asia pacific industrial market overview dec 2011

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW Accelerating success. December 2011

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This is the thirteenth issue of the Asia Pacific IndustrialMarket Overview, which covers 13 cities in nine countries,for the review period of April to September 2011. Withthis bi-annual update, we hope to provide an overview ofindustrial markets catering to multinational corporationsand a comparison of industrial real estate costs acrossthe key cities of the Asia-Pacific. Three types of industrialproperties are tracked in this report, namely singleuserfactory premises, single-user warehouse premisesand multi-user high-specifications industrial premises,as these are the preferred choices of multinationalcorporations. This publication features land and capitalvalues, as well as rents of single-user industrial premises;and rents of multi-user high-specification factories.

TRANSCRIPT

Page 1: Asia pacific industrial market overview   dec 2011

ASIA PACIFICINDUSTRIAL MARKET OVERVIEW

Accelerating success.

December 2011

Page 2: Asia pacific industrial market overview   dec 2011

TABLE OF CONTENTSASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

Regional Overview 3

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

Indonesia 13 Jakarta ................................................................................................................ 13

Japan 14 Greater Tokyo .....................................................................................................14

New Zealand 15-16 Auckland .............................................................................................................15 Wellington ...........................................................................................................16

Singapore 17-18

Taiwan 19 Taiwan ................................................................................................................. 19

International Comparison 20-26 Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents .................................................................................. 20 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 23 Multi-user High-Specs Average Monthly Gross Rents..................................... 26 Local Market Norm 27-29 Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents .................................................................................. 27 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 29

Definitions & Terminology 30

This is the thirteenth issue of the Asia Pacific Industrial

Market Overview, which covers 13 cities in nine countries,

for the review period of April to September 2011. With

this bi-annual update, we hope to provide an overview of

industrial markets catering to multinational 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 multinational

corporations. This publication features land and capital

values, as well as rents of single-user industrial premises;

and rents of multi-user high-specification factories.

Page 3: Asia pacific industrial market overview   dec 2011

COLLIERS INTERNATIONAL | P. 3

REGIONAL OVERVIEW

The economies of the Asia Pacific region showed slower growth weighed down by concerns over the anaemic state of the US economy and European sovereign debt woes. The more open economies, like Singapore and Taiwan, saw a marked slowdown in GDP growth on a year-on-year (YoY) basis during the current review period, due to shrinkages in manufacturing output. On the other hand, manufacturing sectors in China and Indonesia remained buoyant bolstered by their strong domestic markets. Economic performance varies for countries recently hit by natural disasters. While the Japanese economy remained in recession, the Pacific region was more resilient, evident from the low positive growth in New Zealand’s and Australia’s GDP numbers.

Of the 182 industrial submarkets across the 13 Asia Pacific cities surveyed, 88.0% or a total of 160 submarkets either showed growth or were stable during the period between April and September 2011. This is similar to the 88.0% of the 184 industrial submarkets surveyed during the previous period between October 2010 and March 2011. We were unable to track the Urayasu submarket which remained inundated after the earthquake and tsunami in March.

In line with the downgrading of general business sentiments globally, land and capital values as well as rents for industrial space saw slower growth averaging at 4.7%, 3.6% and 2.7% during the six months ending September 2011, compared with the average growth of 5.1%, 4.2% and 3.7%, respectively in the previous six-month period. However, high-specs industrial space bucked this trend, and with a higher average rental growth of 4.1% in this review period compared with the 2.0% recorded in the previous one.

In total, 43 out of 53 industrial submarkets surveyed in the Asia Pacific region saw their land values either holding steady at the levels of six months ago or trending up. Notably, in Jakarta’s Bekasi and Karawang, average land prices soared by a record breaking 45.0% during the six months between April and September 2011 due to the aggressive growth of the automotive industry in Indonesia combined with a drought in industrial land supply. In contrast, limited availability teamed with cautious investor sentiments kept values stable in Sydney and Auckland. Land values were also flat in Guangzhou’s GETDD as multinational corporations shied away from acquiring industrial land, following a series of measures introduced by the Chinese government to regulate the real estate market. The remaining submarkets which saw decreases in land values are primarily located in quake-stricken Japan.

Moving on to building sales, 49 out of the 58 submarkets surveyed recorded either flat or an increase in capital values. Growth was strongest in Hong Kong, as uncompromising vendors kept factory and warehouse prices soaring by up to 19.2% and 16.4% respectively. Its economic rival, Singapore, saw warehouse capital values increase by as much as 16.0%, up from the 7.2% recorded in the previous review period, underpinned by occupier demand and acquisition interest from REITS. Capital values were stable in Delhi and Shanghai as credit-tightening measures and high financing costs slowed industrial growth and dampened investor sentiments. Surprisingly, in spite of the booming Indonesian economy, capital values grew at a slower rate of 6.0%, down from the 19.7% increase recorded in the previous review period ending March 2011. This was attributed to lower activity levels in the current review period.

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REGIONAL OVERVIEW

Of the 54 submarkets surveyed, only three saw rents heading south in the six-month period ending September 2011. Tokyo’s Shinsuna submarket saw industrial rents easing by 3.9% while Delhi’s NH24 saw a 1.9% drop each in both its warehouse and factory rents. The leasing market remained subdued in Australia and New Zealand with no change in rental levels from that of half a year ago. On the other hand, warehousing facilities in Hong Kong saw double-digit rental growth, fuelled by robust demand. Rapid expansions by third-party logistics (3PLs) players, including mainland Chinese operators, looking to establish their regional hubs in Hong Kong pushed rents upwards. However, tenant needs remained unmet given the mismatch of availability and occupiers’ space requirements in excess of 100,000 sq ft.

For now, Asia continues to drive the global economic recovery, but the region is not immune to the seemingly never-ending euro zone woes and lacklustre recovery of the US economy. The outlook for the Asia Pacific industrial property market turned cautiously optimistic with stabilised values and rents expected in most submarkets over the next 12 months. Open economies like Hong Kong, which are extremely vulnerable to global economic headwinds, are already seeing a deceleration in their external trade growth in the review period. As such, Hong Kong expects industrial property rents and values to head south in the year ahead. On the other hand, the red hot Indonesian economy is expecting even better economic performance in 2012, underpinned by strong domestic consumption, solid investment inflows and higher export numbers. This is expected to drive growth in land and capital values as well as rents of industrial properties from 10.0% to 25.0% over the next year.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

COLLIERS INTERNATIONAL | P. 5

ECONOMIC INDICATORS FOR MELBOURNE

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth April - September 2011 1.65%Year-on-Year Manufacturing Output Growth Rate April - September 2011 -0.50%Total Imports April - September 2011 A$17.6 billionTotal Exports April - September 2011 A$4.9 billionContainer Throughput (TEUs) April - September 2011 1,252,769Air Cargo Throughput (Tonnes) January - June 2011 77,763

AUSTRALIA

MELBOURNE

Factory and Warehouse

• Demand for industrial space continued to grow during the review period between April and September 2011, driven by companies’ moves to expand and consolidate their premises on the back of healthy business sentiments amid Australia’s strong economic fundamentals of low unemployment, low public debt and a long pipeline of mining and resource-sector related investments.

• However, global uncertainties arising from unresolved debt woes in the United States (US) and Europe tempered optimism and put a cap on the growth of industrial land and capital values as well as rents which thus remained unchanged during the six-month review period between April and September 2011.

• On the sales front, the number of investment sales transactions between April and September 2011 decreased though their total transaction volume has increased. A total of 11 investment sales (A$5 million and above) was transacted in Victoria from April to September 2011, as compared to 16 transactions in the preceding six-month period ending March 2011. The total value transacted during the review period was in excess of approximately A$270 million, a jump from the A$160 million recorded between October 2010 and March 2011.

• Industrial users’ caution on the back of the heightened global uncertainties resulted in a stronger leasing market than the vacant possession sales market in the six months to September 2011. Nonetheless, leasing volume remained below the historical average and leases are now signed on terms shorter than the long-term average of seven to 10 years.

• Approximately 2.29 million sq ft of space (involving deals above 32,000 sq ft) were leased between April and September 2011, with the bulk of 34.6% (or 793,106 sq ft) located in the west. This is about 11.9% below the six-month average of approximately 2.6 million sq ft over the last five years and 33.9% above the 1.71 million sq ft leased in the previous review period of October 2010 to March 2011. Notable leasing deals include Tasman Logistics committing to a 150,598-sq ft warehouse at the corner of Robinsons Road and Sunline Drive in Truganina; Shields Transport leasing a 148,004-sq ft warehouse at Oxford Road in Laverton North; and Ascent Primacy Services taking up a 97,952-sq ft warehouse at Ordish Road in Dandenong South.

• Increased demand for new space, in turn, raised construction activity. Approximately A$87 million worth of industrial space was initiated between April and September 2011 as opposed to A$51 million committed to over the six months to March 2011.

• Overall, the industrial market is expected to firm up towards the end of 2011, supported by increasing demand and a tightening supply of quality stock given its limited availability. Increasing tenant demand coupled with low supply across all industrial regions should continue to push vacancies down, thereby supporting upward pressure on rentals. In turn, this should provide opportunities for investors to acquire more industrial properties for their portfolio and to take advantage of the relatively high yields and growth potential. However, more new supply is expected to come on stream in the next few years as developers commence development of new industrial space to ride on the current tight supply situation. Hence, land and capital values as well as rents are forecast to stay relatively stable or strengthen marginally over the next 12 months.

MAJOR TRANSACTIONS IN MELBOURNE

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Lot H - Arkwright Drive, Dandenong South Warehouse Lease Marine Power International 85,638Lot F - Ordish Road, Dandenong South Warehouse Lease Ascent Primacy Services 97,952221 Maidstone Street, Altona Warehouse Lease Werribee Nissan 115,6912-8 Oxford Road, Laverton North Warehouse Lease Shields Transport 148,004Cnr Robinsons Road & Sunline Drive, Truganina Warehouse Lease Tasman Logistics 150,598West Park Industrial Estate, Derrimut Warehouse Sale IOOF 404,777Coles Distribution Centre Warehouse Sale CorVal Partners 746,477

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

ECONOMIC INDICATORS FOR SYDNEY

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January - June 2011 0.3%Year-on-Year Manufacturing Output Growth Rate April - September 2011 n.a.Total Imports January - June 2011 A$141.4 billionTotal Exports January - June 2011 A$150.0 billionContainer Throughput (TEUs) January - June 2011 968,123Air Cargo Throughput (Tonnes) April - September 2011 n.a.

AUSTRALIA

SYDNEY

Factory, Warehouse and High-Specs

• An ongoing lack of new industrial development coupled with steady tenant demand has kept the Sydney industrial market tight over the past six months. The continuing lack of available stock has been compounded by withdrawals in industrial stock in some micro-markets, as some owners plan to redevelop their industrial buildings into new office, retail and residential properties after assessing the highest and best use of their sites.

• The leasing market has remained stable over the past six months with the majority of leases signed being renewals, as an ongoing lack of confidence and uncertainty in the economy stalls the implementation of companies’ expansion plans. This stability has helped rents and incentives for both Prime and Secondary grade stock to remain stable over the past six months. Notable lease transactions during the review period include YHI Australia’s lease of a 75,066-sq ft warehouse at 11 Grand Avenue, Camellia and P&O Trans Australia (POTA)’s lease of a 102,100-sq ft warehouse at Yennora Distribution Centre. In the same centre, Queensland Cotton Corporation Ltd also took up space at a 99,333 sq ft warehouse.

• On the same note, land and capital values also held steady over the review period. The largest sale transaction in Sydney’s industrial

market over the past six months is Aviva’s acquisition of a 50% interest in the Big W and Dick Smith Properties at Mirvac’s Hoxton Distribution Park. The sale price was A$97.4 million, which equates to a tight yield of 7.5%.

• A number of institutional landowners in Sydney’s Central West have begun to capitalise on the lack of space in the market with a number of speculative developments under construction. One example is the recently completed 1-23 Templar Road development in which Dexus Property speculatively built a 226,042-sq ft Prime grade building.

• The outlook for Sydney’s industrial market remains positive over the next six to 12 months with the Australian dollar expected to remain strong, thus sustaining importers’ demand for industrial space. On the other hand, stock levels are expected to remain tight as new developments remained largely subdued. This ongoing tight supply of Prime Grade space is expected to lead to a slight growth in rents of up to 1.1% and a reduction in incentives for tenants over the next 12 months. This could lift land and capital values by up to 2.0% over the same period.

* n.a. denotes not available

MAJOR TRANSACTIONS IN SYDNEY

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

25 Sirius Road, Lane Cove Warehouse Sale Private 87,15357 - 67 Roberts Road, Greenacre Warehouse Sale Private 106,80019 Chifley Street, Smithfield Warehouse Sale Leda Holdings 199,3228 - 40 Euston Road, Alexandria Warehouse Sale Bunnings Properties 291,693Hoxton Distribution Park Warehouse Sale Aviva 1,423,322283 Coward Street, Mascot Warehouse Lease Toll 73,52011 Grand Avenue, Camellia Warehouse Lease YHI Australia Pty Ltd 75,06613 Bessemer Street, Blacktown Warehouse Lease Nilfisk Advance 77,593Yennora Distribution Centre, Loftus Road, Yennora Warehouse Lease Queensland Cotton Corporation Ltd 99,333

Yennora Distribution Centre, Loftus Road, Yennora Warehouse Lease P&O Trans Australia (POTA) 102,100

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

COLLIERS INTERNATIONAL | P. 7

ECONOMIC INDICATORS FOR BEIJING

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January – June 2011 8.0%Year-on-Year Manufacturing Output Growth Rate January – June 2011 16.6%Total Imports January – June 2011 US$158.6 billionTotal Exports January – June 2011 US$27 billionContainer Throughput (TEUs) January – June 2011 n.a.Air Cargo Throughput (Tonnes) January – June 2011 852,400

CHINA

BEIJING

Factory and Warehouse

• Beijing managed to stage a strong economic performance in 1H 2011. GDP expanded by 8.0% YoY, and imports and exports grew by 34.1% and 4.0%, to US$158.6 billion and US$27 billion, respectively during this period. Air cargo throughput also increased to 852,400 tonnes in the January to June 2011 period, up 17.2% YoY, in line with the upbeat economic performance.

• The robust economic performance thus lent support to growth in industrial land values. Land values in Tianzhu, Tongzhou and Shangdi increased 9.0%, 5.0% and 4.3% from the last review period, to CNY109.16, CNY65.74 and CNY310.58 per sq ft, respectively, while land values in Yizhuang remained flat at CNY55.17 per sq ft. Noticeably, state-owned companies and manufacturing enterprises were key demand drivers for industrial land during the review period. For instance, the Beijing Pearl River Investment and Development Company invested CNY870 million to develop a logistics industrial park with a land area of 3,168,895 sq ft in the Tongzhou Economic Development Zone. In addition, Unity Opto Technology and Maxwell Machinery and Electronic Equipment Co. Ltd, each purchased a 535,892-sq ft plot and a 166,389-sq ft site, respectively in Yizhuang.

• Industrial rents also posted growth in the six months ending September 2011. Rents in Tianzhu and Tongzhou increased by 5.9% and 4.9% compared with the last review period to CNY2.97 and CNY2.64 per sq ft per month, respectively. Similarly, rents in Shangdi and Yizhuang recorded hikes of 5.2% and 5.7%, to CNY6.71

and CNY4.69 per sq ft per month, respectively. Rental growth was achieved on the back of firm leasing demand that was driven by overseas and domestic e-business, Food and Beverage (F&B) and Business-to-Consumer (B2C) companies that are expanding in Beijing. For example, Want Want took up approximately 107,639 sq ft of warehouse space in China Logistics Corp, located in Tongzhou District, while Tiantian.com and Watson’s each leased approximately 129,000 sq ft in GLP Daxing Park.

• Near-term fixed supply amid firm leasing demand also contributed to rental growth. The supply of industrial space remained stable in the review period from April to September 2011 as there were no new completions in Beijing’s industrial market.

• Going forward, the supply of prime logistics parks remains limited and is expected to be insufficient to meet the strong demand from the e-business, F&B, manufacturing, B2C and third-party logistics (3PL) enterprises. Meanwhile, investors continue to find Beijing’s industrial market alluring, announcing expansion plans and/or creations of joint ventures. For instance, Kerry Logistics, Hutchison Port, Beijing Inland Port International Logistics and New Concord recently came together to form a joint venture company that will be headquartered in Beijing to invest in logistics properties and related businesses in China with a total investable capital of CNY2 billion. Hence, land and capital values as well as rents are expected to maintain their growth by up to 6.0% in the next 12 months.

MAJOR TRANSACTIONS IN BEIJING

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

China Logistics Corp Warehouse Lease Want Want 107,639GLP Daxing Park Warehouse Lease Tiantian.com 129,100GLP Daxing Park Warehouse Lease Watson’s 129,170Yizhuang, BDA Land Sale Maxwell Machinery & Electronic Equipment 166,389Yizhuang, BDA Land Sale Unity Opto Technology 535,892

Tongzhou Economic Development Zone Land Sale Beijing Pearl River Investment and Development Company 3,168,895

* n.a. denotes not available

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P. 8 | COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

ECONOMIC INDICATORS FOR GUANGZHOU

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January - June 2011 11.0%Year-on-Year Manufacturing Output Growth Rate January - August 2011 10.3%Total Imports March - August 2011 US$30.2 billionTotal Exports March - August 2011 US$29.4 billionContainer Throughput (TEUs) March - August 2011 7.4 millionAir Cargo Throughput (Tonnes) March - August 2011 763,300

CHINA

GUANGZHOU

Factory and Warehouse

• Guangzhou’s economy continued to grow at a robust pace of 11.0% YoY in the first half of 2011. From January to August, Guangzhou’s manufacturing output reached CNY980.57 billion, up 10.3% YoY, supported by increased growth rates in the petrochemical and electronics manufacturing industries. In particular, there was a steady increase of high-technological product output during this period. The local export and import volume from March to August was also at a strong US$59.65 billion, up 11.4% compared to the same period last year.

• As such, domestic and overseas logistics firms, electronics manufacturing industries and consumer goods retailers continued to lift demand for industrial space during the six months from April to September 2011. Consequently, the average rents and capital values for warehouses and factories in Guangzhou Economic and Technological Development District (GETDD) rose by up to 4.9% during this period.

• In contrast, the overall land values in the GETDD stayed relatively unchanged from the levels six months ago as sentiments were weighed down by measures introduced by the government to regulate the real estate market since 2010. Some of these measures include monetary tightening policies through interest rate hikes as well as the requirement for the municipal land resource office to report to the provincial land resource office, land transactions that were sealed at prices exceeding 50% of reserve prices.

• Noticeably, multinational firms were more cautious in acquiring industrial land plots, while domestic corporations from the food, communications, electronics, automotive products and mechanical manufacturing industries remained active in buying land plots. The latter group clinched 15 out of the 17 plots auctioned in the GETDD from April to September 2011. These included China Banknote Printing and Minting Corporation’s acquisition of a 2,192,038-sq ft plot in Guangzhou Science City and Guangzhou Kingfa Sci. & Tech. Co. Ltd’s acquisition of a 853,203-sq ft site in Jiulong Industrial Park.

• In September, a new subsidy policy was introduced by the government of the GETDD to encourage companies to lease standard factories in the district. Favourable investment policies and a robust domestic economy are expected to continue to support demand for industrial properties. In addition, the recent rapid development of China’s e-business is expected to raise the demand for quality warehouses going forward. Thus, capital and rental values of factory and warehouse space could grow by up to 4.2% in the next 12 months. Land values, on the other hand, are forecast to stay unchanged at current levels through the next 12 months.

MAJOR TRANSACTIONS IN GUANGZHOU

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Development Zone, Luogang Land Sale SK Group 169,416Guangzhou Science City Land Sale Biostime 365,894Development Zone, Yonghe Land Sale Guangdong Yanlong Dairy 536,031Jiulong Industrial Park Land Sale Guangzhou Kingfa Sci. &Tech. Co. Ltd 853,203

Guangzhou Science City Land Sale China Banknote Printing and Minting Corporation 2,192,038

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COLLIERS INTERNATIONAL | P. 9

ECONOMIC INDICATORS FOR SHANGHAI

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January – June 2011 8.4%Year-on-Year Manufacturing Output Growth April – September 2011 9.4%Total Imports April – September 2011 US$116.8 billionTotal Exports April – September 2011 US$108.9 billionContainer Throughput (TEUs) April – September 2011 16.5 millionAir Cargo Throughput (Tonnes) April – September 2011 1.9 million

CHINA

SHANGHAI

Factory and Warehouse

• Growth momentum in Shanghai’s industrial property market slowed between April and September 2011 as the fragile economic recovery in the US and Europe’s sovereign debt crisis weighed on market sentiment.

• Additionally, a tightened credit environment led to higher financing cost and this dampened investment sales. Local industrial investors and developers without the privilege of accessing offshore funding began to experience financial difficulties. Multinational corporations with access to offshore financing were less affected. Consequently, capital values gained an average of just 1.4% during the six-month review period ending September 2011, in contrast to an average growth rate of 5.0% in the six months ending March 2011.

• Land values, however, continued to grow steadily at an average of approximately 8.5% as inflationary pressures persisted and local government’s selective stance in allocating sites restricted supply.

• Rental values recorded an average growth rate of approximately 5.0%, helped by the continued demand for industrial space from booming sectors such as e-commerce businesses. Leasing transactions concluded during the review period include eFrance’s lease of a 12,860-sq ft factory in Minhang district and Phoenix Waigaoqiao’s lease of a 2,281,788-sq ft warehouse in Pudong New Area.

• Looking ahead, although domestic monetary policy measures and external economic shocks will continue to weigh on the Chinese economy and Shanghai’s industrial sector, land, capital and rental values of industrial properties in Shanghai are expected to receive strong support at current levels as Shanghai’s industrial sector evolves over time to accommodate higher value-added industries. Industrial land usage will continue to shift towards the higher-end of the tertiary value chain, including corporate headquarters, research and development (R&D) and operations centres. Meanwhile, the Chinese government’s effort aimed at curbing speculative investment in the residential market may generate investment spill overs to the industrial segment, lending further support to the market. Thus, land, capital and rental values have the potential to increase by up to 8.0% in the next 12 months.

MAJOR TRANSACTIONS IN SHANGHAI

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Minhang Factory Lease eFrance 12,860Pudong New Area Warehouse Lease Phoenix Waigaoqiao 2,281,788

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P. 10 | COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

ECONOMIC INDICATORS FOR HONG KONG SAR

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January - June 2011 6.29%Year-on-Year Manufacturing Output Growth Rate March – August 2011 -0.67%Total Imports March – August 2011 HK$1,931 billionTotal Exports March – August 2011 HK$1,702 billionContainer Throughput (TEUs) March – August 2011 12.5 millionAir Cargo Throughput (Tonnes) March – August 2011 2.0 million

HONG KONG SAR

HONG KONG SAR

Factory

• Triggered by the Hong Kong Monetary Authority’s call to strengthen risk management in residential mortgage lending business in June 2011 and the growing uncertain economic outlook, banks in Hong Kong tightened their loan policies in 3Q 2011. For industrial property mortgages, banks have generally lowered their property valuations and reduced the loan-to-value ratio to between 30.0% and 40.0%.

• Tightened credit led to a contraction in industrial property transaction volume during the review period with the decline particularly profound in the second half of the review period from July to September 2011. The number of strata-titled transactions which decreased 6.1% quarter-on-quarter (QoQ) to 2,108 in 2Q 2011, plunged by a steep 37.9% QoQ to 1,310 transactions in 3Q 2011. Chevalier International’s acquisition of the whole block of an industrial building at 29 to 33 Tsing Yi Road (253,470 sq ft) for a total consideration of HK$286 million, and Central Source Limited’s purchase of the 311,700-sq ft Emperor International Square in Kowloon Bay for HK$850 million, were among the sales transactions that occurred between April and September 2011.

• Notwithstanding the contraction in property transaction volume, factory prices continued their upward climb by 15.4% during the review period, to HK$2,549 per sq ft as of September 2011. This was partly the result of vendors holding firm on their asking prices given their low holding costs. As well, healthy tenant demand on the back of positive spill-over from the traditional office sector due to sustained office rental growth enabled factory rents to gain 10.4% between April and September 2011, to HK$8.56 per sq ft per month. This also supported capital value growth for factory space during the review period.

• The persistently weak economic recovery in the core export markets – the US and the European Union – has started to take its toll on Hong Kong’s external trade performance, as reflected in a deceleration in its external trade growth during the review period. In fact, various organisations have downgraded their economic growth forecasts for the coming quarters for Hong Kong. Demand for industrial premises is thus expected to soften amid a deceleration in the growth of local consumption and exports of goods and services. In turn, factory rents are expected to see downward adjustments if the global economic

performance remain sluggish in the coming quarters. Over the next 12 months, factory rents and prices are anticipated to decrease by about 5.0% and 12.0%, respectively.

Warehouse

• The continued growth of local consumption and re-export volume (the latter expanded by 10.2% YoY to HK$1,667 billion during the period from March to August 2011) had led to a flurry of warehouse space expansions by third-party logistics (3PLs) players looking to capture growing demand for logistics services from outsourcing activities. Noticeably, 3PLs that engaged in local distribution and the export of fashion and electronics products were the most active group of tenants seeking additional spaces.

• New demand for warehousing facilities was also seen from individual multinational fashion companies and overseas 3PLs, including mainland Chinese operators, looking to establish their regional hub in Hong Kong to serve their business needs in Southeast Asia and the south China region. These tenants were seeking warehouse premises with sizes of 100,000 sq ft or above. However, there are currently no available warehouse premises in the market that match their size requirements.

• Robust demand for warehousing facilities saw the average rents of cargo lift access warehouses increasing 10.8% to HK$6.82 per sq ft per month while those of ramp access warehouses increased 11.5% to HK$9.81 per sq ft per month during the six months under review.

• Similar to the factory sector, the sustained rental growth underpinned the price performance of warehouses. Thus, the capital values of cargo lift access warehouses and ramp access warehouses rose by 16.4% and 15.3% to HK$2,487 per sq ft and HK$2,600 per sq ft, respectively during the review period.

• One notable transaction was the sale of a 50% interest in Interlink, a 2.4-million sq ft logistics warehouse development in Tsing Yi that is scheduled for completion in January 2012, by Goodman Group to Canada Pension Plan Investment Board for a total of HK$2.26 billion.

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COLLIERS INTERNATIONAL | P. 11

MAJOR TRANSACTIONS IN HONG KONG SAR

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Tsuen Wan International Centre Industrial Lease Ingrid Millet 22,000Texaco Centre Industrial Lease Zara Asia 43,054Tsuen Wan International Centre Industrial Lease JSI Logistics 45,004Oceanic Industrial Centre Industrial Lease I.T. Apparels 92,753Wai Yuen Tong Medicine Building Industrial Sale Local Investor 126,67729 - 33 Tsing Yi Road Industrial Sale Chevalier International 253,470Emperor International Square Industrial Sale Central Source Limited 311,700Interlink Warehouse Sale Canada Pension Plan Investment Board 50% interest

HONG KONG SAR

• Looking forward, given the weak global macroeconomic climate, warehouse rentals are expected to decrease 2.0% to 3.0% over the next 12 months while their prices are expected to decline 9.0% to 13.0% during the same period.

High-Specs Industrial Building

• Similar to the factory sector, the high-specs Industrial-Office buildings (I-O) received positive spill over demand from an increase in rentals in the office market.

• During the six-month period ending September 2011, the average I-O rental increased 7.9% to HK$16.56 per sq ft per month.

• However, in line with the general softening in demand for industrial space amid an uncertain economy outlook, I-O rents are expected to decline 5.0% in the next 12 months.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

ECONOMIC INDICATORS FOR INDIA

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth April - September 2011 8.25%Year-on-Year Manufacturing Output Growth Rate April - September 2011 n.aTotal Imports April - August 2011 US$189.3 billionTotal Exports April - August 2011 US$134.9 billionContainer Throughput (TEUs) April - September 2011 n.a.Air Cargo Throughput (Tonnes) April - September 2011 n.a.

INDIA

NEW DELHI

Factory and Warehouse

• The Reserve Bank of India (RBI) has tightened monetary policy during the review period from April to September 2011, which saw its “Repo Rate” (i.e. the rate at which the Reserve Bank of India lends money to commercial banks) soaring from 6.89% to 8.0%. The continuous hike in the cost of debt resulted in a slowdown in industrial growth, which grew at a slower 7.3% during January to June 2011 versus an 11.8% growth in the same period last year.

• Despite challenges from an escalating cost of debt, sentiments in the Delhi industrial property market remained healthy on the back of various efforts by the government to develop and grow their industrial sector. For example, the state government has decided to reduce the multiplicity of authorities in industrial areas in Delhi so as to streamline the process of entrepreneurs having to obtain clearance from various government agencies to set up businesses in these industrial estates. The lease and maintenance administration of most of the industrial estate, which is presently under the purview of both the Delhi Development Authority (DDA) and the Municipal Corporation of India (MCD), will be handed over to the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).

• For a start, DSIIDC has identified areas at Narela, Bawana, Patparganj and Okhla as pilots for upgrading and managing the estates under the build-operate and transfer (BOT) concession to a private partner for 15 years. To bring more investments and industries to Delhi, DSIIDC is also planning to develop a knowledge-based industrial park in Baprola. The estimated cost of this industrial park is INR12 billion.

• As such, in spite of the turbulent global economic conditions, demand for Delhi/NCR industrial properties remained relatively stable during the review period with land and capital values registering an average increase of 4.0% while rental values grew at an average rate of 2.0%. Lease transactions concluded in the review period include Jayshree Polyplastic’s lease of a 100,000-sq ft factory at Bhiwadi; Ananad Raj Industries’s lease of a 60,000-sq ft factory at Manesar; and Yamaha’s lease of a 56,000-sq ft warehouse along Mathura Road.

• As part of the government’s Relocation of Industries Scheme to move industries from residential areas to conforming zones, DSIISC has recently allotted 51 industrial plots at Bawana and Bhorgarh through a draw of lots. With this allotment, the total number of plots or flatted factories allotted under this scheme since its launch in 1996 has gone up to around 22,500. About 85.0% of the units are either under construction or are already completed.

• With the improvements in Delhi’s industrial infrastructure and business environment, Delhi could emerge as an attractive investment destination in the coming years. This could fuel demand for industrial space to accommodate the growing businesses. Thus, capital values and rents of the industrial properties are expected to continue to record growths in the range of 2.0% to 5.0% in the next 12 months.

MAJOR TRANSACTIONS IN NEW DELHI

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Bhiwadi Factory Lease Manufacturing Company of Nuts and Bolts (Undisclosed) 28,000

Mathura Road Warehouse Lease Yamaha 56,000Manesar Factory Lease Anand Raj Industries Pvt. Ltd 60,000Bhiwadi Factory Lease Jayshree Polyplastic Pvt. Ltd 100,000

NH8 Agriculture Land for Logistics Operations Purchase Logistics Company (Undisclosed) 10 acres

* n.a. denotes not available

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MAJOR TRANSACTIONS IN JAKARTA

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Modern Cikande Land Sale Indochem 645,834Bekasi Fajar Land Sale Food Industry (Undisclosed) 1,076,390

Jababeka Land Sale Plastics & Metal Manufacturing (Undisclosed) 1,560,766

Suryacipta Land Sale Automotive Component (Undisclosed) 1,614,585Jababeka Land Sale Consumer Goods (Undisclosed) 1,832,016Jababeka Land Sale Pharmacy 2,152,780KI Mitrakarawang Land Sale Automotive (Undisclosed) 2,152,780Jababeka Land Sale Automotive (Undisclosed) 2,473,544Bekasi Fajar Land Sale Denso Indonesia 3,013,892KIIC Land Sale Undisclosed 3,336,809

ECONOMIC INDICATORS FOR JAKARTA

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January – June 2011 6.5%Year-on-Year Manufacturing Output Growth Rate January – June 2011 5.6%Total Imports April – September 2011 US$85,854.7 millionTotal Exports April – September 2011 US$107,113.7 millionContainer Throughput (TEUs) April – September 2011 n.a.Air Cargo Throughput (Tonnes) April – September 2011 n.a.

INDONESIA

JAKARTA

Factory and Warehouse

• The Indonesian industrial land sales market saw heightened activity in the current review period, particularly for larger land parcels in excess of 1.08 million sq ft. This was driven by strong domestic consumption and aggressive growth of the automotive industry. All in, land sold in the first three quarters of 2011 totalled 897 ha, exceeding the 543 ha registered in the entire year of 2010. Year-to-date, the automotive industry remained the dominant purchaser accounting for 45.0% of total land sales (in ha). With no additional industrial land being supplied, robust demand drove the average land prices in Karawang and Bekasi up by a record 45.0% during the six months between April and September 2011, faster than the 14.9% recorded in the previous review period. Notable land transactions that occurred in the six months ending September 2011 included Denso Indonesia’s purchase of a 28-ha plot at Bekasi Fajar and the sale of a 31-ha parcel at KIIC to an undisclosed party.

• On the other hand, a relatively less active investment sales market led capital values of industrial buildings to grow at a slower rate of 6.0% in the current review period, down from the 19.7% increase recorded in the previous review period ending March 2011.

• The industrial leasing market remained quiet with no notable leasing transactions in the current review period between April and September 2011. However, rents saw a 5.8% increase, up from a 3.4% contraction reported for the period between October 2010 and March 2011, due to volatility in exchange rates.

• Underpinned by strong domestic consumption, solid investment inflows and improving export performance, the Indonesian economy is forecasted to see robust expansion in the range of 6.5% to 6.9% in 2012, higher than the 6.3% estimated for the entire year of 2011. This is expected to continue to stoke developers’ and investors’ optimism and translate to growth in land and capital values, as well as rents of industrial properties from 10.0% to 25.0% over the next 12 months.

* n.a. denotes not available

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

ECONOMIC INDICATORS FOR GREATER TOKYO

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth January - June 2011 -0.8%1)

Year-on-Year Manufacturing Output Growth Rate January - June 2011 -4.7%1)

Total Imports January - June 2011 ¥14.57 trillion2)

Total Exports January - June 2011 ¥11.77 trillion2)

Container Throughput (TEUs) January - June 2011 3.60 million3)

Air Cargo Throughput (Tonnes) January - June 2011 934,1794)

JAPAN

GREATER TOKYO

Factory and Warehouse

• Weighed down by the March 2011 earthquake, the Japanese economy contracted in 2Q 2011 by 0.5% for the third consecutive quarter on a QoQ basis. On an annualised basis, the Japanese economy contracted by 2.1% YoY in 2Q 2011. As such, the industrial property market stayed in the doldrums.

• The investment sales market was sluggish in the current review period ending September 2011 as cautious investors continued to monitor the market from the sidelines. Thus, land and capital values have generally softened since the previous survey conducted six months ago.

• Rental performance remained mixed. For the six-month period ending in September 2011, rents in Daikokufuto saw a 4.8% increase, while the Shinsuna submarket saw industrial rents easing by 3.9%. With the exception of the Urayasu submarket, rents in the remaining submarkets surveyed were unchanged from their levels recorded in March 2011. The Urayasu submarket remained flooded/submerged, following the earthquake and tsunami in March 2011.

• Prologis Park Kawajima, a five-storey multi-tenanted logistics facility with a total gross floor area of 1.8 million sq ft, was completed in July. It is located in Kawajima of Saitama with convenient access to major roads. As of the end of September, 70.0% of the development was leased to two tenants, one of which is Hitachi Collabonext Transport System Co.

• While the Japanese economy appears to be on the recovery path now that supply-side constraints caused by the earthquake are gradually being resolved and total exports and business investments are seeing a slight growth, it is nevertheless still susceptible to externalities such as the health of other major global economies. Manufacturers and those in the export trade are especially concerned with the further strengthening of the Japanese Yen. These factors will continue to weigh on the Japanese industrial property market, giving land and capital values as well as rents little room for growth. They are thus, generally forecast to stay unchanged in the next 12 months.

1) Nationwide2) Tokyo port (Tokyo-kou, Narita) and Yokohama Port (Yokohama, Kawasaki, Chiba and Kisarazu)3) Tokyo custom and Yokohama custom4) Narita Airport

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ECONOMIC INDICATORS FOR NEW ZEALAND

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth June 2011 1.5%Year-on-Year Manufacturing Output Growth Rate June 2011 1.5%Total Imports April – September 2011 NZ$23.3 billionTotal Exports April – September 2011 NZ$22.9 billionContainer Throughput (TEUs) April – September 2011 39.3 millionAir Cargo Throughput (Tonnes) April – September 2011 93,953

NEW ZEALAND

AUCKLAND

Office/Warehouse

• The industrial sector continues to lead the commercial property market with a total return of 9.0% for the year ending September 2011 according to the Investment Property Databank/Property Council of New Zealand.

• The investment market showed signs of stabilising. Approximately NZ$117 million worth of industrial properties (total for sales of individual properties at NZ$2 million or more) were transacted in the first half of 2011, down from the NZ$292 million recorded in 1H 2010. Consequently, capital values increased moderately by up to 2.3% on average in the current six months review period ending September 2011. Notable investment transactions included the purchase of 5-7 Fraser Road (111,783 sq ft) at Mt Wellington to a private investor.

• Industrial land values, too, are trending upwards on the back of limited availability of land for sale in South Auckland. However, the shortage of buyers kept land value growth moderate at not more than 2.0% between April and September 2011. Major land transactions that occurred in the review period included the sale of a 330,097 sq ft parcel at 111 Luan Avenue to Eldamos Investments for over NZ$10.5 million.

• Leasing activity continues particularly in the under 21,000 sq ft market. Nevertheless, the overall vacancy rate dropped marginally from 5.3% in February 2011 to 5.1% in August 2011. As such, monthly rents are stabilising, and now range between NZ$0.76 per sq ft and NZ$0.83 per sq ft for prime warehouses across Auckland industrial precincts. A significant leasing deal during this review period was Goodyear and Dunlop Tyres (NZ) taking up a 102,548-sq ft development in 415 East Tamaki Road in East Tamaki.

• Colliers Real Estate Confidence Survey September 2011 shows that industrial investors feel the most optimistic about the year ahead compared to the other property sectors. Specifically, 41.0% of Auckland industrial investors forecast improving conditions for the next 12 months, up from just 34.0% six months ago. Against this backdrop, industrial land and capital values and rentals are likely to see a 2.0% to 5.0% upside through the next 12 months.

MAJOR TRANSACTIONS IN AUCKLAND

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

6b Wagener Place, St Lukes Office/Warehouse Lease Wilhelmsen Ship Services 9,591 89-91 Captain Springs Road, Penrose Office/Warehouse Lease TIC (Reverse Logistics) NZ 19,246 78 Ellice Road, Wairau Park Office/Warehouse Lease Phoenix Aluminium 15,629 67 Arrenway Drive, Albany Office/Warehouse Lease Dimension Shopfitters 30,699 5 Henry Rose Place, Albany Office/Warehouse Lease Transpacific Industrial (NZ) 32,292 23 Zelanian Drive, East Tamaki Office/Warehouse Lease Exclusive Tyre Distributors (NZ) 35,521 Business Parade North, East Tamaki Office/Warehouse Lease National Aluminium 61,548 415 East Tamaki Road, East Tamaki Office/Warehouse Lease Goodyear and Dunlop Tyres (NZ) 102,548 67 Arrenway Drive, Albany Office/Warehouse Sale Lewis Holdings 30,699 9 Pacific Rise, Mt Wellington Office/Warehouse Sale Private Investor 31,495 5-7 Fraser Road, Mt Wellington Office/Warehouse Sale Private Investor 111,783 111 Lunn Ave, Mt Wellington Land Sale Eldamos Investments 330,097

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

NEW ZEALAND

WELLINGTON

Office/Warehouse

• The Wellington investment market remains active, largely in the sub-NZ$2 million price bracket. For the first half of 2011, over NZ$61 million worth of industrial properties were sold. This is close to 50.0% of the NZ$136 million chalked up for the whole of 2010. Hence, land and capital values held steady in the six months between April and September 2011. Significant transactions that occurred during this six-month review period included the sale of 38-40 Bouverie Street (78,210 sq ft) in Petone to Beijing Gold for NZ$6.7 million.

• The leasing market, too, has remained stable over the six months ending September 2011. As such, rents remained unchanged as of half a year ago with prime monthly warehouse rents currently ranging between NZ$0.66 per sq ft NZ$0.77 per sq ft. The majority of the transactions occurred in the sub-10,764 sq ft market. Notably, a 6,900-sq ft industrial building in Petone was leased by Pennrith Holdings to Scafit for NZ$600,000 a year.

• In contrast with the buoyant mood in Auckland, Wellington investor confidence is down in general for the 12 months ahead. Industrial investor confidence dropped to -9.0% in September this year from -2.0% in March 2011. However, it has improved from the -18.0% recorded a year ago. As such, land values are expected to stay stable over the next 12 months.

MAJOR TRANSACTIONS IN WELLINGTON

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

35 - 43 Hutt Road, Petone Office/Warehouse Lease Scafit 6,95356 Takapu Road, Grenada Office/Warehouse Lease Wellington Scrap Metals 32,292Astra Print, 97 - 102 Hutt Road, Kaiwharawhara Office/Warehouse Lease Wickliffe NZ 33,110

199 Gracefield Road, Gracefield Office/Warehouse Sale Private Investor 15,95246 Railway Avenue, Lower Hutt Office/Warehouse Sale Azzurro Holdings 27,2339 - 15 Meachen Street, Lower Hutt Office/Warehouse Sale Chelmsford Properties 36,59738 - 40 Bouverie Street, Petone Office/Warehouse Sale Beijing Gold 78,210

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ECONOMIC INDICATORS FOR SINGAPORE

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth April 2011 – September 2011 3.5%Year-on-Year Manufacturing Output Growth Rate April 2011 – September 2011 3.7%Total Imports April 2011 – September 2011 S$232,317 millionTotal Exports April 2011 – September 2011 S$259,212 millionContainer Throughput (TEUs) April 2011 – September 2011 15,190.6Air Cargo Throughput (Tonnes) April 2011 – September 2011 933,905

SINGAPORE

SINGAPORE

Factory and Warehouse

• Singapore’s GDP growth slowed to 3.5% YoY in the period from April to September 2011 compared with the sterling 10.7% YoY growth seen in the previous review period from October 2010 to March 2011, as upheavals on the global economic front rattled confidence and dampened demand for goods and services.

• Nonetheless industrial investment and land sales remained active underpinned by occupier demand and interest from REITS and developers. For instance, Sabana REIT made four purchases — 3A Joo Koon Circle, 21 Joo Koon Crescent, 2 Toh Tuck Link and 39 Ubi Road 1 — totalling S$132.3 million in the current review period. Other major buildings transacted within the six months ending September 2011 include Seagate’s premises at Ang Mo Kio for S$91.5 million and Singatronic’s facility at Chai Chee Lane for S$21 million. These led land and capital values to extend their climb by as much as 16.0% during the current review period, up from the 7.2% to 9.3% recorded in the previous review period.

• The leasing market was also active and dominated by relocations and company expansions. Rents for factories in the central area rose 4.1% in the current six-month review period to average S$1.50 per sq ft per month in September 2011, while monthly rents for warehouse space in the eastern part of the island grew 5.1% in the past six months to average S$1.44 per sq ft.

• According to the Urban Redevelopment Authority (URA), some 1.91 million sq ft of single-user factories were added onto stock in the current review period, 10.0% higher than the 1.73 million sq ft net of new completions seen in the previous six months. Developments completed in the six months ending September 2011 included CN Logistics’ 121,600-sq ft factory at Changi North Way and Kawah Enterprises’ factory at Ubi Link.

• The outlook ahead is less rosy. Business sentiments have been adversely affected by events in the west. According to the latest Business Times-UniSIM Business Climate Survey, close to two-thirds of the companies surveyed said prospects for the next six months are worse than a year ago. Given the murky outlook for the global economy and the pressing need to maintain Singapore’s competitive

edge, it is unlikely that the JTC Corporation (JTC) would raise land prices further in the months ahead. Capital values and rents of single-user industrial space should also remain stable in the year ahead, balanced by cautious user demand and limited availability.

High-Specs Industrial Building

• The high-specs industrial sector is susceptible to weakening confidence in the global economy and thus slowed considerably in the period from April to September 2011.

• Despite investor caution amid heightened global uncertainties, Real Estate Investment Trusts (REITs) continue to look out for accretive purchases. Notably, Ascendas REITs purchased the Nordic European Centre in the International Business Park for S$121.6 million.

• Rents for high-specs space remained under pressure due to the ample supply of new high-specs and suburban office space in the pipeline. Consequently, rental growth for multi-user high-specs space more than halved from 11.0% in the October 2010 to March 2011 period to 4.8% in the current review period. At the end of September 2011, the average monthly gross rent for high-specs space stood at S$3.28 per sq ft. Major leasing deals concluded during this time included Nordson SEA (Pte) Ltd taking up about 15,800 sq ft at 2 Corporation Place.

• Growth in office rents slowed and has likely reached peak levels, resulting in less cost incentives for qualifying office users to relocate to high-specs space. Given the cloudy economic outlook, leasing activities in the short to medium term ahead, is likely to be dominated by renewals and consolidations. As such, high-specs rents are expected to stay stable, with an increase of up to 5.0% for ground floor space, in the year ahead.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

MAJOR TRANSACTIONS IN SINGAPORE

ECONOMIC INDICATORS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

2 Corporation Place High-Specs Lease Nordson SEA (Pte) Ltd 15,79121 Changi North Way Warehouse Lease Armor Asia Imaging Supplies Pte Ltd 45,50052 Tanjong Penjuru Warehouse Lease Cummins Diesel Sales Corporation 110,86018 New Industrial Road Factory Sale TAS Services Pte Ltd 30,22521 Joo Koon Crescent Factory Sale Sabana Shari’ah Compliant REIT 99,57539 Ubi Road Factory Sale Sabana Shari’ah Compliant REIT 136,195506 Chai Chee Lane (Singatronics) Factory Sale Undisclosed 172,1372 Toh Tuck Link Factory Sale Sabana Shari’ah Compliant REIT 180,7353A Joo Koon Circle Factory Sale Sabana Shari’ah Compliant REIT 217,580Nordic European Centre High-Specs Sale Ascendas REIT 305,4587000 Ang Mo Kio Avenue 5 Factory Sale Undisclosed 1,070,644

SINGAPORE

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ECONOMIC INDICATORS FOR TAIWAN

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth April - September 2011 4.18%Year-on-Year Manufacturing Output Growth Rate April - September 2011 5.61%Total Imports April - September 2011 US$145,563 millionTotal Exports April - September 2011 US$158,873 millionContainer Throughput (TEUs) April - September 2011 6.8 millionAir Cargo Throughput (Tonnes) April - September 2011 847,973

TAIWAN

TAIWAN

High-Specs Industrial Building

• Taiwan’s GDP grew at a moderated 4.2% YoY between April and September 2011 compared with the 9.7% recorded in the previous corresponding period. Weakening global demand caused capital-intensive industries, such as semiconductors and thin film transistor liquid crystal display (TFT-LCD) manufacturers, to reduce capital expenditure. This, in turn, led the capital formation growth rate to drop to a negative 13.5% YoY in 3Q 2011 and manufacturing output to shrink 5.6% YoY during the review period.

• This dented sentiments in the high-specs industrial market. As a result, net take-up of high-specs space in Neihu Technology Park fell by a hefty 46.6% from the previous review period to 725,049 sq ft. This was notwithstanding the continued gravitation of traditional industries and hi-tech enterprises to Neihu Technology Park due to its attractiveness as a maturing business district. Developments such as A+ Sun Tech City, Fubon Ruei Kwang Building and Metropolitan Era Headquarters enjoyed net take-up above 30,000-sq ft each, primarily from expansionary moves. Major leasing deals during the review period included Compal Electronics Co., Sumei Chemical Co. and Lite-On Clean Energy Co. taking up 120,687-sq ft in Colorful International Building, 19,605-sq ft in Dubai Building and 19,320-sq ft in Solomon Neihu Building, respectively.

• The plunge in net take-up in the current review period was, however, mitigated by a miserly supply of 107,309 sq ft from the completion of Chi-Sing Xi Hu Building in 2Q 2011. As a result, the vacancy rate in Neihu Technology Park dipped 2.2 percentage points to 12.3% in

September 2011 — the lowest vacancy level since 4Q 2008. This prompted rents to climb 0.8% from NT$31.32 per sq ft per month in March 2011 to NT$31.57 per sq ft per month in September 2011. This was the highest rental growth in the past three years.

• The current market price for high-specs space remains high and showed no sign of abating. While low yields kept investors away, owner-occupiers, on the other hand, have displayed a gradual acceptance of the current pricing. This was evident from the few purchases made in 3Q 2011, including Taiwan Fixed Network Co.’s acquisition of the 284,430-sq ft data centre in Neihu for NT$2.87 billion, TCI Co.’s acquisition of the 14,382-sq ft Shin Chi Tsai Hsing Building for NT$171 million and King Polytechnic Engineering Co.‘s acquisition of the 10,554-sq ft 21 Century Plaza for NT$211 million. Notably, Chong Hong Construction Co. purchased a 32,936-sq ft land parcel at Xihu for development of hi-specs space for NT$2.19 billion or a record high of NT$66,493 per sq ft.

• The economic crisis in the Eurozone and the US is likely to impact Taiwan’s economic growth adversely in the near future. However, net take-up is expected to grow given that the high market price is likely to drive users to lease instead of owner-occupy their premises for cost-savings purposes. The vacancy rate of high-specs space in Neihu Technology Park may thus fall below 11.0% by the end of 2011. As such, rentals are expected to remain flat or show a slight increase in the next 12 months.

MAJOR TRANSACTIONS IN TAIPEI

TRANSACTIONS

BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Solomon Neihu Building High-Specs Lease Lite-On Clean Energy Co. 19,320Dubai Building High-Specs Lease Sumei Chemical Co. 19,605Colorful International Building High-Specs Lease Compal Electronics, Inc. 120,687The Plot in Xihu Land Sale Chong Hong Construction Co. 32,93621 Centry Plaza High-Specs Sale King Polytechnic Engineering Co. 10,554Shin Chi Tsai Hsing Building High-Specs Sale TCI Co. 14,382The Data Centre in Neihu High-Specs Sale Taiwan Fixed Network Co 284,430

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISONThe 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, while others pay a 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

CITY

VALUE AS OF SEPTEMBER 2011 (US$) 12-MONTH FORECAST (US$) BASIS OF LAND AND CAPITAL VALUES

LAND VALUE1

(PSF)

CAPITAL VALUE2 (PSF)

MONTHLY GROSS RENT (PSF)

LAND VALUE1 (PSF)

CAPITAL VALUE2 (PSF)

MONTHLY GROSS RENT (PSF)

LAND TENURE (YEARS)

PLOT RATIO

LAND AREA

(SQ FT)

GROSS FLOOR AREA

(SQ FT)Auckland3

Auckland 18.48 74.75 0.54 18.76 78.49 0.55 60 1.0 100,000 100,000

Manukau 17.56 74.30 0.52 17.82 78.02 0.54 60 1.0 100,000 100,000

North Shore 25.00 86.50 0.61 25.25 90.82 0.62 60 1.0 100,000 100,000

Beijing

Tianzhu 19.07 83.94 0.47 20.02 88.97 0.50 60 1.0 100,000 100,000

Tongzhou 11.17 65.10 0.42 11.68 65.79 0.44 60 1.0 100,000 100,000

Greater Tokyo4

Chiba - Urayasu - - 1.40 - - 1.40 60 1.0 100,000 100,000

Kawasaki - Higashi Ogishima 40.49 199.28 1.82 40.49 199.28 1.82 60 1.0 100,000 100,000

Tokyo - Ariake 135.34 256.30 2.26 135.34 256.30 2.26 60 1.0 100,000 100,000

Tokyo - Heiwajima 142.63 330.65 3.32 142.63 330.65 3.32 60 1.0 100,000 100,000

Tokyo - Shinsuna 184.21 306.68 2.39 184.21 306.68 2.39 60 1.0 100,000 100,000

Yokohama - Daikokufuto 17.51 181.46 2.16 17.51 181.46 2.06 60 1.0 100,000 100,000

Guangzhou

GETDD 9.37 47.67 0.47 9.39 49.62 0.48 60 1.0 100,000 100,000

Hong Kong5

Ramp Access - 333.7 1.26 - 302.00 1.23 60 1.0 100,000 100,000

Cargo Lift Access - 319.26 0.88 - 278.07 0.85 60 1.0 100,000 100,000

Jakarta

Bekasi 13.52 25.99 - 16.23 28.59 - 60 1.0 100,000 100,000

Melbourne

East & Southeast 14.09 69.97 0.58 14.24 70.67 0.59 60 1.0 100,000 100,000

Fringe 41.79 135.85 0.93 42.21 137.21 0.94 60 1.0 100,000 100,000

North 12.11 63.61 0.48 12.23 64.24 0.48 60 1.0 100,000 100,000

West 10.61 50.21 0.47 10.72 50.70 0.47 60 1.0 100,000 100,000

New Delhi

Delhi - NH1 18.14 - 0.23 18.87 - 0.23 60 1.0 100,000 100,000

Delhi - NH8 23.22 20.85 0.30 23.94 21.54 0.31 60 1.0 100,000 100,000

Delhi - NH24 36.28 41.70 0.44 37.01 43.09 0.46 60 1.0 100,000 100,000

Delhi - East 97.86 66.43 0.63 101.73 67.76 0.66 60 1.0 100,000 100,000

Delhi - North 150.11 79.71 0.40 155.67 81.04 0.42 60 1.0 100,000 100,000

Delhi - South 178.68 79.71 0.94 186.71 81.04 0.96 60 1.0 100,000 100,000

Delhi - West 189.04 63.77 0.75 191.22 63.77 0.78 60 1.0 100,000 100,000

Shanghai

Pudong New Area 48.49 63.17 0.61 49.64 63.60 0.64 60 1.0 100,000 100,000

Singapore

East 58.74 167.16 1.28 58.74 167.16 1.28 60 1.0 100,000 100,000

Sydney

South 75.95 147.05 1.23 77.63 148.67 1.24 60 1.0 100,000 100,000

Southwest 16.94 92.58 0.73 17.22 93.90 0.74 60 1.0 100,000 100,000

West 29.97 135.89 1.13 30.34 137.72 1.15 60 1.0 100,000 100,000

Wellington

Ngauranga 36.17 71.37 0.53 36.17 71.37 0.53 60 1.0 100,000 100,000

Petone 37.06 64.67 0.48 37.06 64.67 0.48 60 1.0 100,000 100,000

Seaview 14.83 57.52 0.45 14.83 57.52 0.45 60 1.0 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio2. Capital values refer to the values of both land and building3. Rental series for Auckland was revised wef Sep 2011 4. The Urayasu submarket remained flooded. Land & capital values are not available.5. Values provided are for multi-user warehouse buildings

Page 21: Asia pacific industrial market overview   dec 2011

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

COLLIERS INTERNATIONAL | P. 21

0.00 50 .00 100.00 150.00 200 .00 250 .003 00 .00 350. 00 400 .00

De lh i-NH 8Ja ka rt a-Be ka si

De lh i-NH 24G uang zhou -GET DD

M el bo ur ne -Wes tWe lli ng to n-Se av ie w

Shangha i-Pu do ng N ew A re aM el bo ur ne -N or th

De lh i-We stWe lli ng to n-Pe to neBe iji ng -T on gzho u

De lh i-Ea stM el bo ur ne -E as t & So ut h Ea st

We lli ng to n-N gaur ang aAu ck land -M anu ka uAu ck land -A uc kl an d

De lh i-No rt hDe lh i-So ut h

Be iji ng -T ia nzhuAu ck land -N or th S ho re

Sy dne y-So ut hw es tM el bo ur ne -F ri ng e

Sy dne y-We stSy dne y-So ut h

Si ngap or e-Ea stGr ea te r To ky o- Yo ko ha ma -D ai ko ku fu to

Gr ea te r To ky o- Ka wa sa ki -H ig as hi O gi sh im aGr ea te r To ky o- To ky o- Ar ia ke

Gr ea te r To ky o- To ky o- Sh in su naHo ng K on g-Ca rg o Li ft A cce ss *

Gr ea te r To ky o- To ky o- He iw ajim aHo ng K on g-Ra mp A cce ss *

Wa re ho us e Ca pi ta l Va lu es ( US $ ps f)

0.00 20 .004 0.00 60 .008 0.00 100.00 120.00 140.00 160. 00 180.00 200 .00

G uang zhou -GET DDMe lb ou rn e-We st

Be iji ng -T on gzho uMe lb ou rn e-No rt h

J ak ar ta -B ek as iMe lb ou rn e-Ea st & S ou th E as t

We lli ng to n-Se av ie wSy dne y-So ut hw es t

Gr ea te r To ky o- Yo ko ha ma -D ai ko ku fu toAu ck land -M anu ka u

De lh i-NH 1Au ck land -A uc kl an d

Be iji ng -T ia nzhuDe lh i-NH 8

Au ck land -N or th S ho reSy dne y-We st

We lli ng to n-N gaur ang aDe lh i-NH 24

We lli ng to n-Pe to nere at er T ok yo -Kaw as ak i-Hi ga sh i-Ogishima

Me lb ou rn e-Fr in geShangha i-Pu do ng N ew A re a

Si ngap or e-Ea stSy dne y-So ut h

De lh i-Ea stGr ea te r To ky o- To ky o- Ar ia ke

Gr ea te r To ky o- To ky o- He iw ajim aDe lh i-No rt hDe lh i-So ut h

Gr ea te r To ky o- To ky o- Sh in su naDe lh i-We st

Wa re ho us e Land V al ue s (US$ p sf p er p lo t ra ti o)

INTERNATIONAL COMPARISON

INTERNATIONAL COMPARISON OF WAREHOUSE LAND VALUES (SEPTEMBER 2011)

INTERNATIONAL COMPARISON OF WAREHOUSE CAPITAL VALUES (SEPTEMBER 2011)

* Values provided are for multi-user warehouse buildings

Hong Kong - Ramp Access*Greater Tokyo - Tokyo - Heiwajima

Hong Kong - Cargo Lift Accees*Greater Tokyo - Tokyo - Shinsuna

Greater Tokyo - Tokyo - AriakeGreater Tokyo - Kawasaki - Higashi Ogishima

Greater Tokyo - Yokohama - DaikokufutoSingapore - EastSydney - SouthSydney - West

Melbourne - FringeSydeny - Southwest

Auckland - North ShoreBeijing - Tianzhu

Delhi - SouthDelhi - North

Auckland - AucklandAuckland - Manukau

Wellington - NgaurangaMelbourne - East & South East

Delhi - EastBeijing - Tongzhou

Wellington - PetoneDelhi - West

Melbourne - NorthShanghai - Pudong New Area

Wellington - SeaviewMelbourne - West

Guangzhou - GET DDDelhi - NH 24

Jakarta - BekasiDelhi - NH 8

0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00

Warehouse Capital Values (US$ psf)

Delhi - WestGreater Tokyo - Tokyo - Shinsuna

Delhi - SouthDelhi - North

Greater Tokyo - Tokyo - HeiwajimaGreater Tokyo - Tokyo - Ariake

Delhi - EastSydney - South

Singapore - EastShanghai - Pudong New Area

Melbourne - FringeGreater Tokyo - Kawasaki - Higashi Ogishima

Wellington - PetoneDelhi - NH 24

Wellington - NgaurangaSydney - West

Auckland - North ShoreDelhi - NH 8

Beijing - TianzhuAuckland - Auckland

Delhi - NH 1Auckland - Manukau

Greater Tokyo - Yokohama - DaikokufutoSydeny - Southwest

Wellington - SeaviewMelbourne - East & South East

Jakarta - BekasiMelbourne - NorthBeijing - TongzhouMelbourne - West

Guangzhou - GET DD

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00

Warehouse Land Values (US$ psf per plot ratio)

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P. 22 | COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

De lh i-NH 1De lh i-NH 8

De lh i-No rt hBe iji ng -T on gzho u

De lh i-NH 24We lli ng to n-Se av ie w

Be iji ng -T ia nzhuG uang zhou -GET DD

Me lb ou rn e-We stMe lb ou rn e-No rt hWe lli ng to n-Pe to ne

Au ck land -M anu ka uWe lli ng to n-N gaur ang a

Au ck land -A uc kl an dMe lb ou rn e-Ea st & S ou th E as t

Au ck land -N or th S ho reShangha i-Pu do ng N ew A re a

De lh i-Ea stSy dne y-So ut hw es t

De lh i-We stHo ng K on g-Ca rg o Li ft A cce ss *

Me lb ou rn e-Fr in geDe lh i-So ut h

Sy dne y-We stSy dne y-So ut h

Ho ng K on g-Ra mp A cce ss *Si ngap or e-Ea st

G re at er T ok yo -C hi ba -Ura ya suG re at er T ok yo -Kaw as ak i-Hi ga sh i Og is hi ma

G re at er T ok yo -Yok oh am a-Da ik ok uf ut oG re at er T ok yo -T ok yo -A ri ak e

G re at er T ok yo -T ok yo -Shi ns un aG re at er T ok yo -T ok yo -H ei wa jim a

Wa re ho us e Mo nt hl y G ro ss R en ts ( US $ ps f)

INTERNATIONAL COMPARISON OF WAREHOUSE MONTHLY GROSS RENTS(SEPTEMBER 2011)

INTERNATIONAL COMPARISON

* Values provided are for multi-user warehouse buildings

Greater Tokyo - Tokyo - HeiwajimaGreater Tokyo - Tokyo - Shinsuna

Greater Tokyo - Tokyo - AriakeGreater Tokyo - Yokohama - Daikokufuto

Greater Tokyo - Kawasaki - Higashi OgishimaGreater Tokyo - Chiba - Urayasu

Singapore - EastHong Kong - Ramp Access*

Sydney - SouthSydney - WestDelhi - South

Melbourne - FringeHong Kong - Cargo Lift Accees*

Delhi - WestSydeny - Southwest

Delhi - EastShanghai - Pudong New Area

Auckland - North ShoreMelbourne - East & South East

Auckland - AucklandWellington - Ngauranga

Auckland - ManukauWellington - PetoneMelbourne - NorthMelbourne - West

Guangzhou - GET DDBeijing - Tianzhu

Wellington - SeaviewDelhi - NH 24

Beijing - TongzhouDelhi - NorthDelhi - NH 8 Delhi - NH 1

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Warehouse Monthly Gross Rents (US$ psf)

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COLLIERS INTERNATIONAL | P. 23

INTERNATIONAL COMPARISONSINGLE-USER FACTORY

SINGLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS

CITY

VALUE AS OF SEPTEMBER 2011 (US$) 12-MONTH FORECAST (US$) BASIS OF LAND AND CAPITAL VALUES

LAND VALUE1

(PSF)

CAPITAL VALUE2 (PSF)

MONTHLY GROSS RENT (PSF)

LAND VALUE1 (PSF)

CAPITAL VALUE2 (PSF)

MONTHLY GROSS RENT (PSF)

LAND TENURE (YEARS)

PLOT RATIO

LAND AREA

(SQ FT)

GROSS FLOOR AREA

(SQ FT)

Beijing

Shang Di 57.91 147.79 1.32 58.41 155.18 1.39 60 1.0 100,000 100,000

Yi Zhuang 8.29 67.71 0.70 8.71 68.51 0.72 60 1.0 100,000 100,000

Greater Tokyo

Chiba - Ichikawa 40.82 144.40 - 40.82 144.40 - 60 1.0 100,000 100,000

Chiba - Mihama 20.15 90.36 - 20.15 90.36 - 60 1.0 100,000 100,000

Saitama - Ageo 15.14 83.97 - 15.14 83.97 - 60 1.0 100,000 100,000

Tokyo - Ota 79.05 153.34 - 79.05 153.34 - 60 1.0 100,000 100,000

Yokohama - Naka 39.35 127.06 - 39.35 127.06 - 60 1.0 100,000 100,000

Guangzhou

GETDD 9.37 47.63 0.46 9.39 49.62 0.48 60 1.0 100,000 100,000

Hong Kong3

Low Quality - 243.45 0.90 - 213.50 0.85 60 1.0 100,000 100,000

Mid Quality - 303.53 1.10 - 266.20 1.05 60 1.0 100,000 100,000

Prime Quality - 432.61 1.35 - 379.40 1.28 60 1.0 100,000 100,000

Jakarta

Bekasi 13.52 32.49 - 16.23 35.74 - 60 1.0 100,000 100,000

Karawang 9.19 27.30 0.34 11.49 30.03 0.40 60 1.0 100,000 100,000

Melbourne

East & South East 14.09 69.97 0.58 14.24 70.67 0.59 60 1.0 100,000 100,000

Fringe 41.79 135.85 0.93 42.21 137.21 0.94 60 1.0 100,000 100,000

North 12.11 63.61 0.48 12.23 64.24 0.48 60 1.0 100,000 100,000

West 10.61 50.21 0.47 10.72 50.70 0.47 60 1.0 100,000 100,000

New Delhi

Delhi - NH1 17.12 - 0.23 17.80 - 0.24 60 1.0 100,000 100,000

Delhi - NH8 17.67 20.85 0.30 18.49 21.20 0.30 60 1.0 100,000 100,000

Delhi - NH24 34.92 38.92 0.44 36.29 40.31 0.47 60 1.0 100,000 100,000

Delhi - East 93.89 68.42 0.66 95.27 71.08 0.68 60 1.0 100,000 100,000

Delhi - North 147.84 79.71 0.40 150.43 79.71 0.42 60 1.0 100,000 100,000

Delhi - South 162.20 89.68 0.92 168.83 93.00 0.94 60 1.0 100,000 100,000

Delhi - West 179.06 73.07 0.75 179.68 73.07 0.76 60 1.0 100,000 100,000

Shanghai

Minhang District 20.28 53.18 0.42 21.25 53.69 0.45 60 1.0 100,000 100,000

Pudong New Area 21.82 49.30 0.40 22.26 49.91 0.43 60 1.0 100,000 100,000

Singapore

Central 85.30 164.97 1.27 85.30 164.97 1.27 60 1.0 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio2. Capital values refer to the values of both land and building3. Values provided are for multi-user factory buildings

Page 24: Asia pacific industrial market overview   dec 2011

P. 24 | COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

0.00 50 .001 00 .001 50 .00 200 .00 250 .003 00 .00 350 .00 400 .00 450 .00 500 .00

Delh i-NH 8Ja ka rt a-Ka ra wa ng

Ja ka rt a-Be ka siDe lh i-NH 24

G uang zhou -GETD DShangha i-Pu do ng N ew A re a

Melb ou rn e-We stShangha i-Minhang D is tr ic t

Me lb ou rn e-No rt hBe iji ng -Yi Z huan g

De lh i-E as tMe lb ou rn e-E as t & So ut h E as t

De lh i-We stDe lh i-No rt h

Gr ea te r To ky o- Sa it am a-Ag eoDe lh i-So ut h

Gr ea te r To ky o- Ch ib a-Miha maGr ea te r To ky o- Yo ko ha ma -Naka

Melb ou rn e-Fr in geGr ea te r To ky o- Ch ib a-Ichikawa

Be iji ng -Shang D iGr ea te r To ky o- To ky o- Ot a

Si ngap or e-Ce nt ra lHo ng K on g-Lo w Qu al it y*Ho ng K on g-Mi d Qu alit y*

Ho ng K on g-Pr im e Qu alit y*

Fa ct or y Ca pi ta l Va lu es ( US $ ps f)

0.00 50 .001 00 .001 50 .00 200 .00

Be iji ng -Yi Z huan gJa ka rt a-Ka ra wa ng

G uang zhou -GET DDMe lbo ur ne -Wes t

Me lbo ur ne -N or thJa ka rt a-Be ka si

Me lbo ur ne -E as t & So ut h Ea stGr ea te r To ky o- Sa it am a-Ag eo

De lhi -N H1De lhi -N H8

Gr ea te r To ky o- Ch ib a-Mi ha maShangha i-Mi nhang D is tr ic t

Shangha i-Pu do ng N ew A re aDe lhi -N H2 4

Gr ea te r To ky o- Yo ko ha ma -N ak aGr ea te r To ky o- Ch ib a-Ic hi ka wa

Me lbo ur ne -F ri ng eBe iji ng -Shang D i

Gr ea te r To ky o- To ky o- Ot aSi ngap or e-Ce nt ra l

De lhi -E as tDe lhi -N or thDe lhi -Sou thDe lhi -Wes t

Fa ct or y Land V al ue s (U S$ p sf p er p lot r at io )

INTERNATIONAL COMPARISON OF FACTORY LAND VALUES(SEPTEMBER 2011)

INTERNATIONAL COMPARISON

INTERNATIONAL COMPARISON OF FACTORY CAPITAL VALUES(SEPTEMBER 2011)

* Values provided are for multi-user factory buildings

Hong Kong - Prime Quality*Hong Kong - Mid Quality*Hong Kong - Low Quality*

Singapore - CentralGreater Tokyo - Tokyo - Ota

Beijing - Shanghai DiGreater Tokyo - Chiba - Ichikawa

Melbourne - FringeGreater Tokyo - Yokohama - Naka

Greater Tokyo - Chiba - MihamaDelhi - South

Greater Tokyo - Saitama - AgeoDelhi - NorthDelhi - West

Melbourne - East & South EastDelhi - East

Beijing - Yi ZhuangMelbourne - North

Shanghai - Minhang DistrictMelbourne - West

Shanghai - Pudong New AreaGuangzhou - GET DD

Delhi - NH 24Jakarta - Karawang

Delhi - NH 8

0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00

Factory Capital Values (US$ psf)

Delhi - WestDelhi - SouthDelhi - NorthDelhi - East

Singapore - CentralGreater Tokyo - Tokyo - Ota

Beijing - Shanghai DiMelbourne - Fringe

Greater Tokyo - Chiba - IchikawaGreater Tokyo - Yokohama - Naka

Delhi - NH 24Shanghai - Pudong New Area

Shanghai - Minhang DistrictGreater Tokyo - Chiba - Mihama

Delhi - NH 8 Delhi - NH 1

Greater Tokyo - Saitama - AgeoMelbourne - East & South East

Jakarta - KarawangMelbourne - NorthMelbourne - West

Guangzhou - GET DDJakarta - KarawangBeijing - Yi Zhuang

0.00 50.00 100.00 150.00 200.00

Factory Land Values (US$ psf per plot ratio)

Page 25: Asia pacific industrial market overview   dec 2011

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

COLLIERS INTERNATIONAL | P. 25

0.00 0.50 1.00 1.50

De lh i-NH 1De lh i-NH 8

Ja ka rt a-Ka ra wa ngDe lh i-No rt h

Shangha i-Pu do ng N ew A re a

Shangha i-Mi nhang D is tr ic tDe lh i-NH 24

G uang zhou -GET DDMe lb ou rn e-We st

Me lb ou rn e-No rt hMe lb ou rn e-Ea st & S ou th E as t

De lh i-Ea st

Be ijin g-Yi Z huan gDe lh i-We st

Ho ng K on g-Lo w Qu al it y*De lh i-So ut h

Me lb ou rn e-Fr in geHo ng K on g-Mid Qu al it y*

Si ngap or e-Ce nt ra l

Be ijin g-Shang D iHo ng K on g-Pr im e Qu al it y*

Fa cto ry M on th ly G ro ss R en ts ( US $ ps f)

INTERNATIONAL COMPARISON OF FACTORY MONTHLY GROSS RENTS(SEPTEMBER 2011)

INTERNATIONAL COMPARISON

* Values provided are for multi-user factory buildings

Hong Kong - Prime Quality*

Beijing - Shanghai Di

Singapore - Central

Hong Kong - Mid Quality*

Melbourne - Fringe

Delhi - South

Hong Kong - Low Quality*

Delhi - West

Beijing - Yi Zhuang

Delhi - East

Melbourne - East & South East

Melbourne - North

Melbourne - West

Guangzhou - GET DD

Delhi - NH 24

Shanghai - Minhang District

Shanghai - Pudong New Area

Delhi - North

Jakarta - Karawang

Delhi - NH 8

Delhi - NH 1

0.00 0.50 1.00 1.50

Factory Monthly Gross Rents (US$ psf)

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P. 26 | COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISONMULTI-USER HIGH-SPECS

MULTI-USER HIGH-SPECS AVERAGE MONTHLY GROSS RENTS

CITY

AS OF SEPTEMBER 2011 12-MONTH FORECAST BASIS OF RENTAL RATES

AVERAGE MONTHLY GROSS RENT (US$ PSF)

AVERAGE MONTHLY GROSS RENT (US$ PSF)

LEASE TERM

(YEARS)LOCATION

NET FLOOR AREA

(SQ FT)

RENT FREE PERIOD

(MONTH)

Beijing 1.41 1.43 3 Suburban 10,000 1

Hong Kong 2.13 2.02 3 Suburban 10,000 1

Melbourne 1.63 1.64 3 Suburban 10,000 1

New Delhi - NH1 0.28 0.29 3 to 9 Suburban 10,000 Negotiable

New Delhi - NH8 0.44 0.46 3 to 9 Suburban 10,000 Negotiable

New Delhi - NH24 0.53 0.55 3 to 9 Suburban 10,000 Negotiable

New Delhi - East 0.82 0.86 3 to 9 Suburban 10,000 Negotiable

New Delhi - North 0.54 0.55 3 to 9 Suburban 10,000 Negotiable

New Delhi - South 1.08 1.12 3 to 9 Suburban 10,000 Negotiable

New Delhi - West 0.88 0.90 3 to 9 Suburban 10,000 Negotiable

Shanghai 1.30 1.34 3 to 9 Suburban 10,000 1

Singapore 2.52 2.65 3 Suburban 10,000 1

Sydney 1.11 1.11 3 Suburban 10,000 1

Taipei - Neihu Technology Park 1.07 1.08 3 Suburban 10,000 1

Greater Tokyo - Hakusan 3.68 3.68 3 Suburban 10,000 1

Greater Tokyo - Kanagawa 4.78 4.78 3 Suburban 10,000 1

Greater Tokyo - Yokohama 4.05 4.05 3 Suburban 10,000 1

INTERNATIONAL COMPARISON OF HIGH-SPECS MONTHLY GROSS RENTS(SEPTEMBER 2011)

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Ne w De lh i - NH 1

Ne w De lh i - NH 8

Ne w De lh i - NH 24

Ne w De lh i - No rt h

Ne w De lh i - Ea st

Ne w De lh i - We st

Ta ip ei - N ei hu T echn ol og y Pa rk

Ne w De lh i - So ut h

Sy dne y

Shangha i

Be ijin g

Me lb ou rn e

Ho ng K on g

Si ngap or e

G re at er T ok yo - H ak us an

G re at er T ok yo - Yo ko ha ma

Gr ea te r To ky o - Kanagaw a

Hi gh-Spec s Av er age Mo nt hl y Gr os s Re nt s (U S$ p sf )Hi gh-Spec s Av er age Mo nt hl y Gr os s Re nt s (U S$ p sf )

Greater Tokyo - Kanagawa

Greater Tokyo - Yokohama

Greater Tokyo - Hakusan

Singapore

Hong Kong

Melbourne

Beijing

Shanghai

Sydney

New Delhi - South

Taipei - Neihu Technology Park

New Delhi - West

New Delhi - East

New Delhi - North

New Delhi - NH 24

New Delhi - NH 8

New Delhi - NH 1

0.00 1.00 2.00 3.00 4.00 5.00 6.00

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

Page 27: Asia pacific industrial market overview   dec 2011

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

COLLIERS INTERNATIONAL | P. 27

LOCAL MARKET NORMThe purpose of the Local Market Norm tables is only to provide an understanding of single-user industrial costs in the context of the various submarkets. The land tenure, plot ratio, land and building size quoted are based on recent offerings and transactions in each local market. However, payment schemes vary with each country. Some countries may have the practice of paying annual land rent, while others pay a 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.

SINGLE-USER WAREHOUSE

SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1

CITY LOCAL CURRENCY

IN LOCAL CURRENCY AS OF SEPTEMBER 2011 IN US$ AS OF SEPTEMBER 2011

BASIS OF LAND, CAPITAL VALUES AND MONTHLY GROSS RENTS (LOCAL MARKET

NORM)

LAND VALUE2

(PSF)

CAPITAL VALUE3 (PSF)

MONTHLY GROSS RENT (PSF)

LAND VALUE2 (PSF)

CAPITAL VALUE3 (PSF)

MONTHLY GROSS RENT (PSF)

LAND TENURE (YEARS)

PLOT RATIO

LAND AREA

(SQ FT)

GROSS FLOOR AREA

(SQ FT)

Auckland4

Auckland NZ$ 32.89 149.41 0.83 25.32 115.00 0.64 Freehold 0.5 30,000 15,000

Manukau NZ$ 27.4788 137.90 0.76 21.15 106.14 0.58 Freehold 0.5 100,000 50,000

North Shore NZ$ 39.1374 149.84 0.84 30.12 115.33 0.64 Freehold 0.5 105,000 52,500

Beijing

Tianzhu CNY 109.16 498.50 2.97 17.18 78.44 0.47 50 0.7 150,000 105,000

Tongzhou CNY 65.74 386.62 2.64 10.34 60.84 0.42 50 0.9 120,000 108,000

Greater Tokyo5

Chiba-Urayasu JPY - - 107.00 - - 1.40 Freehold 2.0 53,820 107,640

Kawasaki - Higashi Ogishima

JPY 2,972.00 12,170.00 96.00 38.93 159.43 1.26 Freehold 2.0 1,076,390 3,229,170

Tokyo - Ariake JPY 13,594.00 21,739.00 157.00 178.08 284.78 2.06 Freehold 2.0 107,639 215,278

Tokyo - Heiwajima JPY 9,551.00 19,416.00 169.00 125.12 254.35 2.21 Freehold 2.0 1,614,585 4,843,755

Tokyo - Shinsuna JPY 16,740.00 22,296.00 146.00 219.29 292.08 1.91 Freehold 2.0 215,278 430,556

Yokohama - Daikokufuto

JPY 1,856.00 13,192.00 132.00 24.31 172.82 1.73 Freehold 2.0 107,639 430,556

Guangzhou

GETDD CNY 56.18 258.93 2.74 8.84 40.74 0.43 50 1.5 150,000 225,000

Hong Kong6

Ramp Access HK$ - 2,600.00 9.81 - 333.70 1.26 N.A N.A N.A N.A

Cargo Lift Access HK$ - 2,487.50 6.82 - 319.26 0.88 N.A N.A N.A N.A

Jakarta

Bekasi Rp 111,544.15 196,954.36 - 11.97 21.13 - 30 2.4 10,000 24,000

Melbourne

East & South East A$ 19.74 102.19 0.66 19.31 99.96 0.64 Freehold 0.6 40,000 24,000

Fringe A$ 58.53 213.68 1.12 57.25 209.00 1.10 Freehold 0.6 30,000 18,000

North A$ 16.95 92.90 0.54 16.58 90.87 0.53 Freehold 0.6 40,000 24,000

West A$ 14.86 78.97 0.56 14.54 77.24 0.55 Freehold 0.6 30,000 18,000

New Delhi

Delhi - NH1 Rs 1,250.00 - 13.00 25.55 - 0.27 99 0.6 15,000 9,000

Delhi - NH8 Rs 1,600.00 1,500.00 17.50 32.70 30.66 0.36 99 0.6 15,000 9,000

Delhi - NH24 Rs 2,500.00 3,000.00 25.50 51.10 61.32 0.52 99 0.6 15,000 9,000

Delhi - East Rs 7,600.00 5,000.00 36.50 155.34 102.20 0.75 Freehold 0.6 5,000 3,000

Delhi - North Rs 10,800.00 6,000.00 23.00 220.74 122.64 0.47 Freehold 0.6 15,000 9,000

Delhi - South Rs 13,876.00 6,000.00 54.00 283.62 122.64 1.10 Freehold 0.6 10,000 6,000

Delhi - West Rs 14,681.00 4,800.00 43.00 300.07 98.11 0.88 Freehold 0.6 7,000 4,200

Shanghai

Pudong New Area CNY 275.15 375.19 3.86 43.30 59.04 0.61 50 0.6 150,000 90,000

Singapore

East S$ 77.94 189.00 1.44 59.94 145.36 1.11 30+30 2.0 150,000 300,000

Sydney

South A$ 89.25 158.25 1.10 87.30 154.78 1.07 Freehold 1.2 220,000 264,000

Southwest A$ 24.39 126.20 0.79 23.86 123.44 0.77 Freehold 1.2 60,000 72,000

West A$ 32.60 126.30 0.90 31.89 123.53 0.88 Freehold 1.2 430,000 516,000

Continued on next page >

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

LOCAL MARKET NORM

SINGLE-USER WAREHOUSE

SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1

CITY LOCAL CURRENCY

IN LOCAL CURRENCY AS OF SEPTEMBER 2011 IN US$ AS OF SEPTEMBER 2011

BASIS OF LAND, CAPITAL VALUES AND MONTHLY GROSS RENTS (LOCAL MARKET

NORM)

LAND VALUE2

(PSF)

CAPITAL VALUE3 (PSF)

MONTHLY GROSS RENT (PSF)

LAND VALUE2 (PSF)

CAPITAL VALUE3 (PSF)

MONTHLY GROSS RENT (PSF)

LAND TENURE (YEARS)

PLOT RATIO

LAND AREA

(SQ FT)

GROSS FLOOR AREA

(SQ FT)

Wellington

Ngaurang NZ$ 62.71 132.57 0.77 48.23 101.96 0.59 Freehold 0.5 70,000 35,000

Petone NZ$ 58.06 120.12 0.70 44.65 92.38 0.54 Freehold 0.5 100,000 50,000

Seaview NZ$ 23.23 106.84 0.66 17.87 82.17 0.51 Freehold 0.5 100,000 50,000

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 building4. Rental series for Auckland was revised wef Sep 2011 5. The Urayasu submarket remained flooded. Land & capital values are not available.6. Values provided are for multi-user warehouse buildings

< Continued from previous page

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SINGLE-USER FACTORY

SINGLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1

CITY LOCAL CURRENCY

IN LOCAL CURRENCY AS OF SEPTEMBER 2011 IN US$ AS OF SEPTEMBER 2011 BASIS OF LAND, CAPITAL VALUES AND

MONTHLY GROSS RENTS (LOCAL MARKET NORM)

LAND VALUE2

(PSF)

CAPITAL VALUE3 (PSF)

MONTHLY GROSS RENT (PSF)

LAND VALUE2 (PSF)

CAPITAL VALUE3

(PSF)

MONTHLY GROSS RENT (PSF)

LAND TENURE (YEARS)

PLOT RATIO

LAND AREA

(SQ FT)

GROSS FLOOR AREA

(SQ FT)

Beijing

Shang Di CNY 310.58 711.52 6.71 48.87 111.96 1.06 50 1.1 39,000 429,000

Yi Zhuang CNY 55.17 421.88 4.69 8.68 66.39 0.74 50 1.3 42,000 54,600

Greater Tokyo

Chiba - Ichikawa JPY 3,710.00 10,498.00 - 48.60 137.52 - Freehold 2.0 215,278 430,556

Chiba - Mihama JPY 2,331.00 9,197.00 - 30.54 120.48 - Freehold 2.0 32,292 64,584

Saitama - Ageo JPY 1,751.00 8,547.00 - 22.94 111.97 - Freehold 2.0 32,292 64,584

Tokyo - Ota JPY 9,893.00 16,722.00 - 129.60 219.06 - Freehold 2.0 16,146 32,292

Yokohama - Naka JPY 3,952.00 10,777.00 - 51.77 141.18 - Freehold 2.0 107,634 215,268

Guangzhou

GETDD CNY 56.18 258.70 2.66 8.84 40.71 0.42 50 1.5 150,000 225,000

Hong Kong4

Low Quality HK$ - 1,896.80 7.01 - 243.45 0.90 N.A N.A N.A N.A

Mid Quality HK$ - 2,364.96 8.57 - 303.53 1.10 N.A N.A N.A N.A

Prime Quality HK$ - 3,370.66 10.48 - 432.61 1.35 N.A N.A N.A N.A

Jakarta

Bekasi Rp 111,544.15 246,192.42 - 11.97 26.42 - 30 2.4 15,000 36,000

Karawang Rp 71,364.65 184,381.33 2,992.22 7.66 19.78 0.32 30 2.4 70,000 168,000

Melbourne

East & Southeast A$ 19.74 102.19 0.66 19.31 99.96 0.64 Freehold 0.6 40,000 24,000

Fringe A$ 58.53 213.68 1.12 57.25 209.00 1.10 Freehold 0.6 30,000 18,000

North A$ 16.95 92.90 0.54 16.58 90.87 0.53 Freehold 0.6 40,000 24,000

West A$ 14.86 78.97 0.56 14.54 77.24 0.55 Freehold 0.6 30,000 18,000

New Delhi

Delhi - NH1 Rs 1,250.00 - 13.50 25.55 - 0.28 99 1.25 15,000 18,750

Delhi - NH8 Rs 1,290.00 1,500.00 17.00 26.37 30.66 0.35 99 1.25 15,000 18,750

Delhi - NH24 Rs 2,550.00 2,800.00 25.50 52.12 57.23 0.52 99 1.25 15,000 18,750

Delhi - East Rs 7,786.00 5,150.00 38.00 159.14 105.26 0.78 Freehold 1.25 5,000 6,250

Delhi - North Rs 11,302.00 6,000.00 23.00 231.01 122.64 0.47 Freehold 1.25 15,000 18,750

Delhi - South Rs 13,450.00 6,750.00 53.00 274.91 137.97 1.08 Freehold 1.25 10,000 12,500

Delhi - West Rs 14,848.00 5,500.00 43.00 303.48 112.42 0.88 Freehold 1.25 7,000 8,750

Shanghai

Minhang District CNY 118.21 315.82 2.68 18.60 49.70 0.42 50 1.0 150,000 150,000

Pudong New Area CNY 127.19 340.54 2.98 20.01 53.59 0.47 50 1.0 150,000 150,000

Singapore

Central S$ 116.75 195 1.50 89.79 149.97 1.15 30+30 2.5 100,000 250,000

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 ratio3. Capital values refer to the values of both land and building4. Values provided are for multi-user factory buildings

LOCAL MARKET NORM

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

DEFINITION AND TERMINOLOGY

1. MULTI-NATIONAL CORPORATION (MNCs)

A multinational corporation is defined as a large company that has operations in multiple nations and that requires industrial space.

2. FACTORY

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

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.

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 as 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 premises by a single tenant. Data is expressed as per sq ft of gross floor area. A three-year lease term is common in most countries in the Asia Pacific region.

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GREATER CHINA

Beijing, China502 Tower W3, Oriental Plaza No 1 East Changan Avenue Dongcheng DistrictBeijing 100738Tel: +86 10 8518 1633Fax: +86 10 8518 1638Carlby XieDirector, Research [email protected]

Shanghai, China12F Hong Kong New World Tower300 Huaihai Zhong Road Shanghai 200021Tel: +86 21 6141 3688 Fax: +86 21 6141 3699 James ShepherdSenior Director, Research & Advisory [email protected]

Guangzhou, ChinaRoom 702 Teem Tower208 Tianhe RoadGuangzhou 510620People’s Republic of ChinaTel: +86 20 3819 3888Fax: +86 20 3819 3899Bryan ChanDirector, Research & [email protected]

Hong Kong, HK SAR5701 Central Plaza18 Harbour Road, WanchaiCompany Licence No. C-006052Tel: +852 2828 9888Fax: +852 2828 9899Simon LoExecutive Director, Research & Advisory, [email protected]

Taipei, Taiwan49F Taipei 101 TowerNo 7 Xin Yi Road Sec 5Taipei 110 Taiwan ROCTel: +886 2 8101 2000Fax: +886 2 8101 2345Paul LeeDirector, [email protected]

NORTH ASIA

Tokyo, JapanHalifax Building, 3-16-26, Roppongi Minato-ku, Tokyo 106-0032 JapanTel: +81 3 5563 2111Fax: +81 3 5563 2100Yumiko YasudaHead, [email protected]

SOUTH ASIA

Jakarta, Indonesia10F World Trade CentreJalan Jenderal Sudirman Kav 29-31 Jakarta 12920Tel: +62 21 521 1400Fax: +62 21 521 1411Ferry SalantoAssociate Director, [email protected]

Singapore 1 Raffles Place#45-00 One Raffles PlaceSingapore 048616Tel: +65 6223 2323Fax: +65 6222 4901Chia Siew ChuinDirector, Research & [email protected]

INDIA

New Delhi204/205 Kanchenjunga18 Barakhamba RoadConnaught Place, New Delhi 110 001Tel: +91 11 4360 7500Fax: +91 11 2335 6624Surabhi Arora, MRICSAssociate Director, [email protected]

AUSTRALASIA

Melbourne, AustraliaLevel 32 Optus Centre 367 Collins StreetMelbourne VIC 3000, Australia Tel: +61 3 9629 8888Fax: +61 3 9092 1413Nerida ConisbeeNational Director, [email protected]

Sydney, AustraliaLevel 12, Grosvenor Place225 George StreetSydney NSW 2000Tel: +61 2 9257 0222Fax: +61 2 9251 3297Mathew TillerManager, Research [email protected]

Auckland, New ZealandLevel 27, 151 Queen Street, AucklandTel: +64 9 358 1888Fax: +64 9 358 1999Alan McMahonNational Director, Research and [email protected]

Wellington, New ZealandLevel 10, 36 Customhouse QuayWellingtonTel: +64 4 473 4413 Fax: +64 4 499 1550Alan McMahonNational Director, Research and [email protected]

For further details, please contact:

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