Ministry of Roads and Urban Development Urban Development & Revitalization Corporation of Iran (Holding) December

About Minister of Roads and Urban Development  Minister of Roads and Urban Development as a technical organization, administration and management of the Ministry of Roads and Urban Development with the mission and achieve sustainable city and urban revitalization partnership was established in The company's approach:  State and municipal support in facilitating the implementation of development projects and urban renewal in various ways, including discounts, facilities& …  The development of tourism industry By ancient and valuable history of our country being in the country of cultural wealth

Shanbadi Residential & Cultural center (Bushehr, Iran) 3

Concept  A boutique hotel, in historical texture of Bushehr, in Shanbadi district  Residential, Cultural and relevant retailing  Close to harbour, Historical Bazaar and old city center

Location

Bushehr  Total area: 1771 Km2  Population: about 200,000  Civilized since: 5 A.D New habitation since: 300 years ago  During 18s and 19s: The most important merchandising port in southern Iran, home to foreign consulates  Today’s function: merchandising, fishing and Iran’s nuclear power plant  Available via: Air, Sea and Roads.

Attractions of Bushehr  Leisure & Ecotourism:  Beautiful sand beach  Moderate autumns and winters  Mineral water springs  Numerous islands around  Unique natural ponds  Special tropical flora  Historical buildings and monuments  Local life & culture

Attractions of Bushehr  Historical texture of Bushehr:  38 Ha area, contains more than 900 valuable local buildings  Tens of mosques, churches, synagogues &....  Old consulates of UK, Prussia and Russia  Traditional Bazaar along the main streets (Both shopping and sightseeing)  All the seashore line of old Bushehr is registered as Iran’s national heritage

 Northern (Oldest Historical) part of Bushehr  Inside “Shanbadi” district  Adjacent to harbour & Custom services from east  Adjacent to the sea, from north  Connecting to old Bazaar through east and south  Connecting to a main street from west  Harbour  Shanbadi  Project’s borders Project’s location in the city 9 خیابان انقلاب

Project with respect to the Harbour Project’s Location 10

Shanbadi Project  Helping the city historical part to be revitalised  Making high-quality places to absorb different people  Producing economic value based on the texture’s potential  Making social life centers in the texture  Constructing something in accordance to the texture’s specifications Shanbadi Project: Goals and Musts 11

12 چشم انداز آینده شهر Bushehr Master plan Historical part: Mixed Residential, Cultural, Tourism, Hotels Retails and Shopping Sea side Tourism

 Boutique Hotel: Hotels often containing specific and exclusive architecture or artistic design, usually built inside a historic place  They are tourist destination by themselves, not by other attractions.  Their attraction stems from their architecture, materials or History behind them.  Their capacity rarely exceeds 50 rooms.  They are not supposed to be luxury. Shanbadi: a boutique hotel 13

Proposed concept: a residential & cultural complex Project’s outline  3 floors  Total land area: 3770 M2 (all owned by IUDRC by now)  Gross building area: 7737 M2  Functions:  60 rooms boutique hotel  Restaurant and Coffee shop  Amphitheatre  Cultural products shops  Parking (underground)

15  GBA & GLA on floors: Project’s outline

16 Project’s 3D views View from east:

17 Project’s 3D views View from west:

18 Project’s 3D views View from south:

Coffee shops: Retails: 19

Rooms, Yards and corridors: 20

21 Financial Assessment  Basic Assumptions:  Construction period: 36 months  GBA cost of construction: $600 per M2, for GF and above $500 for underground and installations  Legal licenses: only $66,000.  GLA price: Commercial: $2,000 per M2 Office: $1,700 per M2 Cultural: $1,200 per M2 Restaurants & coffee-shops: $1,300 per M2 Hotel: Totally $M4.8. All the land has been acquired legally, in the price $300 per M2 No land preparation costs needed 1 US Dollar = 30,000 Rials

22 Financial Assessment  Major results (fixed 2015 prices):  Total construction costs: $M 4.57  Total fixed investment costs: $M 5.77  PV of Total fixed investment costs: $M 4.3  Total revenues from all properties sold: $M  PV of Total revenues from properties sold: $M 5.2  IRR: 21%  NPV at 10% discount rate: M$ 0.89  PI: 121 %  Simple Payback Period: 3.5 years  Discounted Payback Period: 4.5 Years

Benefits of Investment  Very low legal licenses costs  Low rate bank loans:  12% for tourism investment plans.  While bank loans rates are usually above 22% in Iran!  The first boutique hotel in Bushehr, and all southern coast of Iran.