89</td><td>517,411.14</td><td style="border-left:2px solid #555;">25,254,416.24</td> </tr> </table>

The Primary Scenario (8% Base) results in a detailed total cost of AED 24.78M compared to the Secondary Scenario (10% Base) of AED 25.25M. <br><br> <strong>Total Savings: AED 475,331.40</strong>

Request for Approval

Submit Counteroffer

Primary: 8% Escalation + 12% TOR

Fallback: 10% Escalation + 12% TOR

Target: End of Month

Primary Strategy

Offer 8% Base Rent Escalation + 12% TOR

Secondary Strategy

Offer 10% Base Rent Escalation + 12% TOR

Thank You