H i Q tl R t Q4/2011 Hanoi Quarterly Report Q4/2011 AGENDA - CBRE

Market Insights from CBRE’sHanoi Quarterly Report Q4/2011Presented by:Research & Consulting Dept.,CB Richard Ellis (Vietnam) Co., Ltd.Thursday, January 5, 2012AGENDA12345678• ECONOMIC OVERVIEW• INFRASTRUCTURE• CONDOMINIUM FOR SALE• LANDED HOUSE• OFFICE• RETAIL• SERVICED APARTMENTS• HOTEL2 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012

OFFICE – Dynamics• TENANTS• Tenants generally don’t want to gothrough the hassle of moving out/in:• Major cost of fitting out is an issue, especiallyin a challenging economic situation.• Relocation is a big issue to staff.• Popular inquiries are for office spaceof ~250 sm• Tenants currently expect rents:• of

• MAJOR TENANT MOVEMENTS• The Garden MallRETAILExisting Supply by District (NLA sm)• Ground Floor attracted new brandsDong Da Hai Ba Trung Hoan Kiem• Mango, Accessorize, Charles & Keith etc.Tu Liem Cau Giay Long Bien• Hero World (FEC) replaces Home CenterOthers(electronic)4%15%• Pico Mall• Food Court on the 4 th and 5 th floor opened32%11%• Snowee, Pizza Hut, KFC etc.6%• Megastar (Cinema) will open Q1/201213%• Grand Plaza19%• Shop tenants continued to withdraw• F&B has seen two new establishmentsSource: CBRE Vietnam• Hang Da GalleriaTotal area vs. leased area (sm NLA)• Several (mainly fashion) shops opened• 3 rd (Shops) and 4 th Total area (sm NLA) Leased area (sm NLA)(F&B) floor will open inQ1/2012300,000• Vincom City Towers & Vincom Galleries 250,000• 100% occupancy remained despite minor200,000changes• Replay, Kappa, G2000, Ferraud Paris, etc.• Metropol Sofitel Arcade• Panerei opened shop• Cartier & Chopard in fitting-out stage150,000100,00050,0000Source: CBRE Vietnam2007 2008 2009 2010 201117 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012• EXPECTED SUPPLY IN 2012• Roughly 181,000 sm (GFA), significant projects are:• Trang Tien Plaza (14,000 sm)• Indochina Plaza (35,000 sm )• Habico Tower (34,000 sm )• Melinh Plaza in Ha Dong (45,000 sm)• Thang Long Int. Village (23,322 322 sm)Trang Tien Plaza – Q1/Q2Indochina Plaza HN – Q1/Q2Future Supply (GFA sm)RETAILUnder Construction Planning Status800,000600,000400,000200,00002012f 2013f +2014fSource: CBRE VietnamFuture Supply by Location (GFA sm)CBDnon-CBD800,000600,000000400,000200,00002012f 2013f +2014fSource: CBRE Vietnam18 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012

• OUTLOOK 2012RETAIL• Developers delay completion date due to• Low tenant take up• Capital availability• Tenants consolidate – efficiency rather expansion• Contracts in VND – what could follow:• More turnover rent• Fixed escalation rate of e.g. 5% p.a.• Conversion of Shopping Centres to EntertainmentCentres• Tight consumer spending will drive demand fordiscount vouchers• 2012 retail supply in combination with office &residential• Supermarkets likely to be a promising alternativeto shop-retailingSales at Nguyen Kim ElectronicStore (Dec 2011)“Nguyen Kim – discount up to 49%for 500.000 electric goods”“Media Mart – discount of VND 13 million for aSamsung TV+ 1 carton of Heineken Beer”“Big C – for 600 goods 5 – 50% discount”“Topcare – up to 50% discount”19 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012SERVICED APARTMENTSTotal Supply (units)International Operator2,5002,000Self-managed• HIGHLIGHTS• No new supply: serviced apartments in Keangnam’sLandmark 72 delayed its schedule to open in Q4/2011.1,5001,000500004 05 06 2007 2008 2009 2010 2011Source: CBRE VietnamAsking Rents (US$/sm/month)International OperatorSelf-managedAverage$60$40$20$02007 2008 2009 2010 2011• Average asking rents increased slightly by ~1% both onsm basis and unit basis compared to Q3/2011− Normal fluctuation− Landlords seemed more willing to compromise on actual rents• Vacancy increased:− Vacancy was at 11.42% in Q4/2011 (up from 8.32% inQ3/2011) (excl. 4 recent developments of Grand Plaza, HoaBinh Green Apts, Crowne Plaza, and Melinh Plaza Tower)− Vacancy in existing projects increased due to competition frombuy-to-let projects and upcoming project of Keangnam’sLandmark 72.− Marketwide (incl. 4 recently projects), vacancy was at 19.95%,virtually the same as Q3/2011.Source: CBRE Vietnam20 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012

SERVICED APARTMENTS• DEMAND• Inquiries dropped towards year end and holiday season• Increasing demand from individuals with lower budgetof

HOTELFuture Supply (rooms) by Current StatusUnder construction Construction not commenced4,0003,0002,0001,00002012f 2013f 2014+•OUTLOOK• Future Supply− Novotel o Hanoi on the Park project will be moved to Pham Hung− Roughly 1,000 5-star rooms will come onstream in 2012− Some projects might defer their opening, depending on themarket condition by that time.• Outlook− Tourism: International arrivals to Hanoi might keep increasing in2012 but at low pace vs decreasing trend in domestic arrivals− 2012 might be a challenging year for hotel industry (economicdownturn, business trips cut, airfare surge...)• 3-star: remains stable in operation performance• 4-star: lacks recognized brands thus might face hard time• 5-star: some hotels will have stable operation while someothers might face difficulties & need restructuring t / rebranding;Hotel de l'Opera HanoiThe latest member of Accor'sMGallery Collection23 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012For further information and order details, please contact…quarterlyreports@cbrevietnam.comcomQ4/2011 releasedFriday, Jan 20, 2012© 2012 CB Richard Ellis (Vietnam) Co., Ltd. This report has been prepared in good faith and with due care by CB Richard Ellis (Vietnam) Co., Ltd. We obtained some of theinformation above from sources we believe to be reliable. However, we have not verified the accuracy of the information which we obtained from other sources and makeno guarantee, warranty or representation about it. We include projections, opinions, assumptions or estimates which are made with careful consideration of factors knownto us for example only, and they may not represent current or future performance of the market. This information is designed exclusively for use by CB Richard Ellisclients, and cannot be reproduced without prior written permission of CB Richard Ellis.24 CBRE RESEARCH & CONSULTING MARKET INSIGHTS FROM CBRE’s HANOI QUARTERLY REPORT | JAN 2012