Asia Pacific Regional Office Market Report Q1 2010

Asia Pacific Office Market Overview REGIONAL RESEARCH Q U A RT E R LY U P DAT E | A P R I L | 2 0 1 0

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

CONTENTS Regional Overview .....................................................................3 Greater China ..........................................................................4-6 Beijing, China ...................................................................................................... 4 Chengdu, China ................................................................................................. 4 Guangzhou, China ............................................................................................. 5 Shanghai, China .................................................................................................. 5 Hong Kong SAR, China .................................................................................... 6 Taipei, Taiwan ...................................................................................................... 6

North Asia ...................................................................................7 Seoul, South Korea............................................................................................ 7 Tokyo, Japan ........................................................................................................ 7

Southeast Asia ...................................................................... 8-10 Jakarta, Indonesia ............................................................................................... 8 Kuala Lumpur, Malaysia ..................................................................................... 8 Manila, Philippines.............................................................................................. 9 Singapore ............................................................................................................ 9 Bangkok, Thailand ............................................................................................ 10 Ho Chi Minh City, Vietnam ............................................................................ 10

India ..................................................................................... 11-12 Bangalore .......................................................................................................... 11 Chennai ............................................................................................................. 11 Mumbai .............................................................................................................. 12 New Delhi ........................................................................................................ 12

Australasia .......................................................................... 13-16 Adelaide, Australia ........................................................................................... 13 Canberra, Australia ......................................................................................... 13 Melbourne, Australia ....................................................................................... 14 Perth, Australia ................................................................................................. 14 Sydney, Australia .............................................................................................. 15 Auckland, New Zealand ................................................................................. 16 Wellington, New Zealand .............................................................................. 16

Prime Office Rentals ................................................................17 Trends & Forecasts ............................................................. 18-19 Definitions & Terminology ................................................. 20-21 Contacts .............................................................................. 22-23

2

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

REGIONAL OVERVIEW Market Revival

Attributed largely to the relaxed monetary measures adopted by various central governments, the ease of credit and the sustained low interest rates, the region’s economy continued to move ahead with its recovery in 1Q2010. With a stronger-than-expected pace of recovery registered in a number of centres in 1Q2010, the region’s economy has been returning gradually to its pre-crisis levels. Against this favourable economic backdrop and the sustained positive market sentiment boosted by the performance of a number of asset and equity markets, the office real estate market in the region displayed corresponding positive signs, with a measurable revival in demand during the period.

Leasing Trends

A number of multinational corporations have been encouraged by the stronger-thananticipated economic conditions to re-activate their real estate plans, which had been largely put on hold immediately after the crisis hit. In Hong Kong, companies engaged in the financial sector were bold in committing to new space in 1Q2010 thanks in part to the return of hedge funds and private equities. In Beijing, domestic corporations engaged in the finance, technology and services sectors were particularly active in securing their office addresses. Elsewhere, in India, occupational demand improved across both IT and non-IT sectors as occupiers moved pre-emptively to secure new leases before rentals increase again from their cyclical lows in 1Q2010. The trend towards a flight to quality remained popular in many cities, with plenty of brand new space coming up for lease especially in decentralised locations. Overall, the leasing market in the region revived, with rentals edging up by 0.9% quarter-on-quarter in 1Q2010 – the first positive quarterly growth registered in the past one and a half years.

Sales Market

On the sales front, the investment demand for office real estate remained strong notwithstanding the continued compression of investment yields in 1Q2010. Local private investors continued to be one of the key groups of players. In addition, there were initial signs of a return of real estate funds into the market. In China, the highlight was the sale of Gateway Plaza, a prime office building comprising 131,575 sq m in the Lufthansa precinct, to the Mapletree India China Fund for a total consideration of US$425 million (RMB2.9 billion). Elsewhere in Australasia, Aviva Investors acquired 80 Clarence Street in Sydney for US$27.86 million (AU$29.95 million).

Market Outlook

Looking ahead, the demand for office real estate in the region continues to gather strength on the back of further economic growth expected over the next couple of years. Despite the projection that interest rates might edge up again, possibly in the latter part of 2010, the prospective rate hike by virtue of market consensus will be mild. In addition, with expectations of a further catch-up of rentals, the current price level across various key centres continues to represent an attractive entry point in the present real estate cycle, despite the challenge of compressed investment yields.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

3

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

CHINA Beijing • Phoenix Place I in Lufthansa was completed in 1Q2010, adding 32,000 sq m of new office space to the stock. Despite the new release, the overall vacancy rate dropped by 0.88 percentage points to 16.27% as at the end of 1Q2010 on the back of an active leasing market.

3.00

30.0%

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00

2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

Million sq m

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

2011 F

• Prime office rent edged up 1.06% quarter-on-quarter (QoQ) to RMB166.49 per sq m per month in 1Q2010 on an effective basis as a result of improving market sentiment and a general reduction in the rent-free period by most landlords.

Vacancy Rate

400.00

40,000

350.00

35,000

300.00

30,000

250.00

25,000

200.00

20,000

150.00

15,000

100.00

10,000

50.00

5,000

• On the investment front, the key highlight in 1Q2010 was the transaction of The Gateway Plaza. The development, comprising a total gross floor area of 131,575 sq m in the Lufthansa precinct, was sold by RREEF China Commercial Trust to the Mapletree India China Fund for a total consideration of RMB2.9 billion. Capital Values

Rentals

BEIJING OFFICE CAPITAL AND RENTAL VALUES

Building

0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0.00

Rentals (RMB / sq m / Month)

• With growing leasing demand from multinational corporations, the market saw an increase in transactions in 1Q2010. For example, Halliburton and Sumitomo Pharmaceuticals took up 3,800 sq m and 2,300 sq m, respectively, in the World Financial Centre and Raffles City. Meanwhile, domestic corporations engaged in the finance, technology and services sectors also contributed to the revival of demand in 1Q2010.

Gateway Plaza World Financial Centre Tengda Building Raffles City Raffles City China Overseas Plaza China Central Place Yintai Centre China Central Place China Central Place

Capital Values (RMB / sq m)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Mapletree India China Fund Ltd. L Halliburton L A subsidiary of BiAuto L Sumitomo Pharm L CITIC Investment L Trimble L Zhong De Securities L He Yu Real Estate L Hanas Natural Gas L Sequoia Capital

Area (sq ft) 1,416,300 40,900 37,700 24,800 24,600 19,400 16,100 16,100 12,900 10,800

0.60

60.0%

0.50

50.0%

0.40

40.0%

0.30

30.0%

0.20

20.0%

0.10

10.0%

0.00

2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

Million sq m

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Major deals included the lease of 450 sq m at Centre Plaza by CENOSLS PTE CTD. Meanwhile, Lenovo took 3,000 sq m at Lippo Tower and rented 2,000 sq m at Air China Century Centre.

0.0%

2011 F Vacancy Rate

• No new development was completed in 1Q2010 and the average vacancy rate remained at 16%. Average office rentals edged up to RMB108 per sq m per month as at the end of 1Q2010.

180.00

18,000

160.00

16,000

140.00

14,000

120.00

12,000

100.00

10,000

80.00

8,000

60.00

6,000

40.00

4,000

20.00

2,000 0

4

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

Rentals (RMB / sq m / Month)

Capital Values

Rentals

CHENGDU OFFICE CAPITAL AND RENTAL VALUES

0.00

Chengdu • The overall leasing market picked up additional momentum on the back of improving economic conditions during 1Q2010.

• In anticipation of new supply coming through in 2011 and 2012, the average vacancy rate is predicted to edge up to over 30%. However, vendors might prefer to keep rentals high at the expense of low occupancy.

Building Central Plaza Lippo Tower

Capital Values (RMB / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Sale (S) L L

Tenant / Purchaser Cenosls PTE CTD Lenovo

Area (sq ft) 4,500 30,000

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

CHINA Guangzhou • In tandem with the pace of overall economic recovery, the demand for prime office space continued on its upward trend in 1Q2010.

2.50

50.0%

2.00

40.0%

1.50

30.0%

1.00

20.0%

0.50

10.0%

0.00

2007

2008

2009

Supply

2010 F

Take up

• Prime office rentals achieved a notable rise of 7% QoQ to RMB133.7 per sq m per month as at the end of 1Q2010. Vacancy Rate

Million sq m

GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• As a number of new developments are expected to be launched in 2Q2010, vacancy rates will edge up in the second half of 2010. However, office rentals may hold firm, given the quality premium for most new projects coming on line.

0.0%

2011 F Vacancy Rate

• On the investment front, office sales prices are expected to increase due to limited supply of stock for sale during 2010.

160.00

32,000

140.00

28,000

120.00

24,000

100.00

20,000

80.00

16,000

60.00

12,000

40.00

8,000

20.00

4,000

Building Capital Values

Rentals

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES

0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

Rentals (RMB / sq m / Month)

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0.00

25.0%

1.20

20.0%

0.90

15.0%

0.60

10.0%

0.30

5.0%

2008

2009

Supply

2010 F

Take up

Vacancy Rate

12.00

48,000

9.00

36,000

6.00

24,000

3.00

12,000

0.00

0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

Capital Values

60,000

1Q 2007

Rentals

15.00

Capital Values (RMB / sq m)

• Although there was only one small development (i.e. about 5,000 sq m floor area) completed in Lujiazui, the vacancy rate in the area edged down in 1Q2010. Effective office rent edged up slightly by 1.7% QoQ to RMB6.9 per sq m per day as at the end of 1Q2010, representing the first positive growth over the past 18 months. • The office investment market remained active in 1Q2010. A number of investment transactions were closed, including the sale of seven floors in 21st Century Tower to Ningbo Bank at an average price of RMB37,500 per sq m.

0.0%

2011 F

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES

Rentals (RMB / sq m / Day)

Area (sq ft) 9,100 37,700 20,400 19,700 95,300 4,800

Shanghai • Notwithstanding the seasonal slow period, particularly during the period of Chinese New Year, prime office space in Shanghai exhibited growth in 1Q2010. Individual buildings in Pudong, which previously suffered from high vacancy rates, saw an encouraging increase in absorption during the period.

Vacancy Rate

Million sq m

1.50

2007

Poly Centre Poly Centre Poly Centre Poly Centre GT Land Plaza Poly Centre

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Security firm L Domestic bank L Investment company L Real estate company L Accounting firm L Media company

Capital Values (RMB / sq m)

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.00

• No new supply entered the market in 1Q2010. The average vacancy rate fell to 16.3% by the end of 1Q2010 thanks to the improvement in take-up rates.

• Going forward, office leasing demand is predicted to stage further growth in 2010 against the backdrop of the sustained recovery of global and domestic economies. However, plentiful supply in the marketplace will constrain any sharp surge in rentals from now through 2012.

Building Corporate Avenue SWFC Intercontinental Centre Chong Hing Finance Plaza 66 Tower II 21st Century Tower

MAJOR TRANSACTIONS Lease (L) / Sale (S) L L L L L S

Tenant / Purchaser Analog Devices Itochu NXP Hugo Boss Sanofi Aventis Ningbo Bank

Area (sq ft) 29,000 71,000 64,600 6,500 22,600 149,100

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

5

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

Hong Kong • The local office market witnessed an increase in activity in terms of leasing enquiries from both existing multinational corporations and newcomers during 1Q2010. Individual landlords were emboldened to raise asking rentals. Overall, prime office rentals picked up additional momentum with a growth of 5.2% QoQ to HK$44.70 per sq ft per month during the quarter.

4.50

9.0%

4.00

8.0%

3.50

7.0%

3.00

6.0%

2.50

5.0%

2.00

4.0%

1.50

3.0%

1.00

2.0%

0.50

1.0%

Vacancy Rate

Million sq ft

HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

0.00 2007

2008

2009

Supply

2010 F

Take up

2011 F

• Over the next 12 months, the outlook for the local office market remains positive due to encouraging signs of a growth in demand in the finance industries. There maybe more significant positive spillover from the financial industries into other sectors.

Vacancy Rate

HONG KONG OFFICE CAPITAL AND RENTAL VALUES 125.00

25,000

100.00

20,000

75.00

15,000

50.00

10,000

• With vacancy rates in the secondary stock coming down and a limited supply of new stock in core locations, rentals are expected to increase 20% over the next 12 months.

Capital Values

Rentals

• With the continued fall in vacant stock in traditional business locations, tenants open to decentralisation continued to be lured by the brand new stock available in Kowloon East. The overall prime office vacancy rate in Hong Kong declined from 7.45% in 4Q2009 to 6.02% in 1Q2010.

Building 25.00

5,000

0.00

Manulife Plaza Landmark East Landmark East Landmark East Manhattan Place 8/F, 9 Queen’s Road Central 13/F, New Mandarin Plaza 10 floors, One Harbour East

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

1Q 2010

Rentals (HK$ / sq ft / Month)

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Capital Values (HK$ / sq ft)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Sun Hung Kai Securities L AIA Insurance L Levi’s L Mott McDonald L Kaga Electronics S SiS Capital Ltd S Pretty Ltd S Undisclosed

Area (sq ft) 100,000 120,000 14,000 42,100 20,900 13,700 19,700 157,100

TAIWAN Taipei • Thanks to the improving global economy, growing domestic consumption and the external trading environment, the local GDP forecast for 2010 has been revised upward to 4.72%.

35,000

35.0%

30,000

30.0%

25,000

25.0%

20,000

20.0%

15,000

15.0%

10,000

10.0%

5,000

5.0%

0

2007

2008

2009

2010 F

2011 F

Vacancy Rate

Ping

TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Supply

Take up

• Asking rental increased to NT$2,787 per ping per month, although the average effective rental fell to NT$2,461 per ping per month in 1Q2010.

0.0%

• In anticipation of a gradual growth in take-up, prospective new supply coming on line is expected to send vacancy rates up further in 2010.

-5.0%

-5,000

• With 7,600 ping of new space completed in 1Q2010, the average vacancy rate edged up from 12.32% in 4Q2009 to 13.04% in 1Q2010.

Vacancy Rate

3,000

1,200,000

2,500

1,000,000

2,000

800,000

1,500

600,000

1,000

400,000

500

200,000

Exchange Square One TAIPEI 101

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

Rentals (NT$ / Ping / Month)

6

Building

0 1Q 2007

0

Capital Values

Rentals

TAIPEI OFFICE CAPITAL AND RENTAL VALUES

Capital Values (NT$ / Ping)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Hermes Greater China Ltd L Crown

Area (sq ft) 5,200 1,800

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

SOUTH KOREA Seoul • Overall prime office rentals in Seoul saw a mild drop of 0.43% quarter-on-quarter (QoQ) in 1Q2010. The CBD registered the steepest fall of 1.42% QoQ due to an increase in vacancy rates as a result of the re-opening of Seoul Square in 4Q2009. The YBD area recorded a decrease of 0.75% QoQ in 1Q2010. The only bright spot for landlords was the GBD area, where an increase of 0.75% QoQ was registered during the period.

350,000

7.00%

300,000

6.00%

250,000

5.00%

200,000

4.00%

150,000

3.00%

100,000

2.00%

50,000

1.00%

0

0.00%

2007

2008 Supply

2009

2010 F

Take up

2011 F

Vacancy Rate

Pyung

SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Due to the large amounts of new supply coming on line in the CBD, the vacancy rate in this area is predicted to rise to 10% by the end of 2010. • As shown below large Korean companies have been active in the leasing market.

Vacancy Rate

• On the investment front, the number of sales transactions concluded was low in 1Q2010, as prospective buyers remain cautious about the sustained compression of cap rates.

SEOUL OFFICE CAPITAL AND RENTAL VALUES 25,000,000

250,000

• The average vacancy rate in the GBD and YBD areas fell to 4.25% due to a recovery in demand, although the rate in the CBD edged up to 6.46% in 1Q2010.

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser Dongyang Securities Bldg. L Woori Asset Management Dongyang Securities Bldg. L Dongyang Securities Shinsong Centre Bldg. L Dongbu Asset Management Olive Tower L Hyundai Oil Bank Gateway Tower L Air Products K1 REIT Bldg. L Keumho Life Insurance Golden Tower L Kyobo Life Insurance Daeryung Secho Tower L GAEASOFT Nara Bldg. L ALti Soft Sigong Tech Bldg. S Sungwoo Automotive (SWA Group) Korea Land Housing (LH) Seoul Bldg. S Ottogi Co., Ltd. Jungdong Bldg. S Samsung Investments Co., Ltd. Building

20,000,000

150,000

15,000,000

100,000

10,000,000

50,000

5,000,000

Rentals

Capital Values

200,000

0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

0

Rentals (Won / Pyung / Month)

Capital Values (Won / Pyung)

Area (sq ft) 53,800 19,800 10,900 56,600 17,800 16,000 21,700 28,900 32,700 46,300 183,200 421,400

JAPAN Tokyo • Large leasing transactions increased slightly in 1Q2010 due to greater incentives available from landlords in view of lower rents.

320,000

8.0%

280,000

7.0%

240,000

6.0%

200,000

5.0%

160,000

4.0%

120,000

3.0%

80,000

2.0%

40,000

1.0%

0

• Tenants were actively renegotiating leases in buildings they currently occupy. Reductions of 20% or more are increasingly common on traditional Japanese lease renewals. Vacancy Rate

Tsubo

TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Relatively new buildings, those completed less than a year ago, commonly have much higher vacancy rates than the market average.

0.0% 2007

2008 Supply

2009 Take up

2010 F

• Vacancy rates continued to increase to over 7.5% as tenants reduced space requirements due to restructuring.

2011 F Vacancy Rate

12,000,000

50,000

10,000,000

40,000

8,000,000

30,000

6,000,000

20,000

4,000,000

10,000

2,000,000

Capital Values

60,000

Building Roppongi Hills Sumitomo Hamarikyu Shinagawa Grand Central Shinjuku Mynds Tower Tokyu Capital Tower

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Google L PWC Japan L Microsoft L Japan Kantar Research L Mitsubishi Research Institute

Area (sq ft) 71,000 159,700 390,500 27,300 248,500

0

0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

Rentals

TOKYO OFFICE CAPITAL AND RENTAL VALUES

Rentals (Yen / Tsubo / Month)

Capital Values (Yen / Tsubo)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

7

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

INDONESIA Jakarta • The local office market remained on its upward trend in 1Q2010, with prime office rentals averaging Rp143,720 per sq m per month during the period. In anticipation of an increase in the electricity tariff, total rental costs will escalate in the middle of 2010.

400,000

20.0%

300,000

15.0%

200,000

10.0%

100,000

5.0%

0

2007

2008

2009

Supply

2010 F

Take up

• Due to the completion deferral of individual developments, the total new supply coming on line in 2010 is expected to be over 200,000 sq m. Vacancy Rate

sq m

JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

2011 F

• The latest economic indicators suggest that the local economy will grow further in 2010, underpinning further growth of the local office market. As S&P and Fitch have upgraded the investment outlook on Indonesia, investment flow into the country is expected to accelerate in 2010.

Vacancy Rate

Building 20,000,000

180,000

18,000,000

160,000

16,000,000

140,000

14,000,000

120,000

12,000,000

100,000

10,000,000

80,000

8,000,000

60,000

6,000,000

40,000

4,000,000

20,000

2,000,000

Rentals

200,000

0

Capital Values

JAKARTA OFFICE CAPITAL AND RENTAL VALUES

1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

0

Rentals (Rupiah / sq m / Month)

Menara Jamsostek (South) The Plaza The Plaza The Plaza The Plaza Graha Aktiva Graha 55 Graha 55 Wisma Pondok Indah I

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L MAA Insurance L PT. Harta International Management L United Insurance Service L Pea Body Energy L Victus Life L Sofrecom L Badan Nasional Penanggulangan Bencana L Rama Express L ANZ

Area (sq ft) 21,500 2,700 4,300 2,100 4,000 4,300 16,900 4,100 4,300

Capital Values (Rupiah / sq m)

MALAYSIA Kuala Lumpur • The demand for local office real estate turned positive in 1Q2010 as market confidence strengthened in tandem with the overall economic growth. There were also signs of a return of foreign players during the period.

3.00

30.0%

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00

2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

Million sq ft

KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Prime capital values and rentals are expected to remain stable in 2010 due to the availability of new stock over the near to medium term.

0.0%

2011 F Vacancy Rate

Building

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES 1,000

8

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

Capital Values (Ringgit / sq ft)

Emerio, Cyberjaya

Capital Values

0 4Q 2009

100

0.00 2Q 2010 F

200

1.00 3Q 2009

300

2.00

2Q 2009

400

3.00

1Q 2009

500

4.00

4Q 2008

5.00

3Q 2008

600

2Q 2008

700

6.00

1Q 2008

7.00

4Q 2007

800

3Q 2007

900

8.00

2Q 2007

9.00

1Q 2007

Rentals

10.00

Rentals (Ringgit / sq ft / Month)

• From 2010 to 2011, more than 3.1 million sq ft of prime new office space will be coming along the pipeline, although the majority of the space is scheduled for completion during 2011.

Menara BATA Menara Mustapha Kamal PJ 8 - Block A The Icon - West wing Menara PJD UOA Damansara II Menara UOA Bangsar - Tower B * Concluded by WTW

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L AT&T Communication Services (M) Sdn Bhd L Mega Advertising Sdn Bhd L CHI Fitness L Tenaga Nasional Bhd L Mustang Engineering L Public Works Department Malaysia (Jabatan Kerja Raya Malaysia) S UOA REIT S UOA REIT

Area (sq ft) *11,000 3,800 20,000 14,000 15,000 360,000 296,800 312,300

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

PHILIPPINES Manila • With office rentals showing signs of bottoming out in 1Q2010, landlords are expected to raise asking rentals soon.

50,000

15.0%

40,000

12.0%

30,000

9.0%

20,000

6.0%

10,000

3.0% 0.0%

0 2007

-10,000

2008

2009

2010 F

2011 F

-3.0%

-20,000

-6.0%

-30,000

-9.0%

-40,000

-12.0% Supply

Take up

Vacancy Rate

sq m

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

1,200

120,000

1,000

100,000

600

60,000

400

40,000

200

20,000

0

Capital Values

Rentals

MANILA OFFICE CAPITAL AND RENTAL VALUES

80,000

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Rentals (Peso / sq m / Month)

• Due to growing demand attributed to the BPO sector, the average vacancy rate in the marketplace remained steady in 1Q2010. • The growing optimism concerning the prospective absorption rate in 2010 boded well for landlords who have existing stock for lease.

Vacancy Rate

800

• Prime office rentals in 1Q2010 remained lower than the level seen two years ago. Tenants have been prompted to relocate and upgrade to quality premises in the core Makati CBD.

• Looking forward, rentals are expected to increase 5%-10% in 2010. However, with plentiful options available in the marketplace, the prospective rental upside is predicted to be capped at 30% over the next 18 months. MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L ING Bank N.V. L Vestas L N.V. Besix S.A. Philippine Branch L Land Bank

Building Ayala Tower One RCBC Plaza 6750 Ayala Avenue Tara Building

Area (sq ft) 47,500 12,400 3,600 9,100

Capital Values (Peso / sq m)

SINGAPORE Singapore • On the back of strengthening economic conditions and improving occupational demand, prime office rents in the Central Business District edged up 0.5% quarter-on-quarter (q-o-q) to S$6.38 per sq ft per month as of the end of 1Q2010.

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00 2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

Million sq ft

SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Meanwhile, Nomura Singapore Limited pre-committed to 102,000 sq ft of office space in Tower Two of the first phase of the Marina Bay Financial Centre. Verizon Communications pre-committed to 32,000 sq ft in the Ocean Financial Centre, which is slated for completion in 1Q2011.

0.0%

2011 F Vacancy Rate

25.00

2,500

20.00

2,000

15.00

1,500

10.00

1,000

Rentals (Singapore$ / sq ft / Month)

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

1Q 2010

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

0 4Q 2007

0.00 3Q 2007

500

2Q 2007

5.00

Capital Values (Singapore$ / sq ft)

• Given the ongoing flight to quality and the gradual expansion in the private sector, the local office market is expected to see a modest recovery over the next three quarters of 2010, with the prospective rental upside capped at 5% during the period. Capital Values

3,000

1Q 2007

Rentals

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES 30.00

• There was an increase in leasing activity on all fronts – relocations, renewals, expansions and pre-commitments – with occupiers showing a preference for newer or newly retrofitted office buildings. For example, Toyota Motors Asia Pacific will be relocating from the 13-year old Centennial Towers in the Marina Centre/City Hall micro-market to the newly completed Twenty Anson in the Shenton Way/Tanjong Pagar micro-market.

Building MBFC Phase One Tower Two Twenty Anson Ocean Financial Centre Robinson Point Marina House 1 Finlayson Green

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Nomura Singapore Limited L Toyota Motors Asia Pacific L Verizon Communications S AEW Global Advisors S Roxy Pacific, Macly Capital, Pinnacle Assets, Fission Holdings, Chee Hsian Sing S Lucrum Capital

Area (sq ft) 102,000 38,000 32,000 133,000 130,000 89,000

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

9

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

THAILAND Bangkok • The office leasing market was quiet in 1Q2010 as tenants preferred to stay put and the recent political demonstrations disrupted individual tenants’ real estate plans.

0.10

20.0%

0.08

16.0%

0.06

12.0%

0.04

8.0%

0.02

4.0%

• However, with limited new supply coming on line, occupancy rates will edge up marginally in 2Q2010 and 3Q2010. Office rentals are expected to stay firm during the course of 2010. Vacancy Rate

Million sq m

BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• In anticipation of improving industrial activity and the gradual recovery of regional trade, the overall outlook for the local office market is positive for 2010.

0.0%

0.00 2007

2008

2009

Supply

2010 F

Take up

• One single development project, comprising about 72,000 sq m of office space, is scheduled for completion at the end of 2010, pushing vacancy rates up in the CBD.

2011 F Vacancy Rate

BANGKOK OFFICE CAPITAL AND RENTAL VALUES 140,000

1,200

120,000

1,000

100,000

800

80,000

600

60,000

400

40,000

200

20,000

0

Capital Values

Rentals

1,400

Building Silom Complex Silom Complex

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Country Group Securities Co., Ltd. L Embassy of Japan in Thailand

Area (sq ft) 6,300 6,700

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

Rentals (Baht / sq m / Month)

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Capital Values (Baht / sq m)

VIETNAM Ho Chi Minh City • The office market in Ho Chi Minh City saw a positive impact from the continued recovery of the economy in Vietnam. Prime office occupancy rates increased by 5-7 percentage points to 97%-100% in 1Q2010 excluding Kumho Asiana and Vincom Tower offices.

30.0%

120,000

24.0%

90,000

18.0%

60,000

12.0%

30,000

6.0%

sq m

150,000

0

2007

2008

2009

2010 F

0.0%

2011 F

-6.0%

-30,000 Supply

Take up

Vacancy Rate

Vacancy Rate

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Excluding service charge or VAT (i.e. 10%), prime office rentals were fetching US$40US$50 per sq m per month on a net lettable floor area basis in 1Q2010. • The completion of Kumho Asiana Plaza added 25,765 sq m to the market, representing 25% of the total office stock. The prevailing office rentals at Kumho Asiana Plaza ranged between US$45 and US$55 per sq m per month, and occupancy rates were 55% to 65%; Vincom Tower is going to provide to the office market in end of April with a total lettable area approximately 76,000 sq m and the average rental rate is about US$45 per sq m without service charge and VAT. • Looking ahead, Financial Tower, with a total of 37,710 sq m net of office floor area, will be competed in 2010. A & B Towers, a second-tier development, will provide 25,500 sq m of office space in the same period.

HO CHI MINH CITY OFFICE RENTAL VALUES 70 60

Rentals

50 40

Building

30 20

Kumho Asiana

10

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Rentals (US$ / sq m / Month)

10

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Thai Thinh Capital

Area (sq ft) 17,200

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

INDIA Bangalore • Office leasing demand and absorption attributed to the non-IT and IT sectors improved during 1Q2010 thanks to the economic recovery and the prevailing low rental levels. However, rental and capital values remained stagnant across the board.

12.00

24.0%

10.00

20.0%

8.00

16.0%

6.00

12.0%

4.00

8.0%

2.00

4.0%

0.00

2007

2008

2009

Supply

2010 F

• New developments, including TNR Techzone, Vasvani Centrapolis and Salarpuria Cosmo Levelle, were ready for fitting-out in 1Q2010, representing a total of 0.4 million sq ft of office space. • One of the major projects launched in 1Q2010 was Pride Hulkul – a 0.3 million sq ft development built by Pride developers on Lal Bagh Road.

0.0%

2011 F

Take up

Vacancy Rate

Million sq ft

BANGALORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• In anticipation of the completion of the first phase of Bangalore Metro by December 2010, the current congestion will improve, boosting both transportation efficiency and leasing demand for office space in the city.

Vacancy Rate

8,000

70

7,000

60

6,000

50

5,000

40

4,000

30

3,000

20

2,000

10

1,000

Chennai • Although demand for office and IT space showed signs of improvement in 1Q2010, the rental and capital values for prime office space remained stable, primarily due to the significant amount of vacant space available in peripheral locations.

32.0%

14.00

28.0%

12.00

24.0%

10.00

20.0%

8.00

16.0%

6.00

12.0%

4.00

8.0%

2.00

4.0%

0.00

0.0%

2008

2009

2010 F

Take up

2011 F

Vacancy Rate

Million sq ft

16.00

Supply

Area (sq ft) 29,200 50,000 35,000 26,000 25,000

Capital Values (Rupee / sq ft)

CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

2007

Maruti Infotech Centre JP Techno Park JP Techno Park Prestige UB City SJR I Park

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Misys Software L Samsung L Curum Software L Uninor L Intelli Group

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

Rentals (Rupee / sq ft / Month)

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

0 2Q 2007

0

Building Capital Values

80

1Q 2007

Rentals

BANGALORE OFFICE CAPITAL AND RENTAL VALUES

• Vacancy rates in suburban and peripheral regions continued to remain high, at about 30%, while the CBD areas saw the lowest vacancy rates, at about 5% in 1Q2010. • In a recent development, The Tamil Nadu Housing Board announced the redevelopment of around 70 acres of land at Foreshore Estate, close to the famed Marina Beach in Chennai.

Vacancy Rate

8,000

70

7,000

60

6,000

50

5,000

40

4,000

30

3,000

20

2,000

10

1,000

Building Capital Values

80

DLF SEZ DLF SEZ Ascendas RMZ Sterling Towers

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Continental Data Graphics L iGate L Lennox L Franklin Templeton L Ven Sat Technologies

Area (sq ft) 24,000 63,000 20,000 40,000 7,500

0

Rentals (Rupee / sq ft / Month)

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

0 1Q 2007

Rentals

CHENNAI OFFICE CAPITAL AND RENTAL VALUES

Capital Values (Rupee / sq ft)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

11

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

INDIA Mumbai • Due to the improving market sentiment, the local prime office market saw signs of stabilisation, with average rentals staying firm at INR193 per sq ft per month in 1Q2010.

18.00

24.0%

15.00

20.0%

12.00

16.0%

9.00

12.0%

6.00

8.0%

3.00

4.0%

0.00

2007

2008

2009

Supply

• Vacancy rates remained high due to lower absorption in relation to the volume of new supply in 1Q2010. • Looking forward, prime office rentals and capital values are expected to remain stable over the short to medium term, due to the large volume of new supply coming on line.

0.0%

2010 F

Take up

• A total new supply of approximately 3.4 million sq ft, concentrated primarily in the SBD and PBD areas, was completed in 1Q2010. Vacancy Rate

Million sq ft

MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate

350

70,000

300

60,000

250

50,000

200

40,000

150

30,000

100

20,000

50

10,000

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

1Q 2010

Rentals (Rupee / sq ft / Month)

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Building

Capital Values

Rentals

MUMBAI OFFICE CAPITAL AND RENTAL VALUES

0

New Delhi • Prime office rentals increased 2%-3% quarter-on-quarter (QoQ) in a number of micromarkets, among them the CBD, Jasola and Saket, thanks to growing demand and improved leasing activity in 1Q2010.

24.0%

10.00

20.0%

8.00

16.0%

6.00

12.0%

4.00

8.0%

2.00

4.0%

2008

2009

Supply

2010 F

Take up

Vacancy Rate

Million sq ft

12.00

2007

Vacancy Rate

• With the continued improvement of economic and employment conditions, and the transportation infrastructure, the overall leasing demand is expected to catch up over the short to medium term. 35,000

300

30,000

250

25,000

200

20,000

150

15,000

100

10,000

50

5,000 0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

12

Capital Values (Rupee / sq ft)

Capital Values

Rentals

350

0

• A number of brand new office buildings were completed in peripheral locations in 1Q2010. In Gurgaon, the Vipul Trade Centre, the MVL IT Park and the BPTP i Park were all completed, providing a total of about 1 million sq ft of floor space. Beside that, Ishan Technology, Eco Tower, NKG Tower and 8 Square in Noida, comprising about 0.7 million sq ft, were also finished. • A number of projects were launched in 1Q2010, including Ansal Corporate Park and Logix Techica in Noida, and Vatika Trade Centre and Vipul Trade Tower in Gurgaon.

0.0%

2011 F

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES

Rentals (Rupee / sq ft / Month)

Area (sq ft) 400,000 75,000 75,000 15,000 10,500 40,000

Capital Values (Rupee / sq ft)

NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.00

Wadia Plaza Godrej IT Park Oberoi Commerze Times Square Times Square Universal Magestic

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Axis Bank L CapGemini L GroupM L Spectral L Compulink S Partibha Industries

Building Baani Corporate One Baani Corporate One Vatika Towers Building 10 ABW Tower Gylcosls Pvt Ltd Gylcosls Pvt Ltd Logix Cyber Park IHDP Business Park

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Ingersoll Rand L Chambal Fertilzers L Biogen Idec L Indus Towers L Ministry of Fitness L ICICI Bank L State Bank of India L IFS Solution L HDFC Bank

Area (sq ft) 7,000 30,000 15,000 10,000 15000 3,500 2,700 10,000 1,300

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

AUSTRALIA Adelaide • The average office vacancy rate peaked at 7.6% in January 2010 and is expected to edge down over the near term.

80,000

8.0%

70,000

7.0%

60,000

6.0%

50,000

5.0%

40,000

4.0%

30,000

3.0%

20,000

2.0%

10,000

1.0%

0

2007

2008

2009

Supply

2010 F

• Our research suggests that no new office development is scheduled for completion before 2012. Therefore, the average vacancy will stay low over the medium term. • Looking forward, the volume of transactional activity in the investment market will pick up further and the investment focus will be on premises valued at under AU$20 million.

0.0%

2011 F

Take up

• Investment yields started stabilising in the second half of 2009, with some firming anticipated in the second half of 2010. Vacancy Rate

sq m

ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES 700

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Capital Values

Rentals

Building

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

Canberra • Prime face office rentals were steady, although rentals in secondary locations declined in 1Q2010.

140,000

14.0%

120,000

12.0%

100,000

10.0%

80,000

8.0%

60,000

6.0%

40,000

4.0%

20,000

2.0%

0

2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

sq m

Area (sq ft) 33,400 45,300 11,600 50,200 43,000

0

0

0.0%

2011 F

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000 0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

1Q 2010

Capital Values (Australian$ / sq m)

Capital Values

8,000

700

Rentals (Australian$ / sq m / Year)

• Flight to quality continued as tenants preferred to upgrade to better quality premises in 1Q2010.

• The delivery of new supply has increased the market size of the CBD by 30% in the last four years and a further 12% increase is expected in 2010.

800

0

• Investment demand strengthened in 1Q2010, leading to a compression of prime office yields.

• Second-tier office developments presented good opportunities to vendors who might want to refurnish or redevelop their old buildings.

Vacancy Rate

CANBERRA OFFICE CAPITAL AND RENTAL VALUES

Rentals

400 King William Street 22 King William Street 63 Pirie Street HP House The Conservatory

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Department of Correctional Services L National Australia Bank L Randstad S Local Government Association S Century Funds (Syndicate)

Building 490 Northbourne Ave Childers Square Childers Square Childers Square Childers Square Pharmacy Guild House Allan Woods Building 20 Allara St

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Australian Government L Ombudsman L Sparke Helmore L Legal Aid L Australian Reinsurance Pool L Computer Sciences Corporation L Air Services Australia L Australian Government

Area (sq ft) 10,800 21,600 10,000 20,700 13,500 22,500 182,500 8,500

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

13

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

AUSTRALIA Melbourne • Due to a quicker-than-anticipated economic recovery and the improving job market, occupational demand for office space in the CBD staged a strong growth in 1Q2010.

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 250,000

10.0%

200,000

8.0%

150,000

6.0%

sq m

Vacancy Rate

• Face office rentals in top-tier premises increased by 3% in 4Q2009 and 1Q2010, although second-tier buildings remained flat.

100,000

4.0%

50,000

2.0%

• There were a total of 14 major investment sales transactions with lump sum considerations in excess of AU$10 million, each concluded during the period between 2009 and the first quarter of 2010. Equivalent reversionary yields tightened by 12.5 basis points during the period between 4Q2009 and 1Q2010.

0.0%

0

2007

2008

2009

Supply

2010 F

Take up

• However, with the increase in new supply, the average vacancy rate in the CBD increased from 4.8% in 4Q2009 to 6.6% in 1Q2010.

2011 F Vacancy Rate

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Building

Capital Values

700

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

Rentals (Australian$ / sq m / Year)

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

1Q 2007

3Q 2007

0

0

2Q 2007

Rentals

MELBOURNE OFFICE CAPITAL AND RENTAL VALUES

Perth • The vacancy rate in the Perth CBD stablised at 8.2% as of January 2010. 14.0%

120,000

12.0%

100,000

10.0%

80,000

8.0%

60,000

6.0%

40,000

4.0%

20,000

2.0% 2007

2008

2009

2010 F

• Occupational demand increased with strengthening confidence in the business community.

Vacancy Rate

16.0%

140,000

sq m

160,000

-20,000

• The investment market sentiment in the CBD was positive due to the return of institutional investors and the sustained demand attributed to local high net worth and overseas investors during 1Q2010.

0.0%

2011 F

-2.0% -4.0%

-40,000 Supply

Take up

Vacancy Rate

Building PERTH OFFICE CAPITAL AND RENTAL VALUES

900

9,000

800

8,000

700

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Capital Values

Rentals

251 St Georges Terrace 169 Hay Street

10,000

1,000

0

Rentals (Australian$ / sq m / Year)

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

14

Area (sq ft) 409,000 96,900 93,400 46,600 318,000 139,800 57,600 155,200

Capital Values (Australian$ / sq m)

PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0

735 Collins Street 385 Bourke Street 717 Bourke Street 530 Collins Street 800 Collins Street 383 King Street 446 Collins Street 414 LaTrobe Street

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Australian Taxation Office L TRU Energy L Channel 9 / PBL Media Pty Ltd. L Moore Stephens S SEB Asset Management (50% share) S Henkell Brothers S Private Investor S Julliard Group

Capital Values (Australian$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Sale (S) L L

Tenant / Purchaser AGC Industries Fairfax

Area (sq ft) 21,900 16,300

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

AUSTRALIA Sydney • The average office face rent was generally steady at about AU$635 per sq m per annum in 1Q2010 and is predicted to remain stable during the remainder of 2010.

SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

150,000

7.5%

100,000

5.0%

50,000

2.5%

0

2007

2008

2009

2010 F

0.0%

2011 F

-50,000

-2.5%

-100,000

-5.0% Supply

Take up

• The average vacancy rate in the CBD increased from 7.8% in July 2009 to 8.1% in January 2010. In anticipation of an increase in demand during the second half of 2010, vacancy rates will edge down by the end of 2010. Vacancy Rate

10.0%

sq m

200,000

• Lease incentives held steady in the range between 23%-32% in 1Q2010 and are expected to remain within this range over the medium term until demand improves further. • Overall market activity increased in 1Q2010, with a total of seven investment sales transactions recorded between November 2009 and February 2010, totalling about AU$1.1 billion. As a result, office yields have tightened by 25 basis points since September 2009.

Vacancy Rate

SYDNEY OFFICE CAPITAL AND RENTAL VALUES 16,000 14,000

1,200

12,000

1,000

10,000

800

8,000

600

6,000

400

4,000

200

2,000

Rentals (Australian$ / sq m / Year)

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

4Q 2009

2Q 2010 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

0 2Q 2007

0

Building Capital Values

1,400

1Q 2007

Rentals

1,600

85 Castlereagh Street 420 George Street 179 Elizabeth Street 55 Hunter Street 80 Clarence Street 60 Martin Place

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L JP Morgan L State Street S Echo Capital Partners S City Freeholds S Aviva Investors S Gwynvill Properties

Area (sq ft) 179,800 113,000 170,800 152,800 67,400 252,600

Capital Values (Australian$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

15

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

NEW ZEALAND

80,000

16.0%

70,000

14.0%

60,000

12.0%

50,000

10.0%

40,000

8.0%

30,000

6.0%

20,000

4.0%

10,000

2.0%

0

2007

2008

2009

Supply

2010 F

Take up

Vacancy Rate

sq m

AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

2011 F Vacancy Rate

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

• According to the IPD Property Index by the Property Council, the Auckland CBD market recorded a total return to investors of -11.9% for the year ended December 2009. Capital Values

Rentals

600

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser 8 Nelson Street L Goodman Fielder New Zealand Britomart East Building Britomart Place L Southern Cross Medical Care Society Building

0 4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

1Q 2010

3Q 2010 F

2Q 2010 F

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

Rentals (New Zealand$ / sq m / Year)

7.0%

60,000

6.0%

50,000

5.0%

40,000

4.0%

30,000

3.0%

20,000

2.0%

10,000

1.0%

2008

2009

Supply

2010 F

Take up

Vacancy Rate

sq m

70,000

2007

0.0%

2011 F

• The average vacancy rate remained at an extremely low level of 0.7% in 4Q2009. Meanwhile, about 54,000 sq m of new office space in the pipeline in 2010 has been pre-committed by major government bodies. For example, The New Zealand Customs Service has confirmed that it will take 6,500 sq m in a project due for completion in early 2010. Looking forward, the CBD office vacancy rate will remain modest over the near term.

Vacancy Rate

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

4Q 2011 F

3Q 2011 F

2Q 2011 F

1Q 2011 F

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010

4Q 2009

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

0

Capital Values (New Zealand$ / sq m)

Capital Values

Rentals

600

0

16

Wellington • According to the Property Council/IPD Property Index, the Wellington CBD market recorded a total return to investors of -5.2% for the year ended December 2009. After a series of rental reductions since mid-2008, prime office rentals settled at around NZ$370 per sq m per annum in 1Q2010. A further downslide of 3% is anticipated over the next 12 months. • Most tenants continued to opt for lease renewals in 1Q2010. Overall leasing activity is expected to remain slow over the short to medium term.

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES

Rentals (New Zealand$ / sq m / Year)

Area (sq ft) 62,400 67,800

Capital Values (New Zealand$ / sq m)

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0

• Amid the current trend of rising vacancy rates, office rentals came under pressure in 1Q2010. For the first time in many years, contiguous office floors are available in almost all prime grade buildings. Prime office rents fell to around NZ$330 per sq m per annum in 1Q2010, representing a fall of 8.4% compared with the level seen in early 2009. • One of the key leasing deals was that of Southern Cross Medical Care Society’s commitment to taking 6,300 sq m of office space in the Britomart East complex, which is scheduled for completion in early 2011.

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES

0

Auckland • The Deloitte Centre at 80 Queen Street and 21 Queen Street were both completed in the latter part of 2009, adding 37,380 sq m of office space to the prime grade office stock. The average office vacancy rate in the CBD increased to 11.5% in 4Q2009 and is forecast to rise further due to the completion of a number of new developments over the near to medium term.

• On the sales front, prime grade investment yields edged up by 15 to 25 basis points in the Core precinct in 1Q2010. The key sales deal was the sale by the receivers of Petherick Properties of Morrison Kent House at 105 The Terrace in Wellington City to the Pascoe Group for NZ$33 million. MAJOR TRANSACTIONS Lease (L) / Sale (S) Morrison Kent House S State Services Commission Building S Petherick Tower S 3-11 Hunter Street L Building

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

Tenant / Purchaser Pascoe Group Undisclosed Undisclosed Tech Tonics

Area (sq ft) 188,600 144,100 67,900 5,900

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

PRIME OFFICE RENTALS Rentals (US$ / sq ft / year) 0

20

40

60

80

100

120

Tokyo Hong Kong Singapore Sydney Ho Chi Minh City Perth Mumbai Brisbane New Delhi Shanghai Melbourne Canberra Adelaide Beijing Taipei Wellington Kuala Lumpur Bangkok Seoul Auckland Guangzhou Chengdu Jakarta Manila Chennai Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

17

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

TRENDS & FORECASTS City

New Supply (sq ft)

Take-up (sq ft)

Average Vacancy (%)

2010 F

2011 F

2010 F

2011 F

2010 F

2011 F

Beijing CBD Zhongguancun Financial Street Lufthansa East Chang An Avenue East 2nd Ring

4,683,900 0 148,434 905,997 0 1,442,739

0 0 0 828,820 0 0

1,679,341 134,172 269,442 384,155 -104,991 671,172

2,874,876 43,131 188,584 585,664 59,643 590,077

39.4 4.6 4.8 24.2 6.6 44.0

25.2 4.0 2.9 24.7 5.7 33.3

Chengdu Renmin Road Chunxilu, Yanshikou East Street Shuncheng Street-Luomashi

2,341,816 0 0 0

1,216,321 484,376 0 1,495,633

2,871,292 199,982 245,148 193,212

3,300,987 496,851 204,288 142,008

60.0 10.0 18.0 20.0

55.0 20.0 15.0 15.0

Guangzhou Yuexiu Tianhe Haizhu

0 0 4,613,408 13,247,250 0 1,183,060

96,326 1,730,232 161,459

57,167 5,809,115 605,437

7.6 27.5 21.2

Shanghai Huangpu Jingan Lujiazui-Pudong Zhuyuan-Pudong Changning Luwan Xuhui

395,520 1,666,768 2,100,381 2,180,852 341,474 699,654 0

0 1,743,031 6,208,230 627,848 0 0 1,288,493

350,735 1,196,713 1,033,833 1,428,261 306,826 668,543 -434,706

-21,101 1,328,645 3,005,092 -70,807 -19,452 -6,758 1,082,260

Hong Kong Central Wanchai HK Island East Tsim Sha Tsui

0 0 434,350 0

0 237,344 0 0

198,308 161,415 240,883 -112,281

Taipei CBD

697,264

0

Seoul CBD KBD YBD

4,155,833 329,902 949,004

Tokyo CBD

Total Stock (sq ft) 2011 F

2010 F

2011 F

20,240,599 20,240,599 7,619,765 7,619,765 9,978,125 9,978,125 6,981,950 7,810,770 6,307,067 6,307,064 5,504,411 5,504,411

27.04 26.20 36.52 24.75 22.16 23.69

29.62 26.97 38.90 24.86 24.73 24.21

6,001,994 2,484,233 1,361,913 2,442,318

19.60 16.33 19.60 15.51

21.23 17.15 21.23 16.33

6.3 39.8 35.7

4,338,799 4,338,799 18,332,450 31,743,032 1,076,390 2,259,450

17.47 23.31 16.33

17.80 23.68 16.33

9.2 19.8 23.9 27.5 12.5 4.7 15.3

9.9 20.5 31.3 36.8 12.9 4.9 15.5

3,333,182 3,333,182 7,387,286 9,130,317 17,012,347 23,220,577 5,036,516 5,664,363 4,850,805 4,850,805 3,801,777 3,801,777 4,294,958 5,583,450

34.34 38.75 30.66 27.20 28.95 37.46 31.53

34.81 39.51 28.34 24.42 29.72 38.55 32.31

137,819 215,758 142,130 39,465

4.3 4.9 6.5 6.4

3.6 4.9 5.3 5.8

21,266,625 21,266,625 11,095,267 11,332,611 10,974,830 10,974,830 6,361,390 6,361,390

151.38 72.51 49.76 59.85

187.72 84.84 54.73 67.04

419,781

635,715

13.3

10.0

19,186,894 19,186,894

26.29

26.61

0 0 2,835,343

2,481,174 809,451 529,378

1,107,369 204,520 1,670,117

10.5 2.3 4.4

6.9 1.5 9.7

30,670,639 30,670,639 26,105,717 26,105,717 16,729,297 19,564,640

24.45 21.36 16.30

25.65 22.50 17.27

4,001,307

5,758,695

N/A

N/A

7.5

7.5

N/A

95.82

94.73

Jakarta CBD Non-CBD

2,269,030 1,302,335

3,127,903 1,258,117

2,372,697 863,491

1,876,600 998,029

11.5 12.7

13.3 13.2

45,948,721 49,076,624 19,032,642 20,484,509

17.24 12.27

17.91 12.42

Kuala Lumpur KLCA

1,172,000

2,454,000

700,000

700,000

10.5

15.4

28,420,000 30,874,000

22.80

23.17

0 0

0 0

177,540 233,760

-84,615 143,752

8.1 11.5

9.0 8.6

16.89 12.57

18.37 13.66

Manila Makati Ortigas

18

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

2010 F

Average Rentals (US$ / sq ft / year)

4,785,673 1,999,857 1,361,913 946,685

N/A

9,317,135 4,961,404

9,317,135 4,961,404

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

TRENDS & FORECASTS City

New Supply (sq ft)

Take-up (sq ft)

Average Vacancy (%)

2010 F

2011 F

2010 F

2011 F

2010 F

2011 F

1,906,000

1,555,241

1,638,334

1,611,453

8.9

837,431

290,625

269,098

322,917

1,421,481

307,417

964,801

910,000 270,000 0 640,000

3,280,000 450,000 970,000 1,860,000

Chennai Overall CBD SBD PBD

2,068,500 0 0 2,068,500

Mumbai Overall CBD SBD PBD New Delhi Overall CBD SBD PBD

Total Stock (sq ft) 2011 F

2010 F

2011 F

8.0

21,191,297 22,746,538

56.21

61.76

17.5

17.0

17,945,940 18,236,565

22.73

24.11

533,750

25.0

10.0

2,878,105

59.09

46.82

1,330,000 350,000 750,000 230,000

3,050,000 550,000 1,000,000 1,500,000

15.0 16.0 9.0 19.0

17.0 18.5 9.5 21.5

65,033,175 68,313,175 N/A N/A N/A N/A N/A N/A

11.17 17.81 10.63 4.79

11.96 18.61 11.96 5.32

5,586,250 822,500 703,500 4,060,250

747,100 70,100 33,000 644,000

N/A N/A N/A N/A

22% N/A N/A N/A

N/A N/A N/A N/A

28,868,500 34,454,750 1,575,000 2,397,500 5,845,000 6,548,500 21,448,500 25,508,750

11.96 15.42 12.23 7.98

12.23 15.95 12.49 7.98

3,365,000 0 2,060,000 1,305,000

2,057,000 930,000 940,000 187,000

1,416,000 870,000 229,000 317,000

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

75,545,000 N/A N/A N/A

N/A N/A N/A N/A

51.31 85.07 43.86 25.25

51.84 85.07 45.19 25.25

3,368,000 0 168,000 3,200,000

3,900,000 400,000 0 3,500,000

957,000 43,000 55,000 859,000

N/A N/A N/A N/A

18.5 6.1 15.0 23.0

N/A N/A N/A N/A

56,994,158 60,894,158 1,861,000 2,261,000 8,150,000 8,150,000 46,983,158 50,483,158

43.60 71.51 39.88 19.67

44.13 71.78 40.67 19.67

0

0

215,278

322,917

6.8

5.0

13,799,320 13,777,792

29.78

30.63

Canberra CBD

796,529

0

645,834

150,695

8.0

7.5

3,110,767

32.76

34.04

Melbourne CBD

736,789

0

968,751

1,076,390

7.2

7.4

19,678,347 19,678,347

34.43

36.55

Perth CBD

1,532,833

88,264

538,195

538,195

13.6

10.7

16,282,196 16,370,460

51.48

53.61

Sydney CBD

1,353,141

1,805,644

430,556

807,293

6.2

7.9

25,794,319 27,599,964

55.01

57.67

0

301,389

241,746

110,427

11.0

14.0

4,258,866

4,560,255

21.43

20.97

581,251

300,313

523,287

213,394

3.0

6.2

2,144,933

2,445,246

23.87

23.34

Singapore CBD Bangkok CBD Ho Chi Minh City CBD Bangalore Overall CBD SBD PBD

Adelaide CBD

Auckland CBD Wellington CBD

2010 F

Average Rentals (US$ / sq ft / year)

2,533,402

3,110,767

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

19

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

DEFINITIONS AND TERMINOLOGY GREATER CHINA

NORTH ASIA

Beijing Prime office market in Beijing consists of 6 sub-markets – CBD (Central Business District), Lufthansa, East 2nd Ring, Financial Street, East Chang An Avenue and Zhongguancun.

Seoul Major office districts in Seoul include the traditional central business area (CBD), Gangnam Business District (GBD) and Yeouido Business District (YBD).

Rents are quoted in RMB per sq m per month on gross floor area basis, and exclusive of management fees and rent free period. Capital values are quoted on RMB per sq m.

Rents are quoted in Won per pyung (also equivalent to 3.3 sq m) per month on gross floor area basis. Generally, a deposit equivalent to 10 months is required, and is usually paid up front. Management fees are excluded from quoted rents. Space is measured on gross floor area basis. Capital values are quoted in Won per sq m.

Chengdu Prime office buildings in Chengdu are mainly located in 4 sub-markets, South Renming Road , Chunxi Road - Yanshikou Trading Area, Shuncheng Street and Luomasi Trading Area, and East Street. Rents are quoted in RMB per sq m per month on gross floor area basis, and exclusive of management fees. Capital values are quoted on RMB per sq m. Guangzhou Prime office buildings in Guangzhou are located in 3 principal sub-markets – Dongshan, Yuexiu and Tianhe.

Rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month, which are inclusive of service charges. Office space is measured on an internal floor area basis. Capital values are quoted in Yen per tsubo.

Rents are quoted in US$ per sq m per month on gross floor area basis, and exclusive of any management fees and government taxes. Capital values are quoted on US$ per sq m.

SOUTHEAST ASIA

Shanghai Prime office buildings in Shanghai are located in 6 principal sub-markets – Huangpu, Jingan, Lujiazui-Pudong, Changning, Luwan and Xuhui.

Jakarta The quality office buildings in Jakarta are located in the CBD covering the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and Mega Kuningan. The areas outside the above districts are collectively called as “non-CBD”.

Rents are quoted in RMB per sq m per day on gross floor area basis, and exclusive of any management fees. Capital values are quoted on RMB per sq m. Hong Kong Prime office properties in Hong Kong are concentrated in 4 sub-markets – Central, Wanchai / Causeway Bay, Island East and Tsim Sha Tsui. Rents are commonly quoted in HK$ per sq ft per month on either gross, net or lettable floor area basis, which are exclusive of management fees, and government tax. Prices are quoted in HK$ per sq ft, and are measurable on gross floor area basis.

Taipei Prime office properties in Taipei are concentrated in 7 districts, comprising Nanking Sung Chiang (NK-SC), Minsheng Tun Hwa North (MS-TN), Hsin Yi,West,Tun Hwa South (TUN-S), Jen Ai Hsin Sheng (JA-HS) and Nanking East Road (NK-4/5). The local unit of measurement is a “ping” (i.e. 3.3 sq m). Rents and prices are quoted in local currency i.e. New Taiwan Dollar (NT$) on gross floor area basis.

20

Tokyo The quality office buildings in Tokyo are located in the central business area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

Rents are commonly quoted in Rupiah per sq m per month, which are inclusive of service charges but exclusive of government taxes. Office space is measured on lettable floor area basis. Capital values are quoted in Rupiah per sq m. Kuala Lumpur Prime office buildings located in the Kuala Lumpur Central Area (KLCA) only. The KLCA comprises areas generally within the central business district. Rents are commonly quoted in Ringgit Malaysia (RM) per sq ft per month on net floor area basis, which are inclusive of service charges and property taxes. Capital values are quoted in Ringgit per sq ft. Manila Prime office buildings in Manila are located in two principal sub-markets – Makati and Ortigas. Rents are quoted in Peso per sq m per month on net floor area basis, and exclusive of any management fees. Capital values are quoted in Peso per sq m.

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

DEFINITIONS AND TERMINOLOGY Singapore The quality office buildings covered in the report are located in the Central Business District of Singapore. Rents are quoted in S$ per sq ft per month on net floor area basis (i.e. area less common areas such as corridors, toilets, lift lobby etc. but including columns), and are inclusive of service charge. Capital values are quoted on the basis of strata area for strata-titled buildings, and net area for non-strata-titled developments. Bangkok Prime office properties in Bangkok are located in a wide area encompassing eastern Silom and Sathorn roads starting from Narathiwas Ratchanakarin, Rama IV from Phayathai to Ratchadaprisek, along Ratchadaprisek from Rama IV to Sukhumvit and along Sukhumvit from Asoke to the whole of Pleonchit and then Rama I to Phayathai. Rents are quoted in Baht per sq m per month on a net floor area basis, and inclusive of service charges. Capital values are quoted in Baht per sq m. Ho Chi Minh City The quality office buildings in Ho Chi Minh City are located in District One - the central business district in the city. Rents are commonly quoted in US$ per sq m per month on net floor area basis, and exclusive of management fees and government tax. Capital values are quoted on US$ per sq m.

Mumbai Prime office properties in Mumbai are primarily concentrated in CBD (Central Business District) – consist of Nariman Point, Ford and Ballard Estate; SBD (Secondary Business District) including Bandra (West and East), Kalina, Lower Parel and Worli/Prabhadevi and PBD (Peripheral Business District) including Navi Mumbai, Vashi, Powai, Goregaon. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. New Delhi Prime office properties in New Delhi are primarily concentrated in CBD (Central Business District) – consist of Connaught Place; SBD (Secondary Business District) including Nehru Place, Jasola, Saket and Netaji Subhash Place and PBD (Peripheral Business District) including Gurgaon and Noida. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. *

Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s office/flat throughout the building.

** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.

INDIA Bangalore Prime office properties in Bangalore are can be divided in 3 principal sub-markets – CBD (Central Business District), SBD (Suburban/Secondary Business District) consisting of Bannerghatta Road & Outer Ring Road and PBD (Peripheral Business District) including PBD Hosur Road, EPIP Zone, Electronic City and Whitefield.

AUSTRALASIA Australia Prime office buildings are located in the CBD and generally favored by MNCs.

Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis.

Rents are quoted on net floor area basis, and in A$ per sq m per annum excluding management fee and government charges. Capital values are quoted on A$ per sq m.

Chennai Prime office properties in Chennai are located in 3 principal submarkets– CBD (Central Business District), (Suburban/Secondary Business District) and PBD (Peripheral Business District). SBD consists of Guindy and Velechery while PBD includes other areas such as Old Mahaballipuram Road, Ambattur and GST Road amongst others.

New Zealand Prime office buildings are located in the CBD. Rents are quoted on net floor area basis, and in NZ$ per sq m per annum excluding management fee and government charges. Capital values are quoted on NZ$ per sq m.

Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. The content of this report is for information only and should not be relied upon as a substitute for professional advice, which should be sought from Colliers International prior to acting in reliance upon any such information. The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgement, in the utmost good faith and are as far as possible based on data or sources which they believe to be reliable in the contest hereto. Notwithstanding, Colliers International and affiliated companies disclaim to the extent permitted by law, any liability in respect of any claim which may arise from any errors or omissions or from providing such advice, opinions, judgement or information. Colliers Macaulay Nicolls Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 290 offices throughout more than 60 countries worldwide

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

21

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

For further details, please contact: GREATER CHINA Beijing, China 502 Tower W3, Oriental Plaza No 1 East Changan Avenue, Dongcheng District Beijing 100738 Tel : 86 10 8518 1633 Fax : 86 10 8518 1638 Amanda Gao Managing Director, North China [email protected] Chengdu, China Room L 16F City Tower 86 Section One Renmin Nan Road Chengdu 610016 Tel : 86 28 8620 2128 Fax : 86 28 8620 2158 Jacky Tsai General Manager [email protected] Guangzhou, China 702 Teem Tower, 208 Tianhe Road Guangzhou 510620 Tel : 86 20 3819 3888 Fax : 86 20 3819 3899 Eric Lam Managing Director [email protected]

Taipei, Taiwan 49F TAIPEI 101 TOWER No. 7 Xin Yi Road Sec 5, Taipei 110 Tel : 886 2 8101 2000 Fax : 886 2 8101 2345 Andrew Liu Managing Director [email protected]

NORTH ASIA Seoul, South Korea 10F Korea Tourism Organization Bldg., 10 Da-dong, Jung-gu, Seoul 100-180 Tel : 82 2 6740 2000 Fax : 82 2 318 2015 Jay Yun Senior Director & General Manager [email protected] Tokyo, Japan Halifax Building 8F, 16-26, Roppongi 3-Chome Minato-ku, Tokyo 106-0032 Tel : 81 3 5563 2111 Fax : 81 3 5563 2100 James Fink Senior Managing Director [email protected]

SOUTH EAST ASIA Shanghai, China 16F Hong Kong New World Tower 300 Huaihai Zhong Road Shanghai 200021 Tel : 86 21 6141 3688 Fax : 86 21 6141 3699 Lina Wong Managing Director, East and South West China [email protected] Hong Kong, HKSAR 5701 Central Plaza, 18 Harbour Road Wanchai, Hong Hong Company Licence No: C-006052

Tel : 852 2828 9888 Fax : 852 2828 9899 Richard Kirke Managing Director [email protected] Piers Brunner (E-183614) Chief Executive Officer - Asia [email protected] George McKay (E-215150) Managing Director, Corporate Services - Asia Pacific [email protected]

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Manila, Philippines 10F Tower 2 RCBC Plaza, 6819 Ayala Avenue corner Sen Gil J Puyat Avenue Makati City, Philippines1200 Tel : 63 2 888 9988 Fax : 63 2 845 2612 David Young Managing Director [email protected]

Jakarta, Indonesia 10F World Trade Centre, Jl Jenderal Sudirman Kav 29-31 Jakarta 12920 Tel : 62 21 521 1400 Fax : 62 21 521 1411 Mike Broomell Managing Director [email protected] Kuala Lumpur, Malaysia c/o Mark Lampard* Regional Director Occupier Services - Asia Tel : 65 6531 8601 Fax : 65 6557 0649 [email protected] * Based in Singapore Malaysia information contributed by: C H Williams Talhar & Wong Sdn Bhd 32nd Floor Menara Tun Razak P O Box 12157 50768 Kuala Lumpur Malaysia Tel : 603 2693 8888 Fax : 603 2693 6565/6655 URL: http:// www.wtw.com.my Goh Tian Sui Managing Director [email protected]

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

Singapore 1 Raffles Place #45-00 One Raffles Place Singapore 048616 Tel : 65 6223 2323 Fax : 65 6222 4901 Dennis Yeo Managing Director, Singapore Asia Regional Industrial Group [email protected] Bangkok, Thailand 17/F Ploenchit Center 2 Sukhumvit Road Klongtoey, Bangkok 10110 Tel : 66 2 656 7000 Fax : 66 2 656 7111 Patima Jeerapaet Managing Director [email protected] Ho Chi Minh City, Vietnam Ho Chi Minh City, Vietnam 7F Bitexco Building 19-25 Nguyen Hue Street District 1, Ho Chi Minh City Tel : 84 8 827 5665 Fax : 84 8 827 5667 Peter Dinning General Director [email protected] KP Singh Managing Director [email protected] Hanoi, Vietnam Vinaplast - Tai Tam Building, 9th Floor, 39A Ngo Quyen Street Hoan Kiem District, Hanoi, Vietnam Tel : 84 4 220 5888 84 4 220 5566 Fax : 84 4 220 1133 Do Le Quan Deputy General Director [email protected]

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010 EXECUTIVE SUMMARY

INDIA Bangalore, India Prestige Garnet, Level 2, Unit No.201/202 36 Ulsoor Road, Bangalore 560 042 Tel : 91 80 4079 5500 Fax : 91 80 4112 3131 Goutam Chakraborty Office Director [email protected] Chennai, India Unit 1C, 1st Floor, Heavitree Complex, 23 Spurtank Road, Chetpet, Chennai 600 031 Tel : 91 44 2836 1064 Fax : 91 44 2836 1377 Kaushik Reddy

Office Director [email protected] Gurgaon, India G3, NewBridge Business Centers, TechnoPolis, DLF Golf Course Main Sector Road Sector 54, Gurgaon 122 002 Tel : 91 124 4375807 Fax : 91 124 4375806 Saacketh Chawla Office Director [email protected] Kolkata, India Regus Business Centre Constantia, Level 6, Kolkata 700017 Tel : 91 33 4400 0541 Fax : 91 33 4400 0555 Joe Verghese Managing Director [email protected] Mumbai, India 31-A, 3rd Floors, Film Centre, 68 Tardeo Road Mumbai 400 034 Tel : 91 22 4050 4500 Fax : 91 22 2351 4272 Poonam Mahtani Office Director [email protected]

New Delhi, India 204/205, 2nd Floor, Kanchenjunga Building, 18 Barakhamba Road New Delhi 110 001 Tel : 91 11 4360 7500 Fax : 91 11 2335 6624 Prit Paul Office Director [email protected]

Perth, Australia Level 19, 140 St Georges Terrace Perth WA 6000 Tel : 61 8 9261 6666 Fax : 61 8 9261 6665 K. Imran Mohiuddin State Chief Executive [email protected]

Pune, India Vatika Business Center, Level-5 C Wing, Panchsheel Tech Park-1, Yerwada Pune 411 006 Tel : 91 20 4011 1356 Fax : 91 20 6640 3138 Suresh Castellino Office Director [email protected]

AUSTRALASIA Adelaide, Australia Level 10, 99 Gawler Place, Adelaide SA 5000 Tel : 61 8 8305 8888 Fax : 61 8 8231 7712 James Young State Chief Executive [email protected] Canberra, Australia Ground floor, 21-23 Marcus Clarke Street Canberra ACT 2601 Tel : 61 2 6257 2121 Fax : 61 2 6257 2937 Paul Powderly State Chief Executive [email protected]

Sydney, Australia Level 12, Grosvenor Place, 225 George Street Sydney NSW 2000 Tel : 61 2 9257 0222 Fax : 61 2 9251 3297 Malcom Tyson State Chief Executive [email protected] Auckland, New Zealand Level 27, 151 Queen Street, Auckland Tel : 64 9 358 1888 Fax : 64 9 358 1999 Mark Synnott Managing Director [email protected] Wellington, New Zealand Level 10, 36 Customhouse Quay Wellington Tel : 64 4 473 4413 Fax : 64 4 499 1550 (Agency) : 64 4 470 3902 (Valuation) Richard Findlay Managing Director [email protected]

Melbourne, Australia Level 32 367 Collins Street Melbourne VIC 3000 Tel : 61 3 9629 8888 Fax : 61 3 9629 8549 John Marasco State Chief Executive [email protected]

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

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