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

• 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