Asia Pacific Regional Office Market Report Q1 2010

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Review of the Asia Pacific office market. Including rentals, occupancy, transactions.

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Asia Pacific Office Market OverviewREGIONAL RESEARCHQ U A RT E R LY U P DAT E | A P R I L | 2 0 1 0

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

CONTENTSRegional Overview .....................................................................3 Greater China ..........................................................................4-6Beijing, China ...................................................................................................... 4 Chengdu, China ................................................................................................. 4 Guangzhou, China ............................................................................................. 5 Shanghai, China .................................................................................................. 5 Hong Kong SAR, China .................................................................................... 6 Taipei, Taiwan ...................................................................................................... 6

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

Southeast Asia ...................................................................... 8-10Jakarta, Indonesia ............................................................................................... 8 Kuala Lumpur, Malaysia ..................................................................................... 8 Manila, Philippines.............................................................................................. 9 Singapore ............................................................................................................ 9 Bangkok, Thailand ............................................................................................ 10 Ho Chi Minh City, Vietnam ............................................................................ 10

India ..................................................................................... 11-12Bangalore .......................................................................................................... 11 Chennai ............................................................................................................. 11 Mumbai .............................................................................................................. 12 New Delhi ........................................................................................................ 12

Australasia .......................................................................... 13-16Adelaide, Australia ........................................................................................... 13 Canberra, Australia ......................................................................................... 13 Melbourne, Australia ....................................................................................... 14 Perth, Australia ................................................................................................. 14 Sydney, Australia .............................................................................................. 15 Auckland, New Zealand ................................................................................. 16 Wellington, New Zealand .............................................................................. 16

Prime Office Rentals ................................................................17 Trends & Forecasts ............................................................. 18-19 Definitions & Terminology ................................................. 20-21 Contacts .............................................................................. 22-23

2

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

REGIONAL OVERVIEWMarket RevivalAttributed largely to the relaxed monetary measures adopted by various central governments, the ease of credit and the sustained low interest rates, the regions economy continued to move ahead with its recovery in 1Q2010. With a stronger-than-expected pace of recovery registered in a number of centres in 1Q2010, the regions economy has been returning gradually to its pre-crisis levels. Against this favourable economic backdrop and the sustained positive market sentiment boosted by the performance of a number of asset and equity markets, the office real estate market in the region displayed corresponding positive signs, with a measurable revival in demand during the period.

Leasing Trends

A number of multinational corporations have been encouraged by the stronger-thananticipated economic conditions to re-activate their real estate plans, which had been largely put on hold immediately after the crisis hit. In Hong Kong, companies engaged in the financial sector were bold in committing to new space in 1Q2010 thanks in part to the return of hedge funds and private equities. In Beijing, domestic corporations engaged in the finance, technology and services sectors were particularly active in securing their office addresses. Elsewhere, in India, occupational demand improved across both IT and non-IT sectors as occupiers moved pre-emptively to secure new leases before rentals increase again from their cyclical lows in 1Q2010. The trend towards a flight to quality remained popular in many cities, with plenty of brand new space coming up for lease especially in decentralised locations. Overall, the leasing market in the region revived, with rentals edging up by 0.9% quarter-on-quarter in 1Q2010 the first positive quarterly growth registered in the past one and a half years.

Sales Market

On the sales front, the investment demand for office real estate remained strong notwithstanding the continued compression of investment yields in 1Q2010. Local private investors continued to be one of the key groups of players. In addition, there were initial signs of a return of real estate funds into the market. In China, the highlight was the sale of Gateway Plaza, a prime office building comprising 131,575 sq m in the Lufthansa precinct, to the Mapletree India China Fund for a total consideration of US$425 million (RMB2.9 billion). Elsewhere in Australasia, Aviva Investors acquired 80 Clarence Street in Sydney for US$27.86 million (AU$29.95 million).

Market Outlook

Looking ahead, the demand for office real estate in the region continues to gather strength on the back of further economic growth expected over the next couple of years. Despite the projection that interest rates might edge up again, possibly in the latter part of 2010, the prospective rate hike by virtue of market consensus will be mild. In addition, with expectations of a further catch-up of rentals, the current price level across various key centres continues to represent an attractive entry point in the present real estate cycle, despite the challenge of compressed investment yields.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

3

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

CHINABeijing Phoenix Place I in Lufthansa was completed in 1Q2010, adding 32,000 sq m of new office space to the stock. Despite the new release, the overall vacancy rate dropped by 0.88 percentage points to 16.27% as at the end of 1Q2010 on the back of an active leasing market. With growing leasing demand from multinational corporations, the market saw an increase in transactions in 1Q2010. For example, Halliburton and Sumitomo Pharmaceuticals took up 3,800 sq m and 2,300 sq m, respectively, in the World Financial Centre and Raffles City. Meanwhile, domestic corporations engaged in the finance, technology and services sectors also contributed to the revival of demand in 1Q2010. Prime office rent edged up 1.06% quarter-on-quarter (QoQ) to RMB166.49 per sq m per month in 1Q2010 on an effective basis as a result of improving market sentiment and a general reduction in the rent-free period by most landlords. On the investment front, the key highlight in 1Q2010 was the transaction of The Gateway Plaza. The development, comprising a total gross floor area of 131,575 sq m in the Lufthansa precinct, was sold by RREEF China Commercial Trust to the Mapletree India China Fund for a total consideration of RMB2.9 billion.Capital Values

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE3.00 2.50 2.00 Million sq m 1.50 1.00 0.50 0.00 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

BEIJING OFFICE CAPITAL AND RENTAL VALUES400.00 350.00 300.00 250.00 Rentals 200.00 150.00 100.00 50.00 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Building Gateway Plaza World Financial Centre Tengda Building Raffles City Raffles City China Overseas Plaza China Central Place Yintai Centre China Central Place China Central Place

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Mapletree India China Fund Ltd. L Halliburton L A subsidiary of BiAuto L Sumitomo Pharm L CITIC Investment L Trimble L Zhong De Securities L He Yu Real Estate L Hanas Natural Gas L Sequoia Capital

Area (sq ft) 1,416,300 40,900 37,700 24,800 24,600 19,400 16,100 16,100 12,900 10,800

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE0.60 0.50 0.40 Million sq m 0.30 0.20 0.10 0.00 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Vacancy Rate

Chengdu The overall leasing market picked up additional momentum on the back of improving economic conditions during 1Q2010. Major deals included the lease of 450 sq m at Centre Plaza by CENOSLS PTE CTD. Meanwhile, Lenovo took 3,000 sq m at Lippo Tower and rented 2,000 sq m at Air China Century Centre. No new development was completed in 1Q2010 and the average vacancy rate remained at 16%. Average office rentals edged up to RMB108 per sq m per month as at the end of 1Q2010.

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

CHENGDU OFFICE CAPITAL AND RENTAL VALUES180.00 160.00 140.00 120.00 Rentals 100.00 80.00 60.00 40.00 20.00 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 18,000 16,000 14,000 Capital Values 12,000 10,000 8,000 6,000 4,000 2,000 0

In anticipation of new supply coming through in 2011 and 2012, the average vacancy rate is predicted to edge up to over 30%. However, vendors might prefer to keep rentals high at the expense of low occupancy.MAJOR TRANSACTIONS Lease (L) / Sale (S) L L

Building Central Plaza Lippo Tower

Tenant / Purchaser Cenosls PTE CTD Lenovo

Area (sq ft) 4,500 30,000

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

4

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

CHINAGuangzhou In tandem with the pace of overall economic recovery, the demand for prime office space continued on its upward trend in 1Q2010. Prime office rentals achieved a notable rise of 7% QoQ to RMB133.7 per sq m per month as at the end of 1Q2010.Vacancy Rate

GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE2.50 50.0%

2.00

40.0%

Million sq m

1.50

30.0%

1.00

20.0%

No new supply entered the market in 1Q2010. The average vacancy rate fell to 16.3% by the end of 1Q2010 thanks to the improvement in take-up rates. As a number of new developments are expected to be launched in 2Q2010, vacancy rates will edge up in the second half of 2010. However, office rentals may hold firm, given the quality premium for most new projects coming on line. On the investment front, office sales prices are expected to increase due to limited supply of stock for sale during 2010.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Security firm L Domestic bank L Investment company L Real estate company L Accounting firm L Media company

0.50

10.0%

0.00

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

0.0%

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES160.00 140.00 120.00 100.00 Rentals 80.00 60.00 40.00 20.00 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 32,000 28,000 24,000 Capital Values 20,000 16,000 12,000 8,000 4,000 0

Building Poly Centre Poly Centre Poly Centre Poly Centre GT Land Plaza Poly Centre

Area (sq ft) 9,100 37,700 20,400 19,700 95,300 4,800

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE1.50 25.0%

Shanghai Notwithstanding the seasonal slow period, particularly during the period of Chinese New Year, prime office space in Shanghai exhibited growth in 1Q2010. Individual buildings in Pudong, which previously suffered from high vacancy rates, saw an encouraging increase in absorption during the period. Although there was only one small development (i.e. about 5,000 sq m floor area) completed in Lujiazui, the vacancy rate in the area edged down in 1Q2010. Effective office rent edged up slightly by 1.7% QoQ to RMB6.9 per sq m per day as at the end of 1Q2010, representing the first positive growth over the past 18 months. The office investment market remained active in 1Q2010. A number of investment transactions were closed, including the sale of seven floors in 21st Century Tower to Ningbo Bank at an average price of RMB37,500 per sq m. Going forward, office leasing demand is predicted to stage further growth in 2010 against the backdrop of the sustained recovery of global and domestic economies. However, plentiful supply in the marketplace will constrain any sharp surge in rentals from now through 2012.MAJOR TRANSACTIONS Lease (L) / Sale (S) L L L L L S

1.20

20.0%

0.60

10.0%

0.30

5.0%

0.00

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

0.0%

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES15.00 60,000

12.00

48,000

Vacancy Rate

Million sq m

0.90

15.0%

Rentals

9.00

6.00

24,000

Capital Values

36,000

Building Corporate Avenue SWFC Intercontinental Centre Chong Hing Finance Plaza 66 Tower II 21st Century Tower

3.00

12,000

0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

0

Rentals (RMB / sq m / Day)

Capital Values (RMB / sq m)

Tenant / Purchaser Analog Devices Itochu NXP Hugo Boss Sanofi Aventis Ningbo Bank

Area (sq ft) 29,000 71,000 64,600 6,500 22,600 149,100

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

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ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

HONG 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 2007 2008Supply

9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2009Take up

Hong Kong The local office market witnessed an increase in activity in terms of leasing enquiries from both existing multinational corporations and newcomers during 1Q2010. Individual landlords were emboldened to raise asking rentals. Overall, prime office rentals picked up additional momentum with a growth of 5.2% QoQ to HK$44.70 per sq ft per month during the quarter. With the continued fall in vacant stock in traditional business locations, tenants open to decentralisation continued to be lured by the brand new stock available in Kowloon East. The overall prime office vacancy rate in Hong Kong declined from 7.45% in 4Q2009 to 6.02% in 1Q2010. Over the next 12 months, the outlook for the local office market remains positive due to encouraging signs of a growth in demand in the finance industries. There maybe more significant positive spillover from the financial industries into other sectors. With vacancy rates in the secondary stock coming down and a limited supply of new stock in core locations, rentals are expected to increase 20% over the next 12 months.Vacancy Rate Capital Values

2010 F

2011 FVacancy Rate

HONG KONG OFFICE CAPITAL AND RENTAL VALUES125.00 25,000

100.00

20,000

75.00 Rentals

15,000

50.00

10,000

Building25.00 5,000 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 0

Rentals (HK$ / sq ft / Month)

Capital Values (HK$ / sq ft)

Manulife Plaza Landmark East Landmark East Landmark East Manhattan Place 8/F, 9 Queens Road Central 13/F, New Mandarin Plaza 10 floors, One Harbour East

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Sun Hung Kai Securities L AIA Insurance L Levis L Mott McDonald L Kaga Electronics S SiS Capital Ltd S Pretty Ltd S Undisclosed

Area (sq ft) 100,000 120,000 14,000 42,100 20,900 13,700 19,700 157,100

TAIWANTaipei Thanks to the improving global economy, growing domestic consumption and the external trading environment, the local GDP forecast for 2010 has been revised upward to 4.72%. With 7,600 ping of new space completed in 1Q2010, the average vacancy rate edged up from 12.32% in 4Q2009 to 13.04% in 1Q2010. Asking rental increased to NT$2,787 per ping per month, although the average effective rental fell to NT$2,461 per ping per month in 1Q2010. In anticipation of a gradual growth in take-up, prospective new supply coming on line is expected to send vacancy rates up further in 2010.

TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE35,000 30,000 25,000 20,000 Ping 15,000 10,000 5,000 0 -5,000Supply Take up Vacancy Rate

35.0% 30.0% 25.0% Vacancy Rate 20.0% 15.0% 10.0% 5.0% 2007 2008 2009 2010 F 2011 F 0.0% -5.0%

TAIPEI OFFICE CAPITAL AND RENTAL VALUES3,000 2,500 2,000 Rentals 1,500 1,000 500 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

Building Exchange Square One TAIPEI 101

Rentals (NT$ / Ping / Month)

Capital Values (NT$ / Ping)

6

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

Capital Values

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Hermes Greater China Ltd L Crown

Area (sq ft) 5,200 1,800

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

SOUTH KOREASeoul Overall prime office rentals in Seoul saw a mild drop of 0.43% quarter-on-quarter (QoQ) in 1Q2010. The CBD registered the steepest fall of 1.42% QoQ due to an increase in vacancy rates as a result of the re-opening of Seoul Square in 4Q2009. The YBD area recorded a decrease of 0.75% QoQ in 1Q2010. The only bright spot for landlords was the GBD area, where an increase of 0.75% QoQ was registered during the period.Vacancy Rate

SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE350,000 300,000 250,000 Pyung 200,000 150,000 100,000 50,000 0 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

The average vacancy rate in the GBD and YBD areas fell to 4.25% due to a recovery in demand, although the rate in the CBD edged up to 6.46% in 1Q2010. Due to the large amounts of new supply coming on line in the CBD, the vacancy rate in this area is predicted to rise to 10% by the end of 2010. As shown below large Korean companies have been active in the leasing market. On the investment front, the number of sales transactions concluded was low in 1Q2010, as prospective buyers remain cautious about the sustained compression of cap rates.

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

SEOUL OFFICE CAPITAL AND RENTAL VALUES250,000 25,000,000

200,000

20,000,000

100,000

10,000,000

50,000

5,000,000

0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

0

Rentals (Won / Pyung / Month)

Capital Values (Won / Pyung)

Capital Values

Rentals

150,000

15,000,000

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser Dongyang Securities Bldg. L Woori Asset Management Dongyang Securities Bldg. L Dongyang Securities Shinsong Centre Bldg. L Dongbu Asset Management Olive Tower L Hyundai Oil Bank Gateway Tower L Air Products K1 REIT Bldg. L Keumho Life Insurance Golden Tower L Kyobo Life Insurance Daeryung Secho Tower L GAEASOFT Nara Bldg. L ALti Soft Sigong Tech Bldg. S Sungwoo Automotive (SWA Group) Korea Land Housing (LH) Seoul Bldg. S Ottogi Co., Ltd. Jungdong Bldg. S Samsung Investments Co., Ltd. Building

Area (sq ft) 53,800 19,800 10,900 56,600 17,800 16,000 21,700 28,900 32,700 46,300 183,200 421,400

JAPANTokyo Large leasing transactions increased slightly in 1Q2010 due to greater incentives available from landlords in view of lower rents.8.0% 7.0% 6.0% Vacancy Rate 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2007 2008Supply

TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE320,000 280,000 240,000 200,000 Tsubo 160,000 120,000 80,000 40,000 0 2009Take up

Tenants were actively renegotiating leases in buildings they currently occupy. Reductions of 20% or more are increasingly common on traditional Japanese lease renewals. Vacancy rates continued to increase to over 7.5% as tenants reduced space requirements due to restructuring. Relatively new buildings, those completed less than a year ago, commonly have much higher vacancy rates than the market average.

2010 F

2011 FVacancy Rate

TOKYO OFFICE CAPITAL AND RENTAL VALUES60,000 50,000 40,000 Rentals 30,000 20,000 10,000 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Capital Values

Building Roppongi Hills Sumitomo Hamarikyu Shinagawa Grand Central Shinjuku Mynds Tower Tokyu Capital Tower

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Google L PWC Japan L Microsoft L Japan Kantar Research L Mitsubishi Research Institute

Area (sq ft) 71,000 159,700 390,500 27,300 248,500

Rentals (Yen / Tsubo / Month)

Capital Values (Yen / Tsubo)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

7

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

INDONESIAJakarta The local office market remained on its upward trend in 1Q2010, with prime office rentals averaging Rp143,720 per sq m per month during the period. In anticipation of an increase in the electricity tariff, total rental costs will escalate in the middle of 2010.20.0%

JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE400,000

300,000

15.0% Vacancy Rate

Due to the completion deferral of individual developments, the total new supply coming on line in 2010 is expected to be over 200,000 sq m. The latest economic indicators suggest that the local economy will grow further in 2010, underpinning further growth of the local office market. As S&P and Fitch have upgraded the investment outlook on Indonesia, investment flow into the country is expected to accelerate in 2010.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L MAA Insurance L PT. Harta International Management L United Insurance Service L Pea Body Energy L Victus Life L Sofrecom L Badan Nasional Penanggulangan Bencana L Rama Express L ANZ

sq m

200,000

10.0%

100,000

5.0%

0

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

0.0%

BuildingJAKARTA OFFICE CAPITAL AND RENTAL VALUES200,000 180,000 160,000 140,000 Rentals 120,000 100,000 80,000 60,000 40,000 20,000 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Capital Values

Menara Jamsostek (South) The Plaza The Plaza The Plaza The Plaza Graha Aktiva Graha 55 Graha 55 Wisma Pondok Indah I

Area (sq ft) 21,500 2,700 4,300 2,100 4,000 4,300 16,900 4,100 4,300

Rentals (Rupiah / sq m / Month)

Capital Values (Rupiah / sq m)

MALAYSIAKuala Lumpur The demand for local office real estate turned positive in 1Q2010 as market confidence strengthened in tandem with the overall economic growth. There were also signs of a return of foreign players during the period. From 2010 to 2011, more than 3.1 million sq ft of prime new office space will be coming along the pipeline, although the majority of the space is scheduled for completion during 2011. Prime capital values and rentals are expected to remain stable in 2010 due to the availability of new stock over the near to medium term.

KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE3.00 2.50 2.00 Million sq ft 1.50 1.00 0.50 0.00 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES10.00 9.00 8.00 7.00 Rentals 6.00 5.00 4.00 3.00 2.00 1.00 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 1,000 900 800 700 600 500 400 300 200 100 0 Capital Values

Building Emerio, Cyberjaya Menara BATA Menara Mustapha Kamal PJ 8 - Block A The Icon - West wing Menara PJD UOA Damansara II Menara UOA Bangsar - Tower B* Concluded by WTW

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L AT&T Communication Services (M) Sdn Bhd L Mega Advertising Sdn Bhd L CHI Fitness L Tenaga Nasional Bhd L Mustang Engineering L Public Works Department Malaysia (Jabatan Kerja Raya Malaysia) S UOA REIT S UOA REIT

Area (sq ft) *11,000 3,800 20,000 14,000 15,000 360,000 296,800 312,300

Rentals (Ringgit / sq ft / Month)

Capital Values (Ringgit / sq ft)

8

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

PHILIPPINESManila With office rentals showing signs of bottoming out in 1Q2010, landlords are expected to raise asking rentals soon.15.0% 12.0% 9.0% Vacancy Rate 6.0% 3.0% 0.0% 2007 2008 2009 2010 F 2011 F -3.0% -6.0% -9.0% -12.0%Supply Take up Vacancy Rate

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE50,000 40,000 30,000 20,000 sq m 10,000 0

Prime office rentals in 1Q2010 remained lower than the level seen two years ago. Tenants have been prompted to relocate and upgrade to quality premises in the core Makati CBD. Due to growing demand attributed to the BPO sector, the average vacancy rate in the marketplace remained steady in 1Q2010. The growing optimism concerning the prospective absorption rate in 2010 boded well for landlords who have existing stock for lease. Looking forward, rentals are expected to increase 5%-10% in 2010. However, with plentiful options available in the marketplace, the prospective rental upside is predicted to be capped at 30% over the next 18 months.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L ING Bank N.V. L Vestas L N.V. Besix S.A. Philippine Branch L Land Bank

-10,000 -20,000 -30,000 -40,000

MANILA OFFICE CAPITAL AND RENTAL VALUES1,200 1,000 800 Rentals 600 400 200 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 120,000 100,000 80,000 60,000 40,000 20,000 0

Capital Values

Building Ayala Tower One RCBC Plaza 6750 Ayala Avenue Tara Building

Area (sq ft) 47,500 12,400 3,600 9,100

Rentals (Peso / sq m / Month)

Capital Values (Peso / sq m)

SINGAPORESingapore On the back of strengthening economic conditions and improving occupational demand, prime office rents in the Central Business District edged up 0.5% quarter-on-quarter (q-o-q) to S$6.38 per sq ft per month as of the end of 1Q2010.25.0%

SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE2.50

2.00

20.0%

Million sq ft

15.0%

1.00

10.0%

0.50

5.0%

Vacancy Rate

1.50

There was an increase in leasing activity on all fronts relocations, renewals, expansions and pre-commitments with occupiers showing a preference for newer or newly retrofitted office buildings. For example, Toyota Motors Asia Pacific will be relocating from the 13-year old Centennial Towers in the Marina Centre/City Hall micro-market to the newly completed Twenty Anson in the Shenton Way/Tanjong Pagar micro-market. Meanwhile, Nomura Singapore Limited pre-committed to 102,000 sq ft of office space in Tower Two of the first phase of the Marina Bay Financial Centre. Verizon Communications pre-committed to 32,000 sq ft in the Ocean Financial Centre, which is slated for completion in 1Q2011. Given the ongoing flight to quality and the gradual expansion in the private sector, the local office market is expected to see a modest recovery over the next three quarters of 2010, with the prospective rental upside capped at 5% during the period.

0.00 2007 2008Supply

2009Take up

2010 F

2011 FVacancy Rate

0.0%

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES30.00 25.00 20.00 Rentals 15.00 10.00 5.00 0.00 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 3,000 2,500 2,000 1,500 1,000 500 0

Capital Values

Building MBFC Phase One Tower Two Twenty Anson Ocean Financial Centre Robinson Point Marina House 1 Finlayson Green

Rentals (Singapore$ / sq ft / Month)

Capital Values (Singapore$ / sq ft)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Nomura Singapore Limited L Toyota Motors Asia Pacific L Verizon Communications S AEW Global Advisors S Roxy Pacific, Macly Capital, Pinnacle Assets, Fission Holdings, Chee Hsian Sing S Lucrum Capital

Area (sq ft) 102,000 38,000 32,000 133,000 130,000 89,000

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

9

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

THAILANDBangkok The office leasing market was quiet in 1Q2010 as tenants preferred to stay put and the recent political demonstrations disrupted individual tenants real estate plans. However, with limited new supply coming on line, occupancy rates will edge up marginally in 2Q2010 and 3Q2010. Office rentals are expected to stay firm during the course of 2010.Vacancy Rate

BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE0.10 20.0%

0.08

16.0%

Million sq m

0.06

12.0%

0.04

8.0%

0.02

4.0%

One single development project, comprising about 72,000 sq m of office space, is scheduled for completion at the end of 2010, pushing vacancy rates up in the CBD. In anticipation of improving industrial activity and the gradual recovery of regional trade, the overall outlook for the local office market is positive for 2010.

0.00 2007 2008Supply

0.0% 2009Take up

2010 F

2011 FVacancy Rate

BANGKOK OFFICE CAPITAL AND RENTAL VALUES1,400 1,200 1,000 Rentals 800 600 400 200 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Capital Values

Building Silom Complex Silom Complex

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Country Group Securities Co., Ltd. L Embassy of Japan in Thailand

Area (sq ft) 6,300 6,700

Rentals (Baht / sq m / Month)

Capital Values (Baht / sq m)

VIETNAMHo Chi Minh City The office market in Ho Chi Minh City saw a positive impact from the continued recovery of the economy in Vietnam. Prime office occupancy rates increased by 5-7 percentage points to 97%-100% in 1Q2010 excluding Kumho Asiana and Vincom Tower offices. Excluding service charge or VAT (i.e. 10%), prime office rentals were fetching US$40US$50 per sq m per month on a net lettable floor area basis in 1Q2010. The completion of Kumho Asiana Plaza added 25,765 sq m to the market, representing 25% of the total office stock. The prevailing office rentals at Kumho Asiana Plaza ranged between US$45 and US$55 per sq m per month, and occupancy rates were 55% to 65%; Vincom Tower is going to provide to the office market in end of April with a total lettable area approximately 76,000 sq m and the average rental rate is about US$45 per sq m without service charge and VAT. Looking ahead, Financial Tower, with a total of 37,710 sq m net of office floor area, will be competed in 2010. A & B Towers, a second-tier development, will provide 25,500 sq m of office space in the same period.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Thai Thinh Capital

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE150,000 120,000 90,000 sq m 60,000 30,000 0 -30,000Supply Take up Vacancy Rate

30.0% 24.0% 18.0% 12.0% 6.0% 0.0% -6.0%

2007

2008

2009

2010 F

2011 F

HO CHI MINH CITY OFFICE RENTAL VALUES70 60 50 Rentals 40 30 20 10 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F

Vacancy Rate

Building Kumho Asiana

Area (sq ft) 17,200

Rentals (US$ / sq m / Month)

10

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

INDIABangalore Office leasing demand and absorption attributed to the non-IT and IT sectors improved during 1Q2010 thanks to the economic recovery and the prevailing low rental levels. However, rental and capital values remained stagnant across the board. New developments, including TNR Techzone, Vasvani Centrapolis and Salarpuria Cosmo Levelle, were ready for fitting-out in 1Q2010, representing a total of 0.4 million sq ft of office space. One of the major projects launched in 1Q2010 was Pride Hulkul a 0.3 million sq ft development built by Pride developers on Lal Bagh Road. In anticipation of the completion of the first phase of Bangalore Metro by December 2010, the current congestion will improve, boosting both transportation efficiency and leasing demand for office space in the city.

BANGALORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE12.00 10.00 8.00 Million sq ft 6.00 4.00 2.00 0.00 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Vacancy Rate

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

BANGALORE OFFICE CAPITAL AND RENTAL VALUES80 70 60 50 Rentals 40 30 20 10 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 0 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

Building Maruti Infotech Centre JP Techno Park JP Techno Park Prestige UB City SJR I Park

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Misys Software L Samsung L Curum Software L Uninor L Intelli Group

Area (sq ft) 29,200 50,000 35,000 26,000 25,000

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 2007 2008Supply

32.0% 28.0% 24.0% Vacancy Rate 20.0% 16.0% 12.0% 8.0% 4.0% 2009Take up

Chennai Although demand for office and IT space showed signs of improvement in 1Q2010, the rental and capital values for prime office space remained stable, primarily due to the significant amount of vacant space available in peripheral locations. Vacancy rates in suburban and peripheral regions continued to remain high, at about 30%, while the CBD areas saw the lowest vacancy rates, at about 5% in 1Q2010. In a recent development, The Tamil Nadu Housing Board announced the redevelopment of around 70 acres of land at Foreshore Estate, close to the famed Marina Beach in Chennai.

2010 F

2011 FVacancy Rate

0.0%

CHENNAI OFFICE CAPITAL AND RENTAL VALUES80 70 60 50 Rentals 40 30 20 10 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

Building DLF SEZ DLF SEZ Ascendas RMZ Sterling Towers

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Continental Data Graphics L iGate L Lennox L Franklin Templeton L Ven Sat Technologies

Area (sq ft) 24,000 63,000 20,000 40,000 7,500

Rentals (Rupee / sq ft / Month)

Capital Values (Rupee / sq ft)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

11

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

INDIAMumbai Due to the improving market sentiment, the local prime office market saw signs of stabilisation, with average rentals staying firm at INR193 per sq ft per month in 1Q2010. A total new supply of approximately 3.4 million sq ft, concentrated primarily in the SBD and PBD areas, was completed in 1Q2010.Vacancy Rate

MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE18.00 15.00 12.00 Million sq ft 9.00 6.00 3.00 0.00 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0%

Vacancy rates remained high due to lower absorption in relation to the volume of new supply in 1Q2010. Looking forward, prime office rentals and capital values are expected to remain stable over the short to medium term, due to the large volume of new supply coming on line.

2007Supply

2008

2009Take up

2010 FVacancy Rate

MUMBAI OFFICE CAPITAL AND RENTAL VALUES350 300 250 Rentals 200 150 100 50 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Capital Values

Building Wadia Plaza Godrej IT Park Oberoi Commerze Times Square Times Square Universal Magestic

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Axis Bank L CapGemini L GroupM L Spectral L Compulink S Partibha Industries

Area (sq ft) 400,000 75,000 75,000 15,000 10,500 40,000

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 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Vacancy Rate

New Delhi Prime office rentals increased 2%-3% quarter-on-quarter (QoQ) in a number of micromarkets, among them the CBD, Jasola and Saket, thanks to growing demand and improved leasing activity in 1Q2010. A number of brand new office buildings were completed in peripheral locations in 1Q2010. In Gurgaon, the Vipul Trade Centre, the MVL IT Park and the BPTP i Park were all completed, providing a total of about 1 million sq ft of floor space. Beside that, Ishan Technology, Eco Tower, NKG Tower and 8 Square in Noida, comprising about 0.7 million sq ft, were also finished. A number of projects were launched in 1Q2010, including Ansal Corporate Park and Logix Techica in Noida, and Vatika Trade Centre and Vipul Trade Tower in Gurgaon. With the continued improvement of economic and employment conditions, and the transportation infrastructure, the overall leasing demand is expected to catch up over the short to medium term.

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES350 300 250 Rentals 200 150 100 50 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Capital Values

Building Baani Corporate One Baani Corporate One Vatika Towers Building 10 ABW Tower Gylcosls Pvt Ltd Gylcosls Pvt Ltd Logix Cyber Park IHDP Business Park

Rentals (Rupee / sq ft / Month)

Capital Values (Rupee / sq ft)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Ingersoll Rand L Chambal Fertilzers L Biogen Idec L Indus Towers L Ministry of Fitness L ICICI Bank L State Bank of India L IFS Solution L HDFC Bank

Area (sq ft) 7,000 30,000 15,000 10,000 15000 3,500 2,700 10,000 1,300

12

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

AUSTRALIAAdelaide The average office vacancy rate peaked at 7.6% in January 2010 and is expected to edge down over the near term. Investment yields started stabilising in the second half of 2009, with some firming anticipated in the second half of 2010.Vacancy Rate

ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE80,000 70,000 60,000 50,000 sq m 40,000 30,000 20,000 10,000 0 2007 2008Supply

8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 2009Take up

Our research suggests that no new office development is scheduled for completion before 2012. Therefore, the average vacancy will stay low over the medium term. Looking forward, the volume of transactional activity in the investment market will pick up further and the investment focus will be on premises valued at under AU$20 million.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Department of Correctional Services L National Australia Bank L Randstad S Local Government Association S Century Funds (Syndicate)

2010 F

2011 FVacancy Rate

0.0%

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES

Building700 600 500 Rentals 400 300 200 100 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Capital Values

400 King William Street 22 King William Street 63 Pirie Street HP House The Conservatory

Area (sq ft) 33,400 45,300 11,600 50,200 43,000

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Vacancy Rate

Canberra Prime face office rentals were steady, although rentals in secondary locations declined in 1Q2010. Investment demand strengthened in 1Q2010, leading to a compression of prime office yields. Flight to quality continued as tenants preferred to upgrade to better quality premises in 1Q2010. Second-tier office developments presented good opportunities to vendors who might want to refurnish or redevelop their old buildings. The delivery of new supply has increased the market size of the CBD by 30% in the last four years and a further 12% increase is expected in 2010.

sq m

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

CANBERRA OFFICE CAPITAL AND RENTAL VALUES800 700 600 500 Rentals 400 300 200 100 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 8,000 7,000 6,000 Capital Values 5,000 4,000 3,000 2,000 1,000 0

Building 490 Northbourne Ave Childers Square Childers Square Childers Square Childers Square Pharmacy Guild House Allan Woods Building 20 Allara St

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Australian Government L Ombudsman L Sparke Helmore L Legal Aid L Australian Reinsurance Pool L Computer Sciences Corporation L Air Services Australia L Australian Government

Area (sq ft) 10,800 21,600 10,000 20,700 13,500 22,500 182,500 8,500

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

13

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

AUSTRALIAMelbourne Due to a quicker-than-anticipated economic recovery and the improving job market, occupational demand for office space in the CBD staged a strong growth in 1Q2010. Face office rentals in top-tier premises increased by 3% in 4Q2009 and 1Q2010, although second-tier buildings remained flat.Vacancy Rate

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE250,000 10.0%

200,000

8.0%

150,000 sq m

6.0%

100,000

4.0%

However, with the increase in new supply, the average vacancy rate in the CBD increased from 4.8% in 4Q2009 to 6.6% in 1Q2010. There were a total of 14 major investment sales transactions with lump sum considerations in excess of AU$10 million, each concluded during the period between 2009 and the first quarter of 2010. Equivalent reversionary yields tightened by 12.5 basis points during the period between 4Q2009 and 1Q2010.MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Australian Taxation Office L TRU Energy L Channel 9 / PBL Media Pty Ltd. L Moore Stephens S SEB Asset Management (50% share) S Henkell Brothers S Private Investor S Julliard Group

50,000

2.0%

0

0.0% 2007 2008Supply

2009Take up

2010 F

2011 FVacancy Rate

MELBOURNE 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 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F Capital Values

Building 735 Collins Street 385 Bourke Street 717 Bourke Street 530 Collins Street 800 Collins Street 383 King Street 446 Collins Street 414 LaTrobe Street

Area (sq ft) 409,000 96,900 93,400 46,600 318,000 139,800 57,600 155,200

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE160,000 140,000 120,000 100,000 sq m 80,000 60,000 40,000 20,000 0 -20,000 -40,000Supply Take up Vacancy Rate

Perth The vacancy rate in the Perth CBD stablised at 8.2% as of January 2010.16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Vacancy Rate

Occupational demand increased with strengthening confidence in the business community. The investment market sentiment in the CBD was positive due to the return of institutional investors and the sustained demand attributed to local high net worth and overseas investors during 1Q2010.

2007

2008

2009

2010 F

2011 F

0.0% -2.0% -4.0%

BuildingPERTH OFFICE CAPITAL AND RENTAL VALUES1,000 900 800 700 Rentals 600 500 400 300 200 100 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 10,000 9,000 8,000 7,000 Capital Values 6,000 5,000 4,000 3,000 2,000 1,000 0

251 St Georges Terrace 169 Hay Street

MAJOR TRANSACTIONS Lease (L) / Sale (S) L L

Tenant / Purchaser AGC Industries Fairfax

Area (sq ft) 21,900 16,300

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

14

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

AUSTRALIASydney The average office face rent was generally steady at about AU$635 per sq m per annum in 1Q2010 and is predicted to remain stable during the remainder of 2010. The average vacancy rate in the CBD increased from 7.8% in July 2009 to 8.1% in January 2010. In anticipation of an increase in demand during the second half of 2010, vacancy rates will edge down by the end of 2010.Vacancy Rate

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

10.0% 7.5% 5.0% 2.5% 0.0% -2.5% -5.0%

2007

2008

2009

2010 F

2011 F

Lease incentives held steady in the range between 23%-32% in 1Q2010 and are expected to remain within this range over the medium term until demand improves further. Overall market activity increased in 1Q2010, with a total of seven investment sales transactions recorded between November 2009 and February 2010, totalling about AU$1.1 billion. As a result, office yields have tightened by 25 basis points since September 2009.

SYDNEY OFFICE CAPITAL AND RENTAL VALUES1,600 1,400 1,200 1,000 Rentals 800 600 400 200 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 0 16,000 14,000 12,000 Capital Values 10,000 8,000 6,000 4,000 2,000 0

Building 85 Castlereagh Street 420 George Street 179 Elizabeth Street 55 Hunter Street 80 Clarence Street 60 Martin Place

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L JP Morgan L State Street S Echo Capital Partners S City Freeholds S Aviva Investors S Gwynvill Properties

Area (sq ft) 179,800 113,000 170,800 152,800 67,400 252,600

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

15

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

NEW ZEALANDAUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE80,000 70,000 60,000 50,000 sq m 40,000 30,000 20,000 10,000 0 2007 2008Supply

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

Auckland The Deloitte Centre at 80 Queen Street and 21 Queen Street were both completed in the latter part of 2009, adding 37,380 sq m of office space to the prime grade office stock. The average office vacancy rate in the CBD increased to 11.5% in 4Q2009 and is forecast to rise further due to the completion of a number of new developments over the near to medium term. Amid the current trend of rising vacancy rates, office rentals came under pressure in 1Q2010. For the first time in many years, contiguous office floors are available in almost all prime grade buildings. Prime office rents fell to around NZ$330 per sq m per annum in 1Q2010, representing a fall of 8.4% compared with the level seen in early 2009. One of the key leasing deals was that of Southern Cross Medical Care Societys commitment to taking 6,300 sq m of office space in the Britomart East complex, which is scheduled for completion in early 2011.

2009Take up

2010 F

2011 FVacancy Rate

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES600 500 400 Rentals 300 200 100 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 6,000 5,000 4,000 3,000 2,000 1,000 0 Capital Values

According to the IPD Property Index by the Property Council, the Auckland CBD market recorded a total return to investors of -11.9% for the year ended December 2009.

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser 8 Nelson Street L Goodman Fielder New Zealand Britomart East Building Britomart Place L Southern Cross Medical Care Society Building

Area (sq ft) 62,400 67,800

Rentals (New Zealand$ / sq m / Year)

Capital Values (New Zealand$ / sq m)

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Vacancy Rate

sq m

Wellington According to the Property Council/IPD Property Index, the Wellington CBD market recorded a total return to investors of -5.2% for the year ended December 2009. After a series of rental reductions since mid-2008, prime office rentals settled at around NZ$370 per sq m per annum in 1Q2010. A further downslide of 3% is anticipated over the next 12 months. Most tenants continued to opt for lease renewals in 1Q2010. Overall leasing activity is expected to remain slow over the short to medium term. The average vacancy rate remained at an extremely low level of 0.7% in 4Q2009. Meanwhile, about 54,000 sq m of new office space in the pipeline in 2010 has been pre-committed by major government bodies. For example, The New Zealand Customs Service has confirmed that it will take 6,500 sq m in a project due for completion in early 2010. Looking forward, the CBD office vacancy rate will remain modest over the near term. On the sales front, prime grade investment yields edged up by 15 to 25 basis points in the Core precinct in 1Q2010. The key sales deal was the sale by the receivers of Petherick Properties of Morrison Kent House at 105 The Terrace in Wellington City to the Pascoe Group for NZ$33 million.MAJOR TRANSACTIONS Lease (L) / Sale (S) Morrison Kent House S State Services Commission Building S Petherick Tower S 3-11 Hunter Street L Building

2007

2008Supply

2009Take up

2010 F

2011 FVacancy Rate

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES600 500 400 Rentals 300 200 100 0 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F 3Q 2011 F 4Q 2011 F 6,000 5,000 4,000 3,000 2,000 1,000 0

Capital Values

Rentals (New Zealand$ / sq m / Year)

Capital Values (New Zealand$ / sq m)

Tenant / Purchaser Pascoe Group Undisclosed Undisclosed Tech Tonics

Area (sq ft) 188,600 144,100 67,900 5,900

16

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

PRIME OFFICE RENTALSRentals (US$ / sq ft / year) 0 Tokyo Hong Kong Singapore Sydney Ho Chi Minh City Perth Mumbai Brisbane New Delhi Shanghai Melbourne Canberra Adelaide Beijing Taipei Wellington Kuala Lumpur Bangkok Seoul Auckland Guangzhou Chengdu Jakarta Manila ChennaiNote: 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"

20

40

60

80

100

120

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

17

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

TRENDS & FORECASTSCity New Supply (sq ft) 2010 F Beijing CBD Zhongguancun Financial Street Lufthansa East Chang An Avenue East 2nd Ring Chengdu Renmin Road Chunxilu, Yanshikou East Street Shuncheng Street-Luomashi Guangzhou Yuexiu Tianhe Haizhu Shanghai Huangpu Jingan Lujiazui-Pudong Zhuyuan-Pudong Changning Luwan Xuhui Hong Kong Central Wanchai HK Island East Tsim Sha Tsui Taipei CBD Seoul CBD KBD YBD Tokyo CBD Jakarta CBD Non-CBD Kuala Lumpur KLCA Manila Makati Ortigas 4,683,900 0 148,434 905,997 0 1,442,739 2011 F 0 0 0 828,820 0 0 Take-up (sq ft) 2010 F 1,679,341 134,172 269,442 384,155 -104,991 671,172 2011 F 2,874,876 43,131 188,584 585,664 59,643 590,077 Average Vacancy (%) 2010 F 39.4 4.6 4.8 24.2 6.6 44.0 2011 F 25.2 4.0 2.9 24.7 5.7 33.3 Total Stock (sq ft) 2010 F 2011 F Average Rentals (US$ / sq ft / year) 2010 F 27.04 26.20 36.52 24.75 22.16 23.69 2011 F 29.62 26.97 38.90 24.86 24.73 24.21

20,240,599 20,240,599 7,619,765 7,619,765 9,978,125 9,978,125 6,981,950 7,810,770 6,307,067 6,307,064 5,504,411 5,504,411

2,341,816 0 0 0

1,216,321 484,376 0 1,495,633

2,871,292 199,982 245,148 193,212

3,300,987 496,851 204,288 142,008

60.0 10.0 18.0 20.0

55.0 20.0 15.0 15.0

4,785,673 1,999,857 1,361,913 946,685

6,001,994 2,484,233 1,361,913 2,442,318

19.60 16.33 19.60 15.51

21.23 17.15 21.23 16.33

0 0 4,613,408 13,247,250 0 1,183,060

96,326 1,730,232 161,459

57,167 5,809,115 605,437

7.6 27.5 21.2

6.3 39.8 35.7

4,338,799 4,338,799 18,332,450 31,743,032 1,076,390 2,259,450

17.47 23.31 16.33

17.80 23.68 16.33

395,520 1,666,768 2,100,381 2,180,852 341,474 699,654 0

0 1,743,031 6,208,230 627,848 0 0 1,288,493

350,735 1,196,713 1,033,833 1,428,261 306,826 668,543 -434,706

-21,101 1,328,645 3,005,092 -70,807 -19,452 -6,758 1,082,260

9.2 19.8 23.9 27.5 12.5 4.7 15.3

9.9 20.5 31.3 36.8 12.9 4.9 15.5

3,333,182 3,333,182 7,387,286 9,130,317 17,012,347 23,220,577 5,036,516 5,664,363 4,850,805 4,850,805 3,801,777 3,801,777 4,294,958 5,583,450

34.34 38.75 30.66 27.20 28.95 37.46 31.53

34.81 39.51 28.34 24.42 29.72 38.55 32.31

0 0 434,350 0

0 237,344 0 0

198,308 161,415 240,883 -112,281

137,819 215,758 142,130 39,465

4.3 4.9 6.5 6.4

3.6 4.9 5.3 5.8

21,266,625 21,266,625 11,095,267 11,332,611 10,974,830 10,974,830 6,361,390 6,361,390

151.38 72.51 49.76 59.85

187.72 84.84 54.73 67.04

697,264

0

419,781

635,715

13.3

10.0

19,186,894 19,186,894

26.29

26.61

4,155,833 329,902 949,004

0 0 2,835,343

2,481,174 809,451 529,378

1,107,369 204,520 1,670,117

10.5 2.3 4.4

6.9 1.5 9.7

30,670,639 30,670,639 26,105,717 26,105,717 16,729,297 19,564,640

24.45 21.36 16.30

25.65 22.50 17.27

4,001,307

5,758,695

N/A

N/A

7.5

7.5

N/A

N/A

95.82

94.73

2,269,030 1,302,335

3,127,903 1,258,117

2,372,697 863,491

1,876,600 998,029

11.5 12.7

13.3 13.2

45,948,721 49,076,624 19,032,642 20,484,509

17.24 12.27

17.91 12.42

1,172,000

2,454,000

700,000

700,000

10.5

15.4

28,420,000 30,874,000

22.80

23.17

0 0

0 0

177,540 233,760

-84,615 143,752

8.1 11.5

9.0 8.6

9,317,135 4,961,404

9,317,135 4,961,404

16.89 12.57

18.37 13.66

18

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

TRENDS & FORECASTSCity New Supply (sq ft) 2010 F Singapore CBD Bangkok CBD Ho Chi Minh City CBD Bangalore Overall CBD SBD PBD Chennai Overall CBD SBD PBD Mumbai Overall CBD SBD PBD New Delhi Overall CBD SBD PBD Adelaide CBD Canberra CBD Melbourne CBD Perth CBD Sydney CBD Auckland CBD Wellington CBD 1,906,000 2011 F 1,555,241 Take-up (sq ft) 2010 F 1,638,334 2011 F 1,611,453 Average Vacancy (%) 2010 F 8.9 2011 F 8.0 Total Stock (sq ft) 2010 F 2011 F Average Rentals (US$ / sq ft / year) 2010 F 56.21 2011 F 61.76

21,191,297 22,746,538

837,431

290,625

269,098

322,917

17.5

17.0

17,945,940 18,236,565

22.73

24.11

1,421,481

307,417

964,801

533,750

25.0

10.0

2,533,402

2,878,105

59.09

46.82

910,000 270,000 0 640,000

3,280,000 450,000 970,000 1,860,000

1,330,000 350,000 750,000 230,000

3,050,000 550,000 1,000,000 1,500,000

15.0 16.0 9.0 19.0

17.0 18.5 9.5 21.5

65,033,175 68,313,175 N/A N/A N/A N/A N/A N/A

11.17 17.81 10.63 4.79

11.96 18.61 11.96 5.32

2,068,500 0 0 2,068,500

5,586,250 822,500 703,500 4,060,250

747,100 70,100 33,000 644,000

N/A N/A N/A N/A

22% N/A N/A N/A

N/A N/A N/A N/A

28,868,500 34,454,750 1,575,000 2,397,500 5,845,000 6,548,500 21,448,500 25,508,750

11.96 15.42 12.23 7.98

12.23 15.95 12.49 7.98

3,365,000 0 2,060,000 1,305,000

2,057,000 930,000 940,000 187,000

1,416,000 870,000 229,000 317,000

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

75,545,000 N/A N/A N/A

N/A N/A N/A N/A

51.31 85.07 43.86 25.25

51.84 85.07 45.19 25.25

3,368,000 0 168,000 3,200,000

3,900,000 400,000 0 3,500,000

957,000 43,000 55,000 859,000

N/A N/A N/A N/A

18.5 6.1 15.0 23.0

N/A N/A N/A N/A

56,994,158 60,894,158 1,861,000 2,261,000 8,150,000 8,150,000 46,983,158 50,483,158

43.60 71.51 39.88 19.67

44.13 71.78 40.67 19.67

0

0

215,278

322,917

6.8

5.0

13,799,320 13,777,792

29.78

30.63

796,529

0

645,834

150,695

8.0

7.5

3,110,767

3,110,767

32.76

34.04

736,789

0

968,751

1,076,390

7.2

7.4

19,678,347 19,678,347

34.43

36.55

1,532,833

88,264

538,195

538,195

13.6

10.7

16,282,196 16,370,460

51.48

53.61

1,353,141

1,805,644

430,556

807,293

6.2

7.9

25,794,319 27,599,964

55.01

57.67

0

301,389

241,746

110,427

11.0

14.0

4,258,866

4,560,255

21.43

20.97

581,251

300,313

523,287

213,394

3.0

6.2

2,144,933

2,445,246

23.87

23.34

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

19

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

DEFINITIONS AND TERMINOLOGY 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 4 sub-markets, South Renming Road , Chunxi Road - Yanshikou Trading Area, Shuncheng Street and Luomasi Trading Area, and East 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 Dongshan, 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, Lujiazui-Pudong, Changning, Luwan and Xuhui. Rents are quoted in RMB per sq m per day on gross floor area basis, and exclusive of any management fees. Capital values are quoted on RMB per sq m. Hong Kong Prime office properties in Hong Kong are concentrated in 4 sub-markets Central, Wanchai / Causeway Bay, Island East and Tsim Sha Tsui. 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.

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 pyung (also equivalent to 3.3 sq m) per month on gross floor area basis. Generally, a deposit equivalent to 10 months is required, and is usually paid up front. Management fees are excluded from quoted rents. Space is measured on gross floor area basis. Capital values are quoted in Won per sq m. Tokyo The quality office buildings in Tokyo are located in the central business area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku. Rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month, which are inclusive of service charges. Office space is measured on an internal floor area basis. Capital values are quoted in Yen per tsubo.

SOUTHEAST 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. Manila Prime office buildings in Manila are located in two principal sub-markets Makati and Ortigas. Rents are quoted in Peso per sq m per month on net floor area basis, and exclusive of any management fees. Capital values are quoted in Peso per sq m.

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.

20

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

DEFINITIONS AND TERMINOLOGYSingapore 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 non-strata-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. 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.* 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.

INDIABangalore Prime office properties in Bangalore are can be divided in 3 principal sub-markets 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. 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.The content of this report is for information only and should not be relied upon as a substitute for professional advice, which should be sought from Colliers International prior to acting in reliance upon any such information. The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgement, in the utmost good faith and are as far as possible based on data or sources which they believe to be reliable in the contest hereto. Notwithstanding, Colliers International and affiliated companies disclaim to the extent permitted by law, any liability in respect of any claim which may arise from any errors or omissions or from providing such advice, opinions, judgement or information. Colliers Macaulay Nicolls Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 290 offices throughout more than 60 countries worldwide

AUSTRALASIAAustralia Prime office buildings are located in the CBD and generally favored 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.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

21

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010

For further details, please contact:GREATER CHINA Beijing, China 502 Tower W3, Oriental Plaza No 1 East Changan Avenue, Dongcheng District Beijing 100738 Tel : 86 10 8518 1633 Fax : 86 10 8518 1638 Amanda Gao Managing Director, North China Amanda.Gao@colliers.com Chengdu, China Room L 16F City Tower 86 Section One Renmin Nan Road Chengdu 610016 Tel : 86 28 8620 2128 Fax : 86 28 8620 2158 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 Lina.Wong@colliers.com Hong Kong, HKSAR 5701 Central Plaza, 18 Harbour Road Wanchai, Hong HongCompany Licence No: C-006052

Taipei, Taiwan 49F TAIPEI 101 TOWER No. 7 Xin Yi Road Sec 5, Taipei 110 Tel : 886 2 8101 2000 Fax : 886 2 8101 2345 Andrew Liu Managing Director Andrew.Liu@colliers.com

Manila, Philippines 10F Tower 2 RCBC Plaza, 6819 Ayala Avenue corner Sen Gil J Puyat Avenue Makati City, Philippines1200 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 Asia Regional Industrial Group Dennis.Yeo@colliers.com Bangkok, Thailand 17/F Ploenchit Center 2 Sukhumvit Road Klongtoey, Bangkok 10110 Tel : 66 2 656 7000 Fax : 66 2 656 7111 Patima Jeerapaet Managing Director Patima.Jeerapaet@colliers.com Ho Chi Minh City, Vietnam Ho Chi Minh City, Vietnam 7F Bitexco Building 19-25 Nguyen Hue Street District 1, Ho Chi Minh City Tel : 84 8 827 5665 Fax : 84 8 827 5667 Peter Dinning General Director Peter.Dinning@colliers.com KP Singh Managing Director KP.Singh@colliers.com Hanoi, Vietnam Vinaplast - Tai Tam Building, 9th Floor, 39A Ngo Quyen Street Hoan Kiem District, Hanoi, Vietnam Tel : 84 4 220 5888 84 4 220 5566 Fax : 84 4 220 1133 Do Le Quan Deputy General Director Quan.Do@colliers.com

NORTH ASIA Seoul, South Korea 10F Korea Tourism Organization Bldg., 10 Da-dong, Jung-gu, Seoul 100-180 Tel : 82 2 6740 2000 Fax : 82 2 318 2015 Jay Yun Senior Director & General Manager Jay.Yun@colliers.com Tokyo, Japan Halifax Building 8F, 16-26, Roppongi 3-Chome Minato-ku, Tokyo 106-0032 Tel : 81 3 5563 2111 Fax : 81 3 5563 2100 James Fink Senior Managing Director jfink@colliershalifax.com

SOUTH EAST ASIA Jakarta, Indonesia 10F 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* Regional Director Occupier Services - Asia Tel : 65 6531 8601 Fax : 65 6557 0649 Mark.Lampard@colliers.com * Based in Singapore Malaysia information contributed by: C H Williams Talhar & Wong Sdn Bhd 32nd Floor Menara Tun Razak P O Box 12157 50768 Kuala Lumpur Malaysia Tel : 603 2693 8888 Fax : 603 2693 6565/6655 URL: http:// www.wtw.com.my Goh Tian Sui Managing Director gts@wtw.com.my

Tel : 852 2828 9888 Fax : 852 2828 9899 Richard Kirke Managing Director Richard.Kirke@colliers.com Piers Brunner (E-183614) Chief Executive Officer - Asia Piers.Brunner@colliers.com George McKay (E-215150) Managing Director, Corporate Services - Asia Pacific George.McKay@colliers.com

22

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | APRIL | 2010EXECUTIVE SUMMARY

INDIA Bangalore, India Prestige Garnet, Level 2, Unit No.201/202 36 Ulsoor Road, Bangalore 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 1377Kaushik Reddy

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 Prit Paul Office Director Prit.Paul@colliers.com Pune, India Vatika Business Center, Level-5 C Wing, Panchsheel Tech Park-1, Yerwada Pune 411 006 Tel : 91 20 4011 1356 Fax : 91 20 6640 3138 Suresh Castellino Office Director Suresh.Castellino@colliers.com

Perth, Australia Level 19, 140 St Georges Terrace Perth WA 6000 Tel : 61 8 9261 6666 Fax : 61 8 9261 6665 K. Imran Mohiuddin State Chief Executive Imran.Mohiuddin@colliers.com Sydney, Australia Level 12, Grosvenor Place, 225 George Street Sydney NSW 2000 Tel : 61 2 9257 0222 Fax : 61 2 9251 3297 Malcom Tyson State Chief Executive Malcom.Tyson@colliers.com Auckland, New Zealand Level 27, 151 Queen Street, Auckland Tel : 64 9 358 1888 Fax : 64 9 358 1999 Mark Synnott Managing Director Mark.Synnott@colliers.com Wellington, New Zealand Level 10, 36 Customhouse Quay Wellington Tel : 64 4 473 4413 Fax : 64 4 499 1550 (Agency) : 64 4 470 3902 (Valuation) Richard Findlay Managing Director Richard.Findlay@colliers.com

Office Director Kaushik.Reddy@colliers.com Gurgaon, India G3, NewBridge Business Centers, TechnoPolis, DLF Golf Course Main Sector Road Sector 54, Gurgaon 122 002 Tel : 91 124 4375807 Fax : 91 124 4375806 Saacketh Chawla Office Director Saacketh.Chawla@colliers.com Kolkata, India Regus Business Centre Constantia, Level 6, Kolkata 700017 Tel : 91 33 4400 0541 Fax : 91 33 4400 0555 Joe Verghese Managing Director Joe.Verghese@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 Poonam Mahtani Office Director Poonam.Mahtani@colliers.com

AUSTRALASIA Adelaide, 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 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

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

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