supply, demand & pipeline projects insert prospective of … · ... demand & pipeline...

Presented by:Presented by:Mr. Richard Leech Mr. Richard Leech --

Executive DirectorExecutive DirectorCB Richard Ellis (Vietnam)CB Richard Ellis (Vietnam)

January 27th, 2010January 27th, 2010

VIETNAM RETAIL PROPERTY MARKET VIETNAM RETAIL PROPERTY MARKET

SUPPLY, DEMAND & PIPELINE SUPPLY, DEMAND & PIPELINE

PROJECTSPROJECTS

Presenter

Presentation Notes

Insert prospective of IRT

CB Richard Ellis |

Vietnam Retail Market

Another year of consecutive growth in retail sales, around 18%, highlighting the continued strength of local demand for goods and servicesCBD rentals remain steady. Many renovated shophouses taking up excess demandNumerous mid-end and high-end brands entering Vietnam in the last year: Naf Naf, Morgan de Toi, Mexx, Aldo, Hard Rock Café, Debenhams.Many Non-CBD shopping centres are still having difficulty maintaining tenants and low absorption rate i.e. Saigon Paragon and The Gardens Hanoi.The CBD retail saw the first major new supply in 2009 with the opening of Vincom Galleries, Hanoi and in HCMC with Kumho Asiana Plaza both of which launched with under 20% vacancy.

HIGHLIGHTS

CB Richard Ellis |

Renovation and improvement of shophouse retail will continue to put pressure on rents, especially outside the city centre.

The issues faced by non-CBD retail centres highlights issues of tenant mix. More projects may turn to master leases with professional retailers (department store, mall operator)

ENT (Economic Needs Test) – required for foreign owned retailers to open 2nd stores.

FORECAST

Vietnam Retail Market

More luxury retailers to enter the marketContinued international-style retailing: multi-brand stores, new F&B conceptsConversions of wet markets into formal trade centres.Growing demand to come from:

•Expanding Vietnamese retail chains –

nationwide rollout•Arriving International brands as WTO hangover wears off

VIETNAM

HO CHI MINH CITY

CB Richard Ellis |

HCMC Retail Market - Modern Retail Centre’s

Total HCMC stock –

256,025sm GFA (22 shopping centres and department stores)

Department stores: 98,840 sm GFAShopping centres: 157,185 sm GFA

Occupancy Rate –

Averages: 95.3%

Rental RateAverage prime rents (GF+1F) in the CBD:

US$99.1/sm/moAverage prime rents (GF+1F) out of the CBD:

US$46.6/sm/ moHighest Rents in the CBD :

up to US$ 250 per sm per month

Presenter

Presentation Notes

Insert several small pics of buildings under construction

CB Richard Ellis |

HCMC Current Retail Supply – Major Projects

CB Richard Ellis |

HCMC Retail Current Supply

Retail supply more than doubled in 2 years

HCMC CUMMULATIVE STOCK AND NEW SUPPLY FROM DEPARTMENT STORES AND SHOPPING CENTRES

0

50,000

100,000

150,000

200,000

250,000

300,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

sm

Existing supply New supply

CB Richard Ellis |

Current Market

HCMC Average Retail Rents

* Centers with vacancies being forced to reduce rents

AVERAGE PRIME RENTS OF SHOPPING CENTRES AND DEPARTMENT STORES

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Average prime rent in CBD Average prime rent out of CBD

CB Richard Ellis |

HCMC Future Supply – Project until 2013

HCMC FUTURE SUPPLY BY REGION

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2010 2011 2012 2013

sm

CBD Non CBD

Total new supply until 2013: 740,000 sqm – triple the current supply

None-CBD retail space to increase almost 50% in 2010 and 7 times more in 2013

CB Richard Ellis |

HCMC Future Supply – Typical Projects until 2013

EXPECTED FUTURE RETAIL SUPPLY

24,000

53,960

11,090

44,000

44,000

14,566

23,000

70,000

27,104

8,292

30,904

140,000

38,000

22,000

186,464

The EverichDist 11

Vincom Chi LangDist 1

Bitexco Financial TowerDist 1

The CrescentDist 7

Promenada (Phase 1)Binh Duong

Times SquareDist 1

Saigon M&CDist 1

Tan Phong Shopping ComplexDist 7

Vincom EdenDist 1

SJC TowerDist 1

Royal GardenDist 7

Le Van Tam Underground Park

Berjaya Financial TowerDist 10

Platinum PlazaBinh Chanh

Promenada (Phase 2)Binh Duong

2010

2011

2012

2013

CB Richard Ellis |

HCMC Future Supply – Typical Projects until 2013

CB Richard Ellis |

Location: Ba Thang Hai Street, Dist. 11

Developer: Phat Dat Corporation

GFA: 24,000 m2

Confirmed tenant: Lotte Mart

Concept: Hypermarket & Retail

Status: Fitting-out

Expected Opening: Q1 2010

THE EVERICHTHE EVERICH

HCMC Future Retail Supply

CB Richard Ellis |

Location: 70-72, Le Thanh Ton, Dist. 1

Developer: Vincom JSC

GFA: 53,700 sqm (5 levels above ground and 3 levels underground)

Expected Opening: 30th April 2010

Status: Under construction - 80% leased

HCMC - New Mega/ Regional Retail Developments

VINCOM CENTER

CB Richard Ellis |

Location: 45 Ngo Duc Ke, Dist 1, HCMC

Developer: BitexcoLand

Concept: Grade A Office & Retail

Retail GFA: 20,000sqm – including 3 upper levels

Attraction: Iconic landmark of in HCMC, Sky lounge, VIP Club

Opening: Oct 2010

BITEXCO FINANCIAL TOWERBITEXCO FINANCIAL TOWER


CB Richard Ellis |


Location: 22 -36 Nguyen Hue - Dist 1 – HCMC (located with 2 frontages: Nguyen Hue & Dong Khoi Streets)

Developer: Time Square (Vietnam) Investment Joint stock Co.

Concept: Complex of high-end hotel, apartments, a business center, luxury shopping and entertainment facilities

Retail GFA : 14,5662 sqm (split on 5 floors)

Attraction: An L shape integrated world-class tower bringing to Ho Chi Minh City its first true one-stop contemporary luxury lifestyle destination.

Opening: Quarter 2 - 2011

TIMES SQUARETIMES SQUARE

CB Richard Ellis |


Location: Dist 2 - Ho Chi Minh city

Developer: Daewon – Thu DucHousing Development Corporation

Concept: 36 storeys international commercial center, office building and apartment complex

Retail GFA :20,000 sqm

Attraction: Beautiful Landmark at the gate of HCMC, promising to provide luxury modern urban, comfortable living environment and international standards offices and shopping center

Opening: TBC

CANTAVIL AN PHUCANTAVIL AN PHU

CB Richard Ellis |

Location: Le Dai Hanh, Dist. 11Developer: Paujar (Taiwan)Retail GFA: 7,500 sm (5 levels) Concept: Retail F&B & Office ServicesExpected Completion: Q4 2010Status: Under construction

THE FLEMINGTON –

PHASE 2


CB Richard Ellis |


Location: Ton Duc Thang, Dist.1Developer: JV of M&C Co. - Saigon

Tourist – Eastern Asia Commercial Bank (VN)

GFA: 23,000 smExpected Completion: 2010Status: Under construction

SAIGON M&C TOWER

CB Richard Ellis |


Location: 92 Nguyen Huu Canh, Binh Thanh Dist.

Developer: Vietnam Land SSGConcept: Saigon Pearl is designed to provide

an all-in-one-fully-serviced, high quality commercial, high- rise residential and office facilities, complemented with professional landscaping and management services. Saigon Pearl will set a new standard for high quality urban lifestyle in Vietnam

Retail GFA: 8,000 sm (2 levels)Expected Completion: Sept 2010Status: Final construction phase

SAIGON PEARL

CB Richard Ellis |


Location: Phu My Hung City

GFA: 44,000 sqm

Expected Completion: 2011

Status: Under construction

Infrastructure: well-developed

Prime location in Financial Centre Area

CRESCENT MALL

CB Richard Ellis |

Location: Binh Duong

Developer: ECC Invest / Gucco Land

GFA: 82,000 sm (2 phases)

Expected Completion: Q3/2011 & Q3/2012

Status: Under construction

Infrastructure: well-developed

Adjacent to VSIP and Song Be Golf Course


PROMENADA

CB Richard Ellis |

Nguyen Huu Tho, Dist 7GFA: 70,000 sm Completion : Q4 2012 Under constructionDeveloper : NovalandStrategic Asset Manager :

Pacific Star


SUNRISE CITY

CB Richard Ellis |

Location: Thu Thiem, Dist.2

Developer: BTA

Total construction: 600,000 sm


Status: Under planningInfrastructure: Thu Thiem Bridge

opened to traffic on 9th January, 2008


METROPOLIS

CB Richard Ellis |

Location:An Phu Ward, Dist. 2

Developer: Keppel Land

GFA: 80,000 sm


Status: Under planning

Demographics:133,257

Infrastructure: Thu Thiem Bridge completed early 2008, Thu Thiem Tunnel under construction


SPORTS CITY

CB Richard Ellis |

Developer: SSG2

Location: District 2 HCMC

GFA: 20,000 sqm


Status: Under Planning

Infrastructure: modern, easy


THAO DIEN PEARL

CB Richard Ellis |

Location: Le Hong Phong, Dist.10

Developer: Berjaya (Malaysia)

GFA: 186,464 sm



Infrastructure: developed


SAIGON FINANCIAL CENTRE

VIETNAM

HANOI

CB Richard Ellis |

Hanoi Retail Market – Modern Retail Center

Total Stock ≈ 103,576 sm GLA (13 major shopping centres/dept. stores) Most are located in CBD areas (Hoan Kiem, Hai Ba Trung)

Occupancy Rate ≈ 83.3% CBD shopping centres stay strong (0.38% vacancy) Non-CBD shopping centres encounter vacancies (36.92% vacancy)

Average Rental RateAverage prime rents (GF+1F) in the CBD: US$80/sm/month (Q4 2009)Average prime rents (GF+1F) out of the CBD: US$35/sm/month (Q4 2009)Highest Rents in the CBD: up to US$146/sm/mo

CB Richard Ellis |

Hanoi Retail Current Supply

Retail supply more than doubled in 2 years

CB Richard Ellis |

Hanoi Retail Supply _ Major Projects

Existing Projects

Future Projects

CBD

CB Richard Ellis |

Hanoi Retail Future Supply – Project Until 2012

Total new supply until 2012: 510.000sqm- 5 times more than the current supply

Most are in None-CBD (especially new urban area in the West of Hanoi

Still limited space within CBD

CB Richard Ellis |

GRAND PLAZA HANOI

Hanoi Future Retail Supply

Location: Tran Duy Hung Str., Cau Giay Dist.

Owner: IDJ Financial

Land Area:19,689sqm

Gross Floor Area: 150,146sqm (Hotel,

Office & Retail)

Retail: 27,461sqm GFA

Expected Completion: Q2, 2010

CB Richard Ellis |

SAVICO PLAZA HANOI

•Location: Nguyen Van Linh Str., Long Bien Dist.

•Owner & Developer : Savico

JSC

•Description :The biggest commercial complex at the North-East gateway to Hanoi, consisting of

a shopping mall and a business center

•Retail Concept: A shopping mall with hypermarket anchor tenant

•Retail NLA : 52,000 sqm

(1 basement + 3 floors)

•Expected Completion: 2011


CB Richard Ellis |

Location: Dao Tan – Lieu Giai Str., Ba Dinh Dist.Developer: LotteNo. of floors: 63 (incl. 5 basements)Site area:14,094.00 sqmTotal gross area:253,394.59 sqm (Retail, Office,

Residential)Retail Podium (Bas5-7F): 34,682.07 sqm – Lotte

Department StoreLatest ground breaking: 22 Oct 2009Expected Grand Opening: 2012Concept: Lotte Department Store

HANOI CITY COMPLEX


CB Richard Ellis |

Location: Pham Hung Str., Tu Liem Dist.

Developer: Keangnam Enterprises Ltd.

Gross Floor Area: 579,000sqm (Retail, Office, Apartments for

sales, Hotel, Serviced Apartments)

Retail: 82,875sqm GFA (6 floors)

Ground breaking: Q3, 2007

Expected Grand Opening: 2012

KEANGNAM HANOI LANDMARK TOWER


CB Richard Ellis |

YEN SO PARK SHOPPING MALL

Location: Yen So Ward, Hoang Mai Dist.

Owner & Developer : Gamuda Land Group

Description : The Center of all commercial

activities, complimented by the festive retail,

offices, hotels and convention center.

Land Area: 3.85 ha

Retail NLA : 49,253 sqm (4 Storey Podium)

Completion: 2012



CB Richard Ellis |

Location: Lac Long Quan, Tay Ho Dist.

Owner: Citra Westlake

Description: Regional shopping mall

Net Lease able Area: 114,000 sqm

(incl. food court, cinema, department

store, Big C hypermarket)


HANOI

CIPUTRA HANOI MALL


CB Richard Ellis |

TIMES SQUARE HANOI

Location: Pham Hung, Tu Liem Dist.

Developer: VinaCapital

Five Star Hotel (300 rooms), Grade A Office (20,000sqm) & Retail (30,000sqm)

Land Area: 4 ha

Net Leasable Retail Area: 30,000 sqm

Ground Breaking: Dec 2008

Completion: 2012


CB Richard Ellis |

INDOCHINA PLAZA HANOI

Location: Xuan Thuy, Cau Giay Dist.

Developer: IndochinaLand

Luxury Apartments (2 towers, 25 & 30 floors), Office (15 floors) & Retail (5 floors)

Total GFA: 124,489sqm

Net Leasable Retail Area: 19,929sqm

Ground Breaking: Q4, 2008

Completion: 2012


CB Richard Ellis |

HANOI ROYAL CITY

Location: 74 Nguyen Trai, Thanh Xuan Dist.

Developer: Vincom Jsc

Development area of 169,220 sm - A city within a city with Hotel, schools, condominiums, retail, offices

Retail Total GFA: 200,000sqm

Ground Breaking: Jan, 2010

Expected Completion: Q4, 2014


CB Richard Ellis |

So why do retailers continue to consider the VIM nations?

CONDITIONS –

Upside

Growing young population and accelerating urbanisation

Growing urban upper and middle class

Continued industrialization and technological progress = wealth

Changing lifestyles = openness to western brands and consumption habits

CONDITIONS –

Downside

Fragile economic environment

Strong domestic competition

Need capital and patience ….and lots of it

Undeveloped infrastructure

Poor and relatively small.

CB Richard Ellis |

Ha Noi office

12A floor, Vincom City Towers191 Ba Trieu

Hai Ba Trung District

Ho Chi Minh City office

12 floor, Me Linh Point Tower2 Ngo Duc KeDistrict 1

CB RICHARD ELLIS (VIETNAM)

Mr. Richard Leech –

Executive Director [email protected]

CB Richard Ellis |

THANK YOU!

www.cbrevietnam.com

©

2009 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors

should conduct your own investigation of the property and transaction.

http://www.cbrevietnam.com/

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