Colliers International Research - Asia Pacific

AsiA PAcific industriAl MArket Overview
November 2010

Accelerating success.

tAble Of cOntents
asia pacific iNdustrial market overview
This is the eleventh issue of the Asia Pacific Industrial Market Overview, which covers 13 cities in 9 countries, for the review period of April to September 2010. With this bi-annual update, we hope to provide an overview of industrial markets catering to multi-national corporations and a comparison of industrial real estate costs across the key cities of the Asia Pacific. Three types of industrial properties are tracked in this report, namely single-user factory premises, single-user warehouse premises and multi-user high-specifications industrial premises, as these are the preferred choices of multi-national corporations. This publication features land and capital values, as well as rents of single-user industrial premises; and rents of multi-user highspecification factories.

| November 2010

Regional Overview

3

Australia

4-5

Melbourne ............................................................................................................ 4 Sydney ................................................................................................................. 5 China 6-8 Beijing .................................................................................................................. 6 Guangzhou ............................................................................................................7 Shanghai .............................................................................................................. 8 Hong Kong SAR India 9-10 11 New Delhi ............................................................................................................11 Indonesia 12-13

Jakarta ...............................................................................................................12 Japan 14 Greater Tokyo ....................................................................................................14 New Zealand 15-17

Auckland.............................................................................................................15 Wellington .......................................................................................................... 17 Singapore Taiwan 18-19 20

Taipei ................................................................................................................. 20 International Comparison 21-27

Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents ...................................................................................21 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 24 Multi-user High-Specs Average Monthly Gross Rents..................................... 27 Local Market Norm 28-30

Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents .................................................................................. 28 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 29 Definitions & Terminology 30

regiOnAl Overview
Riding on the sustained though bumpy global economic recovery, the Asia Pacific industrial property market continued to show improvement in the current review period between April and September 2010. Notwithstanding the concerns over the United States' (US) dwindling economic rebound, as well as the European sovereign debt woes, the region's manufacturing sector largely stayed buoyant, bolstered by the growing domestic markets of the Asian countries. This provided the impetus for businesses to gear up and increase production capacity by upgrading or expanding their production and warehousing facilities. Investors' and businesses' confidence was thus sustained, and this ensured that the Asia Pacific industrial submarkets, which came out of the woods in the last review period between October 2009 and March 2010, continued on their recovery route. In the meantime, some submarkets, which were left behind in the recovery journey in the last review period, managed to gather enough momentum to register a rebound, or at least held firm in the current review period. This included the submarkets in Melbourne and Sydney. In particular, robust demand for industrial land amid limited supply saw land values in Sydney South escalating by a steep 17.8% between April and September 2010, reversing the downtrend seen in the last 24 months. In total, 40 out of 54 single-user industrial submarkets surveyed in the Asia Pacific region saw their land values either holding steady at the levels of six months ago or trended up, whilst 49 of the 59 submarkets surveyed recorded either flat or with price hikes of up to 10%. The leasing market benefited from the filtering down of confidence and optimism evident in the sales market in the previous six-month review period ending March 2010. This has thus seen the rents in another 11 submarkets, including those in Melbourne, Sydney and Beijing, having bottomed or turned around. Meanwhile, submarkets for which rents bottomed or turned around in the last review period generally stayed on the recovery path, with rents holding steady or posting further growth. In total, 60 of the 71 submarkets surveyed saw their rents remain unchanged from the levels of six months ago or rise by up to 12%. The leasing market in the remaining 11 submarkets, mostly in Japan and New Zealand, stayed subdued, with the result that rents continued on their downward slide. With the worst of the global financial crisis past, global trade and economic activities are expected to continue to strengthen, albeit at a more moderate pace. Hence, most of the Asia Pacific cities surveyed, including Japan, have either projected a growth of up to 12% in their land, capital and rental values, or at least hold steady in the next 12 months.

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aust r a l i a
ecoNomic iNdicators for melbourNe eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

January - June 2010 January - June 2010 February - August 2010 February - July 2010 April - September 2010 April - September 2010

3.14% 0.14% A$32.1 billion A$9.9 billion n.a. n.a.

melbourNe factory and warehouse · On the back of an Australian economy that is emerging strongly post-Global Financial Crisis (GFC), demand for industrial space firmed, although industrial users remained cautious in light of global uncertainties, in particular problems in the US and Europe. · Thus, the recovery of Melbourne's industrial property market has been slow. Industrial land and capital values, as well as rents, generally remained stable during the six-month review period between April and September 2010, with moderate increases in prime grade rentals seen for the markets in the West and Southeast. · Approximately 5.27 million sq ft of space has been leased from January to September 2010, with 46% in the West (2.44 million sq ft) and 31% (1.59 million sq ft) in the South-east. Notable leasing deals include Kmart taking up a 807,300-sq ft warehouse at Leakes Road, and Queensland Cotton taking up a 247,572-sq ft warehouse at 162 Australis Drive. · A total of 22 sales have been transacted in Victoria from January to September 2010, with total value in excess of approximately A$200 million. The majority of these sales have been in the South-east. For the first time since 2007, two national portfolios were put up for sale. The Salta portfolio was sold for more than A$200 million, while the Colonial portfolio that is currently being marketed is expected to sell for over A$200 million.
major traNsactioNs iN melbourNe TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

· Construction activity has remained subdued, particularly in the East and City Fringe. Approximately 2.80 million sq ft is currently under construction. The bulk of this (64%) is in the West; however, the South-east is also showing signs of activity. · It is expected that the Melbourne's industrial property market will continue to experience limited activity for the remainder of 2010. However, with economic indicators showing stronger growth next year, Melbourne's industrial sector will begin to show renewed activity in 2011. Thus, land and capital values as well as rents are forecast to hold steady over the next 12 months.

396 Mt Derrimut Road, Derrimut Leakes Road cnr Old Geelong Road, Laverton North 162 Australis Drive, Derrimut 70 Stanley Drive, Somerton 3 Myer Place, Rowville 333 Frankston Dandenong Road, Dandenong Mulgrave Business Park, Mulgrave Orbis Business Park, 165-211 Robinsons Road, Ravenhall p. 4 | colliers iNterNatioNal

Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Business Park Business Park

Lease Lease Lease Lease Lease Sale Sale Sale

Uti Australia Kmart Queensland Cotton ADN Solve Sigma Private Investor Investec Private Investor

150,696 807,300 247,572 246,528 216,841 228,896 202,686 77,501

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aust r a l i a
ecoNomic iNdicators for sYdNeY eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010

1.7% n.a. A$134.1 billion A$136.1 billion 933,987 n.a.

sYdNeY factory, warehouse and High-specs · Ongoing positive economic data continued to help stabilise Sydney's industrial property market with continuing employment growth, strong exports and imports - all positive indicators, which have led to businesses increasing inventory levels and re-evaluating their space needs. An increase in land sales in the past six months saw land values holding steady, with some regions seeing some growth in land values. In particular, scarcity of industrial land amid strong demand saw land values in Sydney South posting a steep increase of about 17.8% between April and September 2010. Significant land transactions during the period of review included 103 Mamre Road (258,334 sq ft) in Erskine Park and 6a Huntley Street (424,529 sq ft) in Alexandria, to Liebherr Australia and Trivest, respectively. Institutional investors and property trusts have begun to re-emerge into the investment sales market, with significant deals happening during the period of review, including Dexus Property Group's acquisition of warehouses at 108-120 Silverwater Road (192,007 sq ft) and 93 Williamson Road (270,034 sq ft). Owner occupiers, on the other hand, continued to dominate the vacant possession and land sales markets. The improvement in sales activity provided support for capital values to hold stable during the six months ending September 2010. · On the leasing front, as tenants slowly return to the market, rents have generally remained steady, although Sydney South outperformed by posting rental growth of 7.9% between April and September 2010. Major leasing deals concluded during this period included the lease of a 183,675-sq ft warehouse at 31b-33 Davis Road in Wetherill Park by Newly Wed Food Asia Pacific. There has been no major new supply in the Sydney industrial market over the past six months, while a distinct lack of prime grade properties currently exists within the market, despite increased demand for such space. Activity within Sydney's industrial property market is expected to increase over the next six to 12 months, as recovery of the global and Australian economies continues. Land and capital values, as well as rents, are expected to continue to firm, edging up moderately by between 2% and 3% over the next 12-month period.

·

·

·

·

major traNsactioNs iN sYdNeY TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

2-8 McPherson Street, Banksmeadow 3-9 Angas Street, Meadowbank 48-50 Boorea Street, Lidcombe 31b-33 Davis Road, Wetherill Park 50 Airds Road, Minto 108-120 Silverwater Road, Silverwater 6 Boundary Road, Northmead 93 Williamson Road, Ingleburn 412-426 Victoria Road, Wetherill Park 103 Mamre Road, Erskine Park 6a Huntley Street, Alexandria

Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Land Land

Lease Lease Lease Lease Lease Sale Sale Sale Sale Sale Sale

Private Aldridge Railway Signals Australian Van Lines Newly Wed Food Asia Pacific Acacia Timber Dexus Property Group Private Dexus Property Group Private Liebherr Australia Trivest

114,883 48,438 35,521 183,675 77,500 192,007 283,737 270,034 152,998 258,334 424,529

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cHiNa
ecoNomic iNdicators for beijiNG eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010

12% 16.6% US$118.4 billion US$26 billion 33,880 728,100

beijiNG factory and warehouse · Beijing's economy continued to grow robustly in the first half of 2010, with gross domestic product (GDP) and manufacturing output expanding at 12% and 16.6% on a year-on-year (YoY) basis, respectively. The local import and export sector witnessed sustained recovery on the back of the improving external trading environment and strong domestic demand. As a result, the container throughput increased by 98.2% YoY, to 33,880 TEUs, while the air cargo throughput amounted to 728,100 tonnes, up 24.8% YoY. · On the leasing front, demand for warehouses and factories is gradually picking up, driven by third-party logistics (3PLs) players and occupiers from the chemical, e-commerce and consumer goods industries. For example, DHL leased 258,334 sq ft of warehouse space in Beijing Airport Logistics Park, and Vancl committed to 133,688 sq ft of factory space in Beijing Economic-technological Development Area (BDA). · The warming market led to many landlords regaining confidence. Rentals have thus largely bottomed-out, with some areas registering their first increase in 24 months. Logistics rents in Tianzhu and Tongzhou recorded increases of 2.6% and 3.7% during the sixmonth ending September 2010, while factory rents in Shangdi and Yizhuang climbed by up to 3.3% during the same time period. · Amid the healthy local economic environment and sustained recovery in global trading, the rebound in Beijing's industrial property market is expected to pick up further momentum. The overall rents of factory and warehouse space should increase by 2.5% to 6%, while land values are forecast to remain relatively stable over the next 12 months.

· Echoing the strengthening market fundamentals, domestic corporations from the automobile, Liquid Crystal Display (LCD), pharmaceutical and technology industries, as well as some multinational corporations (MNCs), accelerated land acquisition activities for built-to-suit industrial facilities. Significant transactions concluded in the review period included TPV Technology and YH Global Logistics' acquisitions of 1.2 million sq ft and 1.0 million sq ft plots in Beijing Economic-technological Development Area (BDA), respectively, and Beijing Automotive Powertrain's purchase of a 647,986-sq ft plot in the Tongzhou Economic Development Zone. · The active industrial land sales market, particularly in Tongzhou and Yizhuang, nudged land values in these two submarkets up to CNY59.80 and CNY53.10 per sq ft, an increase of 4.2% and 3.9%, respectively, over the last review period. The land values in Tianzhu and Shangdi, however, stayed unchanged, given the relatively inactive land sales market due to limited land supply.
major traNsactioNs iN beijiNG TRANSACTIONS
buildiNG/laNd plot propertY tYpe

lease/sale

teNaNt/purcHaser

floor/laNd area (sQ ft)

Beijing Airport Logistics Park Yizhuang BDA Tongzhou Fanghezheng Industrial Park Yizhuang BDA Yizhuang BDA Yizhuang BDA Tongzhou Economic Development Zone

Warehouse Factory Factory Land Land Land Land

Lease Lease Lease Sale Sale Sale Sale

DHL Vancl GE TPV Technology YH Global Logistics Linde LienHwa China, LLH Beijing Automotive Powertrain Co. Ltd

258,334 133,688 18,299 1,220,002 1,020,342 192,168 647,986

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cHiNa
ecoNomic iNdicators for GuaNGZHou eCONOMIC INDICATORS
iNdicators period data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

April - June 10 April - September 10 April - August 10 April - August 10 April - August 10 April - July 10

13.6% n.a US$23.81 billion US$21.27 billion 5.5 million 602,300

GuaNGZHou factory and warehouse · The abolition of export tax rebates on several kinds of production, including part of food, steel product, medicines and chemicals from July 15, 2010, have adversely affected Guangzhou's industrial production for exports, as evidenced by the marked slowdown in the growth of its exports from 50.9% YoY in May 2010 to 30.7% YoY in July. · On the other hand, average rents of warehouses were up 5.1% compared with the last review period, while that of factory rose marginally by 2.0%. This can be attributed to the shortage of high quality industrial properties, especially for warehouses, during the review period. Notably, leasing demand for industrial space in the period was led by the high-tech (electronics, biotechnology and pharmaceuticals), food and logistics industries. · Moving forward, demand for industrial space is expected to increase steadily with the continued expansion in the domestic manufacturing sector. Coupled with a limited supply of industrial properties, especially warehouses, which will be aggravated by construction work stoppages during the 16th Asian Games to be held in Guangzhou from 12 to 27 November 2010, land values, capital values and rents are expected to rise by an average 3.4%, 1.4% and 2.3%, respectively, in the next 12 months.

· This has placed downward pressure on the capital values of warehouses and factories in Guangzhou, which fell 15% during the six months ending September 2010. · The impact on land values was less pronounced, due to the hysteresis effect between building and land values. As such, land values only saw a marginal erosion of 0.8% from the March 2010 level. Domestic enterprises made up the bulk of purchasers in the land sales market during the period between April and September 2010, accounting for eight of the 14 sites transacted, while the foreign/Sino-foreign joint venture made up the rest. Notable transactions included BLOGIS Guangzhou Co. Ltd's acquisition of a 1.1 million-sq ft plot in Yunpu Development Zone, Guangzhou B&M Fragrances Co. Ltd's acquisition of a 414,260-sq ft plot at Luogang District, and Heesung Electronics (Guangzhou) Ltd's purchase of 353,488 sq ft in Guangzhou Science City.
major traNsactioNs iN GuaNGZHou TRANSACTIONS
buildiNG/laNd plot propertY tYpe

lease/sale

teNaNt/purcHaser

floor/laNd area (sQ ft)

Development Zone, Luogang Development Zone, Yunpu Development Zone, Yonghe Luogang District Guangzhou Science City Guangzhou Science City

Factory Land Land Land Land Land

Lease Sale Sale Sale Sale Sale

Honeywell BLOGIS Guangzhou Co. Ltd Guangzhou Tiancheng Bio-degradation Ltd Guangzhou B&M Fragrances Co. Ltd Heesung Electronics (Guangzhou) Ltd Synnex Technology International Corporation

86,080 1,090,902 430,400 414,260 353,488 224,862

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cHiNa
ecoNomic iNdicators for sHaNGHai eCONOMIC INDICATORS
iNdicators period data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January ­ August10 January ­ August 10 January ­ August 10 January ­ August 10 January ­ August 10 January ­ August 10

13% 27.0% US$1,906.6 billion US$835.1 billion 19.1 million 2.4 million

sHaNGHai factory and warehouse · Shanghai experienced a revival in domestic and external demand, as evidenced by the 27% YoY growth in industrial output from January 2010 to August 2010, in contrast to a 12.2% YoY growth rate from August 2009 to January 2010. The rebound in exports also resulted in a significant increase in container throughput, which was up 19.1% YoY, to over 19 million TEUs from January 2010 to August 2010. · In the land market, reduced new industrial land supply in the Pudong and Minhang districts helped firm up land prices in these areas. As a result, land values remained stable during the six months ending September 2010. The most significant land transaction during the review period was China's largest steel producer Bao Steel's purchase of a 10.4 million sq ft parcel of land in Shanghai's Baoshan district for expansion purposes. This is the largest industrial land plot sold in Shanghai since 2007. Moving forward, new industrial zones in Shanghai are expected to focus their development on more eco-friendly business park space as Shanghai attempts to move up the industrial value chain. For example, Shanghai will build the first "low-carbon" business park in the Hongqiao area of Changning district. Given the cost advantage of occupying industrial-office space as compared to traditional downtown office space, some enterprises are expected to relocate to these industrial zones, thereby lifting the overall demand for industrial space in Shanghai. Hence, rentals are expected to continue to rise by 1.4% to 2.3% in the next 12 months, while land and capital values continue to remain firm.

· The rebound in the industrial property market, which began at the end of 2009, gained further momentum in the first nine months of 2010. In particular, rising demand for industrial space in the suburban districts of Fengxian, Qingpu and Jiading fuelled the growth in rental rates. Consequently, rents of industrial properties across the submarkets surveyed rose by between 3.3% and 4.9% during the review period. · Encouraged by favourable investment policies offered in some industrial areas, such as the tax-free incentives for small high-tech companies in Zizhu Hi-tech Park in the Minghang district, mediumand small-scale companies were particularly active in the investment market. Standard logistics warehouses emerged as the most popular investment type during the first three quarters of 2010. Nonetheless, the demand for business parks also improved, helped by positive spillover effects from the Shanghai World Expo held from 1 May to 31 October 2010.

·

major traNsactioNs iN sHaNGHai TRANSACTIONS buildiNG/laNd plot Yu Pei Anting Good Man Taopu No. 318, Fa Sai Rd, Waigaoqiao Plot B0901, Lingang International Logistics Park South coast of Yangtze River, Bao Steel Land C-5-4, Zhangjiang High-tech Park propertY tYpe Factory Warehouse Factory Land Land Land lease/sale Lease Lease Sale Sale Sale Sale teNaNt/purcHaser Itochu Hitachi Shanghai Yujia Logistics Co. Ltd Prologis Bao Steel Ju Chuang Xin (Shanghai) Microelectronic, Co. Ltd floor/laNd area (sQ ft) 702,054 53,819 239,508 1,242,485 10,401,275 118,155

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H o N G ko N G s a r
ecoNomic iNdicators for HoNG koNG sar eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January - June 2010 March - August 2010 March - August 2010 March - August 2010 March - August 2010 March - August 2010

7.25% 21.73% HK$1,720 billion HK$1,548 billion 12.0 million 2.1 million

HoNG koNG sar factory · Thanks to the sustained growth of regional trade flows, the overall external trade posted solid growth during 3Q 2010. In the case of re-exports, the pace of growth stayed above 20% YoY from June 2010 to August 2010. Moreover, re-export volume in this period has reached the level prior to the financial crisis. The total value of re-exports was HK$801 billion, compared with the previous peak of HK$733 billion recorded in the three-month period ended November 2008. The continued growth in local consumption and re-exports volume has stimulated a group of industrial occupiers searching for real estate options for business expansion in 3Q 2010. Moreover, the industrial market continued to enjoy positive spillovers from the traditional office sector due to a sustained increase in rentals for office space. During the six-month period ended September 2010, the average rental in the factory sector increased 5.3% to HK$7.26 per sq ft per month. The sales market remained active between April and September 2010 due to the sustained low interest rate environment and the keen buying interest amongst a mass group of industrial occupiers and investors. From April 2010 to Jun 2010, the number of stratatitled transactions increased 7.1% QoQ to 1,583, while the total value of transactions increased 6.4% QoQ to HK$5,118 million. During the three-month period ended September 2010, the number of stratatitled transactions surged 17.4% QoQ to 1,859, while the total value of transactions increased 18.1% QoQ to HK$6,043 million. On the price front, the average price of factory premises increased 10% during the six-month period ended September 2010, to HK$1,954 per sq ft. On the investment front, the measures implemented by the Government to facilitate the redevelopment and wholesale conversion of industrial buildings which took effect in April 2010, continued to draw buying interests for whole-block industrial developments. However, as most vendors preferred to hold on to their assets in anticipation of further price appreciation, there was a decrease in the number of properties listed for sale during 3Q 2010. During the period from June to August 2010, a total of eight whole-block transactions were recorded, down from a total of nine registered in the preceding three-month period. Major transactions during the review period included the acquisition of the whole block of Lucky Industrial Building in Kwai Chung by Mansion Industries Limited, for a total consideration of HK$348 million, or an average unit price of HK$1,190 per sq ft, based on a total floor area of 292,520 sq ft. Billion Development acquired the whole block of Unimix Industrial Centre in San Po Kong for a total consideration of HK$601 million. Based on a total floor area of 394,000 sq ft, the average unit price was HK$1,525 per sq ft. · Looking ahead, Hong Kong's external trade performance is anticipated to see further improvement. As such, rentals and capital values of factory premises are expected to increase by 12% and 9%, respectively, over the next 12 months.

·

warehouse · Cargo throughput volume increased further amid the continued growth in Hong Kong's external trade. During the six-month period ended August 2010, air cargo throughput surged 29.4% YoY, to 2.1 million tonnes, surpassing the peak level prior to the financial crisis. Meanwhile, the container throughput volume increased 12.7% YoY, to 12.0 million TEUs during the period from March 2010 to August 2010, a level still below its previous peak level. During the six-month period ended September 2010, the average rents of cargo lift access warehouses increased 6.2%, to HK$5.63 per sq ft per month, while that of ramp access warehouses increased 5.1% to HK$8.10 per sq ft per month. Similar to the factory sector, the demand from prospective buyers continued to underpin the price performance of warehouses. Thus, the capital values of cargo lift access warehouse and ramp access warehouse rose by 8.8% and 8.4%, respectively, during the review period. A local company acquired the whole block of UTi Logistics Centre in Tuen Mun for a total consideration of HK$230 million. Based on a total floor area of 160,000 sq ft, the average unit price was

·

·

·

·

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H o N G ko N G s a r
HK$1,438 per sq ft. In addition, Billion Development acquired the plot at 6-28 Chai Wan Kok Street, Tsuen Wan from Goodman Group and Goodman Hong Kong Logistics Fund for a total consideration of HK$875 million. The plot covers a site area of 91,201 sq ft. The vendors plan to develop the site into a logistics warehouse but the buyer plans to develop the site for other uses. · Depending on the availability of physical provisions such as ramp access, rentals are anticipated to increase 10%, while capital values are expected to increase 8% to 10% over the next 12 months. High-specs industrial building · Similar to the factory sector, the high-specs Industrial-Office buildings (I-O) received positive spillover demand from an increase in rentals in the office market. During the six-month period ended in September 2010, the average I-O rental increased 4.6%, to HK$14.27 per sq ft per month. In anticipation of further growth in Hong Kong's external trade and the corresponding occupational demand growth, I-O rentals are expected to increase 12% over the next 12 months.

·

·

major traNsactioNs iN HoNG koNG sar TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

Mita Centre Tai Ping Industrial Centre Block 1 Tsing Yi Tai Sang Warehouse Tsuen Wan International Centre Tsuen Wan International Centre Lucky Industrial Building Unimix Industrial Centre UTi Logistics Centre 6-28 Chai Wan Kok Street

Factory Factory Warehouse Warehouse Warehouse Factory Factory Warehouse Land

Lease Lease Lease Lease Lease Sale Sale Sale Sale

Kyocera Mita Industrial Co. (H.K.) Ltd Euron Ltd Oriental Logistics Ltd JSI Logistics (Hong KONG) LTD Lane Crawford (HK) Ltd Mansion Industries Limited Billion Development Local company Billion Development

54,740 41,570 123,200 68,225 69,700 292,520 394,000 160,000 91,201

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iNdia
ecoNomic iNdicators for iNdia eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

April ­ September 2010 April ­ September 2010 April ­ July 2010 April ­ July 2010 April ­ September 2010 April ­ September 2010

8.80% 13.80% US$114.2 billion US$69.8 billion n.a. n.a.

New delHi factory and warehouse · After a gap of 28 years, a new industrial policy to guide industrial developments in Delhi between 2010 and 2021 was finally rolled out in August 2010. In contrast to the 1982 industrial policy, which encouraged developments in the manufacturing sector in Delhi, the new industrial policy focused on developing the service sector. It also aims to create Delhi as a hub for pollution-free, high-technology and knowledge-based industrial activities. In addition, the new industrial policy envisages plans for setting up Special Economic Zones (SEZs), industrial parks and redevelopment of industrial areas on a publicprivate partnership basis. · Riding on the continued positive sentiments generated by the government's economic and monetary stimulus plans, as well as the new industrial policy, demand for Delhi's industrial properties continued to show improvements during the review period. This rise in demand for industrial space helped rental values to trend upwards by another 2.0%, to 7.7% between April and September 2010. · Overall, sales activity in the NCR region maintained its upbeat momentum, further placing upward pressure on prices. As a result, the industrial land and capital values witnessed an average increase of approximately 0.8% to 7.7% during the review period. · Looking ahead, land and capital values and rents of industrial properties are expected to see appreciation of up to 5.0% in the next 12 months due to positive economic sentiment and the expected expansion plans of various organisations.

· Recent new industrial initiatives in Delhi NCR region include the development of a 3,100-acre logistics and industrial hub called Prithala in the Palwal district to create a dry port city, the establishment of a new 42-acre leather park at Bhiwadi to woo domestic as well as international players, and the development of a 900-acre petrochemical hub at Panipat for the downstream industries of the Panipat Refinery.
major traNsactioNs iN New delHi TRANSACTIONS
buildiNG/laNd plot propertY tYpe

lease/sale

teNaNt/purcHaser

floor/laNd area (sQ ft)

Rama Road Kundali Rama Road OKHLa - II OKHLa - II

Warehouse Warehouse Factory Factory Factory

Lease Lease Lease Lease Lease

Quality Walls Mahveer store Raprose Friendly Health Care Com Ltd Kothari Metals Ltd Mangla Exports

10,000 5,000 15,000 12,000 8,000

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i N d o N es i a
ecoNomic iNdicators for jakarta eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

April ­ September 2010 April ­ September 2010 April ­ July 2010 April ­ July 2010 April ­ June 2010 April ­ September 2010

2.8% 2.0% US$45,602.1 million US$49,471.5 million 11.5 million n.a.

jakarta factory and warehouse · On the back of its ongoing economic reform, a huge domestic market from a population of almost 240 million, a growing middle class and a 58 million-strong working class, Indonesia has emerged as one of the hottest investment destination in South-east Asia. This has led to a healthy industrial property market during the period of review. · Supply has been relatively stagnant over the past 10 years, with few new land expansions. Though there would be expansion plans for industrial estates with a consistent sales record and limited stock, such plans are unlikely to materialize soon. This is because other operating industrial estates still have large land stock and developers are thus more cautious in developing new land for sale. · Indonesia's appeal to foreign investors is expected to be sustained, given that the nation is projected to achieve a sustainable economic growth of between 6% and 7% in 2011 and 2012. This will lend support for industrial land, capital and rental values to strengthen by 3.0% to 9.0% in the next 12 months.

· Sales of industrial land in the first half of 2010 have already reached 90% of the total sales in 2009, and interest in several industrial estates continued to run high in the second half of 2010. Industries looking for industrial land were rather diverse during the six months between April and September 2010, ranging from automotive industries, pharmaceutical, steel and food manufacturing companies. Land was bought mainly by local companies expanding their operation and foreign companies from Japan and Korea, amongst others. Notable land transactions during the April to September 2010 period include PT. JTEKT Indonesia's purchase of 1.08 million sq ft of land in Suryacipta and an undisclosed food manufacturer's purchase of 1.83 million sq ft of land in Karawang International Industrial City (KIIC). · Consequently, prices of industrial land in the Bekasi, Karawang and Serang submarkets continued to rise by 3% to 7% during the review period, initiated by industrial estates with limited land stock and high sales rate. Prices of factories and warehouses, too, nudged up by 3% and 5% in the six months ending September 2010. However, rental rates for factories were largely stagnant, falling marginally by 1%, as leasing enquiries remained lacklustre, given industrialists' preference to operate from owner-occupied properties.

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i N d o N es i a
major traNsactioNs iN jakarta TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

Suryacipta Suryacipta Suryacipta Karawang-International-Industrial-City (KIIC) KIIC KIIC KIIC KIIC KIIC KIIC Modern Cikande Kota Bukit Indah Kota Bukit Indah (Indotaisei) Bekasi Fajar Bekasi Fajar Krakatau Industrial Estate Cilegon (KIEC)

Land Land Land Land Land Land Land Land Land Land Land Land Land Land Land Land

Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale

PT. Royal Industries Indonesia PT. JTEKT Indonesia PT. Geo Link Nusantara Automotive Parts (undisclosed) Chemical (undisclosed) Printing (undisclosed) Food Manufacturing (undisclosed) Construction Machinery (undisclosed) Aluminium (undisclosed) Motorcycles Parts (undisclosed) Steel Industry (undisclosed) Automotive (undisclosed) Nippon Steel Pharmacy (undisclosed) Molding (undisclosed) Oil & Gas Processing (undisclosed)

462,800 1,076,400 322,900 430,500 236,800 1,140,900 1,829,800 1,184,000 452,000 419,700 290,600 269,000 322,900 322,900 322,900 581,200

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ja pa N
ecoNomic iNdicators for Greater tokYo eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010

3.1% 17.4% JPY13,168.9 billion JPY12,060.5 billion 3.5 million 1.1 million

Greater tokYo factory and warehouse · Japan's economy was still in a moderate recovery phase, with real GDP growing by 0.4% on a quarter-on-quarter (QoQ) basis, or 1.5% on an annualized basis in 2Q 2010. The employment market was thus weak, with unemployment recorded at 5.3% in June 2010. Exports and industrial production growth has also decelerated in 2Q 2010 on the back of signs of an economic slowdown in major economies. On a brighter note, supported by a continued improvement in corporate profits, business fixed investment has been on an upward trend. · While the slow economic recovery has not been able to provide sufficient stimulus to drive a strong rebound in the demand for industrial properties, it has nevertheless brought some relief to the lacklustre demand for industrial space. As such, although industrial rents and capital values continued on its downward trend, the falls moderated to 1.3% and 0.1% during the six months period between April and September 2010, from 4.9% and 2.6%, respectively, in the previous six-month review period. Land values weakened by 1.3% during the current six-month review period, almost similar in pace to the 1.5% dip six months ago. · During the period of review, ProLogis completed a built-to-suit logistics facility, called ProLogis Park Ebina, for Kirin Logistics Co. Ltd, a leading Japanese 3PLs company specializing in the food and beverage industries. The two-storey facility has a gross floor area (GFA) of 381,946 sq ft and is located in Ebina, Kanagawa, which is 3 km from a highway intersection.
major traNsactioNs iN Greater tokYo TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

· The investment sales market was rather active in the period of review. In particular, Mapletree Logistics Trust acquired three industrial facilities: Iwatsuki Logistics Centre located in Saitama with a GFA of 322,723 sq ft, Iruma Logistics Centre located in Gunma with a GFA of 282,057 sq ft, and Noda Logistics Centre located in Chiba with a GFA of 382,840 sq ft, for JPY4.8 billion, JPY3.4 billion, and JPY4.8 billion, respectively. Also, Japan Logistics Fund acquired 90% of Ichikawa Logistics Centre II which has a GFA of 827,124 sq ft, for JPY17.415 billion. · Looking ahead, Japan's economy is expected to continue its slow recovery. Therefore, land and capital value of warehouses are forecast to hold steady in the next 12 months, while rental values may continue to remain soft in the same period.

Ichikawa Logistics Centre II, Kanagawa Iwatsuki Logistics Centre, Saitama Iruma Logistics Centre, Gunma Noda Logistics Centre, Chiba

Warehouse Warehouse Warehouse Warehouse

Sale Sale Sale Sale

Japan Logistics Fund Mapletree Logistics Trust Mapletree Logistics Trust Mapletree Logistics Trust

827,124 322,723 282,057 382,840

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New ZealaNd
ecoNomic iNdicators for New ZealaNd eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010 January ­ June 2010

0.7% 0.4% NZ$19.6 billion NZ$21.7 billion 23.8 million 95,718

aucklaNd office/warehouse · New Zealand's economic recovery is faltering, with GDP inching up just 0.6% QoQ in 1Q 2010, following a 0.9% QoQ increase in 4Q 2009. Nonetheless, there is some optimism that recovery works for the Canterbury Earthquake can help to provide the much needed boost to sustain GDP growth over a longer period of time. · Leasing activity has been surprisingly buoyant in 2010, with major leases signed, including discount department store operator Kmart's deal to lease a new purpose-built warehouse and office facility at Goodman's Wiri M20 Business Park. The 144,241-sq ft development will be the principal distribution hub of Kmart's New Zealand operations and is scheduled to complete by early 2011. Other leases signed include those with Dunlop Living, Shears & Mac4 Limited, Atlas Gentech NZ and Spartacus. · The rents achieved during the period of review reflect the various qualities of buildings and the demand-supply balance. Tenants can justify high rents for new purpose-built facilities, while at the other end of the scale, the abundance of poor quality stock meant that owners have to compete on price, including incentives, to capture the limited demand. On balance, rents for industrial facilities in Manukau continued to slide by 1.1% between April and September 2010, while those in Auckland have started to stabilise. Rents in Northshore, however, have bottomed and staged a strong 7.3% rebound during the six-month review period ending September 2010. · After a series of value adjustments, land prices are close to a level where development is beginning to look feasible again. This has spurred developments such as those underway at M20 Business Park and Rosebank, scheduled for completion by 2011. The pick-up in development activity contributed to land values strengthening by 4.7% and 11.4% in Auckland and Manukau, respectively, between April and September 2010. Land values in Northshore, however, stayed soft and weakened marginally by 1.3%. · On the investment front, continued robust demand by private investor and returning interest by New Zealand-based listed funds saw capital values of industrial properties edging up by up to 9.1% in the six months ending September 2010. One of the most significant transactions in the review period has been Direct Property Fund's purchase of 321 Rosebank Road in Avondale for NZ$16 million. · An improvement in the Auckland's industrial market is expected, as foreshadowed by Colliers International's September 2010 investor confidence survey, which revealed that 5% of Auckland's industrial investors were optimistic in September 2010. This is a stark improvement on the 15% pessimistic when the survey was conducted in September 2009. Prime industrial rents and yields are expected to remain static but pressure will continue to be placed on secondary grade industrial rentals and values, as vacancies for these properties are set to rise further.

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New ZealaNd
major traNsactioNs iN aucklaNd TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

M20 Business Park, 86 Plunket Avenue Unit C, 383 Neilson Street 242 - 244 Bush Road 238 State Highway 17 Unit A, 29 Alfred Street 36 Hillside Road 8 Fisher Crescent 395 Church Street 76 Carbine Road 686 Rosebank Road 66 Allens Road 321 Rosebank Road

Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse

Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Sale Sale

Kmart The Insulation Warehouse Limited Thermo Fisher Scientific New Zealand Limited Just Right Marketing Limited Kalista Limited U-sell Limited Tyco Flow Control Pacific Propriety Limited Shears & Mac4 Limited Atlas Gentech NZ Dunlop Living Aubrey Edward Group Direct Property Fund

144,241 10,764 44,661 32,379 70,366 69,699 62,411 87,169 28,052 75,350 26,050 99,569

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New ZealaNd
welliNGtoN office/warehouse · As Wellington's industrial market is smaller and less established as compared to Auckland's, its industrial market lags the surprising pick-up in activity seen in Auckland during this review period. · In Wellington, fortunes vary between two of the best known precincts, with vacancy in Seaview rising to 9.3% with the addition of approximately 118,400 sq ft of vacant industrial space, while that in Petone has declined to only 3.3%. However, rentals across the main industrial areas in this review period continue to experience rental declines of 2.9% to 9.4% from the previous review period. Notable leasing deals concluded during this period include Carter Holt Harvey's lease of the 48,439-sq ft office/warehouse space at 25 Peterkin Street and Junior Kustom Rides and Classics Limited's lease of the 32,293-sq ft space at 111 Eastern Hutt Road. · Industrial land values in Wellington have mostly held steady from April to September 2010, with the exception of Seaview, which continued to ease. Seaview's status as an established and popular industrial precinct during times of economic growth had subjected it to a greater exposure to recessionary pressure. · Investment activity has remained subdued but stable in the second half of this year. A notable transaction in the review period was the sale of 64,177 sq ft of industrial space at 102 Adelaide Road in Mount Cook to Inverall Properties Limited for NZ$4.601 million. Yields are holding across the board in most of the precincts except Petone, where yields have tightened by 25 to 50 basis points from 9.5% to 7.5% in the second half of this year. This can be attributed to the more than proportionate fall in rentals (-9.1%) as compared to capital values (-6.4%) in Petone during this period. · In total, a further 2.26 million sq ft of proposed development is in the pipeline waiting to proceed. These proposed developments include 968,751 sq ft of rezoned industrial land at Eastern Hutt Road, 204,514 sq ft of industrial land at Blenheim Street and two sites of circa 1.6 ha at Central Park.
major traNsactioNs iN welliNGtoN TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

· Confidence among Wellington investors has dropped, falling from 11% pessimistic six months ago to 18% pessimistic in September 2010, indicating that they are expecting the industrial market to be under pressure in the next 12 months. In turn, capital values are expected to fall slightly on the back of falling rents, while yields hold their ground.

5 - 7 Tauhinu Road 3 Railway Avenue 25 Peterkin Street 111 Eastern Hutt Road 102 Adelaide Road 3-9 Gear Street

Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse

Lease Lease Lease Lease Sale Sale

Omega Rental Cars Limited South Pacific Tyres Carter Holt Harvey Junior Kustom Rides and Classics Limited Inverall Properties Limited Foodstuffs Properties (Wellington) Limited

9,774 21,529 48,439 32,293 64,177 15,705

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siNGapore
ecoNomic iNdicators for siNGapore eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
*Based on advance estimates

April - September 2010 January - September 2010 April - September 2010 April - September 2010 April - September 2010 April - September 2010

14.8%* 31.9% S$216.6 billion S$245.4 billion 14.3 million 913,541

siNGapore factory and warehouse · A number of new initiatives aimed at enhancing the hardware and software aspects of Singapore's manufacturing sector were introduced during this review period. They include the proposed development of an Offshore Marine Centre at Tuas View, which will offer companies common facilities along the waterfront to optimise the use of scarce waterfront land in Singapore, a General Aviation Centre at Seletar Aerospace Park, with shared facilities for training, line maintenance and parking of smaller aircraft, as well as a MedTech Centre at Tukang Innovation Park in Jurong, to cluster leading medical technology industries in one area to create synergies. These initiatives should sharpen Singapore's competitive edge and help anchor new investments in Singapore. · Meanwhile, underpinned by Singapore's robust 15.5% YoY GDP growth chalked up for the first nine months of 2010, the industrial property market continued on its recovery route from April to September 2010. Bolstered by the low interest rate environment and the prospect of near-term capital appreciation, the sales market was noticeably more active than the leasing market, resulting in values outperforming rents. Land values for factories and warehouses surged by an average 15% from the previous review period, while capital values rose by 10.1% to 11%. However, rents only inched up 1.5% to 1.6%. · High sales activity during the review period was mainly led by REITs' acquisitions, as they continue to take advantage of relatively attractive valuations to boost their portfolio yields. They include Mapletree Logistics Trust's purchase of the Natural Cool Lifestyle Hub located on 29 Tai Seng Road for $53 million, AIMS AMP Capital Industrial REIT's purchase of the C&P Logistics Hub 2, a ramp-up warehouse and logistics complex on Penjuru Lane, for $161 million and Cambridge Industrial Trust's purchase of two factories at 22 Chin Bee Drive and 25 Tai Seng Avenue for $15 million and $21.5 million, respectively. Major leasing transactions included VWR International's deal to lease a 74,000-sq ft space at 18 Gul Drive. · Major completions in the period under review include the 163,600sq ft plant owned by Lonza Biologics Tuas Pte Ltd at Tuas South Avenue 6, and the close to 200,000-sq ft facility by Caterpillar S.A.R.L Singapore Branch, located within Tukang Innovation Park to carry out its remanufacturing operations to serve the regional mining equipment market. · Going forward, Singapore's economic outlook remains optimistic, though fears of a possible slowdown in global demand may possibly weigh down on Singapore's trade-dependent economy in the first half of 2011. Thus, growth of up to 10% in land values, rents and capital values over the next 12 months is forecast for factories and warehouses. High-specs industrial building · In September 2010, the government committed to inject $16.1 billion over the next five years to support research, innovation and enterprise in the biomedical sciences, electronics, info-communications and other "white spaces". This will provide support for demand for high-specs space in the short to medium term. · Riding on Singapore's robust economic growth in the first nine months of 2010, leasing activity for high-specs space picked up pace and helped soak up some excess supply. Hence, rents for high-specs space finally bottomed, and even managed to record a modest rise of 1.4% during the current six-month review period. · Leasing deals concluded during this period included Invensys Process System (S) Pte Ltd's commitment to 42,711 sq ft of space at 1 Changi Business Park Avenue 1, while sales transactions included City Development Ltd and Japan Land's disposals of New Tech Park in Lorong Chuan and a newly completed data centre at 29A International Business Park in Jurong for S$305.90 million and S$145.00 million, respectively.

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siNGapore
· About 1.27 million sq ft of business space at Mapletree Business City along Alexandra Road was completed in April 2010. Mapletree Business City is Singapore's latest business hub, which integrates office and business space facilities with extensive amenities. To date, their business space is almost 100% leased. · In light of healthy economic sentiment, as well as a resurgence in strong office rental growth, demand for high specs space, which has often been viewed as a cheaper substitute for traditional office space by some companies, could gather steam. Hence, rents for high-specs space are expected to rise by up to 15% in the next 12 months.

major traNsactioNs iN siNGapore eCONOMIC INDICATORS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

9 Woodlands Terrace 18 Gul Drive 1 Changi Business Park Avenue 1 1 Changi Business Park Crescent 29 Tai Seng Avenue 18 Tuas Street 22 Chin Bee Drive 25 Tai Seng Avenue C&P Logistic Hub 2 29A International Business Park New Tech Park

Factory Warehouse High-Specs High-Specs Factory Factory Factory Factory Warehouse High-Specs High-Specs

Lease Lease Lease Lease Sale Sale Sale Sale Sale Sale Sale

Siemens Pte Ltd VWR International Invensys Process Systems (S) Pte Ltd Oberthur Card Systems Asia Pte Ltd Mapletree Logistics Trust Management Ltd Chin Yuan Metal Pte Ltd Cambridge Industrial Trust Cambridge Industrial Trust AIMS AMP Capital Industrial REIT Undisclosed Investor Sabana Investment Partners

30,000 74,035 42,711 5,596 212,211 58,626 69,255 68,889 412,225 125,744 605,782

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ta i wa N
ecoNomic iNdicators for taiwaN eCONOMIC INDICATORS
iNdicators peRIOD data

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

April - September 2010 January - June 2010 April - September 2010 April - September 2010 March - August 2010 March - August 2010

9.7% 38.0% US$127.1 billion US$140.5 billion 6.7 million 997,532

taiwaN High-specs industrial building · Buoyed by strong demand for new technological products, Taiwan's overall manufacturing output and export growth continued to trend upwards in 1H 2010, with manufacturing output soaring by a hefty 38.0% YoY. Notably, Taiwan's GDP during the period of review rose by 9.7% YoY, the highest YoY growth rate since 1989. · Net absorption for high-specs space in Taipei's Neihu Technology Park amounted to a healthy 674,000 sq ft during April to September 2010, helped by expansion plans of companies as well as relocations from the Taipei Central Business District (CBD) to take advantage of the lower occupancy costs. Against a new supply totalling 577,000 sq ft in the same period, vacancy rates eased by 0.74 percentage points from March 2010, to reach 18.5% in September 2010. · Supported by the mild strengthening in vacancy rate for high-specs space, rentals inched up by a marginal 0.3%, from NT$31.06 per sq ft per month in March to NT$31.14 per sq ft per month in September. A major leasing deal concluded during this period was Lion Travel Service Co. Ltd's commitment of a 95,426-sq ft high specs space in the Shin Kong Ruei Hu Building.
major traNsactioNs iN taipei TRANSACTIONS
buildiNG/laNd plot propertY tYpe lease/sale teNaNt/purcHaser floor/laNd area (sQ ft)

· Total transaction volume of high-specs space for the past six months reached NT$9.14 billion. Compared to a year ago, transaction volume had largely moderated, due to the mismatch in price expectation from buyers and sellers. Significant building transactions during the period of review include Fubon Life Insurance's purchase of the 478,551-sq ft Hannover Technology Building for NT$4.71 billion and Wistron Technology's acquisition of the 221,520-sq ft Ding Ji Technology Building for NT$2.79 billion. · Looking forward, vacancy rates for high-specs space in Taipei are expected to ease gradually on the back of an improving economy, tight new supply and growing expansion plans of enterprises. However, as Taipei still needs time to absorb the excess space in the market, rentals are anticipated to be stagnant in the following 12 months, with potential upside limited to 3%.

Shin Kong Ruei Hu Building Suntech City Technology Building Hannover Technology Building Ding Ji Technology Building Naruwan Technology Building Technology Building on Xing'ai Road Dubai Technology Building

High-Specs High-Specs High-Specs High-Specs High-Specs High-Specs High-Specs

Lease Sale Sale Sale Sale Sale Sale

Lion Travel Service Co. Ltd United Microelectronics Corporation Fubon Life Insurance Wistron Technology Undisclosed Hotron Precision Electronic Industrial Co. Ltd Gintech Energy Corporation

95,426 51,702 478,551 221,520 28,409 65,073 19,391

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iNterNatioNal comparisoN

The purpose of the International Comparison tables is only to facilitate easy and equal comparison of single-user industrial costs. However, payment schemes vary with each country. Some countries may have the practice of paying annual land rent, whilst others pay lump sum land premium or through other modes. Colliers International does not infer that industrial land and buildings in these cities may be acquired through the same schemes or on the basis stated in the table.
siNGle-user wareHouse SINGLe-uSeR WAReHOuSe LAND vALueS, CApITAL vALueS AND MONTHLY GROSS ReNTS
value as of september 2010 (us$) citY laNd value1 (psf) capital value2 (psf) moNtHlY Gross reNt (psf) 0.61 0.61 0.72 0.41 0.37 1.34 1.75 2.07 2.92 2.27 1.81 0.40 1.04 0.73 0.49 0.89 0.44 0.42 0.24 0.30 0.47 0.66 0.40 0.95 0.78 0.51 1.14 1.21 0.73 1.12 0.51 0.46 0.43 12-moNtH forecast (us$) laNd value1 (psf) capital value2 (psf) moNtHlY Gross reNt (psf) 0.61 0.61 0.72 0.43 0.40 1.38 1.66 2.07 2.92 2.27 1.81 0.42 1.15 0.80 0.49 0.86 0.44 0.42 0.25 0.31 0.49 0.67 0.42 0.98 0.81 0.52 1.24 1.24 0.74 1.14 0.50 0.45 0.43 basis of laNd aNd capital values laNd teNure (Years) plot ratio laNd area (sQ ft) Gross floor area (sQ ft) 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Auckland Auckland Manukau North Shore Beijing Tianzhu Tongzhou Greater Tokyo Chiba - Urayasu Kawasaki - Higashi Ogishima Tokyo - Ariake Tokyo - Heiwajima Tokyo - Shinsuna Yokohama - Daikokufuto Guangzhou GETDD Hong Kong3 Ramp Access Cargo Lift Access Jakarta Bekasi Melbourne East & South East Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Pudong New Area Singapore East Sydney South Southwest West Wellington Ngauranga Petone Seaview 34.60 35.45 14.18 66.06 59.89 55.02 34.60 35.45 14.18 65.07 59.00 54.18 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 73.63 16.74 29.45 145.04 90.94 133.37 76.16 17.16 30.04 149.42 93.67 137.39 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 47.89 132.68 47.89 144.02 60 1.0 100,000 38.78 54.13 38.78 54.13 60 1.0 100,000 17.54 34.77 104.35 147.16 182.32 193.91 20.44 39.36 70.14 80.14 83.42 61.25 17.78 35.56 106.59 151.38 189.34 199.15 21.19 40.87 72.35 82.48 86.82 62.22 60 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 100,000 12.12 29.49 11.15 9.34 60.90 119.39 59.72 49.64 12.35 29.64 11.29 9.53 60.90 119.39 59.72 49.64 60 60 60 60 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 8.39 20.25 8.65 21.67 60 1.0 100,000 257.68 243.19 283.45 262.64 60 60 1.0 1.0 100,000 100,000 8.82 42.19 9.12 42.83 60 1.0 100,000 51.83 37.26 125.86 132.80 169.42 16.15 134.21 186.09 231.98 303.30 286.97 164.48 51.83 37.26 125.86 132.80 169.42 16.15 134.21 186.09 231.98 303.30 286.97 164.48 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 16.59 9.64 74.42 58.38 16.59 9.71 74.42 59.00 60 60 1.0 1.0 100,000 100,000 17.66 16.11 21.72 69.60 68.69 85.65 17.66 16.11 21.72 69.60 68.69 85.65 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio 2. Capital values refer to the values of both land and building 3. Values provided are for multi-user warehouse buildings

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iNterNatioNal comparisoN
iNterNatioNal comparisoN of wareHouse laNd values (september 2010)
Delhi - West Delhi - So uth Greater To kyo - To kyo - Shinsuna Delhi - No rth Greater To kyo - To kyo - Heiwajima Greater To kyo - To kyo - A riake Delhi - East Sydney - So uth Greater To kyo - Chiba - Urayasu Singapo re - East Shanghai - P udo ng New A rea Greater To kyo - Kawasaki - Higashi Ogishima Wellingto n - P eto ne Delhi - NH24 Wellingto n - Ngauranga M elbo urne - Fringe Sydney - West A uckland - No rth Sho re A uckland - A uckland Delhi - NH1 Sydney - So uthwest B eijing - Tianzhu Greater To kyo - Yo ko hama - Daiko kufuto A uckland - M anukau Wellingto n - Seaview M elbo urne - East & So uth East M elbo urne - No rth B eijing - To ngzho u M elbo urne - West Guangzho u - GETDD Jakarta - B ekasi 0 20 40 60 80 100 120 140 160 180 200

Wareho use Land Values (US$ psf per plo t ratio )

iNterNatioNal comparisoN of wareHouse capital values (september 2010)
Greater Tokyo - Tokyo - Heiwajima Greater Tokyo - Tokyo - Shinsuna *Hong Kong - Ramp Access *Hong Kong - Cargo Lift Access Greater Tokyo - Tokyo - Ariake Greater Tokyo - Kawasaki - Higashi Ogishima Greater Tokyo - Yokohama - Daikokufuto Sydney - South Greater Tokyo - Chiba - Urayasu Sydney - West Singapore - East Melbourne - Fringe Sydney - Southwest Auckland - North Shore Delhi - South Delhi - North Beijing - Tianzhu Delhi - East Auckland - Auckland Auckland - Manukau Wellington - Ngauranga Delhi - West Melbourne - East & South East Wellington - Petone Melbourne - North Beijing - Tongzhou Wellington - Seaview Shanghai - Pudong New Area Melbourne - West Guangzhou - GETDD Delhi - NH24 Delhi - NH8 Jakarta - Bekasi 0 50 100 150 200 250 300 350

Warehouse Capital Values (US$ psf)
* Values provided are for multi-user warehouse buildings

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iNterNatioNal comparisoN
iNterNatioNal comparisoN of wareHouse moNtHlY Gross reNts (september 2010)
Greater Tokyo - Tokyo - Heiwajima Greater Tokyo - Tokyo - Shinsuna Greater Tokyo - Tokyo - Ariake Greater Tokyo - Yokohama - Daikokufuto Greater Tokyo - Kawasaki - Higashi Ogishima Greater Tokyo - Chiba - Urayasu Sydney - South Singapore - East Sydney - West *Hong Kong - Ramp Access Delhi - South Melbourne - Fringe Delhi - West Sydney - Southwest *Hong Kong - Cargo Lift Access Auckland - North Shore Delhi - East Auckland - Manukau Auckland - Auckland Shanghai - Pudong New Area Wellington - Ngauranga Melbourne - East & South East Delhi - NH24 Wellington - Petone Melbourne - North Wellington - Seaview Melbourne - West Beijing - Tianzhu Guangzhou - GETDD Delhi - North Beijing - Tongzhou Delhi - NH8 Delhi - NH1 0.00 0.50 1.00 1.50 2.00 2.50 3.00

Warehouse Monthly Gross Rents (US$ psf)
* Values provided are for multi-user warehouse buildings

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iNterNatioNal comparisoN
siNGle-user factorY SINGLe-uSeR fACTORY LAND vALueS, CApITAL vALueS AND MONTHLY GROSS ReNTS
value as of september 2010 (us$) citY laNd value1 (psf) capital value2 (psf) moNtHlY Gross reNt (psf) 1.16 0.62 0.43 0.74 0.93 1.12 0.33 0.49 0.89 0.44 0.42 0.24 0.30 0.47 0.72 0.40 0.98 0.78 0.33 0.32 1.15 12-moNtH forecast (us$) laNd value1 (psf) capital value2 (psf) moNtHlY Gross reNt (psf) 1.16 0.64 0.43 0.83 1.04 1.25 0.34 0.49 0.86 0.44 0.42 0.25 0.31 0.49 0.74 0.42 1.00 0.81 0.34 0.32 1.25 basis of laNd aNd capital values laNd teNure (Years) plot ratio laNd area (sQ ft) Gross floor area (sQ ft) 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Beijing Shang Di Yi Zhuang Greater Tokyo Chiba - Ichikawa Chiba - Mihama Saitama - Ageo Tokyo - Ota Yokohama - Naka Guangzhou GETDD Hong Kong3 Low Quality Mid Quality Prime Quality Jakarta Bekasi Karawang Melbourne East & South East Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Minhang District Pudong New Area Singapore Central 67.64 134.42 67.64 146.11 60 1.0 100,000 15.45 17.08 48.70 44.48 15.45 17.08 48.70 44.48 60 60 1.0 1.0 100,000 100,000 16.56 33.56 97.72 138.50 170.75 181.60 20.44 39.36 72.90 80.14 94.13 74.61 16.78 34.31 99.82 142.48 177.32 186.51 21.19 40.87 75.24 82.48 98.40 76.69 60 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 100,000 12.12 29.49 11.15 9.34 60.90 119.39 59.72 49.64 12.35 29.64 11.29 9.53 60.90 119.39 59.72 49.64 60 60 60 60 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 8.48 4.98 25.17 23.16 8.73 5.43 26.94 24.78 60 60 1.0 1.0 100,000 100,000 177.51 228.37 348.07 193.49 248.92 379.40 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 8.82 42.52 9.12 43.02 60 1.0 100,000 37.86 18.63 14.12 72.17 36.47 132.99 82.49 77.49 139.99 116.99 37.86 18.63 14.12 72.17 36.47 132.99 82.49 77.49 139.99 116.99 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 52.66 7.57 129.98 60.20 52.66 7.70 131.10 60.96 60 60 1.0 1.0 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio 2. Capital values refer to the values of both land and building 3. Values provided are for multi-user factory buildings

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iNterNatioNal comparisoN
iNterNatioNal comparisoN of factorY laNd values (september 2010)
Delhi - West Delhi - South Delhi - North Delhi - East Greater Tokyo - Tokyo - Ota Singapore - Central Beijing - Shang Di Greater Tokyo - Chiba - Ichikawa Greater Tokyo - Yokohama - Naka Delhi - NH24 Melbourne - Fringe Greater Tokyo - Chiba - Mihama Shanghai - Pudong New Area Delhi - NH1 Shanghai - Minhang District Greater Tokyo - Saitama - Ageo Melbourne - East & South East Melbourne - North Melbourne - West Guangzhou - GETDD Jakarta - Bekasi Beijing - Yi Zhuang Jakarta - Karawang 0 20 40 60 80 100 120 140 160 180 200

Factory Land Values (US$ psf per plot ratio)

iNterNatioNal comparisoN of factorY capital values (september 2010)
*Hong Kong - Prime Quality *Hong Kong - Mid Quality *Hong Kong - Low Quality Greater Tokyo - Tokyo - Ota Singapore - Central Greater Tokyo - Chiba - Ichikawa Beijing - Shang Di Melbourne - Fringe Greater Tokyo - Yokohama - Naka Delhi - South Greater Tokyo - Chiba - Mihama Delhi - North Greater Tokyo - Saitama - Ageo Delhi - West Delhi - East Melbourne - East & South East Beijing - Yi Zhuang Melbourne - North Melbourne - West Shanghai - Minhang District Shanghai - Pudong New Area Guangzhou - GETDD Delhi - NH24 Jakarta - Bekasi Jakarta - Karawang Delhi - NH8 0 50 100 150 200 250 300 350 400

Factory Capital Values (US$ psf)
* Values provided are for multi-user factory buildings

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iNterNatioNal comparisoN
iNterNatioNal comparisoN of factorY moNtHlY Gross reNts (september 2010)
Beijing - Shang Di Singapore - Central *Hong Kong - Prime Quality Delhi - South *Hong Kong - Mid Quality Melbourne - Fringe Delhi - West *Hong Kong - Low Quality Delhi - East Beijing - Yi Zhuang Melbourne - East & South East Delhi - NH24 Melbourne - North Guangzhou - GETDD Melbourne - West Delhi - North Shanghai - Minhang District Jakarta - Karawang Shanghai - Pudong New Area Delhi - NH8 Delhi - NH1 0.00 0.25 0.50 0.75 1.00 1.25 1.50

Factory Monthly Gross Rents (US$ psf)
* Values provided are for multi-user factory buildings

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iNterNatioNal comparisoN
multi-user HiGH-specs MuLTI-uSeR HIGH-SpeCS AveRAGe MONTHLY GROSS ReNTS
as of september 2010 12-moNtH forecast averaGe moNtHlY Gross reNt (us$ psf) 1.25 3.02 3.36 3.36 2.06 1.55 0.29 0.46 0.58 0.87 0.56 1.16 0.93 1.13 2.46 1.09 1.02 lease term (Years) 3 3 3 3 3 3 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 3 3 basis of reNtal rates locatioN Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Net floor area (sQ ft) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 reNt free period (moNtH) 1 1 1 1 1 1 Negotiable Negotiable Negotiable Negotiable Negotiable Negotiable Negotiable 1 1 1

citY
Beijing Greater Tokyo - Hakusan Greater Tokyo - Kanagawa Greater Tokyo - Yokohama Hong Kong Melbourne New Delhi - NH1 New Delhi - NH8 New Delhi - NH24 New Delhi - East New Delhi - North New Delhi - South New Delhi - West Shanghai Singapore Sydney Taipei - Neihu Technology Park

averaGe moNtHlY Gross reNt (us$ psf) 1.24 3.36 4.37 3.70 1.84 1.55 0.28 0.45 0.56 0.85 0.53 1.14 0.91 1.12 2.14 1.09 0.99

iNterNatioNal comparisoN of HiGH-specs moNtHlY Gross reNts (september 2010)
Greater Tokyo - Kanagawa Greater Tokyo - Yokohama Greater Tokyo - Hakusan Singapore Hong Kong Melbourne Beijing New Delhi - South Shanghai Sydney Taipei - Neihu Technology Park New Delhi - West New Delhi - East New Delhi - NH 24 New Delhi - North New Delhi - NH 8 New Delhi - NH 1 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

High-Specs Average Monthly Gross Rents (US$ psf)

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local market Norm
siNGle-user wareHouse SINGLe-uSeR WAReHOuSe LAND vALueS, CApITAL vALueS AND MONTHLY GROSS ReNTS1
iN local curreNcY as of september 2010 citY local curreNcY laNd value2 (psf) capital value3 (psf) moNtHlY Gross reNt (psf) 0.98 0.92 1.03 2.78 2.50 112 101 157 163 152 121 iN us$ as of september 2010 laNd value2 (psf) capital value3 (psf) moNtHlY Gross reNt (psf) 0.72 0.68 0.76 0.41 0.37 1.34 1.21 1.88 1.95 1.81 1.45 basis of laNd, capital values aNd moNtHlY Gross reNts (local market Norm) laNd teNure (Years) plot ratio laNd area (sQ ft) Gross floor area (sQ ft) 15,000 50,000 52,500 105,000 108,000 430,556 107,640 3,229,170 215,278 4,843,755 430,556

Auckland Auckland Manukau North Shore Beijing Tianzhu Tongzhou Greater Tokyo Chiba - Urayasu Kawasaki - Higashi Ogishima Tokyo - Ariake Tokyo - Heiwajima Tokyo - Shinsuna Yokohama Daikokufuto Guangzhou GETDD Hong Kong4 Ramp Access Cargo Lift Access Jakarta Bekasi Melbourne East & South East Fringe North West New Delhi NH1 NH8 NH24 East North South West Shanghai Pudong New Area Singapore East Sydney South Southwest West Wellington Ngauranga Petone Seaview NZ$ NZ$ NZ$ 62.71 58.06 23.23 128.29 116.31 106.84 0.77 0.70 0.66 46.13 42.71 17.09 94.37 85.56 78.59 0.57 0.51 0.49 Freehold Freehold Freehold 0.5 0.5 0.5 70,000 100,000 100,000 35,000 50,000 50,000 A$ A$ A$ 87.55 24.39 32.40 157.94 125.42 125.42 1.09 0.79 0.89 84.63 23.58 31.32 152.68 121.24 121.24 1.05 0.76 0.86 Freehold Freehold Freehold 1.2 1.2 1.2 220,000 60,000 430,000 264,000 72,000 516,000 S$ 64.38 152.00 1.30 48.87 115.37 0.99 30+30 2.0 150,000 300,000 CNY 232.00 339.00 3.45 34.62 50.59 0.51 50 0.6 150,000 90,000 Rs Rs Rs Rs Rs Rs Rs 1,110 2,200 7,440 9,721 13,000 13,826 1,350 2,600 4,847 5,538 5,765 4,233 13 16 25 35 21 50 41 24.71 48.98 165.63 216.41 289.40 307.79 30.05 57.88 107.90 123.29 128.34 94.23 0.28 0.36 0.56 0.78 0.47 1.11 0.91 99 99 99 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 0.6 0.6 0.6 15,000 15,000 15,000 5,000 15,000 10,000 7,000 9,000 9,000 9,000 3,000 9,000 6,000 4,200 A$ A$ A$ A$ 17.18 41.80 15.79 13.23 90.00 190.00 88.25 79.00 0.57 1.08 0.50 0.50 16.61 40.41 15.26 12.79 87.00 183.67 85.31 76.37 0.55 1.04 0.48 0.48 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 40,000 30,000 40,000 30,000 24,000 18,000 24,000 18,000 Rp 69,997 155,119 7.43 16.46 30 2.4 10,000 24,000 HK$ HK$ 2,000.00 1,887.50 8.10 5.63 257.68 243.19 1.04 0.73 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. CNY 55.78 241.65 2.46 8.32 36.06 0.37 50 1.5 150,000 225,000 JPY JPY JPY JPY JPY JPY 6,374 2,995 13,847 9,741 16,866 1,875 14,028 12,449 21,553 19,509 22,854 13,099 76.22 35.82 165.60 116.49 201.69 22.43 167.76 148.87 257.75 233.31 273.30 156.65 Freehold Freehold Freehold Freehold Freehold Freehold 2.0 2.0 3.0 2.0 3.0 2.0 215,278 53,820 1,076,390 107,639 1,614,585 215,278 CNY CNY 100.15 59.80 466.09 365.63 14.95 8.92 69.55 54.56 50 50 0.7 0.9 150,000 120,000 NZ$ NZ$ NZ$ 32.89 26.38 35.58 145.57 133.40 155.24 24.19 19.41 26.17 107.08 98.13 114.19 Freehold Freehold Freehold 0.5 0.5 0.5 30,000 100,000 105,000

1. Values and rents may not be quoted in $ psf in local market practice. 2. Land values are expressed as per sq ft per plot ratio. 3. Capital values refer to the values of both land and building. 4. Values provided are for multi-user warehouse buildings.

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local market Norm
siNGle-user factorY SINGLe-uSeR fACTORY LAND vALueS, CApITAL vALueS AND MONTHLY GROSS ReNTS1
iN local curreNcY as of september 2010 citY local curreNcY laNd value2 (psf) capital value3 (psf) moNtHlY Gross reNt (psf) 6.22 4.38 2.60 5.73 7.18 8.67 2,929 0.57 1.08 0.50 0.50 13 16 25 38 21 52 41 2.20 2.50 1.37 iN us$ as of september 2010 laNd value2 (psf) capital value3 (psf) moNtHlY Gross reNt (psf) 0.93 0.65 0.39 0.74 0.93 1.12 0.31 0.55 1.04 0.48 0.48 0.28 0.36 0.56 0.85 0.47 1.16 0.91 0.33 0.37 1.04 basis of laNd, capital values aNd moNtHlY Gross reNts (local market Norm) laNd teNure (Years) plot ratio laNd area (sQ ft) Gross floor area (sQ ft) 429,000 54,600 430,556 64,584 64,584 32,292 215,268 225,000 N.A. N.A. N.A. 36,000 168,000 24,000 18,000 24,000 18,000 18,750 18,750 18,750 6,250 18,750 12,500 8,750 150,000 150,000 250,000

Beijing Shang Di Yi Zhuang Greater Tokyo Chiba - Ichikawa Chiba - Mihama Saitama - Ageo Tokyo - Ota Yokohama - Naka Guangzhou GETDD Hong Kong4 Low Quality Mid Range Prime Quality Jakarta Bekasi Karawang Melbourne East & South East Fringe North West New Delhi NH1 NH8 NH24 East North South West Shanghai Minhang District Pudong New Area Singapore Central S$ 93.80 161.00 71.20 122.20 30 + 30 2.5 100,000 CNY CNY 95.00 105.00 305.00 324.00 14.18 15.67 45.51 48.35 50 50 1.0 1.0 150,000 150,000 Rs Rs Rs Rs Rs Rs Rs 1,110 2,250 7,440 9,721 13,000 13,826 1,350 2,600 5,038 5,538 6,505 5,156 24.71 50.09 165.63 216.41 289.40 307.79 30.05 57.88 112.15 123.29 144.81 114.78 99 99 99 Freehold Freehold Freehold Freehold 1.25 1.25 1.25 1.25 1.25 1.25 1.25 15,000 15,000 15,000 5,000 15,000 10,000 7,000 A$ A$ A$ A$ 17.18 41.80 15.79 13.23 90.00 190.00 88.25 79.00 16.61 40.41 15.26 12.79 87.00 183.67 85.31 76.37 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 40,000 30,000 40,000 30,000 Rp Rp 70,694 39,080 192,812 158,132 7.50 4.15 20.46 16.78 30 30 2.4 2.4 15,000 70,000 HK$ HK$ HK$ 1,377.74 1,772.48 2,701.55 177.51 228.37 348.07 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. CNY 55.78 243.50 8.32 36.34 50 1.5 150,000 JPY JPY JPY JPY JPY 3,769 2,360 1,789 9,893 4,013 10,591 9,197 8,640 16,722 10,869 45.07 28.22 21.39 118.31 47.99 126.65 109.99 103.32 199.98 129.99 Freehold Freehold Freehold Freehold Freehold 2.00 2.00 2.00 2.00 2.00 215,278 32,292 32,292 16,146 107,634 CNY CNY 297.78 53.10 659.85 395.50 44.44 7.92 98.47 59.02 50 50 1.1 1.3 390,000 42,000

1. Values and rents may not be quoted in $ psf in local market practice 2. Land values are expressed as per sq ft per plot ratio 3. Capital values refer to the values of both land and building 4. Values provided are for multi-user factory buildings

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d e f i N i t i o N a N d t e r m i N o lo GY
1. multi-NatioNal corporatioN (mNcs) A multi-national corporation is defined as a large company that has operations in multiple nations and that requires industrial space. 6. moNtHlY Gross reNt for HiGH-specs space This is the monthly rent payable to a landlord less all tenant inducements e.g. rent free periods. It includes the amount of interest income foregone for the security deposit, maintenance fees (i.e. fees for maintaining common areas e.g. security, building insurance and normal water and energy consumption) and statutory real estate charges (e.g. property tax). Data is expressed in per sq ft of net floor area, which includes common areas such as toilets, corridors, stairways, lift lobbies, etc. A three year lease term is common in most countries in the Asia Pacific region. 7. moNtHlY Gross reNt for siNGle-user iNdustrial space This is the monthly rental payable to a landlord for a whole industrial premise by a single tenant. Data is expressed in per sq ft of gross floor area. A three year lease term is common in most countries in the Asia Pacific region.

2. factorY Unless otherwise stated, this refers to single-user industrial space catering to MNCs for production / manufacturing purpose.

3. wareHouse Unless otherwise stated, this refers to single-user industrial space catering to MNCs with warehousing requirements as well as their business as third party logistics, distribution and warehousing.

4. HiGH-specificatioNs (HiGH-specs) iNdustrial space This refers to multi-user industrial premises catering to MNCs with floor areas of about 10,000 sq ft, fitted with higher than normal specifications and offering hybrid office-industrial characteristics. This type of space is suitable for high value-added, technology-based manufacturing, information technology, product development, and research and development.

5. laNd Land refers to vacant prepared land with roads, drainage, electricity supply, water supply, telephone service and sewerage. The land is typically located within industrial estates that are frequently inquired by MNCs and located between 10 and 100 km of the metropolitan area. In addition, the land is also a single-user, single-development site, as opposed to one that is intended for parcellation for multiple users.

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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 carlby Xie Associate director, research carlby.xie@colliers.com shanghai, china 16f Hong kong new world tower 300 Huaihai Zhong road shanghai 200021 tel: +86 21 6141 3688 fax: +86 21 6141 3699 colin bogar Manager, research and Advisory colin.bogar@colliers.com Guangzhou, china room 702 teem tower 208 tianhe road guangzhou 510620 tel: +86 20 3819 3888 fax: +86 20 3819 3899 bryan chan director, research & Advisory bryan.chan@colliers.com Hong kong, Hk sar 5701 central Plaza 18 Harbour road, wanchai tel: +852 2828 9888 fax: +852 2828 9899 simon lo director, research and Advisory simon.lo@colliers.com taipei, taiwan 49f taipei 101 tower no 7 Xin Yi road sec 5 taipei 110 taiwan rOc tel: +886 2 8101 2000 fax: +886 2 8101 2345 denny Yang director, valuation & Advisory services denny.yang@colliers.com

NortH asia tokyo, japan Halifax building, 3-16-26, roppongi Minato-ku, tokyo 106-0032 Japan tel: +81 3 5563 2111 fax: +81 3 5563 2100 Yumiko Yasuda Head, research yumiko.yasuda@colliers.com.jp soutH asia jakarta, indonesia 10f world trade centre Jalan Jenderal sudirman kav 29-31 Jakarta 12920 tel: +62 21 521 1400 fax: +62 21 521 1411 ferry salanto division Manager, research ferry.salanto@colliers.com singapore 1 raffles Place #45-00 One raffles Place singapore 048616 tel: +65 6223 2323 fax: +65 6222 4901 tay Huey Ying director, research and Advisory huey-ying.tay@colliers.com iNdia New delhi 204/205 kanchenjunga 18 barakhamba road connaught Place, new delhi 110 001 tel: +91 11 2335 6620 fax: +91 11 2335 6624 surabhi arora senior Manager, research surabhi.arora@colliers.com

australasia melbourne, australia level 32 367 collins street Melbourne vic 3000 tel: +61 3 9629 8888 fax: +61 3 9629 4944 amita mehrotra Manager, research amita.mehrotra@colliers.com sydney, australia level 12, grosvenor Place 225 george street sydney nsw 2000 tel: +61 2 9257 0222 fax: +61 2 9251 3297 matthew tiller Manager, research matthew.tiller@colliers.com auckland, New Zealand level 27, 151 Queen street, Auckland tel: +64 9 358 1888 fax: +64 9 358 1999 alan mcmahon director, research and corporate services alan.mcmahon@colliers.com wellington, New Zealand level 10, 36 customhouse Quay wellington tel: +64 4 473 4413 fax: +64 4 499 1550 alan mcmahon director, research and corporate services alan.mcmahon@colliers.com

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