Asia Pacific Office Market Overview 1Q 2012

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AsiA PAcific Office Market Overview1Q 2012

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table Of cOntentsAsiA PAcific office mArket overview | 1Q 2012

regional overview Greater china

3 4-6

Beijing, China ....................................................................................................................................4 Chengdu, China .................................................................................................................................4 Guangzhou, China .............................................................................................................................5 Shanghai, China ................................................................................................................................5 Hong Kong SAR, China .....................................................................................................................6 Taipei, Taiwan ...................................................................................................................................6

North Asia

7

Seoul, South Korea ........................................................................................................................... 7 Tokyo, Japan ..................................................................................................................................... 7

southeast Asia

8-11

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

india

12-13

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

Australasia

14-17

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

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

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

regiOnal OverviewecoNomic overviewDespite the continued challenges in the external environment, a number of macro-variables in the region, including capital flows and domestic consumption, suggested that the economy showed signs of improvements in 1Q 2012 compared to the preceding six months. In addition, the prevailing monetary policies adopted by a number of central banks remained accommodative. For example, the Reserve Bank of India has cut its repo rate by 50 basis points to 8.00% in mid-April 2012. Meanwhile, China lowered its banks reserve requirement ratio again in 1Q 2012 in an attempt to create a soft landing for its economy.

leAsiNG mArketOn the leasing front of the office market in the region, a number of corporate occupiers continued to proceed with their relocation and consolidation plans, particularly in individual centres where brand-new developments are available for occupation. Similar to the last two quarters, tenants engaging in IT, technology and electronics were found to be the most active in looking for office space during 1Q 2012. Office rents in most centres were either stable or increased mildly during 1Q 2012 although Hong Kong and Singapore showed 4 - 5% QoQ downward adjustments due to softening leasing demand attributed primarily to the banking and finance industries. China continued to see a steady growth of 1 - 2% QoQ. Beijing stood out the most with rents increasing by 6% QoQ because of the continued tight supply situation. Rents in Australasia remained solid, thanks to the strong investment expenditure by the Government in the resources sector. Overall, the average office rent grew slightly by 0.2% QoQ in 1Q 2012.

sAles mArketOn the sales front, the average transacted office prices increased further by 1.8% QoQ, signifying continuous lowering of the overall investment yields during 1Q 2012. In China, local companies with strong balance sheets continued to be the key players, snapping up quality office developments for either owner occupation or long-term investment. In Australasia, there was sustained buying activity attributed to real estate funds in 1Q 2012. For example, Dexus Wholesale Property Fund (DWPF) acquired the Riverside Plaza office property at 452 Flinders Street, Melbourne for a net purchase price of US$186 million.

mArket outlookGiven the recent upgrade of the global economic growth expectations for 2012 and 2013 by the International Monetary Fund, leasing demand for offices in the region continues to look positive. Notwithstanding the potential for negative shock arising from the lingering European debt issues, it is our view that investment appetite for office real estate in the region will remain strong. Investors will certainly focus more on office real estate amid the tightening measures implemented by various governments on individual residential markets. However, the availability of credit for office real estate financing remains one of the key hurdles for buyers who require a certain level of gearing in order to achieve their targets of return on equity.

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asia pacific office market overview | 1Q 2012

cHiNABEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE1.00 0.80 Million sq m 0.60 0.40 0.20 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

Beijing There was no new supply in Beijings Grade A office property market in 1Q 2012. However, the two projects located in the CBD and Wangjing submarkets were upgraded. This led to a small adjustment in the total Grade A office stock, which measured 5.17 million sq m as of the end of 1Q 2012. The leasing market in 1Q 2012 turned out to be somewhat lacklustre, attributing to seasonality factors and the current high occupational cost. However, the overall vacancy rate continued to decline by 1.0 percentage point QoQ to 3.8% due to the absence of new supply. Significant transactions included the lease of 9,000 sq m in One Indigo to Daimler and the commitment of China Jianyin Investment Technology to take it up 2,429 sq m in China Overseas International Centre. Only one en bloc sales transaction was booked in 1Q 2012 a domestic buyer acquired 60,000 sq m at China Electronics Plaza Tower B for a total consideration of approximately RMB1.6 billion. Due to the limited quality of new supply coming in the next two years and the sustained positive demand fundamental; effective rentals increased 5.8% QoQ to RMB290.28 per sq m per month in 1Q 2012.mAjor trANsActioNs BuilDiNG China Electronics Plaza Tower B Zhongguancun Building One Indigo IFC China Overseas International Centre leAse (l) / sAle (s) S L L L L teNANt / PurcHAser A domestic buyer Panasonic Daimler Yida Real Estate China Jianyin Investment Technology AreA (sq ft) 645,800 26,900 96,900 16,100 26,100

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

BEIJING OFFICE CAPITAL AND RENTAL VALUES700.00 600.00 500.00 Rentals 400.00 300.00 200.00 100.00 0.00 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Capital Values

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

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE0.50 0.40 0.30 0.20 0.10 0.00 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

chengdu The general performance of the old office buildings was flat, while the new projects maintained strong activity and active transactions in 1Q 2012. The average rent of the Grade A office market grew 0.73% QoQ to RMB142.86 per sq m per month in 1Q 2012. Vacancy rates fell slightly to 15.51%. A total of 27,000 sq m at Square One, a brand new quality office in the prime location, was launched for lease in 1Q 2012. With positive responses from prospective tenants, a total of 16% of the promotional areas have been committed. Thanks to the typical high season, there was a total of 29,350 sq m of office space taken up in 1Q 2012, representing an increase of 40.81% compared with 4Q 2011. However, in anticipation of the prevailing uncertainty on the global economic recovery, increasing downward pressure on the market is expected during the coming months in 2012.

Million sq m

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

CHENGDU OFFICE CAPITAL AND RENTAL VALUES225.00 200.00 175.00 150.00 Rentals 125.00 100.00 75.00 50.00 25.00 0.00 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 22,500 20,000 17,500 Capital Values 15,000 12,500 10,000 7,500 5,000 2,500 0

mAjor trANsActioNs BuilDiNG Shangri-la Centre Yanlord Landmark Yanlord Landmark Yanlord Landmark Aerospace Technology Plaza leAse (l) / sAle (s) L L L L L teNANt / PurcHAser Nissan Evonik Du Pont Bayer OCBC Bank AreA (sq ft) 9,700 4,300 3,200 11,800 24,800

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

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asia pacific office market overview | 1Q 2012

cHiNAGUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE2.00 40.0%

guangzhou Leatop Plaza and G.T. Land (Tower A) in Pearl River New City were completed in 1Q 2012, adding 184,000 sq m of new office space. The total Grade A office stock reached 2.39 million sq m. Due to the completion of new stock, the overall vacancy rate rose by 1% QoQ to 20.4% in this quarter. With stable demand for offices, the average office rental increased 1.9% QoQ to RMB161.8 per sq m per month. In Tianhe, the average rental rate edged up further to RMB172.0 per sq m per month during 1Q 2012. One of the major transactions was the lease of 2,211 sq m at G.T. Land (Tower A) to Focus Media. Two Grade A office projects in Pearl River New City - R&F Yingkai Plaza and Grand International Plaza were launched for sale in 1Q 2012. Asking prices in the range between RMB35,000 to RMB40,000 per sq m were new highs for new offices in the city. Overall, the average sale prices increased 2.6% QoQ to RMB31,284 per sq m in 1Q 2012.36,000 32,000 28,000 Capital Values 24,000 20,000 16,000 12,000 8,000 4,000 0

1.50 Million sq m

30.0% Vacancy Rate

1.00

20.0%

0.50

10.0%

0.00

2009

2010Supply

2011Take-up

2012 F

2013 F

0.0%

Vacancy Rate

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES180.00 160.00 140.00 120.00 Rentals 100.00 80.00 60.00 40.00 20.00 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 0.00

Looking ahead, there will be another 691,401 sq m of new space coming on line in the next couple of quarters of 2012. The majority of the new supply will be located in the Tianhe district; particularly in the Pearl River New City. Due to the completion of new stock, the vacancy rate will see upward pressure in the near to medium term.mAjor trANsActioNs BuilDiNG G.T.Land Phase I-A G.T.Land Phase I-A R&F Center Poly Center Guangzhou IFC Onelink Hui leAse (l) / sAle (s) L L L L L L teNANt / PurcHAser Regus Consultancy (Guangzhou) Focus Media Bao Steel Group Huaqiang Guarantee Co.Ltd Investment Company Capital Group Finance (Asia) Co.Ltd AreA (sq ft) 23,800 31,000 12,900 12,600 8,600 5,400

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE1.20 20.0%

shanghai With stable demand for quality Grade A office space, average rentals edged up slightly from RMB8.2 to 8.3 per square metre per day during 1Q 2012. In particular, new projects including Lavenue in Hong Qiao and Jing An Kerry Centre Tower 3 saw significant pre-leasing activity, with over 50% of these buildings now under offer. Given the solid demand carried forward from 2011 and the large space under offer in a number of new buildings, it has become critical for occupiers to seriously plan ahead for their occupational needs over the medium to long term. It is our projection that Grade A rentals will remain positive in 2012 as demonstrated by the high pre-commitment rate of the new developments.mAjor trANsActioNs BuilDiNG Metro Tower Hong Kong New World Tower Dawning Center Jingan Kerry Center Tower 2 Shanghai Center leAse (l) / sAle (s) L L L L L teNANt / PurcHAser Cummins Invista Chrysler Michael Kors Amcham AreA (sq ft) 26,900 59,200 40,900 10,800 12,900

0.90 Million sq m

15.0% Vacancy Rate Capital Values

0.60

10.0%

0.30

5.0%

0.00

2009

2010Supply

2011Take-up

2012 F

2013 F

0.0%

Vacancy Rate

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES18.00 15.00 12.00 Rentals 9.00 6.00 3.00 0.00 72,000 60,000 48,000 36,000 24,000 12,000 0

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

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H o N G ko N GHONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE4.50 4.00 3.50 3.00 Million sq ft 2.50 2.00 1.50 1.00 0.50 0.00 2009 2010Supply

hong kong9.0% 8.0% 7.0% Vacancy Rate 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

Concerns over the stagnant US economic recovery and the global slowdown continue to dampen local business confidence and leasing demand for Grade A office premises in 1Q 2012. Accordingly, Grade A office rents saw another quarter of negative growth, down 5.5% QoQ in 1Q 2012, while Grade A office rental growth in Central saw the deepest deceleration; falling 8.9% QoQ during the quarter. However, economic woes did not startle the new set ups. Newcomers such as private equities, small hedge funds, property companies and banking and financial firms from Asia showed strong interest in starting their business in Hong Kong. In view of tighter budgets for business operations, more tenants found the current market rents beyond their affordability and chose to relocate from Central / Admiralty to other sub-districts in order to save costs. Tenant relocation continued to raise demand for office premises in non-core areas, thus stabilising the overall market performance with average Grade A office rent projected to undergo an 8% downward correction over the next 12 months.

2011Take-up

2012 F

2013 F

0.0%

Vacancy Rate

HONG KONG OFFICE CAPITAL AND RENTAL VALUES150.00 125.00 100.00 Rentals 75.00 50.00 25.00 0.00 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 30,000 25,000 20,000 15,000 10,000 5,000 0

Capital Values

mAjor trANsActioNs BuilDiNG Prosperity Tower Lincoln House iSquare Manhattan Centre Whole block, 18 Kowloon East 3 floors, Fortis Tower leAse (l) / sAle (s) L L L L S S teNANt / PurcHAser Kelly Services Hong Kong Independent Commission Against Corruption Canon HK Co Ltd World Wide Fund for Nature Hong Kong China Construction Bank G.E.W. China Holdings AreA (sq ft) 5,500 13,600 11,500 15,800 400,000 19,050

Rentals (HK$ / sq ft / Month)

Capital Values (HK$ / sq ft)

tA i wA NTAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE35,000 30,000 25,000 20,000 Ping 15,000 10,000 5,000 0 -5,000 2009 2010Supply

taipei35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

The average vacancy rate of the Grade A office market was flat at 11.29% in 1Q 2012 since the net take up was only 14 ping and total stock remained at 538,295 ping. Hsin-Yi district continued to be the star performer in terms of net take up in 1Q 2012. The net take up was 2,429 ping in the Hsin-Yi district, which made the vacancy rate drop 0.96% QoQ to 12.14%. It was the first time that the vacancy rate of the Hsin-Yi district has been lower than the MS-TN district since 2Q 2008. The total vacant area of Grade A office in Taipei was 60,791 ping. Hsin-Yi district was responsible for around 50% of the total; thus restraining the future rental performance in the district. In 1Q 2012, effective rents of all districts either went flat or declined mildly. Overall, rentals fell 0.27% QoQ to NT$2,443 per ping per month. The Hsin-Yi district was virtually flat at NT$2,833 per ping per month.mAjor trANsActioNs BuilDiNG Taipei 101 Tower Walsin Hsin Yi Building Cathay Xin-Yi Trading Center Hung Tai Financial Center leAse (l) / sAle (s) L L L L teNANt / PurcHAser Entie Commercial Bank Corp. JPMorgan Asset Management Merck Sharp & Dohme (Asia) Ltd. AXN Taiwan One, LLC. AreA (sq ft) 111,500 51,200 39,100 7,300

2011Take-up

2012 F

2013 F

-5.0%

Vacancy Rate

TAIPEI OFFICE CAPITAL AND RENTAL VALUES3,000 2,500 2,000 Rentals 1,500 1,000 500 0 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

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

Rentals (NT$ / Ping / Month)

Capital Values (NT$ / Ping)

Capital Values

asia pacific office market overview | 1Q 2012

s o u t H ko r e ASEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE600,000 500,000 400,000 sq m 300,000 200,000 100,000 0 2009 -100,000Supply Take-up Vacancy Rate

seoul12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Vacancy Rate

Six projects totalling 423,700 sq m will be coming on line in 2012, representing about 75% of the new supply of 2011. The vacancy rate of the Seoul office market decreased by 33 bps QoQ to 7.29% in 1Q 2012. The vacancy rate in the GBD and YBD has maintained stable momentum at 1.8% and 4%, respectively, while the vacancy rate in the CBD peaked at its highest level in history to 17.8% on the back of a continuous inflow of new supply. The average rent in the Seoul office market rose by 5.78% to KRW23,753 per sq m in 1Q 2012 as most landlords revised their asking rents upwards. In addition, new prime office buildings set higher rents than existing office buildings, leading to a 3 - 5% rise in the overall rent range. The demand from companies seeking to upgrade their office space led the Grade A office market in 2012. During 1Q 2012, the net take-up was 29,819 sq m. Given the availability of stock in the CBD and YBD, occupiers are actively looking to relocate and upgrade to quality developments.Capital Values

2010

2011

2012 F

2013 F -2.0%

SEOUL OFFICE CAPITAL AND RENTAL VALUES40,000 35,000 30,000 25,000 Rentals 20,000 15,000 10,000 5,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

mAjor trANsActioNs BuilDiNG Signature Tower Signature Tower Poongsan Building Sindorim Daesung D-Cube City Noon Square Cerestar Building Daechi Tower Myungdong Central Building leAse (l) / sAle (s) L L L S S S S S teNANt / PurcHAser Amorepacific Dongyang Siemens DSI CR REITs from Daesung PS KORIF Private REIT 7 Pine Tree Asset Management Nara Ace Holdings JR CR-REIT 8 AreA (sq ft) 258,800 103,500 167,200 2,237,800 254,500 1,326,200 130,900 130,900

Rentals (Won / sq m / Month)

Capital Values (Won / sq m)

jA PA NTOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE200,000 160,000 120,000 Tsubo 80,000 40,000 0 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Vacancy Rate

tokyo New supply increased modestly quarter-on-quarter. Year 2012 new supply will peak in the next quarter, likely increasing vacancy. Demand continues to moderate due to global and domestic economic issues. Relocations are increasing as tenants shift to higher grade and higher value for money properties. Rents for new leases and renewals are still modestly trending downward.

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

TOKYO OFFICE CAPITAL AND RENTAL VALUES50,000 40,000 30,000 20,000 10,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 10,000,000 8,000,000 Capital Values 6,000,000 4,000,000 2,000,000 0

mAjor trANsActioNs BuilDiNG Nakano Central Park South Marunouchi Eiraku Shinjuku Eastside Square Ochanomizu Sora City Seavans South Tower leAse (l) / sAle (s) L L L L L teNANt / PurcHAser Kirin Brewery Mitsui Sumitomo Trust Bank Square Enix Holdings Nippon Paper Group Sharp AreA (sq ft) 266,250 266,250 195,250 195,250 248,500

Rentals

Rentals (Yen / Tsubo / Month)

Capital Values (Yen / Tsubo)

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asia pacific office market overview | 1Q 2012

i N D o N es i AJAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE500,000 400,000 300,000 sq m 200,000 100,000 0 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Vacancy Rate

jakarta The new office space anticipated to be completed during 2012 will be the largest annual supply of the last ten years. Given the high pre-commitment level in most of the new office buildings, the increase in new supply is not expected to create a sharp surge of vacancy in the Grade A office market in Jakarta. After experiencing a substantial 25% growth in 2011, rental rates continued to trend upwards by around 5% QoQ during 1Q 2012. Landlords were firm with their asking rents in 1Q 2012, in view of a general tight supply situation in the market. Occupancy was maintained at a relatively stable level of around 95% and will be likely to persist given the high pre-commitment level in the new office buildings. Office space inquiries primarily come from the relocation and expansionary activities of existing tenants, such as banks, insurance, oil & gas, mining and consumer goods companies.mAjor trANsActioNs BuilDiNG Menara Bidakara The East Landmark Tower A Landmark Tower B Graha Paramita Graha Paramita Lot 18 leAse (l) / sAle (s) L L L L L L L teNANt / PurcHAser Pilar Utama Cakrawala XL BNI Prudential BenLine Asia Mineral Corporation Bank Kesawan AreA (sq ft) 32,300 21,500 8,600 10,800 12,900 2,600 52,600

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

JAKARTA OFFICE CAPITAL AND RENTAL VALUES240,000 210,000 180,000 150,000 Rentals 120,000 90,000 60,000 30,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 40,000,000 35,000,000 30,000,000 Capital Values 25,000,000

20,000,000 15,000,000 10,000,000 5,000,000 0

Rentals (Rupiah / sq m / Month)

Capital Values (Rupiah / sq m)

m A l Ays i AKUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE3.50 3.00 2.50 Million sq ft 2.00 1.50 1.00 0.50 0.00 2009 2010Supply

kual a lumpur35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% Vacancy Rate

Average prime office rents and capital values remained unchanged as the office market slowly absorbed the new supply completed in 2011. Menara 238 (formerly Menara Marinara) was completed in 1Q 2012 after its refurbishment into a purpose-built office building, contributing an additional 484,500 sq ft to the 1Q 2012 total supply. The average vacancy rate was maintained at about the same level as the previous quarter. Nevertheless, it is expected to increase with the additional supply coming on stream by the end of 2012. Continued proactive marketing efforts and tenancy offerings should facilitate in maintaining the local office market performance, albeit having to compete with the increasing competitive suburban markets.

2011Take-up

2012 F

2013 F

0.0%

Vacancy Rate

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES12.00 10.00 8.00 Rentals 6.00 4.00 2.00 0.00 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1,200 1,000 800 600 400 200 0

mAjor trANsActioNsCapital Values

BuilDiNG Bangunan KWSP Bangunan UTMSPACE

leAse (l) / sAle (s) L L

teNANt / PurcHAser Olympia College Universiti Teknologi Malaysia, School of Professional and Continuing Education

AreA (sq ft) 27,000 112,000

Rentals (Ringgit / sq ft / Month)

Capital Values (Ringgit / sq ft)

Data sourced from C H Williams Talhar & Wong Sdn Bhd

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PA k i stA NKARACHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE1.60 1.40 1.20 Million sq ft 1.00 0.80 0.60 0.40 0.20 0.00 2009Supply

k arachi80.0% 70.0% 60.0% Vacancy Rate 50.0% 40.0% 30.0% 20.0% 10.0%

The Karachi office market remained weak. No major transaction in terms of lease or sale was witnessed in 1Q 2012. The construction of new office developments is sluggish. No major development has been completed in 1Q 2012. Due to cost-cutting initiatives, occupiers are expected to look for smaller but quality developments in the next 12 months.

2010Take-up

2011

2012 FVacancy Rate

0.0%

KARACHI OFFICE CAPITAL AND RENTAL VALUES160 140 120 100 Rentals 80 60 40 20 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 16,000 14,000 12,000 Capital Values 10,000 8,000 6,000 4,000 2,000 0

Rentals (Rupee/ sq ft / Year)

Capital Values (Rupee / sq ft)

P H i l i PP i N esMANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 2009 -20,000 -40,000Supply Take-up Vacancy Rate

manil a12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Vacancy Rate

Zuellig Building (57,000 sq m) was the only office building completed in the Makati CBD in 1Q 2012, and is set to open in the next couple of months. Supply remains limited in the business district. Alphaland Makati Tower (38,400 sq m), Glorietta 1 and 2 BPO buildings (27,800 sq m each) will be the only new office buildings available in 2013. With the vacancy rate falling below 2%, premium office rental rates increased to P775 per sq m as of 1Q 2012. Landlords were confident of the strong demand in the O&O industry that may push up rental rates to over P860 per sq m by the end of 2013.mAjor trANsActioNs

2010

2011

2012 F

2013 F

-2.0% -4.0%

MANILA OFFICE CAPITAL AND RENTAL VALUES1,200 1,000 800 Rentals 600 400 200 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 120,000 100,000 80,000 60,000 40,000 20,000 0

BuilDiNGCapital Values

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

teNANt / PurcHAser GE Money Servicing Philippines Inc. Ingram Micro Philippines, LLC Sutherland Global Services

AreA (sq ft) 378,800 267,200 138,000

Vector Two 8/10 Upper McKinley Road Building Universal Harvester Corporate Center

Rentals (Peso / sq m / Month)

Capital Values (Peso / sq m)

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asia pacific office market overview | 1Q 2012

siNGAPoreSINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE2.50 2.00 1.50 1.00 0.50 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

singapore The lingering debt issues in the Euro zone and lacklustre growth in the US, Chinese and Japanese economies continued to weigh down the office leasing market in 1Q 2012. The average monthly gross rents for CBD Grade A office space fell further by 4.3% QoQ in 1Q 2012 to S$8.55 per sq ft as of the end of March 2012. Rents had fallen on the back of a dip in office space occupancy rate to 90.9% in 1Q 2012 from 91.6% in 4Q 2011. This was partly due to the completion of the 1.3 million sq ft Marina Bay Financial Centre Tower 3 in the Raffles Place / New Downtown micro-market. Take-up was slow due to the general lack of drivers for space expansion, especially from the large space occupiers in the banking and finance industries. Over the next nine months, supply and demand of office space for lease are likely to continue on their opposing paths which would put a drag on rents. However, supported by companies desire to maintain a presence in Singapore as Asia is the current growth region, the fall is expected to be capped at 15% for the whole of 2012 compared to the previous downturn, when office rents plunged 20 to 50% in 2009 alone.Capital Values

Million sq ft

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES30.00 25.00 20.00 Rentals 15.00 10.00 5.00 0.00 3,000 2,500 2,000 1,500 1,000 500 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F

mAjor trANsActioNs BuilDiNG Centennial Tower Twenty Anson leAse (l) / sAle (s) L S teNANt / PurcHAser Sumitomo Mitsui Banking Corporation Capital Commercial Trust 202,500 AreA (sq ft) 109,000

Rentals (Singapore$/ sq ft / Month)

Capital Values (Singapore$ / sq ft)

tHAilANDBANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

Bangkok Although the flooding in Bangkok between October and the end of November 2011 did not affect the office buildings in the CBD area, it might influence the decision-making of tenants and new investors. After the government announced the flood protection plan, transaction activity in the CBD increased in 1Q 2012 from the preceding quarter. Some owners plan to raise their asking rents by around 5 - 10% in 2012. Due to the flooding in 2011, some office buildings were affected in the northern part of Bangkok and some tenants relocated to the CBD areas.

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

Vacancy Rate

BANGKOK OFFICE CAPITAL AND RENTAL VALUES1,400 1,200 1,000 Rentals 800 600 400 200 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Capital Values

mAjor trANsActioNs BuilDiNG Sathorn Square Sathorn Square leAse (l) / sAle (s) L L teNANt / PurcHAser Canon Ford (Thailand) AreA (sq ft) 10,800 32,300

Rentals (Baht/ sq m / Month)

Capital Values (Baht / sq m)

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asia pacific office market overview | 1Q 2012

vietNAmHANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE120,000 100,000 80,000 sq m 60,000 40,000 20,000 0 -20,000 -40,000Supply Take-up Vacancy Rate

hanoi60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

The new massive supply coming from Keangnam Hanoi Land Mark Tower located in the non-CBD area pushed the average occupancy rate down by four percentage points to 92% in 1Q 2012. The demand for prime office space in 1Q 2012 shifted from the CBD areas to sub-urban districts since tenants were searching for sizeable office units but at a lower rental rate. Due to the strong competition in the office market, developers became flexible in rental negotiations in 1Q 2012.

2009

2010

2011

2012 F

2013 F

-10.0% -20.0%

mAjor trANsActioNs HANOI OFFICE RENTAL VALUES60 50 40 Rentals 30 20 10 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F

BuilDiNG Capital Tower Capital Tower Sentinel Place Golden Westlake Keangnam Landmark Keangnam Landmark Vincom Center - Grade B

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

teNANt / PurcHAser Vietcombank - Carif Life Insurance Deposit Insurance of Vietnam Irish Embassy United Nations Super Assembler Pacific Pantos Logistics Vietnam JGC Vietnam Techcombank

AreA (sq ft) 4,300 35,500 4,300 4,300 3,200 16,100 201,300

Rentals (US$/ sq m / Month)

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE180,000 160,000 140,000 120,000 sq m 100,000 80,000 60,000 40,000 20,000 0 -20,000 2009 2010Supply

ho chi minh cit y45.0% 40.0% 35.0% Vacancy Rate 30.0% 25.0% 20.0% 15.0% 10.0% 5.0%

The office market of Ho Chi Minh City continued to face the challenge of economic uncertainties, a lack of capital and plentiful new supply coming on line. The market witnessed the lowest rental rate for prime offices in the central business district in 1Q 2012. The average rents decreased by approximately 6% QoQ. Along with the competitive rental rates, developers offered many promotions and incentives to attract tenants such as flexible leasing terms and reasonable rent-free periods. A total of about 96,000 sq m of new supply is expected to be delivered to the office market in 2012 and may create an oversupply situation.mAjor trANsActioNs BuilDiNG Bitexco Financial Tower IPC Tower Nam A Bank Tower Bao Viet Tower leAse (l) / sAle (s) L L L L L L L L L teNANt / PurcHAser Viet Hong Investment General Company Vietsin Mapple Tree Urgo Halliburton Aeon Mall M + W Vietnam Fubon Insurance Global Home Group ABB 2,700 3,000 7,200 4,300 4,700 9,600 9,600 16,000 AreA (sq ft) 1,800

2011Take-up

2012 F

2013 F

0.0% -5.0%

Vacancy Rate

HO CHI MINH CITY OFFICE RENTAL VALUES70 60 50 Rentals 40 30 20 10 0

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

REE Tower REE Tower REE Tower REE Tower REE Tower

Rentals (US$/ sq m / Month)

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asia pacific office market overview | 1Q 2012

iNDiABENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE12.00 10.00 8.00 Million sq ft 6.00 4.00 2.00 0.00 2009 2010Supply

B engaluru (Bangalore)24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

Vacancy Rate

Approximately 0.6 million sq ft of new office space was added to the citys Grade A office market. Projects contributing to this new supply were Mantri Commercio developed by Mantri Group at Outer Ring Road (ORR) and Equinox Tech Park North Block by Essar Group in Electronic City In terms of absorption, the CBD, Whitefield and the EPIP zone remained active due to limited availability of Grade A office space in other areas such as Outer Ring Road. However, overall demand for Grade A office premises softened during the quarter. A number of tenants requiring large office spaces are preferring built-to-suit options due to limited availability of office space with large floor plate size in the market. Average Grade A office rents remained stable across all sub-markets in 1Q 2012.

2011Take-up

2012 F

2013 F

Vacancy Rate

BENGALURU OFFICE CAPITAL AND RENTAL VALUES80 70 60 50 Rentals 40 30 20 10 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

mAjor trANsActioNs BuilDiNG RMZ Centennial Embassy Star Salarpuria Adonis JPIT Park Umiya Business Bay Gopalan Millennium Tower leAse (l) / sAle (s) L L L L L L teNANt / PurcHAser Intersil Just Dial Meru Networks Tejas Networks Ericsson Atos Origin India AreA (sq ft) 17,000 11,000 35,100 90,000 22,500 125,000

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE16.00 14.00 12.00 Million sq ft 10.00 8.00 6.00 4.00 2.00 0.00 2009 2010Supply

chennai32.0% 28.0% 24.0% Vacancy Rate 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

No major Grade A office project was completed in 1Q 2012 in Chennai. Tight supply is anticipated in 1Q 2012 and 1.2 million sq ft is expected to be added to the market in the second half of the year. Demand for Grade A office space softened as occupiers remained cautious on the backdrop of the current economic outlook. Demand in the cities primarily came from companies that were looking for relocation and consolidation. Average rents in 1Q 2012 remained stable across all sub-markets.mAjor trANsActioNs BuilDiNG leAse (l) / sAle (s) L L L L L L L teNANt / PurcHAser Bank of New York Barclays Cambridge Technologies Emerson Mindtree Shriram Value Services Varam Animation AreA (sq ft) 50,000 63,000 60,000 18,000 100,000 18,000 10,000

2011Take-up

2012 F

2013 F

Vacancy Rate

CHENNAI OFFICE CAPITAL AND RENTAL VALUES80 70 60 50 Rentals 40 30 20 10 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

DLF IT Park DLF IT Park Agnitio Park Ascendas Ramanujam IT Park Independent Building Baid IT Park

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

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asia pacific office market overview | 1Q 2012

iNDiAMUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE15.00 20.0%

mum Bai Occupier demand remained steady in almost all sub-markets and only a few large space commercial leases were signed in 1Q 2012. On the supply side, no Grade A office building was completed and no new office project was being launched during the quarter. Average rents for Grade A office buildings decreased by 4.76% QoQ in 1Q 2012. The fall was primarily contributed to by the decrease in rent in the CBD of Mumbai Nariman Point, as demand shifted from this sub-market to the more established areas such as BKC and other south Mumbai locations. On the other hand, average Grade A office rents in the other sub-markets remained stable.mAjor trANsActioNs BuilDiNGCapital Values

12.00 Million sq ft

16.0% Vacancy Rate

9.00

12.0%

6.00

8.0%

3.00

4.0%

0.00

2009

2010Supply

2011Take-up

2012 F

2013 F

0.0%

Vacancy Rate

MUMBAI OFFICE CAPITAL AND RENTAL VALUES350 300 250 Rentals 200 150 100 50 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

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

teNANt / PurcHAser Altisource ANZ Liberty Insurance L'Oreal Naaptol.com Star Union Dai-ichi Life Insurance

AreA (sq ft) 137,000 6,000 30,000 71,000 32,000 67,000

Vishwaroop IT Park Boomerang Peninsula Business Park Marathon Futurex Sigma IT Park Vishwaroop IT Park

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE12.00 10.00 8.00 Million sq ft 6.00 4.00 2.00 0.00 2009 2010Supply

new delhi24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

Absorption remained relatively subdued in the CBD and SBD areas and only a few small office space leases were signed in locations such as Connaught Place, Saket and Nehru Place. However, demand in peripheral areas like Gurgaon and Noida remained steady.Vacancy Rate

The overall average Grade A office rent edged down due to the mild downward adjustment of rents in the CBD and SBD areas. In the PBD, rents remained stable. In 1Q 2012, construction activities remained slow and no new project was completed during the quarter. Several new projects were launched in the PBD area, such as Jaypee Chambers, Wave City Centre and Logix City Centre in NOIDA and One Horizon Centre and Athena in Gurgaon. All of these projects are expected to add approximately 3.5 million sq ft of Grade A office space to the citys total stock.mAjor trANsActioNs BuilDiNG leAse (l) / sAle (s) L L L L L L L L teNANt / PurcHAser Mizuho Bank Bausch & Lomb Expedia Venire Rip Tinto Oracle Hewit Barclays Shared Services AreA (sq ft) 16,000 16,000 50,000 15,000 40,600 170,000 100,000 25,500

2011Take-up

2012 F

2013 F

Vacancy Rate

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES350 300 250 Rentals 200 150 100 50 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Capital Values

DLF Capitol Point First India Place DLF Cyber Terraces DLF Cyber Terraces DLF Building 5A 3C Building 3C Building Unitech Infospace

Rentals (Rupee/ sq ft / Month)

Capital Values (Rupee / sq ft)

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asia pacific office market overview | 1Q 2012

Aust r A l i AADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE100,000 90,000 80,000 70,000 60,000 sq m 50,000 40,000 30,000 20,000 10,000 0 2009 2010Supply

adel aide10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Vacancy Rate

Due to the large amount of backfill supply due late 2012, the CBD vacancy rate is forecast to increase slightly in 1Q 2013. Views remain positive that tenant take-up will offset the majority of this backfill supply within six months, resulting in a decline in the vacancy rate by the end of 2Q 2013. Positive white collar employment growth is expected to continue. This combined with the expected expansion in the mining / resource sector is expected to help maintain the optimistic sentiment for office space. Higher rental growth is anticipated for grade A office stock over the short term. This sector experienced the largest decline in vacancy during the last six months. Investor demand remains solid for Prime quality assets, with enquiries for opportunities in the sub-AU$20 million market to continue to increase. A further tightening of yields and increase in capital value are expected from mid-2012 onwards.mAjor trANsActioNs BuilDiNG 111 Gawler Place 70 Franklin Street 45 Pirie Street leAse (l) / sAle (s) S L L teNANt / PurcHAser Private Investor Piper Alderman Norman Waterhouse AreA (sq ft) 61,300 28,000 24,000

2011Take-up

2012 F

2013 F

Vacancy Rate

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES700 600 500 Rentals 400 300 200 100 0 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F Capital Values

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE180,000 160,000 140,000 120,000 sq m 100,000 80,000 60,000 40,000 20,000 0 2009 2010Supply

B ris Bane18.0% 16.0% 14.0% Vacancy Rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

All major indicators of tenant demand are robust. Net absorption for the second half of 2011 was very strong. In fact, it was the highest on record for January 2012 (92,140 sq m). Leasing activity remains at above-trend levels, and the outlook for demand is positive due to the large volume of tenant requirements from 2012 to 2014, led by the energy and resources sector. The CBD vacancy rate tightened appreciably during 2011, and by January 2012, it had reached its lowest point since January 2009 (i.e. 6.2%). The sustained tightening in vacancy can be attributed to strong tenant demand and low levels of development completions. Vacancy is likely to increase in response to a significant amount of vacant space in the development pipeline (33,300 sq m) combined with tenant backfill space during 1H 2012. Our forecasts indicate that by mid-to-late 2012, the CBD vacancy rate may be in the order of 8%. Conditions in the investment market are firm, as reflected by solid sales volumes and a tightening bias for prime and secondary yields, which are now close to their long-term averages. Improving rental growth prospects should underpin future sales volumes and pricing. Indeed, some tightening of both prime and secondary yields during 2012 is becoming more likely.mAjor trANsActioNs BuilDiNG 111 Eagle Street 111 Eagle Street Waterfront Place 333 Ann Street leAse (l) / sAle (s) L L L S teNANt / PurcHAser ERM Power Xstrata Pilot Chartered Accountants Growthpoint Properties AreA (sq ft) 30,700 25,300 19,300 177,300

2011Take-up

2012 F

2013 F

Vacancy Rate

BRISBANE OFFICE CAPITAL AND RENTAL VALUES1,200 1,000 800 Rentals 600 400 200 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 12,000 10,000 8,000 6,000 4,000 2,000 0

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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asia pacific office market overview | 1Q 2012

Aust r A l i ACANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE80,000 70,000 60,000 50,000 sq m 40,000 30,000 20,000 10,000 0 2009 2010Supply

can Ber ra16.0% 14.0% 12.0% Vacancy Rate 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

Prime yields for CBD assets remained firm over the last two years as demonstrated by the recent sale of 50 Marcus Clarke Street. Secondary yields for CBD assets have hit the bottom of the cycle and are likely to remain steady in the short term. Government and major private tenants continue to show strong interest in securing quality accommodation. Vacancy levels have declined and will continue to fall during 2012 as demand outstrips supply. Overall, the market is relatively healthy with a likelihood of moderate growth in rents and capital values over the short term.mAjor trANsActioNsCapital Values

2011Take-up

2012 F

2013 F

Vacancy Rate

CANBERRA OFFICE CAPITAL AND RENTAL VALUES800 700 600 500 Rentals 400 300 200 100 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

BuilDiNG 202-208 & 210-212 City Walk 50 Marcus Clarke Street 12 Mort street

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

teNANt / PurcHAser Canberra Labor Club Group Foreign Investor Department of Education Employment and Workplace Relations Director of Public Prosecutions Department of Regional Australia

AreA (sq ft) 24,000 430,600 165,800

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

4 Marcus Clarke Street 140 City Walk

L L

24,800 116,600

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE180,000 160,000 140,000 120,000 sq m 100,000 80,000 60,000 40,000 20,000 0 2009 2010Supply

mel Bourne18.0% 16.0% 14.0% Vacancy Rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

The Melbourne CBD office market remained tight with continued positive net absorption and a corresponding vacancy rate. The vacancy rate declined from 5.8% in July 2011 to 5.3% in January 2012. Positive net absorption of 14,127 sq m was recorded for the six-month period ending January 2012. Following a period of strong rental growth in 2010 and early 2011, rental growth remained moderate from mid 2011. The Investment sales market also performed well throughout 2011, with 12 major transactions totalling AU$1.27 billion.

2011Take-up

2012 F

2013 F

Vacancy Rate

MELBOURNE OFFICE CAPITAL AND RENTAL VALUES700 600 500 Rentals 400 300 200 100 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Capital Values

mAjor trANsActioNs BuilDiNG 120 Collins Street 555 Bourke Street 818 Bourke Street 161 Collins Street leAse (l) / sAle (s) S L L L teNANt / PurcHAser Investa Commercial Property Fund Holding Redlich Medibank Griffith Hack Patent Attorneys 70,000 41,100 34,300 AreA (sq ft) 348,900

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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asia pacific office market overview | 1Q 2012

Aust r A l i APERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE200,000 12.0%

perth The Perth CBD is now one of the tightest office markets in the world and among the top-ten most expensive cities globally in a recent survey. It has recently risen through the ranks to become the most expensive city in Australia.Vacancy Rate

150,000

9.0%

sq m

100,000

6.0%

50,000

3.0%

Net absorption was strong in the second half of 2011 and is anticipated to remain strong during the first half of 2012. Strong state investment expenditure in the resources sector, particularly oil and gas projects, is expected to remain the key driver for office space demand in 2012. Due to the low vacancy and sustained prospective demand, a number of new projects in the next supply cycle are actively seeking for pre-commitments.mAjor trANsActioNs BuilDiNG 41 St Georges Terrace, Perth leAse (l) / sAle (s) S S S teNANt / PurcHAser Wakefield Properties Pty Ltd AMP Capital Wholesale Office Fund Commonwealth Superannuation Corporation Board ASIC Bendigo Bank Minter Ellison AreA (sq ft) 30,100 370,200 687,700

0

2009

2010

2011

2012 F

2013 F

0.0%

-50,000Supply Take-up Vacancy Rate

-3.0%

PERTH OFFICE CAPITAL AND RENTAL VALUES1,000 900 800 700 Rentals 600 500 400 300 200 100 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Capital Values

Exchange Plaza, 2 The Esplanade, Perth (50% Sale) QV1, 250 St Georges Terrace, Perth (50% Sale) 66 St Georges Terrace, Perth St Georges Square, 225 St Georges Terrace, Perth Allendale Square, 77 St Georges Terrace, Perth

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

L L L

25,600 10,000 27,900

SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE200,000 150,000 100,000 sq m 50,000 0 -50,000 -100,000 -150,000Supply Take-up Vacancy Rate

sydney12.0% 9.0% 6.0% 3.0% 0.0% -3.0% -6.0% -9.0% Vacancy Rate

V acancy rates declined slightly during 1Q 2012, since no new supply entered the market amid the prevailing trend of steady demand. Prime office rentals saw a slight growth as the market continued to tighten. The leasing market continued to see moderate tenant demand in 1Q 2012, as a number of significant leases were signed during 1Q 2012. Face rents have begun to show signs of growth, while incentives continue to track downwards. There was only one major investment sales in the Sydney CBD over the course of 1Q 2012, leading to the stabilisation of yields and capital values.

2009

2010

2011

2012 F

2013 F

SYDNEY OFFICE CAPITAL AND RENTAL VALUES1,600 1,400 1,200 1,000 Rentals 800 600 400 200 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 0 16,000 14,000 12,000 Capital Values 10,000 8,000 6,000 4,000 2,000 0

mAjor trANsActioNs BuilDiNG 2 Park Street, Sydney 280 Elizabeth Street, Sydney leAse (l) / sAle (s) L L teNANt / PurcHAser Turks Legal Brown-Forman Australia Pty Limited AreA (sq ft) 20,500 14,100

Rentals (Australian $/ sq m / Year)

Capital Values (Australian $ / sq m)

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New zeAlANDAUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE40,000 30,000 20,000 sq m 10,000 0 -10,000 -20,000Supply Take-up Vacancy Rate

auckl and16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0%

Vacancy Rate

According to the Investment Property Databank / Property Council of New Zealand (IPD / PCNZ) December quarterly update, the overall commercial property market recorded a total return of 8.4% for the year ending December 2011. Office investment performance improved significantly to a total return of 8.9% compared with 4.6% recorded in December 2010. Overall prime office vacancy stood at 9.9% in the Auckland CBD in December 2011, down from the 11.9% recorded six months ago. Vacancy is expected to drop over the next six months to about 9.4% before heading up to peak levels of around 13.7% in 2013. Net prime rents were NZ$307 per sq m in March 2012 and are expected to increase to NZ$313 per sq m over the next 12 months.

2009

2010

2011

2012 F

2013 F

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES600 500 400 Rentals 300 200 100 0 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F

Investment activity remained modest. Prime yields were held stable at around 8.7% in March 2012 and are expected to remain static over the next 12 months.mAjor trANsActioNs BuilDiNG 139 Quay Street Cook Street Depot* Site area

Capital Values

leAse (l) / sAle (s) S S

teNANt / PurcHAser Private Investor Private Investor

AreA (sq ft) 110,300 312,200*

Rentals (New Zealand $/ sq m / Year)

Capital Values (New Zealand $ / sq m)

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE60,000 50,000 40,000 sq m 30,000 20,000 10,000 0 -10,000Supply Take-up Vacancy Rate

wellington6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0%

In Wellingtons CBD, office vacancy continued to rise and stood at 12.9% in December 2011. Prime office vacancy stood at 4.1% in December 2011, up from 2.7%, which was recorded six months ago and is expected to increase further over the next year. Prime investment yields remained stable at 8.3% in the March 2012 quarter. Yields are expected to remain at current levels over the next 12 months. One noticeable sale occurred during the review period when DNZ Property Fund sold the Lumley House at 3-11 Hunter Street in Wellington to Grand Central for over NZ$20 million, an 11.3% yield. Prime net face rents were at NZ$343 per sq m in March 2012. We expect to see a noticeable improvement in prime rents (about 2.0% growth) over the next 12 months.Vacancy Rate

2009

2010

2011

2012 F

2013 F

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES600 500 400 Rentals 300 200 100 0 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F

mAjor trANsActioNs BuilDiNG Lumley House, 3-11 Hunter StreetCapital Values

leAse (l) / sAle (s) S L

teNANt / PurcHAser Grand Central Optimation NZ

AreA (sq ft) 89,900 12,900

215 Lambton Quay

Rentals (New Zealand $/ sq m / Year)

Capital Values (New Zealand $ / sq m)

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asia pacific office market overview | 1Q 2012 Pr i m e o ff il i A e w s uPP ly Aust r A c e N

FLOOR AREA (MILLION SQ FT) 0.00 Guangzhou Bengaluru New Delhi Tokyo Mumbai Seoul Shanghai Chengdu Chennai Jakarta Beijing Melbourne Kuala Lumpur Perth Hong Kong Manila Sydney Hanoi Taipei Brisbane Adelaide Singapore Canberra Karachi Ho Chi Minh City Auckland Bangkok 2012F 2013 F 5.00 10.00 15.00 20.00 25.00

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

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asia pacific office market overview | 1Q 2012 Pr i m e o ff il i A e N tA l Aust r A c e r

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

Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"

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asia pacific office market overview | 1Q 2012 t r e N D s & fo r ec A s t scity New supply (sq ft) 2012 f 2013 f take-up (sq ft) 2012 f 2013 f Average vacancy (%) 2012 f 2013 f total stock (sq ft) 2012 f 2013 f Average rentals (us$ / sq ft / year) 2012 f 2013 f

BeijiNGCBD Zhongguancun Financial Street Lufthansa East Chang An Avenue East 2nd Ring Other areas 0 0 0 0 0 0 0 2,152,780 0 0 0 0 1,521,251 0 588,570 66,908 -22,680 70,902 -58,782 -614,199 712,376 -13,175 4,047 4,855 11,216 25,231 760,631 48,814 5.4 0.2 0.4 2.0 1.9 1.2 12.5 14.5 0.2 0.3 1.9 1.5 20.1 8.2 20,543,097 22,695,877 8,095,529 9,700,524 7,477,089 6,307,064 2,409,736 1,151,307 8,095,529 9,700,524 7,477,089 6,307,064 3,930,987 1,151,307 64.67 43.37 65.06 48.54 46.63 47.03 44.53 71.63 46.84 68.84 54.37 49.19 45.85 47.21

cHeNGDuRenmin Road CBD Financial Street Tianfu Avenue 463,224 814,235 914,932 1,076,390 1,614,585 0 0 3,110,767 221,306 215,859 301,389 344,445 1,156,493 261,166 346,816 1,874,748 30.8 22.1 49.0 68.0 30.0 13.0 24.5 47.0 3,412,027 2,861,637 1,415,733 1,076,390 5,026,612 2,861,637 1,415,733 4,187,157 27.45 27.10 26.57 23.03 29.05 28.69 28.34 24.80

GuANGzHouYuexiu Tianhe Haizhu 0 8,865,719 557,010 0 9,901,819 0 103,226 6,119,245 349,310 89,803 6,735,984 213,136 7.0 24.8 34.7 5.1 26.8 25.2 4,683,244 2,244,693 4,683,244 2,244,693 19.66 30.82 17.71 19.48 30.64 17.71 26,194,575 36,096,394

sHANGHAiHuangpu Jingan Lujiazui-Pudong Zhuyuan-Pudong Changning Xuhui 0 1,523,092 1,675,896 1,506,214 1,295,156 0 0 0 823,438 0 1,197,484 0 9,178 871,047 189,997 1,264,372 1,651,432 9,744 8,810,591 8,263,604 17,046,176 4,619,912 5,738,759 4,501,617 4.2 11.8 15.7 10.8 14.0 7.6 4.0 9.6 9.8 9.5 11.0 7.6 9,177,699 9,141,156 18,898,201 5,104,876 6,446,597 4,871,881 9,177,699 9,141,156 19,721,639 5,104,876 7,644,080 4,871,881 51.94 56.57 47.89 36.84 37.42 47.24 56.87 61.93 52.44 40.33 40.97 51.72

HoNG koNGCentral Wanchai HK Island East Tsim Sha Tsui Kowloon East 191,250 339,584 0 0 616,201 0 0 0 0 886,684 -178,712 169,792 -29,236 -45,969 260,172 76,533 50,777 25,118 11,200 348,436 5.9 3.4 4.4 3.7 14.9 5.6 3.0 4.2 3.5 18.9 21,686,414 11,434,851 10,854,774 6,361,390 9,294,358 21,686,414 11,434,851 10,854,774 6,361,390 10,181,042 142.03 101.85 68.56 77.49 54.66 146.29 107.96 74.04 82.14 59.09

tAiPeiCBD 391,322 930,527 469,746 510,237 10.7 12.2 19,540,991 20,471,518 28.05 28.35

seoulCBD GBD YBD 1,305,406 1,024,365 1,999,795 2,913,771 0 1,815,786 3,116,272 950,641 1,335,816 1,636,931 -167,252 2,668,909 8.5 1.7 12.1 8.6 2.3 5.3 36,378,758 18,299,601 38,221,832 20,115,387 27.00 23.90 20.58 27.64 24.98 21.67 28,224,689 28,224,689

tokyoCBD 6,748,551 4,431,224 N/A N/A 8.0 8.5 N/A N/A 102.60 104.66

jAkArtACBD Non-CBD 3,865,650 2,447,668 2,560,796 2,868,870 2,443,578 1,369,330 1,842,134 2,034,549 10.1 15.0 11.0 17.0 50,970,360 53,531,157 24.38 17.18 26.39 18.05 22,706,619 25,575,489

kuAlA lumPurKLCA 2,187,000 623,600 1,252,000 1,000,000 14.5 13.1 32,727,000 33,351,000 25.26 25.26

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asia pacific office market overview | 1Q 2012 t r e N D s & fo r ec A s t scity New supply (sq ft) 2012 f 2013 f take-up (sq ft) 2012 f 2013 f Average vacancy (%) 2012 f 2013 f total stock (sq ft) 2012 f 2013 f Average rentals (us$ / sq ft / year) 2012 f 2013 f

kArAcHiCBD 440,000 N/A 100,000 N/A 40.0 N/A 15,231,929 N/A 1.10 N/A

mANilAMakati Ortigas 617,342 0 413,334 876,074 773,031 67,748 446,648 677,921 2.8 3.6 2.4 6.4 9,934,477 4,961,404 10,347,811 5,837,489 20.09 14.70 22.30 15.24

siNGAPoreCBD 745,246 141,759 690,039 104,340 8.4 8.5 23,453,303 23,595,062 74.90 70.11

BANGkokCBD 0 0 538,195 645,834 16.0 14.5 17,580,646 17,580,646 24.58 25.66

HANoiCBD Non-CBD 394,152 622,046 0 750,351 21,528 409,028 32,292 559,723 5.0 68.0 7.0 45.0 2,110,941 1,640,418 2,110,941 2,390,770 44.59 26.76 42.36 24.53

Ho cHi miNH cityCBD 1,033,334 1,301,528 519,369 539,304 27.0 38.0 2,552,723 3,854,251 34.28 28.75

BeNGAluruOverall 7,534,498 5,084,000 7,000,000 6,500,000 13.0 11.0 84,761,673 89,845,673 11.02 11.49

cHeNNAiOverall 4,000,000 3,000,000 5,000,000 4,500,000 21.0 21.0 42,512,483 45,512,483 11.26 11.26

mumBAiOverall 4,200,000 5,000,000 6,000,000 5,000,000 15.0 16.0 98,658,000 103,658,000 42.22 42.22

New DelHiOverall 6,000,000 5,800,000 4,500,000 4,000,000 16.5 16.0 70,404,158 76,204,158 40.11 40.11

ADelAiDeCBD 193,750 818,056 75,347 269,098 7.7 9.5 14,053,811 14,845,011 33.94 35.73

BrisBANeCBD 1,100,071 209,896 642,605 306,771 7.1 5.2 11,354,235 11,564,131 56.27 58.50

cANBerrACBD 226,042 355,209 215,278 236,806 6.0 9.8 3,013,892 3,369,101 36.62 37.06

melBourNeCBD 1,446,464 1,442,363 819,919 1,668,361 6.0 4.9 21,111,743 36,772,798 32.51 33.49

PertHCBD 1,785,688 508,788 1,237,849 430,556 3.6 3.6 16,880,831 17,322,516 71.45 71.45

syDNeyCBD 504,256 1,317,060 342,884 739,179 7.8 8.0 27,030,758 28,044,276 68.64 73.15

AucklANDCBD 131,589 0 81,655 -123,354 10.1 13.7 4,581,277 4,738,968 23.69 24.22

welliNGtoNCBD 0 0 6,383 -3,035 3.8 5.5 3,119,841 3,119,841 26.65 26.65

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D e f i N i t i o N A N D t e r m i N o lo Gy GreAter cHiNABeijing Prime office market in beijing consists of 6 sub-markets cbD (central business District), lufthansa, east 2nd ring, financial street, east chang an avenue and Zhongguancun. rents are quoted in rMb per sq m per month on gross floor area basis, and exclusive of management fees and rent free period. capital values are quoted on rMb per sq m. chengdu Prime office buildings in chengdu are mainly located in 3 sub-markets, renmin road, cbD and financial street. rents are quoted in rMb per sq m per month on gross floor area basis, and exclusive of management fees. capital values are quoted on rMb per sq m. Guangzhou Prime office buildings in guangzhou are located in 3 principal sub-markets Haizhu, Yuexiu and tianhe. rents are quoted in Us$ per sq m per month on gross floor area basis, and exclusive of any management fees and government taxes. capital values are quoted on Us$ per sq m. shanghai Prime office buildings in shanghai are located in 6 principal sub-markets Huangpu, Jingan, lujiazu-Pudong, Zhuyuan-Pudong, changning, and Xuhui. rents are quoted in rMb per sq m per day on gross floor area basis, and exclusive of any management fees. capital values are quoted on rMb per sq m. Hong kong Prime office properties in Hong kong are concentrated in 5 sub-markets central, wanchai / causeway bay, island east, tsim sha tsui and kowloon east. rents are commonly quoted in Hk$ per sq ft per month on either gross, net or lettable floor area basis, which are exclusive of management fees, and government tax. Prices are quoted in Hk$ per sq ft, and are measurable on gross floor area basis. taipei Prime office properties in taipei are concentrated in 7 districts, comprising nanking sung chiang (nk-sc), Minsheng tun Hwa north (Ms-tn), Hsin Yi, west, tun Hwa south (tUn-s), Jen ai Hsin sheng (Ja-Hs) and nanking east road (nk-4/5). the local unit of measurement is a ping (i.e. 3.3 sq m). rents and prices are quoted in local currency i.e. new taiwan Dollar (nt$) on gross floor area basis.

NortH AsiAseoul Major office districts in seoul include the traditional central business area (cbD), gangnam business District (gbD) and Yeouido business District (YbD). rents are quoted in won per sq m per month on gross floor area basis. generally, a deposit equivalent to 10 months is required, and is usually paid up front. Management fees are excluded from quoted rents. space is measured on gross floor area basis. capital values are quoted in won per sq m. tokyo the quality office buildings in tokyo are located in the central business area (cbD) area covering six wards namely, chiyoda-ku, chuo-ku, Minato-ku, shinjuku-ku, shibuya-ku and shinagawa-ku. rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month, which are inclusive of service charges. Office space is measured on an internal floor area basis. capital values are quoted in Yen per tsubo.

soutHeAst AsiAjakarta the quality office buildings in Jakarta are located in the cbD covering the districts thamrin, sudirman, gatot subroto, rasuna said and Mega kuningan. the areas outside the above districts are collectively called as non-cbD. rents are commonly quoted in rupiah per sq m per month, which are inclusive of service charges but exclusive of government taxes. Office space is measured on lettable floor area basis. capital values are quoted in rupiah per sq m. kuala lumpur Prime office buildings located in the kuala lumpur central area (klca) only. the klca comprises areas generally within the central business district. rents are commonly quoted in ringgit Malaysia (rM) per sq ft per month on net floor area basis, which are inclusive of service charges and property taxes. capital values are quoted in ringgit per sq ft. karachi Prime office buildings in karachi are located in the central business area (cbD) covering 4 sub-markets i.i chundrigar road, shahrah-e-faisal, clifton and Mai kolachi. rents are quoted in rupee per sq ft per year on gross floor area basis and are exclusive of service charges or management fee. capital values are quoted in rupee per sq ft.

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D e f i N i t i o N A N D t e r m i N o lo Gymanila Prime office buildings in Manila are located in two principal sub-markets Makati and Ortigas. rents are quoted in Peso per sq m per month on net floor area basis, and exclusive of any management fees. capital values are quoted in Peso per sq m. singapore the quality office buildings covered in the report are located in the central business District of singapore. rents are quoted in s$ per sq ft per month on net floor area basis (i.e. area less common areas such as corridors, toilets, lift lobby etc. but including columns), and are inclusive of service charge. capital values are quoted on the basis of strata area for strata-titled buildings, and net area for nonstrata-titled developments. Bangkok Prime office properties in bangkok are located in a wide area encompassing eastern silom and sathorn roads starting from narathiwas ratchanakarin, rama iv from Phayathai to ratchadaprisek, along ratchadaprisek from rama iv to sukhumvit and along sukhumvit from asoke to the whole of Pleonchit and then rama i to Phayathai. rents are quoted in baht per sq m per month on a net floor area basis, and inclusive of service charges. capital values are quoted in baht per sq m. Ho chi minh city the quality office buildings in Ho chi Minh city are located in District One - the central business district in the city. rents are commonly quoted in Us$ per sq m per month on net floor area basis, and exclusive of management fees and government tax. capital values are quoted on Us$ per sq m. Hanoi Prime quality office building in Hanoi are mostly located in Hoan kiem district, with individual quality buildings located in cau giay district and ba Dinh district. the central location of the city is perceived as being close to Hoan kiem lake, which is within Hoan kiem district. rents are commonly quoted in Us$ per sq m per month on net floor area basis. rents are inclusive of service charges and exclusive of value added tax, which is currently at 10% level. rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. chennai Prime office properties in chennai are located in 3 principal submarkets cbD (central business District), (suburban/secondary business District) and PbD (Peripheral business District). sbD consists of guindy and velechery while PbD includes other areas such as Old Mahaballipuram road, ambattur and gst road amongst others. rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. mumbai Prime office properties in Mumbai are primarily concentrated in cbD (central business District) consist of nariman Point, ford and ballard estate; sbD (secondary business District) including bandra (west and east), kalina, lower Parel and worli/Prabhadevi and PbD (Peripheral business District) including navi Mumbai, vashi, Powai, goregaon. rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. New Delhi Prime office properties in new Delhi are primarily concentrated in cbD (central business District) consist of connaught Place; sbD (secondary business District) including nehru Place, Jasola, saket and netaji subhash Place and PbD (Peripheral business District) including gurgaon and noida. rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis.

AustrAlAsiAAustralia Prime office buildings are located in the cbD and generally favoured by Mncs. rents are quoted on net floor area basis, and in a$ per sq m per annum excluding management fee and government charges. capital values are quoted on a$ per sq m. New zealand Prime office buildings are located in the cbD. rents are quoted on net floor area basis, and in nZ$ per sq m per annum excluding management fee and government charges. capital values are quoted on nZ$ per sq m.

iNDiABengaluru (Bangalore) Prime office properties in bengaluru are can be divided in 3 principal submarkets cbD (central business District), sbD (suburban/secondary business District) consisting of bannerghatta road & Outer ring road and PbD (Peripheral business District) including PbD Hosur road, ePiP Zone, electronic city and whitefield.

*

Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretakers office/flat throughout the building. ** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.

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for further details, please contact:greater chinaBeijing, china 502 tower w3, Oriental Plaza no 1 east changan avenue Dongcheng District beijing 100738 tel : 86 10 8518 1633 fax : 86 10 8518 1638 Amanda Gao Managing Director, north china amanda.gao@colliers.com chengdu, china Unit 1504 Yanlord landmark 1 renmin south road section 2 chengdu 610016 tel : 86 28 8658 6288 fax : 86 28 8672 3226 jacky tsai general Manager jacky.tsai@colliers.com Guangzhou, china 702 teem tower 208 tianhe road guangzhou 510620 tel : 86 20 3819 3888 fax : 86 20 3819 3899 eric lam Managing Director eric.lam@colliers.com shanghai, china 16f Hong kong new world tower 300 Huaihai Zhong road shanghai 200021 tel : 86 21 6141 3688 fax : 86 21 6141 3699 lina wong Managing Director east and south west china investment services, china lina.wong@colliers.com Hong kong, HksAr 5701 central Plaza 18 Harbour road wanchai, Hong Hong tel : 852 2828 9888 fax : 852 2828 9899 richard kirke (e-279867) Managing Director richard.kirke@colliers.com Piers Brunner (e-183614) chief executive Officer - asia piers.brunner@colliers.com taipei, taiwan 49f taiPei 101 tOwer no. 7 Xin Yi road sec 5, taipei 110 tel : 886 2 8101 2000 fax : 886 2 8101 2345 Andrew liu Managing Director andrew.liu@colliers.comcompany licence no: c-006052

north asiaseoul, south korea 10f korea tourism Organization bldg. 10 Da-dong Jung-gu, seoul 100-180 tel : 82 2 6740 2000 fax : 82 2 318 2015 jay yun senior Director & general Manager jay.yun@colliers.com tokyo, japan Halifax building 3-16-26 roppongi Minato-ku, tokyo 106-0032 Japan tel : 81 3 5563 2111 fax : 81 3 5563 2100 james fink senior Managing Director james.fink@colliers.co.jp

karachi, Pakistan suite 2-a, level 2, Harbour House 37-a, lalazar avenue beach Hotel road, Off. M.t khan road karachi, Pakistan tel : 92 21 3561 2550-2 fax : 92 21 3563 6382 mohammed yasir Qidwai senior Manager, corporate solutions & research research.khi@colliers.com lahore, Pakistan suite 2, Mezzanine 2, executive floors al-Qadir Heights, Main boulevard new garden town, lahore, Pakistan tel : 92 42 3584 3474-6 fax : 92 21 3563 6382 Ahmed khan country Manager ahmed.khan@colliers.com islamabad, Pakistan One constitution avenue, adjacent convention centre & Diplomatic enclave islamabad, Pakistan tel : 92 51 834 7433 fax : 92 51 831 4737 waleed murrawat regional sales Manager waleed.murrawat@colliers.com manila, Philippines 10f tower 2 rcbc Plaza ayala avenue, Makati city Philippines1226 tel : 63 2 888 9988 fax : 63 2 845 2612 David young Managing Director david.a.young@colliers.com singapore 1 raffles Place #45-00 One raffles Place singapore 048616 tel : 65 6223 2323 fax : 65 6222 4901 Dennis yeo Managing Director singapore & industrial services | asia dennis.yeo@colliers.com Bangkok, thailand 17/f Ploenchit center 2 sukhumvit road klongtoey, bangkok 10110 tel : 66 2 656 7000 fax : 66 2 656 7111 simon landy executive chairman simon.landy@colliers.com

south east asiajakarta, indonesia 10f and 14f world trade centre Jl Jenderal sudirman kav 29-31 Jakarta 12920 tel : 62 21 521 1400 fax : 62 21 521 1411 mike Broomell Managing Director mike.broomell@colliers.com kuala lumpur, malaysia c/o mark lampard* Managing Director corporate solutions | asia Pacific te : 65 6531 8601 fax : 65 6557 0649 mark.lampard@colliers.com * based in singapore Research data provided by c H williams talhar & wong sdn Bhd 30-01, 30th floor Menara Multi-Purpose @ capsquare 8 Jalan Munshi abdullah P O box 12157 50100 kuala lumpur, Malaysia tel : 603 2616 8888 fax : 603 2616 8899 Url : http://www.wtw.com.my foo Gee jen Managing Director fgj@wtw.com.my

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

mumbai, india 31-a, 3rd floors, film centre 68 tardeo road Mumbai 400 034 tel : 91 22 4050 4500 fax : 91 22 2351 4272 Prabhu raghavendra Office Director prabhu.raghavendra@colliers.com George mckay south asia Director Office & integrated services george.mckay@colliers.com New Delhi, india 204/205, 2nd floor kanchenjunga building 18 barakhamba road new Delhi 110 001 tel : 91 11 4360 7500 fax : 91 11 2335 6624 Ajay rakheja Office Director ajay.rakheja@colliers.com Pune, india bramha luxury Hotels ltd. (le Meridien Pune) 101 r.b.M. road Pune 411 001, Maharashtra tel : 91 20 4120 6435 fax : 91 20 4120 6434 suresh castellino Office Director suresh.castellino@colliers.com

canberra, Australia ground floor, 21-23 Marcus clarke street canberra act 2601 tel : 61 2 6257 2121 fax : 61 2 6257 2937 Paul Powderly state chief executive paul.powderly@colliers.com melbourne, Australia level 32 367 collins street Melbourne vic 3000 tel : 61 3 9629 8888 fax : 61 3 9629 8549 john marasco state chief executive john.marasco@colliers.com Perth, Australia level 19, 140 st georges terrace Perth wa 6000 tel : 61 8 9261 6666 fax : 61 8 9261 6665 k. imran mohiuddin state chief executive imran.mohiuddin@colliers.com sydney, Australia level 12, grosvenor Place 225 george street sydney nsw 2000 tel : 61 2 9257 0222 fax : 61 2 9251 3297 malcom tyson state chief executive malcom.tyson@colliers.com Auckland, New zealand saP tower, level 27 151 Queen street auckland 1140 tel : 64 9 358 1888 fax : 64 9 358 1999 mark synnott chief executive Officer, new Zealand mark.synnott@colliers.com wellington, New zealand level 10, 36 customhouse Quay wellington 6011 tel : 64 4 473 4413 fax : 64 4 499 1550 (agency) : 64 4 470 3902 (valuation) richard findlay Managing Director richard.findlay@colliers.com

indiaBengaluru, india Prestige garnet, level 2, Unit no. 201/202 36 Ulsoor road, bengaluru 560 042 tel : 91 80 4079 5500 fax : 91 80 4112 3131 Goutam chakraborty Office Director goutam.chakraborty@colliers.com chennai, india Unit 1c, 1st floor, Heavitree complex 23 spurtank road, chetpet chennai 600 031 tel : 91 44 2836 1064 fax : 91 44 2836 1377 kaushik reddy Office Director kaushik.reddy@colliers.com Gurgaon, india 1st floor, technopolis building Dlf golf course Main sector road sector 54, gurgaon 122 002 tel : 91 124 4375807 fax : 91 124 4375806 Ajay rakheja Office Director ajay.rakheja@colliers.com kolkata, india infinity business centre, infinity benchmark level 18, room no 13, Plot g - 1 block eP & gP, sector v, salt lake kolkata 700 091, west bengal tel : 91 33 2357 6501 fax : 91 33 2357 6502 soumya mukherjee Office Director soumya.mukherjee@colliers.com

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

You are receiving this collateral because you either subscribed for it or expressed your interest to receive it at some point to Colliers International. If you do not wish to receive future communications from us, please contact Colliers International by email at unsubscribe.hongkong@colliers.com. with your name and item to unsubscribe This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). 2012. All rights reserved. Colliers International is a leading global real estate services company.

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real estate is a location business. thats why we do business where you do business.

reveNues

couNtries

offices

1.8BILLION

62 52212,300 1,250 million* 76,000 $68 billion

Professionals & staff: Square feet managed: Lease/sale transactions: Total transaction value:

Colliers International is a leading global real estate services organisation defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our partners. Our headquarters in Seattle, Washington and more than 522 offices worldwide share a common brand and vision to provide the best service experience available. With expertise in the major markets, Colliers is also committed to providing our clients with access to emerging markets in Asia, Eastern Europe and Latin America.

AsiA PAcific

* The combination of Colliers International and FirstService results in 2.55 billion under management - 2nd largest in the world.

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| colliers iNterNAtioNAl

www.colliers.com