Note: Until we open, pictures shown are courtesy and property of Hamburg Miniature Wonderland and other attractions/publications
We are developing an experiential visitor attraction (EVA) in Dubai featuring highly interactive miniature worlds. It aims at familiesand feature affordable price levels. The concept is new and unique to the GCC – but well established in Germany (short video here: https://www.miniatur-wunderland.com/EXCHANGE/ABOUT/IMAGE-FILM-WUNDERLAND/ ), since replicated in Germany, Austria, Switzerland, New York, St. Petersburg and Tokyo (to name but a few). We are taking this to the GCC and MENA: first stop Dubai, second KSA in 2025/6. Note: the Hamburg team have been invited but have no interest in expanding outside Hamburg – we are in contact and they wish us all the best.
Not only will this project yield 100% return over the first 4 years but also pay back the invested capital over that period. The annual dividends after that are projected above 100% – aside from reaching all other aspirations (see pdf presentation available above). Of course, initial partners will have preferred access to future expansion options. Alternatively, we offer 6-8% interest/profit p.a. for a 4 year equity loan which is very attractive under current market conditions.
Given the upheavals over the last 2-3 years, investment decisions have become increasingly difficult: previously attractive trends have proven unreliable or overcrowded, conservative and well established markets / stocks are difficult to judge and interest rate changes impact even real estate opportunities. Amongst the few reliable facts are human needs such as travel, tourism, leisure and entertainment – especially family leisure activities. That is where Small Worlds Dubai finds its niche – a proven concept in a perfect market environment with a high degree of social responsibility. Read on…
Market testing for the project in Dubai was and remains highly encouraging (see attached pitch deck). Most EVAs in Dubai reach 1 mn visits p.a. within 1-2 years from opening and even during Covid, outlets reached 40-70% of normal (pre-Covid) footfall (affordable entities at the higher end). We need only 12% (120k p.a.) visitors for financial success – with a totally new concept to the UAE where attractions are received with open arms.
Contrary to recent EVAs in Dubai, this is low Capex – allowing affordable positioning aimed at the family leisure entertainment segment which needs activities to pursue in free time. This widens target segments and repeat visitation levels whilst reducing risk and annual visitor numbers required to reach financial targets. The experience can be taken home as a family hobby – we offer the products, training and home building service. Sustainability and German digital technology are further focus points. Once finance is complete, we will open doors (Phase 1) within 6 months from moving in.
Full technical planning for Phase 1 (of 4) is complete. We are negotiating with several potential locations in Dubai, incorporation is complete, supplier negotiations are closing, technical and managerial teams are on standby. Please note: several of our technical team have led or participated in setting up exactly this type of experience in Hamburg, Austria, and Switzerland. The management team is highly experienced in setting up new ventures in leisure, hospitality and visitor attractions. Opening is envisaged in Q3 2023 (assuming finance in place Q1 2023), ie. the project will generate income from 2023 and net profits from 2024.
Apart from finalizing the venue decision, we are looking for finance partners. Please note, we are not looking for free money but are considering JV participation or a startup equity loan repayable from when we open doors. Not only will this project yield 100% return over the first 4 years but also pay back capital invested over that period. The annual dividends (JV) after that are projected above 100% – aside from reaching all other aspirations (see attachment). Of course, initial partners will have preferred access to future expansion options.
We are raising total investment of US$950k from partner(s) (part of which has been secured) either as equity share capital (US$1mn = 20% shares), equity loans (6-8% p.a.) or a mix thereof to finance implementation of phase 1 and Opex for 6 months. Future phases will be financed from operational income. IRR projected >230%, 10 year ROI >353%, 5 year TVPI 2.32, VPS y1 $413 – VPS y 5 $5002, NPV > US$ 57mn (= 10x capital), DSCR years 1-4 average >64.
Our pitch deck is attached, a full presentation can be held in a video presentation or sent on request and the complete business plan available in exchange for an executed NDA. My LinkedIn profile to provide background can be found here: https://www.linkedin.com/in/sven-p-gade-msc-bsc-fih-b6054119/, our Chief of Marketing is here: https://www.linkedin.com/in/peterjc-gutsmuths-followup-guru-craftmanship/
We look forward to hearing from you and would be delighted by your interest and happy to discuss details.