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Colliers International Research - Asia Pacific

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Asia Pacific Office Market Overview - 4Q 2011

Apr 04, 2012
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AsiA PAcific Office Market Overview
4Q 2011

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table Of cOntents
AsiA PAcific office mArket overview | 4Q 2011

regional overview Greater china

3 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

8-11

Jakarta, Indonesia.............................................................................................................................8 Kuala Lumpur, Malaysia ....................................................................................................................8 Karachi, Pakistan...............................................................................................................................9 Manila, Philippines ............................................................................................................................9 Singapore ........................................................................................................................................ 10 Bangkok, Thailand ........................................................................................................................... 10 Hanoi, Vietnam ................................................................................................................................. 11 Ho Chi Minh City, Vietnam ............................................................................................................... 11

india

12-13

Bengaluru (Bangalore) ................................................................................................................... 12 Chennai ........................................................................................................................................... 12 Mumbai ............................................................................................................................................ 13 New Delhi ........................................................................................................................................ 13

Australasia

14-17

Adelaide, Australia .......................................................................................................................... 14 Brisbane, Australia ......................................................................................................................... 14 Canberra, Australia ......................................................................................................................... 15 Melbourne, Australia ....................................................................................................................... 15 Perth, Australia ............................................................................................................................... 16 Sydney, Australia ............................................................................................................................ 16 Auckland, New Zealand ...................................................................................................................17 Wellington, New Zealand .................................................................................................................17

Prime office supply and rentals trends & forecasts Definition & terminology contacts

18-19 20-21 22-23 24-25

regional overview
eConomiC overview
Due to the lingering sovereign debt problems and continued slowdown of key economies around the world, market sentiment in the Asia Pacific region was generally cautious in 4Q 2011. There were a number of forces that had an impact on the market. The Federal Open Market Committee ("FOMC") in the US downgraded the country's projected economic growth for 2012. As a result, a number of economies in the region had to face the challenge of slowing exports to the West. However on a positive note, the recent statement made by the US Federal on the likelihood of interest rates maintaining at low levels until the end of 2014 indicated a very slim possibility of a distinct recovery in the near to medium term. The anticipated low-interest rate environment was well received given the expectations that quantitative easing ("QE") or QE-like policies will be kept in place by a number of central banks in 2012.

leasing market
Against the prevailing economic backdrop, more occupiers turned cautious in their business outlook. Negative sentiments were found in cities reliant on external trade whereas positive results were shown in Asia markets with strong internal consumption. Overall, the average office rent managed to edge up mildly by 0.3% QoQ during 4Q 2011. In the greater China region, demand fundamentals were exceptionally strong with sustained leasing requirements from a number of industries including financial services, manufacturing and IT. Domestic enterprises continued to look for quality developments for consolidation, relocation and upgrading. In Southeast Asia, Jakarta stood out as a surging market with office rents shooting up by 10% QoQ during the period.

sales market
In general, office sales prices were buoyant during 4Q 2011 despite the fact that rentals in individual cities saw signs of softening. Investment yields were either flat or slightly compressed. Investment funds maintained their appetite for quality investment opportunities in order to take advantage of the existing low interest rate environment. However, the domestic investors and cash-rich end-users were the key groups completing investment sales transactions during the period. Examples of such investment activities include the sale of 20 Bridge Street to RREEF Real Estate on behalf of a Malaysian Pension Fund (Kumpulan Wang Persaraan (Diperbadankan)) for US$185 million in Sydney and OCBC Bank's acquisition of Shanghai International Group Square, an office building located in Shanghai, for US$143 million for its headquarters in China.

market outlook
Looking ahead, the prevailing trend of demand softening is anticipated to continue until at least the first half of 2012. However, office capital values are expected to remain buoyant in anticipation of a new round of quantitative easing and more upcoming investment funds in the pipeline. We anticipate that deals will be concluded by a broader range of buyers in 2012, if access to financing becomes easier during the latter part of 2012.

Colliers international |

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asia pacific office market overview | 4Q 2011

cHiNA
BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1.00 0.80 Million sq m 0.60 0.40 0.20 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

Beijing
· Parkview Green, located in the CBD submarket, was completed in 4Q 2011 and delivered 87,000 sq m of new office space. The total stock of Beijing's Grade A office therefore expanded to 5.08 million sq m as of end-2011. · The new completion and existing vacant space was promptly taken by the brisk leasing demand, keeping the overall vacancy rate at a historical low level of 4.8% in 4Q 2011. · The overall rental posted its eighth consecutive quarter of growth, with average net effective rent registered at RMB274.26 per sq m per month, up 7.89% QoQ. Rent of the CBD catchment continued to surpass that of the Financial Street, averaging at RMB313.69 per sq m per month as of quarter end, up 55.33% YoY. · The investment market continued to be dominated by domestic players in 4Q 2011, with one en bloc sales transaction concluded. Guangyao Dongfang Group, a Shandong-based commercial real estate operator, purchased the Jin Yu Building located in the West Third Ring Road for a total consideration of RMB1.36 billion.
mAjor trANsActioNs
Capital Values

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

BEIJING OFFICE CAPITAL AND RENTAL VALUES
700.00 600.00 500.00 Rentals 400.00 300.00 200.00 100.00 0.00 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

BuilDiNG Jinyu Building Indigo SK Tower Yintai Center Parkview Green China Resources Building Yintai Center

leAse (l) / sAle (s) S L L L L L L

teNANt / PurcHAser Guangyao Dongfang Group Eli Lilly and Company Mitsubish SABIC Cathay Life Insurance Anglo American PLC Mercuria Energy Group

AreA (sq ft) 1,054,900 53,800 10,800 15,100 20,500 12,900 10,800

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F
Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.25 0.20 Million sq m 0.15 0.10 0.05 0.00 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

chengdu
· In 4Q 2011, the gap between the highest and lowest rents in Grade A office market widened to reach RMB70 per sq m. Grade A office rents increased 0.85% QoQ to RMB141.41 per sq m per month. · The office space take-up in this quarter exceeded 20,000 sq m. Demand from both new tenants and existing tenants seeking for expansion increased sharply, especially those from real estate, manufacturing, finance and government. By the end of 4Q 2011, the overall vacancy rate of Grade A office market dropped 4.08 percentage points QoQ to 16.79%. · A brand new Grade A office building located to the south of Tianfu Square and next to Metro Line 1, Square One, is expected to be completed in Q1 2012. About 27,000 sq m in the building will be offered for lease. The rents will range between RMB135-150 per sq m per month.
mAjor trANsActioNs BuilDiNG
Capital Values

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

CHENGDU OFFICE CAPITAL AND RENTAL VALUES
225.00 200.00 175.00 150.00 Rentals 125.00 100.00 75.00 50.00 25.00 0.00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 22,500 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0

leAse (l) / sAle (s) L L L L L L L

teNANt / PurcHAser Sichuan Industry Promotion & Development Investment Fund Dingxing Trade Co., Ltd HF Investment Consulate General of the Republic of Singapore Schenker China Ltd. h COFCO Future Co., Ltd Lee Kum Kee

AreA (sq ft) 7,500 7,500 5,400 11,800 5,400 4,300 5,200

CDB International Plaza CDB International Plaza Shangri-la Centre Yanlord Landmark Yanlord Landmark Yanlord Landmark Aerospace Technology Plaza

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

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asia pacific office market overview | 4Q 2011

cHiNA
GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2.50 2.00 Million sq m 1.50 1.00 0.50 0.00 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

guangzhou
· During 4Q 2011, the completion of Taikoo Hui in Tianhe North Road brought approximately 160,000 sq m new supply to the market, accounting for 7.3% of the total stock. Over 70% of the project has been leased. Coupled with the active leasing demand, the overall vacancy rate fell to 19.4% in 4Q 2011, down 1.1 percentage points QoQ. · The finance, manufacture and professional services sectors dominated Guangzhou's Grade A office leasing demand. The leasing transactions were mainly committed by domestic companies in this quarter, most of which had sufficient budgets. Although a number of prime office properties in Pearl River New City are expected to be launched in 2012, the active leasing demand will continued to underpin the market performance. Average rental in 4Q 2011 rose by 6% QoQ to RMB158.8 per sq m per month and the upward trend is expected to continue in 2012. · As the high-end office space launched for sale in 2011 has been gradually absorbed by investors and owner-occupiers, the stock available for sale in the market became limited, which in turn pushed up the average sales price by 4.9% QoQ to RMB30,482 per sq m.
Capital Values

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES
180.00 160.00 140.00 120.00 Rentals 100.00 80.00 60.00 40.00 20.00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 0.00 36,000 32,000 28,000 24,000 20,000 16,000 12,000 8,000 4,000 0

mAjor trANsActioNs BuilDiNG Concord Center G.T.Land Plaza G.T.Land Plaza Leatop Plaza Taikoo.Hui R&F Center leAse (l) / sAle (s) L L L L L L teNANt / PurcHAser Bohai Bank IBM Wanlian Securities Johnson Controls, Inc Toyota Tsusho BP Global AreA (sq ft) 43,100 38,800 38,800 32,300 29,900 26,900

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1.20 20.0%

shanghai
· One new project was launched in Shanghai's Grade A office market in 4Q 2011, adding 60,000 sq m of new supply. · The strong demand for Grade A office space has outpaced the market supply, driving average rent during the quarter to RMB8.2 sq m per day, up 2.5% QoQ. · Besides the rising rents, en-bloc property transactions were extremely active in 4Q 2011, with capital values continuing to increase at a rapid pace. Institutional investors purchased several projects in Shanghai. · Looking forward, the growing demand from new business set-up, expansion and relocation of multinational corporations, financial institutions and other professional firms will continue to underpin the Grade A office market.
mAjor trANsActioNs BuilDiNG
Capital Values

0.90 Million sq m

15.0% Vacancy Rate

0.60

10.0%

0.30

5.0%

0.00

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

0.0%

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES
18.00 15.00 12.00 Rentals 9.00 6.00 3.00 0.00 72,000 60,000 48,000 36,000 24,000 12,000 0

leAse (l) / sAle (s) L L L L L S

teNANt / PurcHAser CEVA HEINZ BOSE Nutricia SSOE China Co., Ltd OCBC Bank

AreA (sq ft) 59,200 43,100 37,700 14,100 11,700 247,600

New Richport Cloud Nine III Jingan Kerry Centre Hongkong New World Tower Yongda International Shanghai International Group Square

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F
Rentals (RMB / sq m / Day) Capital Values (RMB / sq m)

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asia pacific office market overview | 4Q 2011

H o N G ko N G
HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE
4.50 4.00 3.50 3.00 Million sq ft 2.50 2.00 1.50 1.00 0.50 0.00 2008 2009
Supply

hong kong
9.0% 8.0% 7.0% Vacancy Rate 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

· The strong headwinds from the austere external environment and the ensuing global stock market volatility weighed on Hong Kong's Grade A office leasing market in 4Q 2011. As at November 2011, the average Grade A office rent edged down 0.4% quarteron-quarter (QoQ) to HK$67.62 per sq ft per month. · A weakening demand from the banking and financial sector amid a larger downside risk in the Western economies had been reflected in the rental decline in Central. Average rents in Central fell 1.7% QoQ to HK$109.90 per sq ft per month. · The number of newcomers including new set ups of private equities and hedge funds, showed no signs of abating during 4Q 2011. Most of these newcomers are having floor area requirements on the order of 5,000 sq ft or less. · Looking ahead, the office market is predicted to head towards a cyclical downturn considering the continuous deterioration of business conditions, cautious business expansion plans and slowing hiring expectations. The overall Grade A office rents are expected to decline 8% over the next 12 months.

2010
Take-up

2011

2012 F
Vacancy Rate

0.0%

HONG KONG OFFICE CAPITAL AND RENTAL VALUES
150.00 125.00 100.00 Rentals 75.00 50.00 25.00 0.00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 30,000 25,000 20,000 15,000 10,000 5,000 0

Capital Values

mAjor trANsActioNs BuilDiNG ICBC Tower, Citibank Plaza United Centre Manhattan Place Metropolis Tower 9 Queen's Road Central 55 King Yip Street 49 King Yip Street leAse (l) / sAle (s) L L L L S S S teNANt / PurcHAser Simpson Thacher & Bartlett The Bank of Nova Scotia Lotus International Canon Hanly Investments Arts Optical Kin Sang Chemical AreA (sq ft) 30,000 20,500 10,700 46,200 13,700 12,700 75,700

Rentals (HK$ / sq ft / Month)

Capital Values (HK$ / sq ft)

tA i wA N
TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
35,000 30,000 25,000 20,000 Ping 15,000 10,000 5,000 0 -5,000 2008 2009
Supply

taipei
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

· In 4Q 2011, the net take up of Grade A office reached a high of 5,635 ping and vacancy rate dropped by 1.05 percentage points QoQ to 11.30% due to the lack of new supply. · Hsin-Yi district outperformed the others in terms of net take up in 4Q 2011. Owing to the net take up of 3,606 ping, vacancy rate dropped by 1.42 percentage points to 13.10%. Major transactions included new leasing deals in Taipei 101 Tower, President International Tower, Shin Kong Xin Yi Financial Building and Exchange Square One. · Thanks to Chunghwa Telecom Co., Ltd taking 1,586 ping in CHT Building (Front), the vacancy rate of Tun-S district dropped by 2.09 percentage points QoQ to 11.12%. · The overall effective rental of Grade A office decreased slightly by 0.53% QoQ to NT$2,450 per ping per month in 4Q 2011. .
mAjor trANsActioNs BuilDiNG CHT Building (Front) Taipei Financial Center Shin Kong Xin Yi Financial Building President International Tower Hung Tai Financial Center Exchange Square One leAse (l) / sAle (s) L L L L L L teNANt / PurcHAser Chunghwa Telecom Co., Ltd. Fuji Xerox, Ltd. British American Tobacco Integrated Device Technology Deloitte & Touche Jonson & Johnson AreA (sq ft) 56,400 41,600 19,500 11,900 10,700 7,800

2010
Take-up

2011

2012 F
Vacancy Rate

-5.0%

TAIPEI OFFICE CAPITAL AND RENTAL VALUES
3,000 2,500 2,000 Rentals 1,500 1,000 500 0 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

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1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

Rentals (NT$ / Ping / Month)

Capital Values (NT$ / Ping)

Capital Values

asia pacific office market overview | 4Q 2011

s o u t H ko r e A
SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE
250,000 15.0% 200,000 12.0% Vacancy Rate

seoul
· In 4Q 2011, average rent remained stable at 0.9% QoQ growth to KRW77,775 per pyeong per month. Owing to the massive supply from 101 Pine Avenue in CBD and IFC-A in YBD, vacancy rate increased to 7.88%, up 0.62 percentage point QoQ. Net take-up in the existing major office buildings also remained stable during the quarter at 45,618 pyeong. · Under favourable promotional strategies such as rent free / fit-out period, effective rent was on downward momentum, and the spread between market and effective rents was widened. · New prime office buildings with a total GFA of 482,460 sq m are expected to come on the stream in 2012. Junghak District and Gwanghwamun State Tower will be completed to provide more than 83,000 sq m and 37,000 sq m office space, respectively, in CBD. As scheduled, two IFC buildings with approximately 240,000 sq m are also ready to be launched in Yeouido market. Owing to the massive new supply coming on line in 2012, vacancy rate is expected to increase sharply.
mAjor trANsActioNs BuilDiNG Twin Tree Building GT Tower IFC Union still IFC Euljiro Mirae Asset Tower KCA Yeomgok-dong KERIS Building leAse (l) / sAle (s) L L L L L S S S teNANt / PurcHAser Daelim Industry Kolon F&C Sony Korea Samsung Life Insurance Daiwa Securities Mirae Asset Undisclosed Undisclosed AreA (sq ft) 531,000 224,200 65,100 53,400 48,400 708,000 324,600 164,700

Pyung

150,000

9.0%

100,000

6.0%

50,000

3.0%

0

0.0% 2008 2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

SEOUL OFFICE CAPITAL AND RENTAL VALUES
250,000 200,000 150,000 100,000 50,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 25,000,000 20,000,000 15,000,000 Capital Values

Rentals

10,000,000 5,000,000 0

Rentals (Won / Pyung / Month)

Capital Values (Won / Pyung)

jA PA N
TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE
200,000 180,000 160,000 140,000 120,000 Tsubo 100,000 80,000 60,000 40,000 20,000 0 2008 2009
Supply

tokyo
· Demand moderating due to global economic concerns
10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Vacancy Rate

· Trading up to newer properties common · Rents weak and mild downward pressure continues · Vacancy no longer improving as mildly increasing uptake pauses · Vacancy continuing to stratify with newer, larger, more central buildings outperforming · Significant new supply in the pipeline for 2012

2010
Take-up

2011

2012 F
Vacancy Rate

TOKYO OFFICE CAPITAL AND RENTAL VALUES
60,000 50,000 40,000 Rentals 30,000 20,000 10,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0

mAjor trANsActioNs BuilDiNG Palace Building
Capital Values

leAse (l) / sAle (s) L L L L L

teNANt / PurcHAser Mitsubishi Chemical Holdings Baker & McKenzie OPT Arco Tower Annex Kamiyacho MT Building

AreA (sq ft) 301,800 66,400 78,100 149,100 149,100

Toranomon Roppongi Project Bancho Tokyu Amazon Chartis Business Partners

Rentals (Yen / Tsubo / Month)

Capital Values (Yen / Tsubo)

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asia pacific office market overview | 4Q 2011

i N D o N es i A
JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
500,000 400,000 300,000 sq m 200,000 100,000 0 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Vacancy Rate

jakarta
· Average rental jumped 10% QoQ in 4Q 2011. As a result of tougher competition to win the quality office premises in good locations, average rental grew by 25% YoY. · The overall supply in 2011 was less than our original forecast due to the delay in completion of a building in the Sudirman CBD area. Consequently, supply in 2012 will be greater than the previous projection. · In 2012, over 425,000 sq m of office space is expected to completed, about 60% of which has been pre-leased. Furthermore, as Fitch Ratings upgraded Indonesia's sovereign debt rating to investment grade, the market is quite confident that the remaining space will be sold and rental will accelerate in 2012.
mAjor trANsActioNs BuilDiNG Landmark WTC II Tempo Scan Tower Wisma Pondok Indah III The Plaza Citywalk Sudirman Menara Citicon Patra Jasa leAse (l) / sAle (s) L L L L L L L L teNANt / PurcHAser Adira Total E&P Satya Mandiri Persada (Adaro Energy) Indo tambang Acer Indonesia Raffles Design Institute PT. Singa Langit Jaya Asia Outsourcing Services AreA (sq ft) 118,400 107,600 81,800 35,500 18,900 14,200 13,300 12,900

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

JAKARTA OFFICE CAPITAL AND RENTAL VALUES
210,000 180,000 150,000 Rentals 120,000 90,000 60,000 30,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 Capital Values

10,000,000 5,000,000 0

Rentals (Rupiah / sq m / Month)

Capital Values (Rupiah / sq m)

m A l Ays i A
KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE
5.00 4.00 3.00 2.00 1.00 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

kual a lumpur
· Average prime rental and capital values improved during 4Q 2011 at RM6.5 per sq ft per month and RM950 per sq ft, respectively, as Golden Triangle area continued to be the preferred location for most multinational companies · Three prime office buildings, Tower 3, KLCC, Menara Prestij and Menara Worldwide, were completed in 4Q 2011, contributing approximately 1.63 million sq ft of office space to the current supply. · The vacancy rate is expected to climb due to new completions coming on stream in 2012. · The present global economic slowdown would affect business decisions on real estate transactions; nevertheless, attractive tenancy offerings and active marketing efforts will greatly help maintaining, if not improving, occupancy rate.

Million sq ft

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES
12.00 10.00 8.00 Rentals 6.00 4.00 2.00 0.00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1,200 1,000 800 600 400 200 0

mAjor trANsActioNs
Capital Values

BuilDiNG KL Sentral Park** Cap Square Tower Bangsar South, The Horizon** Menara Multi Purpose Pavilion Tower
** Building located in Kuala Lumpur fringe area

leAse (l) / sAle (s) L L L S S

teNANt / PurcHAser SME Corp Citibank Touch n' Go Malaysian Chinese Association (MCA) Pavilion REIT

AreA (sq ft) 209,000 117,000 67,400 541,400 167,700

Rentals (Ringgit / sq ft / Month)

Capital Values (Ringgit / sq ft)

Data sourced from C H Williams Talhar & Wong Sdn Bhd

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asia pacific office market overview | 4Q 2011

PA k i stA N
KARACHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1.60 1.40 1.20 Million sq ft 1.00 0.80 0.60 0.40 0.20 0.00 2008 2009
Supply

karachi
80.0% 70.0% 60.0% Vacancy Rate 50.0% 40.0% 30.0% 20.0% 10.0%

· Karachi office market is still oppressed by the pressure of slow economic growth and politcal turmoil in the country. · Office sale and lease market has been stagnant. Only one major lease transaction was observed in Dolmen City Harbourfront building where P&G Pakistan rented two office floors with a total area of 30,000 sq.ft · However, due to recent relocation of US Embassy in Karachi, many multinational companies located on M.T Khan Road are contemplating to move due to traffic congestion and security issues. · Decent premises with adequate parking and low rent are the key preferential factors for companies planning to relocate. · With slow take-up rates of the new office space, high competition has been dragging the capital values down.
Capital Values

2010
Take-up

2011

2012 F
Vacancy Rate

0.0%

KARACHI OFFICE CAPITAL AND RENTAL VALUES
180 160 140 120 Rentals 100 80 60 40 20 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

mAjor trANsActioNs BuilDiNG Harbour Front Harbour Front Al Tijarah Centre leAse (l) / sAle (s) L L L teNANt / PurcHAser Procter & Gamble Mitsubishi Corporation Eli Lilly Pakistan AreA (sq ft) 30,000 7,500 8,000

Rentals (Rupee/ sq ft / Year)

Capital Values (Rupee / sq ft)

P H i l i PP i N es
MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 -20,000 -40,000
Supply Take-up Vacancy Rate

manil a
12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

· With the completion of 57,000 sq m Zuellig Tower in 1Q 2012, prime office stock in Makati CBD is expected to increase to 865,591 sq m of net usable space. This will be the first new office building in the CBD in more than a decade. · Due to the emergence of the new central business districts, Makati's share in terms of office space will fall to 45%. Vacancy rate went up this quarter to 4.7% due to the relocation of some business from traditional offices to Bonfiacio Global City ­ a major source of office supply in the next two to three years. Consequently, net take up fell 20% YoY to 37,618 sq m comparing to that a year ago. Nevertheless, the vacancy rate is expected to remain at 4% level owing to the limited supply in Makati. · Both rental rates and capital values are expected to grow 6-8% over the next 12 months.
Vacancy Rate

2008

2009

2010

2011

2012 F

-2.0% -4.0%

MANILA OFFICE CAPITAL AND RENTAL VALUES mAjor trANsActioNs
1,200 1,000 800 Rentals 600 400 200 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 120,000 100,000 80,000 60,000 40,000 20,000 0

BuilDiNG
Capital Values

leAse (l) / sAle (s) L L L

teNANt / PurcHAser Coastal Training Dupont Far East Inc. Microsourcing

AreA (sq ft) 164,700 123,200 111,000

I Square I Square MDC 100

Rentals (Peso / sq m / Month)

Capital Values (Peso / sq m)

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P. 9

asia pacific office market overview | 4Q 2011

siNGAPore
SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2.50 2.00 1.50 1.00 0.50 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

singapore
· Singapore's office leasing market buckled under the stress of uncertainties and volatility arising from the debt crisis in the Eurozone. · For the first time since the market bottomed in 4Q 2009, the average monthly gross rents for CBD Grade A office space fell 1.6% QoQ in 4Q 2011 to SG$8.93 per sq ft per month. This brought the whole year's gain to 13.0%, a sharp moderation from 2010's 24.5% growth rate. · The dip in rents was in tandem with the fall in occupancy rate from previous quarter's 92.6% to 91.6% in 4Q 2011, due largely to the new completion of some 250,000 sq ft of space in the New Downtown micro-market. However, the increase in office stock was not met with corresponding new occupier demand as many firms turned cautious towards expansion. · Despite a gloomier outlook, Singapore's strong economic fundamentals could help the country and the office market ride through the current uncertainties. Hence, though Singapore's office rents will likely soften from current levels, the magnitude of decline is expected to be more tamed as compared to the previous crisis. Office rents are forecast to decline by around 10-15% in 2012 as against a 20-50% correction seen in the first year of the global financial crisis-led decline in 2009.
mAjor trANsActioNs BuilDiNG 13-storey office building at Upper Pickering Street Ocean Financial Centre (87.5% stake) leAse (l) / sAle (s) L S teNANt / PurcHAser Attorney-General's Chambers K-REIT Asia AreA (sq ft) 87,000 885,000

Million sq ft

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES
30.00 25.00 20.00 Rentals 15.00 10.00 5.00 0.00 3,000 2,500 2,000 1,500 1,000 500 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

Rentals (Singapore$/ sq ft / Month)

Capital Values (Singapore$ / sq ft)

tHAilAND
BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE
120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

Capital Values

Bangkok
· Transactional activity in office market remained modest due to impact of floods in Bangkok. · Although the flood has caused limited damage to the city's offices, some premises were forced to close due to restricted access. · A number of offices moved to back up locations and it could spur the demand for offices in secondary locations. · Some companies may consider relocating offices to other cities such as Pattaya.

2008

2009
Supply

2010
Take-up

2011

2012 F
Vacancy Rate

Vacancy Rate

BANGKOK OFFICE CAPITAL AND RENTAL VALUES
1,400 1,200 1,000 Rentals 800 600 400 200 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 140,000 120,000 100,000 Capital Values 80,000 60,000 40,000 20,000 0

mAjor trANsActioNs BuilDiNG Sathorn Square Sathorn Square Park Ventures Pacific Place leAse (l) / sAle (s) L L L L teNANt / PurcHAser Easy Buy OSK Bank Club 21 AIG AreA (sq ft) 21,500 21,500 12,900 16,100

Rentals (Baht/ sq m / Month)

Capital Values (Baht / sq m)

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asia pacific office market overview | 4Q 2011

vietNAm
HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 2008 -20,000 -40,000
Supply Take-up Vacancy Rate

hanoi
60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

· Hanoi's prime office market performed well in 2011 with about 26,000 sq m net take up and an average rent increase of 0.89%. · The Grade A office buildings situated in the CBD posted occupancy rates of over 90%. These buildings usually have a high occupancy thanks to good location and limited supply in the CBD. · Massive new supply is expected to come from Keangnam Hanoi Landmark Tower located in non-CBD area. · The Grade A office market will experience strong competition due to abundant supply.

2009

2010

2011

2012 F

-10.0% -20.0%

HANOI OFFICE RENTAL VALUES
60 50 40 Rentals 30 20 10 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

mAjor trANsActioNs BuilDiNG Keangnam Landmark Tower Keangnam Landmark Tower Keangnam Landmark Tower Keangnam Landmark Tower leAse (l) / sAle (s) L L L L teNANt / PurcHAser Ericsson Pricewaterhouse Coopers KPMG LG AreA (sq ft) 21,500 30,600 32,300 10,800

Rentals (US/ sq m / Month)

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
180,000 150,000 120,000 sq m 90,000 60,000 30,000 0 -30,000
Supply Take-up Vacancy Rate

ho chi minh cit y
30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0%

· The office leasing market will remain competitive throughout 2012; developers will need to focus on improving the quality of the new office buildings and offering incentives to attract new tenants.
Vacancy Rate

· The new buildings in the suburban office market are still attracting tenants to pre-lease due to their competitive rental rates. · The rental level of the new office buildings is lower than that of the existing office spaces. Additionally, landlords are offering better leasing terms, such as longer rent free period and subsidies to fit out cost. Therefore the market witnessed some tenants being penalised for early termination of their leases and relocating to the new office buildings.

2008

2009

2010

2011

2012 F

HO CHI MINH CITY OFFICE RENTAL VALUES
70 60 50 Rentals 40 30 20 10 0

mAjor trANsActioNs BuilDiNG Bitexco Financial Tower Bitexco Financial Tower Ree Tower Ree Tower Ree Tower leAse (l) / sAle (s) L L L L L L teNANt / PurcHAser FV Hospital Huy Hong JSC Vina Commodities New Balance Huy Hoang Education Asian Tiger AreA (sq ft) 8,600 1,200 4,800 1,600 1,600 1,600

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

Ree Tower

Rentals (US/ sq m / Month)

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P. 11

asia pacific office market overview | 4Q 2011

iNDiA
BENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
12.00 10.00 8.00 Million sq ft 6.00 4.00 2.00 0.00 2008 2009
Supply

Bengaluru (Bangalore)
24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

· The Bengaluru Grade A office market continued to be active with a couple of big ticket transactions being closed in 4Q 2011 in PBD. · Thanks to the continual demand from IT/ITeS sector and high absorption, average rents for Grade A properties remained stable during the quarter despite the global economic uncertainties and altered projections for domestic economic growth rate. · A number of Grade A office projects were launched in PBD area such as Outer Ring Road, Sarjapur Road and Bannerghatta Road during the quarter.

2010
Take-up

2011

2012 F
Vacancy Rate

Vacancy Rate

BENGALURU OFFICE CAPITAL AND RENTAL VALUES
80 70 60 50 Rentals 40 30 20 10 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

mAjor trANsActioNs BuilDiNG Pritech - SEZ Prestige Featherlite The Millenia Netra Tech Park Essae Summit Bagamane Tech Park Silvary Whitefield Palm leAse (l) / sAle (s) L L L L L L L L teNANt / PurcHAser Pega System Novo Nordisk IMS Goodrich Aerospace Flipkart Sandisk Paxterra Mercedez AreA (sq ft) 50,000 18,500 25,000 80,000 40,000 44,000 8,000 201,000

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
16.00 14.00 12.00 Million sq ft 10.00 8.00 6.00 4.00 2.00 0.00 2008 2009
Supply

chennai
32.0% 28.0% 24.0% Vacancy Rate 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

· In 4Q 2011, absorption remained moderate and only a few large floor-plate leases were concluded, demand was primarily driven by IT/ITeS, automobile and service sector. · A number of new buildings were completed during the quarter, collectively adding approximately 0.5 million sq ft of office space to the market. · Average rents for all micro-markets remained largely unchanged. However, minor pressure on rentals was observed in IT corridor primarily due to large supply.
mAjor trANsActioNs BuilDiNG leAse (l) / sAle (s) L L L L L L L S teNANt / PurcHAser Foster & Wheeler Apolo Hospitals PWC Vascon ABB ABB Fidelity Investment Services Kalpathy Group AreA (sq ft) 100,000 20,000 20,000 11,000 20,000 48,000 75,000 1,80,000

2010
Take-up

2011 F

2012 F

Vacancy Rate

CHENNAI OFFICE CAPITAL AND RENTAL VALUES
80 70 60 50 Rentals 40 30 20 10 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

Ascendas Prestige Palladium Prestige Palladium Prestige Palladium Prestige Palladium Jayanth Tech Park HDFC Ran Tech Park

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

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asia pacific office market overview | 4Q 2011

iNDiA
MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
18.00 15.00 12.00 Million sq ft 9.00 6.00 3.00 0.00 2008 2009
Supply

mumBai
·
24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

The overall demand for commercial properties was restrained during 4Q 2011, occupiers and investors both remained cautious in terms of decision making due to prevailing economic uncertainties. Impacted by investors' sentiment and increasing construction cost due to high borrowing cost and inflation, construction activities slowed down. No new project was launched during the quarter. Average rentals plunged by approximately 5% QoQ, barring a few locations such as BKC, Kalina and Worli on account of the limited supply.

Vacancy Rate

·

2010
Take-up

2011

2012 F
Vacancy Rate

·

MUMBAI OFFICE CAPITAL AND RENTAL VALUES
350 300 250 Rentals 200 150 100 50 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 70,000 60,000 50,000 Capital Values 40,000 30,000 20,000 10,000 0

mAjor trANsActioNs BuilDiNG India bulls Financial Center One India Bulls Mighty Majestic Boomerang Godrej IT Park leAse (l) / sAle (s) L L L L L teNANt / PurcHAser Franklin Templeton Vodafone L'Oreal India E Clinical Works Dow Chemicals AreA (sq ft) 40,000 50,000 80,000 75,000 55,000

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
12.00 10.00 8.00 Million sq ft 6.00 4.00 2.00 0.00 2008 2009
Supply

new delhi
24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

· Amidst global and domestic economic uncertainties, moderate demand was observed in all micro-markets during 4Q 2011. · Average rental values for Grade A office space marginally depreciated by approximately 0.5% QoQ. The decline was primarily contributed by PBD micro-market such as NOIDA and Gurgaon; rental values of CBD and PBD, on the other hand, remained stable. · A number of Grade A office projects were launched in PBD. Most of these projects / phases of the projects are expected to be completed by the end of 2013 or 2014, collectively contributing approximately 3 million sq ft of Grade A office space to the market.
mAjor trANsActioNs BuilDiNG DCM Building
Capital Values

2010
Take-up

2011

2012 F
Vacancy Rate

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES
350 300 250 Rentals 200 150 100 50 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Vacancy Rate

leAse (l) / sAle (s) L L L L L L L L L L L L L L

teNANt / PurcHAser L&T HRD Birla Sun Life Wipro Red Hat John Keel Panasonic Mckinsey Aircel William E Connor Wipro KPMG Galaxy Vcustomer

AreA (sq ft) 19,000 24,000 10,000 60,000 8,000 25,000 13,000 180,000 75,000 39,000 90,000 90,000 16,000 60,000

Vijaya Building Aggarwal Tower Mohan Cooperative Copia DLF Building 14B ABW Tower Vatika Business park Spazeedge Vatika Business park A-3 Advant It Park Stellar Advant It Park

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

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P. 13

asia pacific office market overview | 4Q 2011

Aust r A l i A
ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
90,000 80,000 70,000 60,000 sq m 50,000 40,000 30,000 20,000 10,000 0 2008 2009
Supply

adel aide
9.0% 8.0% 7.0% Vacancy Rate 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

· Positive white collar employment growth, limited new supply and steady tenant demand are expected to partially offset the high volume of backfill supply due, minimising the overall impact to vacancy levels in late 2012 into 2013. · After holding stable during the last quarter, overall gross face rents are forecast to increase by at least 3.5% during the next 6-12 months. · There are signs of growth within the development market with site works and construction of a number of new buildings well underway, including one new speculative project to be completed in 2013. · Although yields remained stable over the past quarter, further yield compression is expected during 2012; there is also demand for secondary grade office assets, with investors seeking value-add opportunities.

2010
Take-up

2011

2012 F
Vacancy Rate

0.0%

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES
700 600 500 Rentals 400 300 200 100 0 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F Capital Values

mAjor trANsActioNs BuilDiNG 400 King William Street 400 King William Street 75 Hindmarsh Square 89 Pirie Street leAse (l) / sAle (s) L L L L teNANt / PurcHAser WorkCover Hunt & Hunt Lawyers Quadro Services Pty Ltd O & G Solutions AreA (sq ft) 53,820 21,900 4,300 9,500

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
180,000 160,000 140,000 120,000 sq m 100,000 80,000 60,000 40,000 20,000 0 2008 2009
Supply

BrisBane
18.0% 16.0% 14.0% Vacancy Rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

· Supply conditions in the Brisbane CBD continued to tighten, as reflected by falling vacancy and a significant volume of both leasing and sales transactions. This tightening has led to a marginal rise in prime and secondary rental values and falling incentives during 2011. · The leasing market is expected to strengthen during 2012, but vacancy is likely to increase temporarily during the first half of 2012 due to higher level of development completions and a substantial volume of backfill space associated with tenant pre-commitments. · The investor market is responding positively to tightening vacancy. Yields, however, are likely to remain largely unchanged until there is potential for considerable rental growth, which in our view is unlikely prior to 2013. · On balance we expect the strength of the domestic economy ­ underpinned by our buoyant energy and resources sectors ­ to offset the negative effects of renewed global economic uncertainty.
mAjor trANsActioNs BuilDiNG 111 Eagle Street 12 Creek Street 288 Edward Street 100 Edward Street 316 Adelaide Street 126 Margaret Street 410 Queen Street 310 Ann Street leAse (l) / sAle (s) L L L S S S S S teNANt / PurcHAser ANZ BDO Gallagher Bassett Canegrowers MRL Capital Investec Riffici Group Armada Funds Management AreA (sq ft) 76,800 64,700 22,200 78,200 79,500 61,200 62,800 175,900

2010
Take-up

2011

2012 F
Vacancy Rate

BRISBANE OFFICE CAPITAL AND RENTAL VALUES
1,200 1,000 800 Rentals 600 400 200 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 12,000 10,000 8,000 6,000 4,000 2,000 0

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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Capital Values

asia pacific office market overview | 4Q 2011

Aust r A l i A
CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
80,000 70,000 60,000 50,000 sq m 40,000 30,000 20,000 10,000 0 2008 2009
Supply

canBer ra
16.0% 14.0% 12.0% Vacancy Rate 10.0% 8.0% 6.0% 4.0% 2.0%

· Good leasing activity and a lack of new supply during 2011 reduced the amount of available Grade A office premises in the CBD and caused vacancy levels to fall. · The pending sale of a 50% share in the Caroline Chisholm Centre will reflect a yield of about 8.75%, which reflects a further softening of yields for non-CBD assets. · The bureaucratic area of Barton / Forrest has over 55,000 square metres of office accommodation under construction. Only 60% of the stock has lease pre-commitment with the remaining area required to compete for government and private tenants from the CBD and other commercial centres. · Over the next three years, Grade A stock in CBD is anticipated to grow moderately by 2% - 4% per annum, while secondary stock is expected to have more modest growth of 0% - 2% per annum. · Prime A grade yields were steady during 2011 as International and large Australian institutions Maintained their interest in Canberra's quality assets that offer excellent cash flow security through long term government leases.
Capital Values

2010
Take-up

2011

2012 F
Vacancy Rate

0.0%

CANBERRA OFFICE CAPITAL AND RENTAL VALUES
800 700 600 500 Rentals 400 300 200 100 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

· Secondary asset yields experienced further softening during 2011 as reflected by the sales of 17 Moore Street and the Lionel Murphy Building.
mAjor trANsActioNs BuilDiNG Caroline Chislholm Centre Lionel Murphy Building 121 Marcus Clarke Street Childers Square leAse (l) / sAle (s) S S L L teNANt / PurcHAser Private Syndicator Private Investor Comcare BAE AreA (sq ft) 433,200 54,200 95,000 36,500

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
160,000 140,000 120,000 100,000 sq m 80,000 60,000 40,000 20,000 0 2008 2009
Supply

melBourne
16.0% 14.0% 12.0% Vacancy Rate 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

· The Melbourne CBD office market remained active with high levels of tenant enquiry and continual absorption of prime office space. · Although cautious, tenants are committing to leases, owning to the increased incentives and the lack of quality, contiguous options, causing net effective rents remained stable. · Strength of the investment sales market continued with a total of approximately AU$415 million transacted in the three month period to December 2011, accounting for 40% of total investment sales in 2011.

2010
Take-up

2011

2012 F
Vacancy Rate

mAjor trANsActioNs MELBOURNE OFFICE CAPITAL AND RENTAL VALUES
700 600 500 Rentals 400 300 200 100 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Capital Values

BuilDiNG 850 Collins Street 452 Flinders Street 661 Bourke Street 525 Flinders Street 150 Lonsdale Street 31 Queen Street

leAse (l) / sAle (s) S S S L L L

teNANt / PurcHAser CIMB Trust Capital Australian Office Fund No.1 Dexus Wholesale Property Fund Real I.S. Tru Energy Entity Solutions Defence Force Credit Union

AreA (sq ft) 185,300 412,700 204,800 48,400 47,200 43,100

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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P. 15

asia pacific office market overview | 4Q 2011

Aust r A l i A
PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE
180,000 160,000 140,000 120,000 100,000 sq m 80,000 60,000 40,000 20,000 0 -20,000 -40,000
Supply Take-up Vacancy Rate

perth
18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% Vacancy Rate

· Office rents in Perth grew on continuing high demand and net absorption which led to a tighter vacancy. · The CBD witnessed the third highest net absorption since 1990 over the past 12 months. · The vacancy rate retracted to 3.3% at the end of 2011, driven by the strong net absorption over the past six months. However, availabilities are estimated to be less than the official vacancy figure. · There was a strong rebound in CBD transactions during 2011, with an estimated total of AU$941.4 million major transactions (>AU$30m), compared to AU$69 million in 2010.

2008

2009

2010

2011

2012 F

PERTH OFFICE CAPITAL AND RENTAL VALUES
1,000 900 800 700 Rentals 600 500 400 300 200 100 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 10,000 9,000 8,000 7,000 Capital Values 6,000 5,000 4,000 3,000 2,000 1,000

mAjor trANsActioNs BuilDiNG QV1, 250 St Georges Terrace, Perth 251 St Georges Terrace, Perth 251 Adelaide Terrace, Perth Emirates House, 181 St Georges Terrace, Perth Allendale Square, 77 St Georges Terrace, Perth Emirates House, 181 St Georges Terrace, Perth leAse (l) / sAle (s) S S L L L L teNANt / PurcHAser Eureka Capital Primewest Perilya Ltd Westlink Logistics Sinopec DOS Subsea AreA (sq ft) 687,700 105,000 4,500 5,700 4,600 5,800

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
200,000 150,000 100,000 sq m 50,000 0 2008 -50,000 -100,000
Supply Take-up Vacancy Rate

sydney
· Vacancy rates rose on the back of increased new supply and steady tenant demand.
12.0% 9.0% Vacancy Rate 6.0% 3.0% 0.0% -3.0% -6.0%

· Increased tenant demand for high quality space led to rental growth for premium grade assets. · Investors continued to look for high quality assets, leading premium grade office yields to tighten by as much as 25 basis points over Q4 2011. · Foreign investors continued to dominate sales transactions within Sydney's CBD office market, making up 61% of the total sales consideration during 2011. · No new developments are expected to be completed during 2012, ensuring that vacancy rates will continue to tighten as tenant demand remains stable.

2009

2010

2011

2012 F

SYDNEY OFFICE CAPITAL AND RENTAL VALUES
1,600 1,400 1,200 1,000 Rentals 800 600 400 200 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 0 16,000 14,000 12,000 Capital Values 10,000 8,000 6,000 4,000 2,000 0

mAjor trANsActioNs BuilDiNG 50 & 54-58 Park Street 140 Sussex Street 52 Martin Place 161 Castlereagh Street 20 Bridge Street 464 Kent Street 5 Elizabeth Street 123 Pitt Street 44 Market Street leAse (l) / sAle (s) S S S S S L L L L teNANt / PurcHAser Kyko RREEF Real Estate QIC Global Real Estate ISPT RREEF Real Estate The Australian Red Cross INS Career Management Schroders BECA AreA (sq ft) 227,700 126,500 420,900 586,000 213,082 49,600 54,300 17,800 13,500

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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New zeAlAND
AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE
40,000 35,000 30,000 25,000 sq m 20,000 15,000 10,000 5,000 0 2008 2009
Supply

auckl and
16.0% 14.0% 12.0% Vacancy Rate 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

· According to the Investment Property Databank / Property Council of New Zealand (IPD/PCNZ) September quarter data update, the overall commercial property market recorded a total return of 6.7% for the year ending September 2011. Office investment performance improved significantly to 6.5% as compared to 3.1% in September 2010. Auckland CBD office recorded a total return of 7.4%. · Overall prime office vacancy sat at 11.9% in Auckland CBD in June 2011, up from 9.9% recorded six months ago. Vacancy is expected to drop over the next 12 months to about 9.7% before heading up to peak at around 12.4% in 2013. · Employment growth slowed in recent quarters and is expected to continue in next year. Net prime rents were at NZ$307 per sq m in December 2011 and are expected to drop slightly over the next six months to NZ$305 per sq m.

2010
Take-up

2011

2012 F
Vacancy Rate

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES
600 500 400 Rentals 300 200 100 0 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

· Investment activity remained modest. Yields were stable in December 2011 at around 8.7% for prime and 10.1% for secondary locations.
Capital Values

mAjor trANsActioNs BuilDiNG 132 Vincent Street Symonds Court 1 Nelson Street leAse (l) / sAle (s) S S L teNANt / PurcHAser DNZ Property Fund Private investor Noel Leeming Group AreA (sq ft) 60,600 30,100 18,200

Rentals (New Zealand $/ sq m / Year)

Capital Values (New Zealand $ / sq m)

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE
60,000 50,000 40,000 sq m 30,000 20,000 10,000 0 2008 2009
Supply

wellington
6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

· Wellington CBD office vacancy continued to increase but prime office vacancy still sat at a low level of 2.7% in June 2011. Vacancy is expected to rise further over the next year. · Prime investment yields remained stable in 4Q 2011 at 8.3%. Yields are expected to remain at the current level over the next 12 months. There was one noticeable sale transaction occurred during the review period. Two heritage office buildings in the Chews Lane precinct on Victoria Street in Wellington CBD were sold by Heritage Property Group to a family trust for circa NZ$10 million, representing an 8.9% yield. · Prime net face rent was at NZ$343 per sq m in December 2011. We expect to see a noticeable improvement in prime rents at about 2.5% growth over the next 12 months.
Vacancy Rate

2010
Take-up

2011

2012 F
Vacancy Rate

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES
600 500 400 Rentals 300 200 100 0 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F

mAjor trANsActioNs BuilDiNG
Capital Values

leAse (l) / sAle (s) S S L L

teNANt / PurcHAser Family Trust Balanced Investments TelstraClear Brookers

AreA (sq ft) undisclosed 86,300 70,000 15,900

56 & 58-60 Victoria Street Former William Clayton Building Lambton House NEC House

Rentals (New Zealand $/ sq m / Year)

Capital Values (New Zealand $ / sq m)

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asia pacific office market overview | 4Q 2011 Pr i m e o ff il i A uPP ly Aust r A c e s

FLOOR AREA (MILLION SQ FT) 0.00 Guangzhou Bengaluru Mumbai Seoul Tokyo New Delhi Shanghai Chennai Kuala Lumpur Jakarta Beijing Chengdu Singapore Sydney Hong Kong Perth Hanoi Brisbane Ho Chi Minh City Melbourne Bangkok Karachi Manila Taipei Wellington Auckland Canberra 2011 2012 F 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00

Note: Floor area in each of the above centre is the sum of the various key sub-markets outlined under the section of "Definitions and Terminology"

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asia pacific office market overview | 4Q 2011 Pr i m e o ff il i A e N tA l Aust r A c e r

RENTALS (US$ / SQ FT / YEAR) 0.00 Hong Kong Tokyo Singapore Sydney Perth Brisbane Beijing Hanoi Shanghai Mumbai Ho Chi Minh City New Delhi Canberra Adelaide Melbourne Guangzhou Taipei Chengdu Kuala Lumpur Wellington Bangkok Seoul Jakarta Auckland Manila Chennai Bengaluru Karachi 20.00 40.00 60.00 80.00 100.00 120.00 140.00

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"

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asia pacific office market overview | 4Q 2011 t r e N D s & fo r ec A s t s
city New supply (sq ft) 2011 2012 f take-up (sq ft) 2011 2012 f Average vacancy (%) 2011 2012 f total stock (sq ft) 2011 2012 f Average rentals (us$ / sq ft / year) 2011 2012 f

BeijiNG
CBD Zhongguancun Financial Street Lufthansa East Chang An Avenue East 2nd Ring Other areas 2,512,133 475,764 0 495,139 0 0 602,778 0 0 0 0 0 0 0 4,048,453 467,369 -365,531 1,283,681 130,265 188,304 295,361 424,980 6,189 1,572 14,822 10,602 96,638 156,722 8.8 1.0 0.1 3.0 0.9 8.0 51.0 6.6 1.0 0.1 2.8 0.8 5.0 25.0 19,323,030 8,095,529 9,700,524 7,477,089 6,307,064 3,254,379 602,778 19,323,030 8,095,529 9,700,524 7,477,089 6,307,064 3,254,379 602,778 55.50 37.70 54.33 43.16 45.29 37.09 39.25 62.84 39.83 61.40 48.49 51.02 40.13 43.57

cHeNGDu
Renmin Road CBD Financial Street Tianfu Avenue 0 0 0 0 463,224 814,235 914,932 1,076,390 410,960 38,984 6,458 0 221,306 215,859 301,389 344,445 27.4 1.7 16.0 0.0 30.8 22.1 49.0 68.0 2,948,803 2,047,401 500,801 0 3,412,027 2,861,637 1,415,733 1,076,390 25.44 24.03 27.42 N/A 27.42 27.42 26.54 N/A

GuANGzHou
Yuexiu Tianhe Haizhu 344,445 5,114,962 611,293 0 8,865,719 557,010 193,664 3,635,087 290,033 101,934 6,075,371 316,932 9.2 21.6 33.8 7.0 24.9 36.1 4,683,244 17,328,856 1,687,683 4,683,244 26,194,575 2,244,693 19.31 30.23 17.06 19.82 30.79 16.81

sHANGHAi
Huangpu Jingan Lujiazui-Pudong Zhuyuan-Pudong Changning Xuhui 0 731,945 2,317,026 627,848 645,834 671,452 0 1,717,488 2,704,258 474,774 821,544 0 319,236 1,396,692 2,981,833 740,016 875,003 538,388 6,887 1,044,163 888,825 304,211 388,521 7,594 4.3 5.6 8.6 8.6 9.1 7.8 4.2 11.8 16.7 11.6 14.8 7.6 6,887,389 7,596,536 16,798,436 3,867,761 5,496,639 4,908,500 6,887,389 9,314,024 19,502,693 4,342,535 6,318,183 4,908,500 49.08 49.13 45.48 33.59 34.81 45.07 51.89 56.51 47.84 36.80 37.38 47.19

HoNG koNG
Central Wanchai HK Island East Tsim Sha Tsui Kowloon East 228,539 0 0 0 786,693 191,250 237,344 0 0 590,668 33,948 126,942 125,590 109,621 393,648 -125,098 118,672 -29,236 -45,969 255,066 3.9 2.0 4.1 3.0 11.8 5.3 3.0 4.4 3.7 14.7 21,495,164 11,095,267 10,854,774 6,361,390 8,678,157 21,686,414 11,332,611 10,854,774 6,361,390 9,268,825 177.61 96.35 66.82 73.30 51.55 142.09 105.99 70.16 79.16 56.71

tAiPei
CBD 0 391,322 639,526 469,746 11.3 10.7 19,149,669 19,540,991 27.28 27.55

seoul
CBD KBD YBD 6,435,156 1,059,599 949,955 1,767,461 1,146,814 850,379 2,922,086 1,689,234 914,311 4,163,504 249,099 498,197 14.3 1.5 4.6 6.9 4.7 6.6 34,263,574 14,846,386 36,031,035 15,696,765 23.93 20.68 16.66 24.11 21.01 16.77 26,775,234 27,922,048

tokyo
CBD 5,218,220 6,748,551 4,010,238 #VALUE! 8.2 8.0 N/A N/A 109.56 109.12

jAkArtA
CBD Non-CBD 1,017,867 1,360,751 4,592,213 2,033,258 1,329,611 1,378,091 3,662,320 1,369,330 6.0 8.4 8.4 11.8 46,900,196 51,492,409 22.39 16.37 24.11 17.47 20,258,951 22,292,209

kuAlA lumPur
KLCA 4,102,000 2,187,000 2,145,000 1,100,000 13.0 15.3 31,650,000 33,840,000 24.62 24.62

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asia pacific office market overview | 4Q 2011 t r e N D s & fo r ec A s t s
city New supply (sq ft) 2011 2012 f take-up (sq ft) 2011 2012 f Average vacancy (%) 2011 2012 f total stock (sq ft) 2011 2012 f Average rentals (us$ / sq ft / year) 2011 2012 f

kArAcHi
CBD 200,000 440,000 50,000 100,000 55.0 40.0 14,793,429 15,231,929 1.23 1.12

mANilA
Makati Ortigas 0 0 617,342 0 286,557 170,489 629,979 67,748 4.7 4.9 4.2 3.6 9,317,135 4,961,404 9,934,477 4,961,404 17.89 14.06 19.08 15.23

siNGAPore
CBD 1,933,679 746,000 1,219,936 687,080 8.4 8.4 22,708,057 23,454,057 82.42 73.25

BANGkok
CBD 1,076,390 0 430,556 645,834 20.6 16.9 17,580,646 17,580,646 23.38 24.26

Ho cHi miNH city
CBD 643,251 775,001 49,898 176,399 20.0 25.0 2,065,054 2,840,055 42.44 33.45

HANoi
CBD Non-CBD 0 1,020,418 394,152 190,521 52,205 227,656 21,528 322,917 4.0 70.0 5.0 68.0 1,716,788 1,449,897 2,110,941 1,640,418 46.82 30.10 44.59 26.76

BeNGAluru
Overall 7,994,000 7,367,000 11,275,000 7,000,000 15.5 16 77,227,175 84,594,175 10.36 10.36

cHeNNAi
Overall 3,294,000 4,000,000 8,639,000 5,000,000 21.5 21 38,512,483 42,512,483 10.81 10.81

mumBAi
Overall 10,230,000 4,200,000 8,000,000 6,000,000 14.0 14 94,458,000 98,658,000 42.58 41.68

New DelHi
Overall 4,910,000 6,000,000 7,391,000 4,500,000 17.0 19 64,404,158 70,404,158 39.65 38.07

ADelAiDe
CBD 0 193,750 215,278 312,153 7.8 6.8 14,005,793 14,199,543 33.02 34.76

BrisBANe
CBD 414,410 1,100,071 598,473 643,681 3.3 6.4 10,254,165 11,278,888 54.43 55.11

cANBerrA
CBD 0 215,278 161,459 215,278 10.2 5.0 2,798,614 3,013,892 35.68 37.51

melBourNe
CBD 0 1,241,950 842,243 1,355,778 5.0 4.6 19,869,793 21,111,743 32.29 35.95

PertH
CBD 206,021 1,731,319 861,704 1,237,849 3.3 3.3 15,545,192 16,826,462 64.03 70.68

syDNey
CBD 1,638,373 489,757 864,776 687,813 8.1 6.0 26,561,678 26,712,372 67.81 70.30

AucklAND
CBD 301,389 0 278,835 130,182 11.9 9.7 4,637,303 4,637,303 22.00 22.21

welliNGtoN
CBD 357,361 0 349,827 11,840 2.7 3.8 2,887,739 2,887,739 24.58 25.15

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asia pacific office market overview | 4Q 2011

D e f i N i t i o N A N D t e r m i N o lo Gy GreAter cHiNA
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. 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. chengdu Prime office buildings in chengdu are mainly located in 3 sub-markets, renmin road, cbD and financial 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 ­ Haizhu, Yuexiu and tianhe. 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. shanghai Prime office buildings in shanghai are located in 7 principal sub-markets ­ Huangpu, Jingan, lujiazui, Zhuyuan, changning, luwan and Xuhui. 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 5 sub-markets ­ central, wanchai / causeway bay, island east, tsim sha tsui and kowloon east. 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.

NortH AsiA
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 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. 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. 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.

soutHeAst AsiA
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 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. karachi Prime office buildings in karachi are located in the central business area (cbD) covering 4 sub-markets ­ i.i chundrigar road, shahrah-e-faisal, clifton and Mai kolachi. rents are quoted in rupee per sq ft per year on gross floor area basis and are exclusive of service charges or management fee. capital values are quoted in rupee per sq ft.

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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
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. 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 nonstrata-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. Hanoi Prime quality office building in Hanoi are mostly located in Hoan kiem district, with individual quality buildings located in cau giay district and ba Dinh district. the central location of the city is perceived as being close to Hoan kiem lake, which is within Hoan kiem district. rents are commonly quoted in Us$ per sq m per month on net floor area basis. rents are inclusive of service charges and exclusive of value added tax, which is currently at 10% level. 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. 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. 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. 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.

AustrAlAsiA
Australia Prime office buildings are located in the cbD and generally favoured by Mncs. 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. 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.

iNDiA
Bengaluru (Bangalore) Prime office properties in bengaluru are can be divided in 3 principal submarkets ­ 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.

*

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.

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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 Amanda Gao Managing Director, north china amanda.gao@colliers.com chengdu, china Unit 1504 Yanlord landmark 1 renmin south road section 2 chengdu 610016 tel : 86 28 8658 6288 fax : 86 28 8672 3226 jacky tsai general Manager jacky.tsai@colliers.com Guangzhou, china 702 teem tower 208 tianhe road guangzhou 510620 tel : 86 20 3819 3888 fax : 86 20 3819 3899 eric lam Managing Director eric.lam@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 lina wong Managing Director east and south west china investment services, china lina.wong@colliers.com Hong kong, HksAr 5701 central Plaza 18 Harbour road wanchai, Hong Hong tel : 852 2828 9888 fax : 852 2828 9899 richard kirke (e-279867) Managing Director richard.kirke@colliers.com Piers Brunner (e-183614) chief executive Officer - asia piers.brunner@colliers.com 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 andrew.liu@colliers.com
company licence no: c-006052

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 jay.yun@colliers.com tokyo, japan Halifax building 3-16-26 roppongi Minato-ku, tokyo 106-0032 Japan tel : 81 3 5563 2111 fax : 81 3 5563 2100 james fink senior Managing Director james.fink@colliers.co.jp

karachi, Pakistan suite 2-a, level 2, Harbour House 37-a, lalazar avenue beach Hotel road, Off. M.t khan road karachi, Pakistan tel : 92 21 3561 2550-2 fax : 92 21 3563 6382 mohammed yasir Qidwai senior Manager, corporate solutions & research research.khi@colliers.com lahore, Pakistan suite 2, Mezzanine 2, executive floors al-Qadir Heights, Main boulevard new garden town, lahore, Pakistan tel : 92 42 3584 3474-6 fax : 92 21 3563 6382 Ahmed khan country Manager ahmed.khan@colliers.com islamabad, Pakistan One constitution avenue, adjacent convention centre & Diplomatic enclave islamabad, Pakistan tel : 92 51 834 7433 fax : 92 51 831 4737 waleed murrawat regional sales Manager waleed.murrawat@colliers.com manila, Philippines 10f tower 2 rcbc Plaza ayala avenue, Makati city Philippines1226 tel : 63 2 888 9988 fax : 63 2 845 2612 David young Managing Director david.a.young@colliers.com singapore 1 raffles Place #45-00 One raffles Place singapore 048616 tel : 65 6223 2323 fax : 65 6222 4901 Dennis yeo Managing Director singapore & industrial services | asia dennis.yeo@colliers.com 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 patima.jeerapaet@colliers.com

south east asia
jakarta, indonesia 10f and 14f 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 mike.broomell@colliers.com kuala lumpur, malaysia c/o mark lampard* Managing Director corporate solutions | asia Pacific te : 65 6531 8601 fax : 65 6557 0649 mark.lampard@colliers.com * based in singapore Research data provided by c H williams talhar & wong sdn Bhd 30-01, 30th floor Menara Multi-Purpose @ capsquare 8 Jalan Munshi abdullah P O box 12157 50100 kuala lumpur, Malaysia tel : 603 2616 8888 fax : 603 2616 8899 Url : http://www.wtw.com.my foo Gee jen Managing Director fgj@wtw.com.my

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Ho chi minh city, vietnam Ho chi Minh city, vietnam 7f bitexco building 19-25 nguyen Hue street District 1, Ho chi Minh city, vietnam tel : 84 8 827 5665 fax : 84 8 827 5667 Peter Dinning general Director peter.dinning@colliers.com Hanoi, vietnam 10f, capital tower building 109 tran Hung Dao street Hoan kiem District, Hanoi, vietnam tel : 84 4 3941 3277 fax : 84 4 3941 3278 Dane moodie Managing Director dane.moodie@colliers.com

mumbai, india 31-a, 3rd floors, film centre 68 tardeo road Mumbai 400 034 tel : 91 22 4050 4500 fax : 91 22 2351 4272 Prabhu raghavendra Office Director prabhu.raghavendra@colliers.com George mckay south asia Director Office & integrated services george.mckay@colliers.com 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 Ajay rakheja Office Director ajay.rakheja@colliers.com Pune, india bramha luxury Hotels ltd. (le Meridien Pune) 101 r.b.M. road Pune 411 001, Maharashtra tel : 91 20 4120 6435 fax : 91 20 4120 6434 suresh castellino Office Director suresh.castellino@colliers.com

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 paul.powderly@colliers.com 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 john.marasco@colliers.com 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 imran.mohiuddin@colliers.com 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 malcom.tyson@colliers.com Auckland, New zealand level 27, 151 Queen street, auckland tel : 64 9 358 1888 fax : 64 9 358 1999 mark synnott chief executive Officer, new Zealand mark.synnott@colliers.com 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 richard.findlay@colliers.com

india
Bengaluru, india Prestige garnet, level 2, Unit no. 201/202 36 Ulsoor road, bengaluru 560 042 tel : 91 80 4079 5500 fax : 91 80 4112 3131 Goutam chakraborty Office Director goutam.chakraborty@colliers.com 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 kaushik.reddy@colliers.com Gurgaon, india 1st floor, technopolis building Dlf golf course Main sector road sector 54, gurgaon 122 002 tel : 91 124 4375807 fax : 91 124 4375806 Ajay rakheja Office Director ajay.rakheja@colliers.com kolkata, india infinity business centre, infinity benchmark level 18, room no 13, Plot g - 1 block eP & gP, sector v, salt lake kolkata 700 091, west bengal tel : 91 33 2357 6501 fax : 91 33 2357 6502 soumya mukherjee Office Director soumya.mukherjee@colliers.com

australasia
Adelaide, Australia level 10, 99 gawler Place adelaide sa 5000 te : 61 8 8305 8888 fax : 61 8 8231 7712 james young state chief executive james.young@colliers.com Brisbane, Australia level 20 central Plaza One 345 Queen street brisbane QlD 4000 tel : 07 3229 1233 fax : 07 3120 4555 simon Beirne state chief executive simon.beirne@colliers.com

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asia pacific office market overview | 4Q 2011

real estate is a location business. that's why we do business where you do business.

reveNues

couNtries

offices

1.5 61 512
BILLION Professionals & staff: Square feet managed: Lease/sale transactions: Total transaction value: 12,510 979 million* 73,972 $59.6 billion

Colliers International is leading global real estate services organisation defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our partners. Our headquarters in Seattle, Washington and more than 512 offices worldwide share a common brand and vision to provide the best service experience available. With expertise in the major markets, Colliers is also committed to providing our clients with access to emerging markets in Asia, Eastern Europe and Latin America.

AsiA PAcific

* The combination of Colliers International and FirstService results in 2.2 billion under management - 2nd largest in the world.

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