Asia Pacific Office Market - Oct 2009

Asia Pacific Office Market Overview REGIONAL RESEARCH Q U A RT E R LY U P DAT E | O C TO B E R | 2 0 0 9

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

CONTENTS Regional Overview .....................................................................3 Greater China ..........................................................................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

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

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

Australasia .......................................................................... 13-16 Adelaide, 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 | OCTOBER | 2009 EXECUTIVE SUMMARY

REGIONAL OVERVIEW A Return of Market Confidence

Amid the gradual improvement of global economic fundamentals, the office market in the region also showed further encouraging signs of recovery during 3Q2009. Although the overall occupational demand is yet to recover to the pre-financial crisis levels seen in the first half of 2008, there were positive notes showing market stabilisation and a significant improvement in market confidence in 3Q2009.

One of the major reasons for the strengthening of market confidence during the period was the very strong performance of the sales side of the market in terms of the volume of activity and the general price level achieved. In the Greater China region, the volume of investment sales transactions was extremely active thanks to the positive sentiment among a number of state-owned enterprises. In Beijing, three en bloc sales transactions were registered in 3Q2009, all of which were acquired for owner-occupancy. In Guangzhou, the major deals were the sale of the R&F Yingyue International Building and the Shanghai Pudong Development Bank for RMB300 million and RMB400 million, respectively. In Shanghai, domestic investors and end-users, including SOHO China and the Agricultural Bank of China, remained active in acquiring quality developments in prime districts during 3Q2009.

Edging Close to the Cyclical Trough

For most of the centres in the region, there were more signs that office rentals are edging closer toward their cyclical trough during 3Q2009. Individual centres in the Greater China region, such as Chengdu, saw mild positive rental growth during the period. Across the region, the pace of rental decline actually tapered off further from 3.6% quarter on quarter (QoQ) in 2Q2009 to 2.0% QoQ in 3Q2009.

With rentals stabilising, there was a general increase in the level of new space enquiries during 3Q2009. Although lease renewals continued to be the most-favoured option for most tenants, a number of occupiers reactivated their real estate plans in 3Q2009 and started looking to relocate to larger and better quality premises in view of cheaper rental offers in the marketplace and, more importantly, a better economic outlook for 2010. For example, AIG in Singapore took advantage of the weak rental environment to relocate its operations from two adjacent buildings on Martin Road on the fringe of the CBD to five floors at 78 Shenton South Tower – a newly completed office building in the CBD.

Market Outlook

Looking ahead, the pace of recovery of the occupational side of the office market in the region will be gradual in view of the recovery path of some of the major economies, such as the US. Further to the current round of cost-driven relocation and consolidation, the market will pick up additional momentum if tenants are encouraged by the prospective growth of their top line revenues. On the sales front, given the projection of a sustained low interest rate environment over the near to medium term, the level of investment demand will remain strong among a large group of private investors, including a range of small to medium-size companies that want to secure office space for their long-term business requirements.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

3

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

CHINA Beijing • The Greater China project confirmed that an additional GFA of 6,500 sq m was available for lease, resulting in a small increase in Grade A office stock, despite virtually no new projects being completed in Beijing during 3Q2009.

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00

2006

2007

2008

Supply

2009 F

Take up

2010 F

Vacancy Rate

Million sq m

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• However, the economic fundamentals and market conditions continued to put pressure on many landlords. This resulted in a consecutive decrease in Grade A office net effective rents by 1.92% quarter on quarter (q-o-q) to an average of RMB165.89 per sq m per month as at the end of 3Q2009.

0.0%

Vacancy Rate

350.00

35,000

300.00

30,000

250.00

25,000

200.00

20,000

150.00

15,000

100.00

10,000

50.00

5,000

• The investment sales market was very active in 3Q2009, with three en bloc sales properties for owner-occupancy transacted, demonstrating the optimistic market sentiment among many state-owned enterprises.

Capital Values

Rentals

BEIJING OFFICE CAPITAL AND RENTAL VALUES

0.00 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (RMB / sq m / Month)

Capital Values (RMB / sq m)

50.0%

0.80

40.0%

0.60

30.0%

0.40

20.0%

0.20

10.0%

0.00

2006

2007

2008

Supply

Take up

2009 F

2010 F

Vacancy Rate

Million sq m

60.0%

1.00

0.0%

16,000

140.00

14,000

120.00

12,000

100.00

10,000

80.00

8,000

60.00

6,000

40.00

4,000

20.00

2,000

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Capital Values (RMB / sq m)

Capital Values

Rentals

• The sub-market in the CBD area was particularly active, with strong leasing activity in Central Plaza. Individual tenants, such as Panasonic, The Bank of Tokyo-Mitsubishi and Sinosure, have taken whole floors for their new offices. With such multinational companies as Estee Lauder and Thai Airways International Airlines entering the local office market in 3Q2009, the average vacancy rate edged down to 29% in the quarter.

• A total of 4,564 sq m of new leasing transactions was completed during 3Q2009 and the average prime office rental was RMB106 per sq m per month as at the end of 3Q2009.

160.00

0.00

4

Area (sq ft) 572,400 307,200 149,400 538,200 322,900 202,400 118,400 75,300 38,600 37,900

Vacancy Rate

CHENGDU OFFICE CAPITAL AND RENTAL VALUES

Rentals (RMB / sq m / Month)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser Sunny Region S CITIC Securities Raycom Infotech Park Tower D S MediaTek Xihai 2008 Tower B&C S Undisclosed Financial Street Centre L Beijing Rural Commercial Bank Fortune Resource International Centre L SPD Bank COFCO L China Agriculture Bank Phoenix Place L NaviInfo Phoenix Place L NTT Data Prosper Centre L DNV Raffles City L Chuang Yi He Xuan Building

Chengdu • The local office market saw signs of growing demand in 3Q2009. Individual companies that had postponed their plans during the global financial crisis started looking to relocate to larger premises with better facilities during the period.

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1.20

• With financial institutions taking the lead, leasing demand was robust in 3Q2009. For example, the Beijing Rural Commercial Bank leased approximately 50,000 sq m in the north tower of Financial Street Centre, while the Shanghai Pudong Development Bank leased 30,000 sq m in Fortune Resource International Centre. The overall vacancy rate edged down 2.20 percentage points to 16.98% as at the end of 3Q2009.

• In the sales market, Hailirun Plaza in Dongda Street and the New Hope Building in Renmin Road were the focus of the market thanks to their premium locations. The average sales price at Hailirun Plaza reached RMB17,000 per sq m as at 3Q2009.

Building Central Plaza Central Plaza Central Plaza Central Plaza

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Panasonic L The Bank of Tokyo-Mitsubishi L Sinosure L Thai Airways International Airlines

Area (sq ft) 9,500 9,500 9,500 3,200

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

CHINA Guangzhou • The office market saw growing demand in 3Q2009, with the average rental for Grade A office space rising by 4.3% q-o-q to US$18.50 per sq ft per month in 3Q2009.

2.50

50.0%

2.00

40.0%

1.50

30.0%

1.00

20.0%

0.50

10.0%

0.00

2006

2007

2008

Supply

2009 F

Take up

• The average office vacancy rate decreased from 25.91% in 2Q 2009 to 22.84% in 3Q 2009.

Vacancy Rate

Million sq m

GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

2010 F Vacancy Rate

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES 40.00

4,000

35.00

3,500

30.00

3,000

25.00

2,500

20.00

2,000

15.00

1,500

10.00

1,000

5.00

500

0.00

0

Capital Values

Building Metro Plaza Skyfame Tower Skyfame Tower China International Centre

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Tsit Wing Group L Heng An Standard Life L Mead Johnson (Guangzhou) Ltd. S Domestic Communication Company

Area (sq ft) 5,400 9,500 11,500 20,200

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

• The investment market was active during 3Q2009, with two major sales transactions in Pearl River New City recorded. This included the sale of the R&F Yingyue International Building to Infinitus (China) Co., Ltd. and the Shanghai Pudong Development Bank for RMB300 million and RMB420 million, respectively.

Rentals (US$ / sq m / Month)

Capital Values (US$ / sq m)

Shanghai • The Grade A office market stabilised in 3Q2009, with the average rental standing at RMB7.0 per sq m per day. However, it was still down 32% compared with its peak in 2008.

1.00

20.0%

0.90

18.0%

0.80

16.0%

0.70

14.0%

0.60

12.0%

0.50

10.0%

0.40

8.0%

0.30

6.0%

0.20

4.0%

0.10 0.00

Vacancy Rate

Million sq m

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

2.0% 2006

2007

2008

Supply

2009 F

Take up

• Domestic investors and end-users showed further confidence in 3Q2009 by acquiring properties in prime districts. For instance, SOHO China, the Shanghai Rural Commercial Bank and the Agricultural Bank of China acquired either en-bloc or stratatitle office buildings located in the Jing’an and Pudong districts.

0.0%

2010 F Vacancy Rate

60,000

12.00

48,000

9.00

36,000

6.00

24,000

3.00

12,000

0.00

0 3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

4Q 2006

3Q 2006

2Q 2006

Capital Values

15.00

1Q 2006

Rentals

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES

Rentals (RMB / sq m / Day)

Capital Values (RMB / sq m)

• Three office buildings were completed during 3Q2009, including the HSBC Building (Shanghai ifc South Tower) in Lujiazui, and the GC Tower and the China Diamond Exchange Centre in Zhuyuan. The overall vacancy rate of Grade A office space edged down 0.4 percentage points to 13.7% q-o-q in 3Q2009.

• Market sentiment will continue to ride on the policy initiative of Shanghai becoming the “International Financial Centre by 2020”. It is our forecast that the rate of rental decline will narrow to 15% in 2009 and rents will bottom out by 2011.

Building Mirae Asset Tower GC Tower Raffles City Corporate Avenue Shanghai Times Square Azia Centre Plaza 66 Tower 1 2 Grand Gateway CITI Lujiazui Project Zhongrong Jasper Tower

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L ANZ Bank L Pacific Aetna Life Insurance L ABB China L Gensler L Crocs Inc. L Bank of Tokyo Mitsubishi L Carlyle Group L Tesco S China Agriculture Bank S Shanghai Rural Commercial Bank

Area (sq ft) 45,200 105,500 47,400 19,400 12,900 86,100 15,100 18,300 915,700 255,900

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

5

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

Hong Kong • Office rentals showed further signs of stabilisation in 3Q2009. The average prime office rentals declined 1.3% q-o-q to HK$41.23 per sq ft per month in the quarter, narrowing significantly from the decline of 12.1% q-o-q in 2Q2009.

4.50

9.0%

4.00

8.0%

3.50

7.0%

3.00

6.0%

2.50

5.0%

2.00

4.0%

1.50

3.0%

1.00

2.0%

0.50

1.0%

0.00

2006

2007

2008

Supply

2009 F

Take up

2010 F

Vacancy Rate

Million sq ft

HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• No major office developments were completed in 3Q2009, but the average vacancy rate edged up from 7.86% in 2Q2009 to 7.93% in 3Q2009.

0.0%

• Further to the recent signs of stabilisation, the prime office market is expected to see more solid growth if there is a sustained revival of global demand over the next 12 months.

However, the pace of growth will be capped at 5% during the period unless the bulk of occupiers once again adopt an expansionary strategy.

Vacancy Rate

125.00

25,000

100.00

20,000

75.00

15,000

50.00

10,000

25.00

5,000

Capital Values

Rentals

HONG KONG OFFICE CAPITAL AND RENTAL VALUES

0.00 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (HK$ / sq ft / Month)

• Investors remained keen to commit to any quality opportunistic stock available for sale due to expectations of sustained low borrowing costs and further capital growth during 3Q2009. Individual popular strata-titled office buildings saw a growth in prices in the order of 10% in 3Q2009.

Capital Values (HK$ / sq ft)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser Kwun Tong 223 L Insurance company Nexxus Building L Accounting firm Warwick House L Telecom company The Gateway Tower 1 & 2 L Trading company One Kowloon L Toy company 10 floors, Low Block, Grand Millennium Plaza S Taiwanese investor 19/F and 24/F Convention Plaza S Mainland China corporation 32/F Cosco Tower S Local investor Building

Area (sq ft) 247,100 26,500 31,500 24,600 24,000 137,600 29,300 20,500

TAIWAN Taipei • The economic performance saw signs of a recovery in 3Q2009, with exports, private consumption and investment regaining some rebound momentum.

35,000

35.0%

30,000

30.0%

25,000

25.0%

20,000

20.0%

15,000

15.0%

10,000

10.0% 5.0%

5,000 0 -5,000

2006

2007

2008

2009 F

2010 F

0.0% -5.0%

-10,000

-10.0%

-15,000

-15.0%

Supply

Take up

Vacancy Rate

Ping

TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate

3,000

1,200,000

2,500

1,000,000

2,000

800,000

1,500

600,000

1,000

400,000

500

200,000 0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (NT$ / Ping / Month)

6

Capital Values

Rentals

TAIPEI OFFICE CAPITAL AND RENTAL VALUES

• On the supply front, the completion of the Kelti Xinyi Building provided an additional 6,000 ping to the total office stock. Due to an uninspiring absorption rate, the overall vacancy rate increased from 11.17% in 2Q2009 to 12.76% in 3Q2009.

• With the gradual contraction of negotiation margins, the average effective rental increased mildly from NT$2,456 per ping per month in 2Q2009 to NT$2,462 per ping per month in 3Q2009.

• The signing of a cross-Strait Memorandum of Understanding and Economic Cooperation Framework Agreement with China is expected to provide a long-term push to the local office market.However, the market is predicted to see a further increase in the vacancy rate over the near term.

Building Cathay Xin-Yi Trading Centre CEC Tun Nan Building TAIPEI 101 Exchange Square II

Capital Values (NT$ / Ping)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Procter & Gamble Taiwan Ltd L 3M Taiwan Ltd L BNP Paribas Taiwan L Standard Chartered Bank, Private Banking

Area (sq ft) 44,300 113,500 46,300 7,800

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

SOUTH KOREA Seoul • Due to uninspiring demand, Seoul Grade A office rents in the major business districts started to fall during 3Q 2009 compared with a slight increase in the previous quarters.

300,000

6.0%

250,000

5.0%

200,000

4.0%

150,000

3.0%

100,000

2.0%

50,000

1.0%

0

0.0%

2006

2007

2008

Supply

2009 F

Take up

2010 F

Vacancy Rate

Pyung

SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Office capital values exhibited a mild rise due to the growing demand from certain local investors during 3Q2009.

• Average vacancy rates in the Seoul office market increased from 3.13% in 2Q2009 to 4.30% in 3Q2009. The vacancy rate in the CBD, especially, went up from 2.34% in 2Q2009 to 4.60% in 3Q2009.

Vacancy Rate

SEOUL OFFICE CAPITAL AND RENTAL VALUES 25,000,000

200,000

20,000,000

150,000

15,000,000

100,000

10,000,000

50,000

5,000,000

Rentals

Capital Values

250,000

• In anticipation of an increase in new stock, including Seoul Square, in 2009, the average vacancy rate is expected to increase to the level of 5.00% by the end of 2009.

Building Gangnam Finance Centre Times Square(A) Korea Trade Tower DACOM Building ING Tower POSCO Yangjae Building E-Land Gasan Building Newcore Gangnam Neowiz Building

0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (Won / Pyung / Month)

• Rentals in the CBD areas saw a fall of 3.46% QoQ respectively, during 3Q2009. Rental in the GBD area which had fallen down with 0.63% during 2Q 2009, slightly recovered 0.34% during 3Q 2009. The YBD area stood out with a positive growth of 0.22% QoQ during the same period.

Capital Values (Won / Pyung)

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L e-Bay L Mirae Asset L Dole Korea S Shinhan-BNP Paribas Asset Management S KB Real Estate Trust S KORAMCO S KR 3 CR-REITs S Newcore Gangnam CR-REITs S Neowiz Corp.

Area (sq ft) 227,700 128,000 13,100 370,900 712,600 462,800 426,200 517,400 171,600

JAPAN Tokyo • Landlords are struggling to fill large blocks of vacancy.

• Larger incentives are negotiable for new leases.

320,000

8.0%

280,000

7.0%

240,000

6.0%

200,000

5.0%

160,000

4.0%

120,000

3.0%

80,000

2.0%

40,000

1.0%

0

• Rent renegotiation is common.

Vacancy Rate

Tsubo

TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Current conditions make this a tenant’s market.

0.0% 2006

2007 Supply

2008 Take up

2009 F

2010 F Vacancy Rate

Building

60,000

12,000,000

50,000

10,000,000

40,000

8,000,000

30,000

6,000,000

20,000

4,000,000

10,000

2,000,000

Capital Values

TOKYO OFFICE CAPITAL AND RENTAL VALUES

Roppongi Hills Marunouchi Trust N Tower Tokyo Mid Town Tower Hirakawacho Mori Tower JA Building

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L BASF L Jupiter Telecom L Uniqlo L LAC Holdings L Tokyo Shoko Research

Area (sq ft) 46,000 118,000 142,000 89,000 35,000

0

0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

• Most leases signed during 2006-2008 are “over market” now.

Rentals (Yen / Tsubo / Month)

Capital Values (Yen / Tsubo)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

7

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

INDONESIA Jakarta • Growing signs of recovery in the private sector translated gradually into occupational demand for offices, as evidenced by the rising number of enquiries in 3Q2009. A number of multinational companies came with plans either to upgrade to a better-quality building or to expand their floor area requirements.

400,000

20.0%

300,000

15.0%

200,000

10.0%

100,000

5.0%

0

0.0%

2006

2007

2008

Supply

2009 F

Take up

2010 F

Vacancy Rate

sq m

JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• The majority of new developments scheduled for completion in 2009 are expected to come onto the market on time, signifying both the commitment of developers and the growing confidence in the marketplace.

Vacancy Rate

• Due to the increase in new supply in 2009, the prospective vacancy rate is expected to edge up over the near term. However, the vacancy level will come down again over the medium term as only two new buildings are scheduled for completion in 2010.

JAKARTA OFFICE CAPITAL AND RENTAL VALUES

18,000,000

160,000

16,000,000

140,000

14,000,000

120,000

12,000,000

100,000

10,000,000

80,000

8,000,000

60,000

6,000,000

40,000

4,000,000

20,000

2,000,000

Building Capital Values

20,000,000

180,000

Rentals

200,000

0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (Rupiah / sq m / Month)

• With expectations of a global economic recovery and strengthening market confidence, asking rentals for a number of quality buildings, particularly those with low vacancy rates, stayed relatively firm in 3Q2009.

Capital Values (Rupiah / sq m)

Menara Prima Menara Prima Menara Prima Menara Prima Wisma Tamara Wisma GKBI Cyber 2

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L PT. Bank BTPN L ZTE Agribusiness L Coal & Oil L Pelita Samudra Shipping L Bristol -Myers Squibb L McKinsey & Company L Generale Insurance

Area (sq ft) 7,200 3,000 2,700 4,800 26,900 12,200 8,600

MALAYSIA Kuala Lumpur • Amid the continued improvement in the external economic environment, the local office sector displayed initial positive signs, despite the challenge of the completion of 500,000 sq ft of new office stock during 3Q2009.

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00

2006

2007

2008

Supply

Take up

2009 F

2010 F

Vacancy Rate

Million sq ft

KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• Despite the large batch of new supply scheduled to come on line before the end of 2010, the prime area will be resilient. However, a cautious market might lead to slower absorption rates over the near term. With the continued relocation by a number of multinational corporations, rental rates and occupancy rates in prime areas edged down mildly in 3Q2009.

0.0%

Vacancy Rate

800

7.00

700

6.00

600

5.00

500

4.00

400

3.00

300

2.00

200

1.00

100

0.00

0

Rentals (Ringgit / sq ft / Month)

Capital Values (Ringgit / sq ft)

• Capital values of prime office buildings declined marginally in 3Q2009 and are expected to stabilise over the short term.

Capital Values

900

8.00

2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES 9.00

• The pace of recovery of the local office market was enhanced further by the introduction of various fiscal stimuli and monetary measures. Meanwhile, the initiative to liberalise the local service sector has been reckoned to be one of the key factors contributing to the market recovery.

Building Wisma Selangor Dredging Plaza Sentral Plaza Sentral Quill 7 Quill 7 Vista Tower Menara Bata Menara Citibank * Concluded by WTW

8

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Ducking Sdn Bhd L SRG Asia Pacific Sdn Bhd L BT Multimedia (M) Sdn Bhd L Navis Capital L Celcom (M) Bhd L Roche (M) Sdn Bhd L Bata Malaysia S Hap Seng Realty (KL City) Sdn Bhd

Area (sq ft) 11,000* 9,900* 9,900* 12,900 12,800 36,000 (estimate) 50,000 (estimate) 733,634

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

PHILIPPINES Manila • The average office rental in the CBD came down by 4%-5% quarter on quarter (q-o-q) in 3Q2009, with premium grade office buildings continuing to lead the overall decline during the period.

80,000

8.0%

60,000

6.0%

40,000

4.0%

20,000

2.0% 0.0%

0

-20,000

2006

2007

2008

2009 F

2010 F

-2.0%

-40,000

-4.0%

-60,000

-6.0%

Vacancy Rate

sq m

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• With a supply glut in the marketplace and the sustained weakness in demand fundamentals, the office sector remained a tenant’s market, with a continued rise in the vacancy rate across the board.

• After the downward adjustment of rentals, office capital values in the Makati CBD fell further to less that P92,000 per sq m as of 3Q2009.

-8.0%

-80,000 Supply

Take up

Vacancy Rate

Building

1,200

120,000

1,000

100,000

800

80,000

600

60,000

400

40,000

200

20,000

0

PBCom Tower Ayala Life FGU Commerce & Industry Plaza

Area (sq ft) 16,200 9,648 22,660

Capital Values

Rentals

MANILA OFFICE CAPITAL AND RENTAL VALUES

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Nomad Offices L Pfizer Inc. L Canon Marketing

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (Peso / sq m / Month)

Capital Values (Peso / sq m)

SINGAPORE Singapore • Thanks to the recent economic rebound and the recovery of the financial services sector, the pace of office rental decline in the Central Business District (CBD) narrowed to 6.4% q-o-q in 3Q2009 compared with the double-digit decline registered in 2Q2009.

The average gross office rental in the CBD was S$6.31 per sq ft as of 3Q2009.

2.50

25.0%

2.00

20.0%

1.50

15.0%

1.00

10.0%

0.50

5.0%

0.00 2006

2007 Supply

2008 Take up

2009 F

2010 F

Vacancy Rate

Million sq ft

SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

Vacancy Rate

• The average occupancy rates of prime office space in the CBD fell 2.1 percentage points to 92.2% as of 3Q2009 due to the completion of a number of new buildings, including Mapletree Anson and 71 Robinson during the period.

3,000

25.00

2,500

20.00

2,000

15.00

1,500

10.00

1,000

5.00

500

0.00

0

Capital Values (Singapore$ / sq ft)

• In anticipation of sustained demand weakness and growing new supply, rentals will see a further downslide of about 5% in 4Q2009.

Capital Values

30.00

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES

Rentals (Singapore$ / sq ft / Month)

• More companies took advantage of cheaper rentals to expand their floor area requirements and upgrade to better quality space in 3Q2009. For example, AIG relocated its operations from two adjacent buildings on Martin Road on the fringes of the CBD to five floors at 78 Shenton South Tower, a newly completed office building in the CBD. Meanwhile, Servcorp committed to one floor at the soon-to-be completed Marina Bay Financial Centre (Phase One) in the CBD for a period of seven years.

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser 78 Shenton South Tower L AIG Marina Bay Financial Centre Phase One L Servcorp 78 Shenton L Representations International Aviva Building S Sommerville Development Prudential Towers (6 floors) S K-Reit Asia Changi Road/Lorong 108 Changi S Fragrance Realty Pte Ltd Cecil House S Sommerville Development Building

Area (sq ft) 60,000 22,000 10,500 67,700 67,300 59,900 50,700

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

9

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

THAILAND Bangkok • No major new office developments were completed in 3Q2009 but the current demand fundamental remained weak during the period.

0.20

20.0%

0.18

18.0%

0.16

16.0%

0.14

14.0%

0.12

12.0%

0.10

10.0%

0.08

8.0%

0.06

6.0%

0.04

4.0%

0.02

• Most vendors cut their rental rates by 5%-10% during lease renewals in an attempt to keep their premises occupied during 3Q2009. Fit-out costs remained the key factor preventing tenants from relocating to other premises.

Vacancy Rate

Million sq m

BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE

2.0%

0.00

• There have been no major relocations since the beginning of 2009. The current trend is expected to continue over the remaining months of 2009. The prevailing political uncertainty and disputes about environmental issues continue to dampen the local real estate investment market.

0.0% 2006

2007

2008

Supply

2009 F

Take up

• The overall take-up was slower than expected during 3Q2009 as individual tenants reduced their floor area requirements, putting upward pressure on the vacancy rate.

2010 F Vacancy Rate

BANGKOK OFFICE CAPITAL AND RENTAL VALUES 140,000 120,000

1,000

100,000

800

80,000

600

60,000

400

40,000

200

20,000

0

Rentals (Baht / sq m / Month)

Capital Values

1,200

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

1,400

Building UM Tower Athenee Tower Sermit Tower All Seasons Place Thai Military Bank

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Lufthansa Airlines L USAID L The Value Systems Company Limited L UAE Embassy S CP Real Estate Group

Area (sq ft) 8,100 32,300 26,900 25,800 N/A

0

Capital Values (Baht / sq m)

VIETNAM Ho Chi Minh City • Amid the continued economic recovery of the City, the overall office occupancy rate increased by 5 to 7 percentage points to over 97% during 3Q 2009.

30,000

12.0%

25,000

10.0%

20,000

8.0%

15,000

6.0%

10,000

4.0%

5,000

2.0%

0

2006

2007 Supply

2008

2009 F

Take up

2010 F Vacancy Rate

• Prime office rentals in the City were between US$40 – 50 per sq m per month on net floor area basis as of 3Q 2009.

Vacancy Rate

sq m

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

• With the completion of Kumho Asiana Plaza in 3Q 2009, a total of 25,765 sq m prime office space was added to the total stock. In 2010, A & B Tower, a new office development is anticipated to provide a total of 25,500 sq m net floor area in the second-tier office market.

0.0%

• The market will see no new completion of prime office building from 4Q2009 to the end of 2011 when the Financial Tower containing a total of 50,000 sq m office space is due for completion.

HO CHI MINH CITY OFFICE RENTAL VALUES 70 60

Rentals

50 40 30 20 10

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (US$ / sq m / Month)

10

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

INDIA Bangalore • Prime office rentals remained largely stagnant in 3Q2009 after a continual fall over the past couple of quarters. Office capital values also displayed a similar trend during the period.

18.00

36.0%

16.00

32.0%

14.00

28.0%

12.00

24.0%

10.00

20.0%

8.00

16.0%

6.00

12.0%

4.00

8.0%

• With only a few IT/ITES companies planning to expand, there was no significant improvement in demand during 3Q2009.

Vacancy Rate

Million sq ft

BANGALORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

4.0%

2.00

0.0%

0.00

2006

2007

2008

Supply

2009 F

Take up

2010 F Vacancy Rate

• The Bangalore Metro Rail Corporation Limited was close to finishing the land acquisition for the Namma Metro. Development work on the first phase has started and full completion is scheduled by the end of 2012. The portion between M G Road and Byappanahalli is expected to be completed by the last quarter of 2010.

• A number of infrastructure development projects have been taking place across the city in an attempt to improve overall traffic conditions.

7,000

60

6,000

50

5,000

40

4,000

30

3,000

20

2,000

10

1,000

0

Building Capital Values

70

0

Rentals (Rupee / sq ft / Month)

Chennai • The demand for IT/ITES space continued to remain muted in 3Q2009. However, the availability of IT/ITES stock for lease, representing more than 95% of the total available space, remained relatively high. However, non-IT space was quite limited in the marketplace.

16.00

32.0%

14.00

28.0%

12.00

24.0%

10.00

20.0%

8.00

16.0%

6.00

12.0%

4.00

8.0%

2.00

4.0%

0.00

0.0%

2006

2007 Supply

2008 Take up

2009 F

Vacancy Rate

Million sq ft

Area (sq ft) 40,000 40,000 30,000 10,000 10,000

Capital Values (Rupee / sq ft)

CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate

• The Tamil Nadu government is planning to set up a financial city near Chennai through a public/private partnership. The proposed scheme is expected to attract tenants engaged in the Banking, Financial Services and Insurance sectors, including mutual funds and stockbrokers.

8,000

70

7,000

60

6,000

50

5,000

40

4,000

30

3,000

20

2,000

10

1,000 0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F Rentals (Rupee / sq ft / Month)

Building Capital Values

80

0

• There was an increase in the level of enquiries attributed to those IT companies based in STPIs, but which have been looking to relocate to SEZs during 3Q2009.

• Office rentals for non-IT space remained stable in 3Q2009. The trend was similar to the IT/ITES space in all micro-markets except OMR during the period.

CHENNAI OFFICE CAPITAL AND RENTAL VALUES

Rentals

Subramanya Arcade Golf View Holmes ITPL Subramanya Arcade Red Woods

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Reliance Communications L Starent L IP Soft L National Instruments L Aligro

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F

Rentals

BANGALORE OFFICE CAPITAL AND RENTAL VALUES

Kochar SM Towers Shyamala Towers DLF SEZ Steeple Reach Khivaraj Complex

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Sutherland L Expeditors L Laser Words L Synergy Maritime L St.Johns Freight Systems

Area (sq ft) 80,000 17,000 20,000 8,500 12,000

Capital Values (Rupee / sq ft)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

11

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

INDIA Mumbai • Bucking the downward trend in the first half of 2009, prime office rentals for most micro-markets started stabilising in 3Q2009. The overall office market also saw an improvement in the volume of transactions during the period.

18.00

24.0%

15.00

20.0%

12.00

16.0%

9.00

12.0%

6.00

8.0%

3.00

4.0%

0.00

2006

2007

2008

Supply

2009 F

Take up

2010 F

Vacancy Rate

Million sq ft

MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.0%

70,000 60,000

250

50,000

200

40,000

150

30,000

100

20,000

50

10,000

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F

0

Rentals (Rupee / sq ft / Month)

Capital Values

Rentals

MUMBAI OFFICE CAPITAL AND RENTAL VALUES

300

0

Capital Values (Rupee / sq ft)

16.0%

14.00

14.0%

12.00

12.0%

10.00

10.0%

8.00

8.0%

6.00

6.0%

4.00

4.0%

2.00

2.0%

0.00

0.0%

2006

2007

2008

Supply

Take up

2009 F

2010 F

Vacancy Rate

Million sq ft

18.0%

16.00

30,000

250

25,000

200

20,000

150

15,000

100

10,000

50

5,000 0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F

0

Rentals (Rupee / sq ft / Month)

12

Capital Values (Rupee / sq ft)

Capital Values

Rentals

35,000

Area (sq ft) 200,000 150,000 40,000 100,000 1,800 14,000 20,000

• An increased number of enquiries regarding the movement from STPI to the SEZ were recorded. However, the enquiries are yet to translate into actual movement of companies.

• The Delhi government has approved the proposed scheme for Phase III of the metro line and sanctioned INR 30 million to the Delhi Metro Rail Corporation Ltd to carry out a detailed project report for this Phase, running a total of 120 km in the National Capital Region.

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES

300

Ventura Nirlon Kalpataru Square Kensington Nariman Bhawan Platinum Tech Park 215 Atrium

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L JP Morgan Chase L Morgan Stanley L Mitsui OSK L Wipro L Commerz Bank L Baker Huges L British Marine

• With office rentals approaching a state of stabilisation amid the continued improvement of the global and local market sentiment, a number of commercial projects were launched during 3Q2009.

Vacancy Rate

350

Building

New Delhi • Prime office rentals saw a fall of 2.7% quarter-on-quarter (q-o-q) in 3Q2009 but most peripheral micro-markets remained largely stable during the period.

NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE 18.00

• Market confidence strengthened, as evidenced by the rising level of enquiries during 3Q2009. However, individual investors remained cautious due to which the conversion rate was low.

• In order to boost the city’s infrastructure, the Mumbai Metropolitan Region Development Authority awarded the contract for the Mumbai Metro II project - the 32-km elevated rail line between Charkop and Mankhurd - to Reliance Infrastructure, a consortium led by the Anil Dhirubhai Ambani Group. The first phase of the Metro Project is expected to be completed by 2010-11.

Vacancy Rate

350

• Due to the improved market liquidity, the continued debt restructuring among key developers and the encouraging performance of the equity market, more solid signs of real estate market recovery emerged in 3Q2009.

Building Individual Building Amway Vatika Business Park Vatika Business Park Individual Building Individual Building Individual Building Individual Building

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Map My India L Elegence L Etisalat L Xerox L Syscom Corporation Ltd L Green Power International L Eueraka Outsourcing Solutions Ltd L Azad News

Area (sq ft) 25,000 26,000 75,000 45,000 42,000 42,000 22,000 18,000

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

AUSTRALIA Adelaide • Private investors and syndicators remained the key buyers for office properties in 3Q2009, although the access to funding continued to cause significant delays during the acquisition process.

10.0%

80,000

8.0%

60,000

6.0%

40,000

4.0%

20,000

2.0%

0

0.0%

sq m

100,000

2006

-20,000

2007

2008

2009 F

2010 F

-2.0%

Vacancy Rate

ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

-40,000

-4.0%

-60,000

-6.0%

-80,000

-8.0%

-100,000

-10.0%

-120,000

-12.0%

• The average office vacancy rate increased 1.4 percentage points to 4.8% in July 2009, but was still below its historical average of 12.7%.

• There was a fall of occupational demand in 3Q2009, but there were signs of stabilisation towards the end of the period. Average office rental was AU$335 per sq m per annum as of 3Q2009.

-14.0%

-140,000 Supply

Take up

• On the supply front, there will no major completion of new developments before 2011.

Vacancy Rate

700

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Building

Capital Values

Rentals

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES

115 Grenfell Street 80 King William Street 199 Grenfell Street 400 King William Street

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Local Private Investor S Local Private Investor S Private Investor L State Government

Area (sq ft) 149,700 91,200 54,500 33,400

0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

Canberra • Prime face office rents showed slight growth to reach AU$375 per sq m per annum as of 3Q2009.

CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

6.0%

100,000

5.0%

80,000

4.0%

60,000

3.0%

40,000

2.0%

20,000

1.0%

0

2006

2007

2008

2009 F

2010 F

-20,000

• Established secondary buildings are under pressure to maintain current passing rents.

Vacancy Rate

7.0%

120,000

sq m

140,000

• Prime property yields have stabilised, but secondary yields continued to soften in 3Q2009.

0.0% -1.0%

Supply

Take up

• Vacancy levels rose sharply as a number of tenants migrated from old to new buildings.

Vacancy Rate

• Investment confidence improved for prime office assets.

8,000

700

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Building

Capital Values

800

ATO Building City 10 Rudd Street

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

Tenant / Purchaser Real I.S. Private Investor

Area (sq ft) 467,300 51,000

0

0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

CANBERRA OFFICE CAPITAL AND RENTAL VALUES

Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

13

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

AUSTRALIA Melbourne • According to the Property Council of Australia’s July 2009 Office Market Report, the average office vacancy rate increased mildly to 4.8% as of 3Q2009.

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 250,000

10.0%

200,000

8.0%

150,000

6.0%

sq m

Vacancy Rate

• A total of 168,700 sq m of new office space, currently under construction, is expected to come on line over the next six months in the Melbourne CBD and Docklands.

100,000

4.0%

50,000

2.0%

0

0.0% 2006

2007

2008

Supply

2009 F

Take up

• A total of nine major investment sales with lump sum price of AU$10 million or above each were transacted year to date, with a total consideration of AU$511 million.

2010 F Vacancy Rate

• Office investment yields softened 75 basis points across the board during 2Q and 3Q2009. The Grade A sector softened by about 100 basis points to 7.75%-8.50% as of 3Q2009.

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Capital Values

Rentals

MELBOURNE OFFICE CAPITAL AND RENTAL VALUES 700

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F Rentals (Australian$ / sq m / Year)

Capital Values (Australian$ / sq m)

PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE

15.0%

120,000

12.0%

90,000

9.0%

60,000

6.0%

30,000

3.0%

0

2006

2007

2008

2009 F

2010 F

Vacancy Rate

18.0%

150,000

sq m

180,000

0.0% -3.0%

-30,000

-6.0%

-60,000 Supply

Take up

PERTH OFFICE CAPITAL AND RENTAL VALUES

8,000

700

7,000

600

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000 0 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

0

Rentals (Australian$ / sq m / Year)

14

Capital Values (Australian$ / sq m)

Capital Values

Rentals

9,000

800

Area (sq ft) 135,600 141,000 147,100 59,800 166,400 191,600 88,600

Perth • Perth experienced a significant increase in vacancy levels from 1.3% in January 2009 to 8% in July 2009 due to softening demand amid an increase in supply. Office rentals came under downward pressure as the level of incentives increased to 10%-20% during 3Q2009.

• On a positive note, a number of sub-lease spaces were taken back from the market due to the improved business performance and expectations of a future increase in floor area requirements.

• The volume of investment transactions was subdued in the first half of 2009 as local institutional players continued to stay on the sidelines. Buying activity continued to be dominated by overseas players and cash-rich private investors.

10,000

900

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser L Allens Arthur Robinson L Telstra L Optus L BP Elite S Knowles Group S Prime Value S Private Investor

• Given the growing market confidence and the projection of a sustained economic recovery, demand for office space is expected to strengthen over the medium to long term.

Vacancy Rate

1,000

Building 101 Collins Street 180 Lonsdale Street 271 Collins Street 485 LaTrobe Street 215 Spring Street 350 Collins Street 456 Lonsdale Street

0

0

• The average net office rental stabilised across the board in 3Q2009. However, it is our view that prospective rental growth will be limited as competition remains keen among landlords.

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser 172 St Georges Terrace S Private Investor 81 St Georges Terrace S Aviling Pty Ltd 1 Mill Street L BHP Billiton 432 Murray Street L JP Kenny Durack Centre, 263 Adelaide Terrace L Sinclair Knight Merz Pty Ltd Quayside on Mill, 2 Mill Street L Barrick Gold Ltd Building

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

Area (sq ft) 67,400 128,200 67,100 49,900 114,200 10,600

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

AUSTRALIA Sydney • Office vacancy rates increased from 5.4% in January 2009 to 7.7% July 2009. It is predicted to rise to 9.0% by January 2010 and then to peak by mid-2011.

SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

12.0%

100,000

10.0%

80,000

8.0%

60,000

6.0%

40,000

4.0%

20,000 0

-20,000

2.0% 2006

2007

2008

2009 F

2010 F

0.0% -2.0%

-40,000

-4.0%

-60,000

-6.0%

-80,000

-8.0%

-100,000

• Face office rents were stable in 3Q2009. Incentive levels stabilised at about 25%-30% - an increase of 15 percentage points on average across the board since its peak in September 2008.

Vacancy Rate

14.0%

120,000

sq m

140,000

-10.0%

-120,000

• Looking into 2011 and 2012, new developments due for completion during the period have been largely pre-committed.

-12.0% Supply

Take up

• A total of about 110,000 sq m of new supply will be coming on line in 2010. Vacancy rates are projected to edge up in anticipation of a slow economic recovery and a further rise in unemployment rate. Rentals will see further downward pressure in 2010.

Vacancy Rate

SYDNEY OFFICE CAPITAL AND RENTAL VALUES 16,000 14,000

1,200

12,000

1,000

10,000

800

8,000

600

6,000

400

4,000

200

2,000

0

0

Rentals (Australian$ / sq m / Year)

Building Capital Values

1,400

1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 F 1Q 2010 F 2Q 2010 F 3Q 2010 F 4Q 2010 F 1Q 2011 F 2Q 2011 F

Rentals

1,600

343 George Street 33 & 35 Bligh Street 264-278 George Street 286 Sussex Street 255 George Street

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Abacus S Energy Australia L Patersons Securities L University of Newcastle L Ord Minetts (Renewal)

Area (sq ft) 106,900 * 21,980 11,100 17,600 29,500

* Refers to site area

Capital Values (Australian$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

15

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

NEW ZEALAND

70,000

14.0%

60,000

12.0%

50,000

10.0%

40,000

8.0%

30,000

6.0%

20,000

4.0%

10,000

2.0%

0

2006

2007

2008

Supply

2009 F

Take up

Vacancy Rate

sq m

AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

Capital Values

Rentals

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES 600

Building

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010 F

3Q 2009

2Q 2009

4Q 2009 F

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

4Q 2006

3Q 2006

2Q 2006

1Q 2006

Rentals (New Zealand$ / sq m / Year)

Forsyth Barr Tower Pernod Ricard NZ House

9.0%

80,000

8.0%

70,000

7.0%

60,000

6.0%

50,000

5.0%

40,000

4.0%

30,000

3.0%

20,000

2.0%

10,000

1.0% 2006

2007

2008

Supply

2009 F

Take up

Vacancy Rate

• A total of 114,000 sq m of new office space is projected to come onto the market between 2009 and 2011. The market will see a further rise in vacancy rates, but investment yields are expected to stabilise over the remainder of 2009.

6,000

500

5,000

400

4,000

300

3,000

200

2,000

100

1,000

0

Building Capital Values

600

• Lease renewals continued to be the most favoured option for most tenants. Without a significant increase in new demand, the average vacancy rate increased from 5% in 4Q2008 to 6% in 2Q2009.

• Investment yields hovered between 7.5% and 8.5% as of 3Q2009. AMP Capital Investors sold its 9,110 sq m office building at the corner of Hunter Street and Customhouse Quay for NZ$29.6 million, representing a yield of 8.66% per annum.

0.0%

2010 F

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES

Quaypoint State Insurance Tower Tower Building

4Q 2010 F

3Q 2010 F

2Q 2010 F

1Q 2010 F

4Q 2009 F

3Q 2009

2Q 2009

1Q 2009

4Q 2008

3Q 2008

2Q 2008

1Q 2008

4Q 2007

3Q 2007

2Q 2007

1Q 2007

4Q 2006

3Q 2006

2Q 2006

1Q 2006

0

Rentals (New Zealand$ / sq m / Year)

Area (sq ft) 129,100 79,300

Wellington • Despite the challenge of the recessionary threat, quality office space remained in demand during 3Q2009. Prime office gross rents in the CBD stabilised at NZ$560 per sq m at the high end during 3Q2009.

Vacancy Rate

sq m

90,000

0

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Robt. Jones Holdings S Property Syndicate

Capital Values (New Zealand$ / sq m)

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Rentals

• A total of about 59,000 sq m of new office space is scheduled for completion before the end of 2009 and over 70% of the space has been pre-committed. However, occupational demand for office space is expected to remain subdued in 2009. Prime grade office rents will continue to fall, although prime yields should remain static over the remainder of 2009.

0

0

16

• Office vacancy rates continued to edge up in 3Q2009. The average rate in the CBD was 8.4% compared with 5.4% registered in prime buildings as of June 2009.

• Investment yields eased 100 to 150 basis points over the past six quarters. Prime yields in the CBD precincts ranged between 8% and 9%. One of the major office transactions registered in 3Q2009 was the sale of Forsyth Barr Tower at 55-56 Shortland Street to Robt. Jones Holdings for a total consideration of NZ$41.5 million.

0.0%

2010 F

Auckland • Occupational demand remained soft in 3Q2009 and few tenants moved in the CBD. New deals were scarce as the majority of tenants preferred to renew their leases rather than to relocate elsewhere. For example, the AMP NZ Office Trust renewed eight of its major leases for another term for a combined area of 23,000 sq m in both Auckland and Wellington.

Capital Values (New Zealand$ / sq m)

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

MAJOR TRANSACTIONS Lease (L) / Tenant / Sale (S) Purchaser S Private Investor L South African High Commission L Duncan Cotterill

Area (sq ft) 54,300 10,800 8,100

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

PRIME OFFICE RENTALS Rentals (US$ / sq ft / year) 0

20

40

60

80

100

120

Tokyo Hong Kong Singapore Ho Chi Minh City Sydney Perth Mumbai Delhi Shanghai Canberra Melbourne Adelaide Beijing Taipei Wellington Auckland Bangkok Kuala Lumpur Seoul Guangzhou Chengdu Jakarta Manila Chennai Bangalore 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"

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

17

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

TRENDS & FORECASTS City

New Supply (sq ft)

Take-up (sq ft)

Average Vacancy (%)

2009 F

2010 F

2009 F

2010 F

2009 F

2010 F

Beijing CBD Zhongguancun Finance Street Lufthansa East Chang An Avenue East 2nd Ring

2,924,745 269,098 814,596 0 0 1,295,091

3,093,674 0 645,834 344,445 0 1,442,739

806,447 -48,760 662,485 184,869 -273,137 540,985

1,546,837 159,844 448,032 437,069 88,628 819,507

35.4 8.9 15.1 19.0 8.0 35.2

37.7 6.8 16.1 16.5 6.6 37.3

Chengdu Renmin Road Chunxilu, Yanshikou East Street Shuncheng Street-Luomashi

0 0 861,112 1,770,952

233,577 0 0 0

-899,367 39,999 613,166 1,401,707

808,972 -159,984 -128,263 -272,714

47.0 18.0 30.0 20.0

56.0 26.0 42.0 32.0

Guangzhou Yuexiu Tianhe Haizhu

0 0 3,345,000 15,740,826 0 1,183,060

226,483 1,286,480 153,278

191,339 4,632,018 288,117

14.0 28.7 36.4

Shanghai Huangpu Jingan Lujiazui-Pudong Zhuyuan-Pudong Changning Luwan Xuhui

0 0 2,154,997 1,263,274 207,237 0 0

395,520 1,666,768 4,291,610 1,706,078 699,654 0 0

-29,652 130,518 1,665,977 714,440 626 -34,009 40,801

101,773 1,025,110 2,715,670 1,027,662 328,012 118 -36,716

0 0 0 0

0 0 0 0

-543,354 -493,960 -368,705 346,486

Taipei CBD

1,016,262

697,264

Seoul CBD KBD YBD

1,420,923 1,267,696 623,898

Tokyo CBD

Total Stock (sq ft) 2010 F

2009 F

2010 F

16,579,266 19,672,940 7,619,765 7,619,765 9,978,124 10,623,958 6,075,952 6,420,397 6,307,067 6,307,067 4,104,727 5,547,466

26.92 24.21 33.38 24.02 21.05 22.90

29.05 24.30 36.19 24.88 23.04 26.28

4,551,203 1,999,857 1,068,877 2,272,636

17.14 16.00 22.04 13.88

17.96 15.51 21.22 13.06

9.3 41.5 42.5

4,338,799 4,338,799 15,466,680 31,207,506 1,076,390 2,259,450

16.98 22.52 15.51

16.32 21.71 14.69

6.8 11.1 16.7 32.7 10.7 5.1 4.2

14.8 17.6 21.4 35.1 16.4 5.0 5.0

2,937,662 3,333,182 5,324,665 6,991,433 13,994,741 18,286,351 3,330,438 5,036,516 4,509,331 5,208,985 3,102,124 3,102,124 4,272,386 4,272,386

34.14 42.06 32.47 24.94 28.62 36.12 34.53

30.20 37.27 29.67 22.81 25.90 34.98 33.13

82,193 68,662 304,045 307,021

6.0 7.3 5.9 5.3

5.6 6.7 6.9 4.7

21,358,308 21,358,308 11,095,267 11,095,267 10,540,480 10,540,480 6,563,890 6,563,890

116.03 59.76 43.11 50.16

126.09 60.33 44.12 51.93

-350,340

360,194

13.6

14.9

18,489,630 19,186,894

25.64

26.02

5,252,579 667,695 949,004

4,319,706 2,024,196 402,479

5,237,064 1,397,070 1,249,959

5.4 5.3 4.1

4.6 2.5 2.1

27,935,728 33,188,308 27,043,512 27,711,207 15,974,700 16,923,704

23.24 19.71 15.13

23.54 20.07 15.32

4,051,764

3,615,263

N/A

N/A

7.0

7.5

N/A

109.52

101.82

Jakarta CBD Non-CBD

3,640,200 875,180

693,195 672,744

1,343,744 674,272

1,448,283 532,727

14.8 12.1

12.9 12.4

44,293,728 44,986,924 18,313,560 18,986,303

16.28 11.26

16.86 11.37

Kuala Lumpur KLCA

1,939,039

670,000

500,000

500,000

10.6

11.0

27,812,300 28,482,300

21.49

21.84

Manila Makati Ortigas

445,130 1,982,194

0 0

-664,647 760,093

172,852 320,237

6.8 12.8

6.2 12.3

14.93 11.01

14.69 10.56

Hong Kong Central Wanchai HK Island East Tsim Sha Tsui

18

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

2009 F

Average Rentals (US$ / sq ft / year)

2,430,715 1,999,857 1,068,877 2,272,636

N/A

9,317,135 4,961,404

9,317,135 4,961,404

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

TRENDS & FORECASTS City

New Supply (sq ft)

Take-up (sq ft)

Average Vacancy (%)

2009 F

2010 F

2009 F

2010 F

2009 F

2010 F

Singapore CBD

949,704

1,781,656

270,308

914,316

8.5

Bangkok CBD

299,775

753,473

107,639

538,195

Ho Chi Minh City CBD

277,332

274,479

277,332

Bangalore Overall CBD SBD PBD

5,036,343 403,218 3,500,000 1,133,125

5,366,832 172,807 2,700,000 2,494,025

Chennai Overall CBD SBD PBD

7,388,295 643,295 560,000 6,185,000

Mumbai Overall CBD SBD PBD New Delhi Overall CBD SBD PBD

Total Stock (sq ft) 2010 F

2009 F

2010 F

11.9

19,286,503 21,068,159

51.09

44.21

17.6

18.0

16,903,306 17,656,779

21.60

22.43

274,479

5.0

2.5

1,384,776

50.73

59.09

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

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

16.0 5.0 17.0 28.0

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

58,756,343 64,123,175 N/A N/A N/A N/A N/A N/A

10.80 16.99 9.99 5.00

10.74 16.99 9.99 4.50

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

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

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

22.5 N/A N/A N/A

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

26,800,000 1,575,000 5,845,000 19,380,000

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

11.52 14.99 11.74 7.74

11.37 14.49 11.24 7.49

9,041,000 0 4,641,000 4,400,000

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

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

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

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

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

68,980,000 N/A N/A N/A

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

48.71 79.93 32.47 22.48

47.52 74.94 32.47 23.73

9,530,136 0 1,951,000 7,579,136

N/A 0 N/A N/A

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

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

19.5 12.0 16.0 24.0

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

49,802,158 1,861,000 6,909,000 41,032,158

N/A 1,861,000 N/A N/A

42.59 76.94 39.47 12.49

41.22 72.44 36.64 11.24

Adelaide CBD

516,667

0

269,098

430,556

5.0

6.5

13,866,465 13,866,465

27.39

28.62

Canberra CBD

96,875

775,001

96,875

538,195

1.0

6.0

3,089,239

30.66

31.48

1,815,870

736,789

0

215,278

5.3

8.2

19,006,141 19,678,347

29.84

29.60

Perth CBD

753,473

1,462,114

-290,625

322,917

8.3

14.6

14,652,854 16,115,001

49.06

47.26

Sydney CBD

581,789

971,862

-1,076,390

-107,639

7.6

10.0

51,663,738 51,623,320

51.18

50.69

Auckland CBD

401,278

0

119,748

75,584

11.5

9.8

4,425,082

4,425,082

21.39

21.39

Wellington CBD

217,431

581,251

121,567

499,133

6.0

8.0

1,781,425

2,362,676

25.50

24.91

Melbourne CBD

2009 F

Average Rentals (US$ / sq ft / year)

1,110,296

2,314,239

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

19

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

DEFINITIONS AND TERMINOLOGY

GREATER CHINA

NORTH ASIA

Beijing Prime office market in Beijing consists of 6 sub-markets – CBD (Central Business District), Lufthansa, 2nd East Ring, Finance Street, East Chang An Avenue and Zhongguancun.

Seoul Major office districts in Seoul include the traditional central business area (CBD), Gangnam Business District (GBD) and Yeouido Business District (YBD).

Rents are quoted in 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.

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.

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 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.

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.

SOUTH ASIA

Shanghai Prime office buildings in Shanghai are located in 6 principal sub-markets – Huangpu, Jingan, Lujiazui-Pudong, Changning, Luwan and Xuhui.

Jakarta The quality office buildings in Jakarta are located in the CBD covering the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and Mega Kuningan. The areas outside the above districts are collectively called as “non-CBD”.

Rents are 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.

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

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.

COLLIERS INTERNATIONAL | REGIONAL RESEARCH

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.

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE SUMMARY

DEFINITIONS AND TERMINOLOGY

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 non-strata-titled developments.

Bangkok 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.

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.

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.

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 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.

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.

INDIA

*

Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s

Bangalore 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.

office/flat throughout the building. ** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.

AUSTRALASIA Australia 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.

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

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21

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009

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 General Manager Eric.Lam@colliers.com

Taipei, Taiwan 49F TAIPEI 101 TOWER 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

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 ASIA 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 Hong Company Licence No: C-006052

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

22

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

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

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Singapore 1 Raffles Place #45-00 OUB Centre Singapore 048616 Tel : 65 6223 2323 Fax : 65 6222 4901 Dennis Yeo Managing Director, North Asia Managing Director, Singapore 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 Managing Director Quan.Do@colliers.com

ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009 EXECUTIVE 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 1377 Saravanan C Office Director Saravanan.C@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

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

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

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

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

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

Brisbane, Australia Level 20, Central Plaza One 345 Queen Street Brisbane QLD 4000 Tel : 61 7 3229 1233 Fax : 61 7 3229 1100 Matt Kearney Director, Office Leasing Matt.Kearney@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

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

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