Asia Pacific Regional Office Market Report Q1 2010

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Asia Pacifi c

Offi ce Market Overview

R E G I O N A L R E S E A R C H

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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

Southeast 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 Offi ce Rentals ...17

Trends & Forecasts ... 18-19

Defi nitions & Terminology ... 20-21

Contacts ... 22-23

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REGIONAL OVERVIEW

Market Outlook

Attributed largely to the relaxed monetary measures adopted by various central governments, the ease of credit and the sustained low interest rates, the region’s 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 region’s 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.

A number of multinational corporations have been encouraged by the stronger-than-anticipated 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.

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).

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.

Market Revival

Sales Market

Leasing Trends

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M A J O R T R A N S A C T I O N S

C H I N A

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) Gateway Plaza S Mapletree India China Fund Ltd. 1,416,300 World Financial Centre L Halliburton 40,900 Tengda Building L A subsidiary of BiAuto 37,700

Raffl es City L Sumitomo Pharm 24,800

Raffl es City L CITIC Investment 24,600

China Overseas Plaza L Trimble 19,400

China Central Place L Zhong De Securities 16,100

Yintai Centre L He Yu Real Estate 16,100

China Central Place L Hanas Natural Gas 12,900 China Central Place L Sequoia Capital 10,800

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft)

Central Plaza L Cenosls PTE CTD 4,500

Lippo Tower L Lenovo 30,000

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.

• 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.

Beijing

• 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.

0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 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 Rentals Ca pital Values

Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)

BEIJING OFFICE CAPITAL AND RENTAL VALUES 2007 2008 2009 2010 F 2011 F 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Million sq m Vacanc y Rate

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Supply Take up Vacancy Rate

2007 2008 2009 2010 F 2011 F 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Million sq m Vacanc y Rate

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

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 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Rentals

Ca

pital

Values

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Building Lease (L) / Tenant / Area

Sale (S) Purchaser (sq ft)

Poly Centre L Security fi rm 9,100

Poly Centre L Domestic bank 37,700

Poly Centre L Investment company 20,400

Poly Centre L Real estate company 19,700

GT Land Plaza L Accounting fi rm 95,300

Poly Centre L Media company 4,800

Guangzhou

• 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.

• 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.

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.

C H I N A

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 Rentals 0.00 3.00 6.00 9.00 12.00 15.00 Ca pital Values 0 12,000 24,000 36,000 48,000 60,000

Rentals (RMB / sq m / Day) Capital Values (RMB / sq m)

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES 0.00 0.30 0.60 0.90 1.20 1.50 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2007 2008 2009 2010 F 2011 F Vacanc y Rate Million sq m

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Corporate Avenue L Analog Devices 29,000

SWFC L Itochu 71,000

Intercontinental Centre L NXP 64,600

Chong Hing Finance L Hugo Boss 6,500

Plaza 66 Tower II L Sanofi Aventis 22,600

21st Century Tower S Ningbo Bank 149,100

2007 2008 2009 2010 F 2011 F

Million sq m Vacanc

y Rate

0.00 0.50 1.00 1.50 2.00 2.50 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

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 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 0 4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

pital

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Taipei

• 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.

T A I W A N

2007 2008 2009 2010 F 2011 F

Ping

Vacanc

y Rate

-5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

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} Rentals 0 500 1,000 1,500 2,000 2,500 3,000

Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping)

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Ca pital Values

TAIPEI OFFICE CAPITAL AND RENTAL VALUES

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.

Sale (S) Purchaser (sq ft) Manulife Plaza L Sun Hung Kai Securities 100,000

Landmark East L AIA Insurance 120,000

Landmark East L Levi’s 14,000

Landmark East L Mott McDonald 42,100

Manhattan Place L Kaga Electronics 20,900

8/F, 9 Queen’s Road Central S SiS Capital Ltd 13,700 13/F, New Mandarin Plaza S Pretty Ltd 19,700 10 fl oors, One Harbour East S Undisclosed 157,100

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 0.00 25.00 50.00 75.00 100.00 125.00 Rentals 0 5,000 10,000 15,000 20,000 25,000 Ca pital Values

Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft)

HONG KONG OFFICE CAPITAL AND RENTAL VALUES 2007 2008 2009 2010 F 2011 F 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc

y Rate

Million sq ft

Sale (S) Purchaser (sq ft) Exchange Square One L Hermes Greater China Ltd 5,200

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J A P A N

Tokyo

• Large leasing transactions increased slightly in 1Q2010 due to greater incentives available from landlords in view of lower rents.

• 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.

Roppongi Hills L Google 71,000

Sumitomo Hamarikyu L PWC Japan 159,700

Shinagawa Grand Central L Microsoft 390,500 Shinjuku Mynds Tower L Japan Kantar Research 27,300 Tokyu Capital Tower L Mitsubishi Research Institute 248,500 2007 2008 2009 2010 F 2011 F 0 40,000 80,000 120,000 160,000 200,000 240,000 280,000 320,000 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate Tsubo 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 10,000 20,000 30,000 40,000 50,000 60,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 TOKYO OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

pital

Values

Rentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo)

S O U T H K O R E A

Seoul

• 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. • 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.

Sale (S) Purchaser (sq ft) Dongyang Securities Bldg. L Woori Asset Management 53,800 Dongyang Securities Bldg. L Dongyang Securities 19,800 Shinsong Centre Bldg. L Dongbu Asset Management 10,900

Olive Tower L Hyundai Oil Bank 56,600

Gateway Tower L Air Products 17,800

K1 REIT Bldg. L Keumho Life Insurance 16,000 Golden Tower L Kyobo Life Insurance 21,700

Daeryung Secho Tower L GAEASOFT 28,900

Nara Bldg. L ALti Soft 32,700

Sigong Tech Bldg. S Sungwoo Automotive (SWA Group) 46,300 Korea Land Housing (LH) Seoul Bldg. S Ottogi Co., Ltd. 183,200 Jungdong Bldg. S Samsung Investments Co., Ltd. 421,400 2007 2008 2009 2010 F 2011 F 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate Pyung 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 50,000 100,000 150,000 200,000 250,000 Rentals 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Ca pital Values

Rentals (Won / Pyung / Month) Capital Values (Won / Pyung)

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Jakarta

• 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. • 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.

Kuala 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.

I N D O N E S I A

M A L A Y S I A

Sale (S) Purchaser (sq ft) Menara Jamsostek (South) L MAA Insurance 21,500 The Plaza L PT. Harta International Management 2,700 The Plaza L United Insurance Service 4,300

The Plaza L Pea Body Energy 2,100

The Plaza L Victus Life 4,000

Graha Aktiva L Sofrecom 4,300

Graha 55 L Badan Nasional Penanggulangan Bencana 16,900

Graha 55 L Rama Express 4,100

Wisma Pondok Indah I L ANZ 4,300

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) Emerio, Cyberjaya L AT&T Communication Services *11,000

(M) Sdn Bhd

Menara BATA L Mega Advertising Sdn Bhd 3,800 Menara Mustapha Kamal L CHI Fitness 20,000 PJ 8 - Block A L Tenaga Nasional Bhd 14,000 The Icon - West wing L Mustang Engineering 15,000 Menara PJD L Public Works Department Malaysia 360,000

(Jabatan Kerja Raya Malaysia)

UOA Damansara II S UOA REIT 296,800

Menara UOA Bangsar - Tower B S UOA REIT 312,300

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 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Rentals 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Ca pital Values 0 2,000,000 4,000,000 6,000,000

Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m)

JAKARTA OFFICE CAPITAL AND RENTAL VALUES 2007 2008 2009 2010 F 2011 F 0 100,000 200,000 300,000 400,000 0.0% 5.0% 10.0% 15.0% 20.0% JAKARTA OFFICE SUPPLY, TAKE-UP

& VACANCY RATE

Vacanc y Rate sq m 2007 2008 2009 2010 F 2011 F Million sq ft Vacanc y Rate 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE

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} 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Rentals 0 100 200 300 400 500 600 700 800 900 1,000 Ca pital Values

Rentals (Ringgit / sq ft / Month) Capital Values (Ringgit / sq ft)

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES

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Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) MBFC Phase One Tower Two L Nomura Singapore Limited 102,000 Twenty Anson L Toyota Motors Asia Pacifi c 38,000 Ocean Financial Centre L Verizon Communications 32,000 Robinson Point S AEW Global Advisors 133,000 Marina House S Roxy Pacifi c, Macly Capital, Pinnacle Assets, 130,000

Fission Holdings, Chee Hsian Sing

1 Finlayson Green S Lucrum Capital 89,000

Singapore

• 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.

• 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 retro-fitted 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.

S I N G A P O R E

M A J O R T R A N S A C T I O N S 2007 2008 2009 2010 F 2011 F 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.00 0.50 1.00 1.50 2.00 2.50

SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacancy Rate Million sq ft 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} 0.00 5.00 10.00 15.00 20.00 25.00 30.00 Rentals 0 500 1,000 1,500 2,000 2,500 3,000 Ca pital Values

Rentals (Singapore$ / sq ft / Month) Capital Values (Singapore$ / sq ft)

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES

Manila

• With office rentals showing signs of bottoming out in 1Q2010, landlords are expected to raise asking rentals soon.

• 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.

P H I L I P P I N E S

Ayala Tower One L ING Bank N.V. 47,500

RCBC Plaza L Vestas 12,400

6750 Ayala Avenue L N.V. Besix S.A. Philippine Branch 3,600

Tara Building L Land Bank 9,100

-40,000 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000 -12.0% -9.0% -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 2007 2008 2009 2010 F 2011 F sq m Vacanc y Rate

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

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 0 200 400 600 800 1,000 1,200 Rentals Ca pital Values 20,000 40,000 60,000 80,000 100,000 120,000 0

Rentals (Peso / sq m / Month) Capital Values (Peso / sq m)

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Ho 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$40-US$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.

V I E T N A M

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 10 20 30 40 50 60 70 Rentals

Rentals (US$ / sq m / Month)

HO CHI MINH CITY OFFICE RENTAL VALUES -30,000 0 30,000 60,000 90,000 120,000 150,000 -6.0% 0.0% 6.0% 12.0% 18.0% 24.0% 30.0% 2007 2008 2009 2010 F 2011 F

Vacanc

y Rate

sq m

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

Bangkok

• 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.

• 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.

THAILAND

Sale (S) Purchaser (sq ft) Silom Complex L Country Group Securities Co., Ltd. 6,300 Silom Complex L Embassy of Japan in Thailand 6,700

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} 0 200 400 600 800 1,000 1,200 1,400 80,000 100,000 120,000 140,000 0 20,000 40,000 60,000 BANGKOK OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

pital

Values

Rentals (Baht / sq m / Month) Capital Values (Baht / sq m)

2007 2008 2009 2010 F 2011 F 0.00 0.02 0.04 0.06 0.08 0.10 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc

y Rate

Million sq m

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Bangalore

• 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.

I N D I A

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) Maruti Infotech Centre L Misys Software 29,200

JP Techno Park L Samsung 50,000

JP Techno Park L Curum Software 35,000

Prestige UB City L Uninor 26,000

SJR I Park L Intelli Group 25,000

2007 2008 2009 2010 F 2011 F 0.00 2.00 4.00 6.00 8.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 10.00 12.00

BANGALORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate Million sq ft 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 10 20 30 40 50 60 70 80 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 BANGALORE OFFICE CAPITAL AND RENTAL VALUES

Rentals (Rupee / sq ft / Month) Capital Values (Rupee / sq ft)

Rentals

Ca

pital

Values

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.

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) DLF SEZ L Continental Data Graphics 24,000

DLF SEZ L iGate 63,000

Ascendas L Lennox 20,000

RMZ L Franklin Templeton 40,000

Sterling Towers L Ven Sat Technologies 7,500 2007 2008 2009 2010 F 2011 F 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0% CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate Million sq ft 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 10 20 30 40 50 60 70 80 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 CHENNAI OFFICE CAPITAL AND RENTAL VALUES

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New Delhi

• Prime office rentals increased 2%-3% quarter-on-quarter (QoQ) in a number of micro-markets, 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.

Building Lease (L) / Tenant / Area

Sale (S) Purchaser (sq ft)

Baani Corporate One L Ingersoll Rand 7,000 Baani Corporate One L Chambal Fertilzers 30,000

Vatika Towers L Biogen Idec 15,000

Building 10 L Indus Towers 10,000

ABW Tower L Ministry of Fitness 15000

Gylcosls Pvt Ltd L ICICI Bank 3,500

Gylcosls Pvt Ltd L State Bank of India 2,700

Logix Cyber Park L IFS Solution 10,000

IHDP Business Park L HDFC Bank 1,300

I N D I A

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 50 100 150 200 250 300 350 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 NEW DELHI OFFICE CAPITAL AND RENTAL VALUES

Rentals Ca pital Values 2007 2008 2009 2010 F 2011 F 0.00 2.00 4.00 6.00 8.00 10.00 12.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc

y Rate

Million sq ft

Mumbai

• 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 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.

Wadia Plaza L Axis Bank 400,000

Godrej IT Park L CapGemini 75,000

Oberoi Commerze L GroupM 75,000

Times Square L Spectral 15,000

Times Square L Compulink 10,500

Universal Magestic S Partibha Industries 40,000 2007 2008 2009 2010 F 0.00 3.00 6.00 9.00 12.00 15.00 18.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate Million sq ft 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 50 100 150 200 250 300 350 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 MUMBAI OFFICE CAPITAL AND RENTAL VALUES

Rentals

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Adelaide

• 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.

• 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.

A U S T R A L I A

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 0 100 200 300 400 500 600 700 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 ADELAIDE OFFICE CAPITAL AND RENTAL VALUES

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)

Rentals Ca pital Values 2007 2008 2009 2010 F 2011 F 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc

y Rate

sq m

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.

Sale (S) Purchaser (sq ft) 490 Northbourne Ave L Australian Government 10,800

Childers Square L Ombudsman 21,600

Childers Square L Sparke Helmore 10,000

Childers Square L Legal Aid 20,700

Childers Square L Australian Reinsurance Pool 13,500 Pharmacy Guild House L Computer Sciences Corporation 22,500 Allan Woods Building L Air Services Australia 182,500 20 Allara St L Australian Government 8,500

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 0 100 200 300 400 500 600 700 800 Rentals Ca pital Values 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

CANBERRA OFFICE CAPITAL AND RENTAL VALUES 2007 2008 2009 2010 F 2011 F

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 sq m 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Vacanc y Rate

CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Sale (S) Purchaser (sq ft) 400 King William Street L Department of Correctional Services 33,400 22 King William Street L National Australia Bank 45,300

63 Pirie Street L Randstad 11,600

HP House S Local Government Association 50,200 The Conservatory S Century Funds (Syndicate) 43,000

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Perth

• The vacancy rate in the Perth CBD stablised at 8.2% as of January 2010.

• 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.

Melbourne

• 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.

• 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.

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) 735 Collins Street L Australian Taxation Offi ce 409,000

385 Bourke Street L TRU Energy 96,900

717 Bourke Street L Channel 9 / PBL Media Pty Ltd. 93,400 530 Collins Street L Moore Stephens 46,600 800 Collins Street S SEB Asset Management (50% share) 318,000 383 King Street S Henkell Brothers 139,800 446 Collins Street S Private Investor 57,600 414 LaTrobe Street S Julliard Group 155,200

Sale (S) Purchaser (sq ft) 251 St Georges Terrace L AGC Industries 21,900

169 Hay Street L Fairfax 16,300

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

0 100 200 300 400 500 600 700 800 900 1,000 Rentals Ca pital Values 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 PERTH OFFICE CAPITAL AND RENTAL VALUES 2007 2008 2009 2010 F 2011 F -40,000 -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 sq m -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Vacancy Rate

PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE 2007 2008 2009 2010 F 2011 F 0 50,000 100,000 150,000 200,000 250,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate sq m 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 0 100 200 300 400 500 600 700 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MELBOURNE OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

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Values

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A U S T R A L I A

Sydney

• 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.

• 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.

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft)

85 Castlereagh Street L JP Morgan 179,800

420 George Street L State Street 113,000

179 Elizabeth Street S Echo Capital Partners 170,800

55 Hunter Street S City Freeholds 152,800

80 Clarence Street S Aviva Investors 67,400 60 Martin Place S Gwynvill Properties 252,600 -100,000 -50,000 0 50,000 100,000 150,000 200,000 -5.0% -2.5% 0.0% 2.5% 5.0% 7.5% 10.0% 2007 2008 2009 2010 F 2011 F SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc

y Rate

sq m

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 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Ca pital Values 0 200 400 600 800 1,000 1,200 1,400 1,600 Rentals

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N E W Z E A L A N D

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 Society’s

commitment to taking 6,300 sq m of office space in the Britomart East complex, which is scheduled for completion in early 2011.

• 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.

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.

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) Morrison Kent House S Pascoe Group 188,600 State Services Commission Building S Undisclosed 144,100

Petherick Tower S Undisclosed 67,900

3-11 Hunter Street L Tech Tonics 5,900

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} 0 100 200 300 400 500 600 0 1,000 2,000 3,000 4,000 5,000 6,000 AUCKLAND OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

pital

Values

Rentals (New Zealand$ / sq m / Year) Capital Values (New Zealand$ / sq m)

2007 2008 2009 2010 F 2011 F 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate sq m 2007 2008 2009 2010 F 2011 F 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Vacanc y Rate sq m 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 0 100 200 300 400 500 600 0 1,000 2,000 3,000 4,000 5,000 6,000 WELLINGTON OFFICE CAPITAL AND RENTAL VALUES

Rentals

Ca

pital

Values

Rentals (New Zealand$ / sq m / Year) Capital Values (New Zealand$ / sq m)

Building Lease (L) / Tenant / Area Sale (S) Purchaser (sq ft) 8 Nelson Street L Goodman Fielder New Zealand 62,400 Britomart East Building Britomart Place L Southern Cross Medical Care Society 67,800

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P R I M E O F F I C E R E N T A L S

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

Chennai

0

20

40

60

80

100

120 Rentals (US$ / sq ft / year)

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T R E N D S & F O R E C A S T S

City New Supply Take-up Average Vacancy Total Stock Average Rentals

(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F Beijing CBD 4,683,900 0 1,679,341 2,874,876 39.4 25.2 20,240,599 20,240,599 27.04 29.62 Zhongguancun 0 0 134,172 43,131 4.6 4.0 7,619,765 7,619,765 26.20 26.97 Financial Street 148,434 0 269,442 188,584 4.8 2.9 9,978,125 9,978,125 36.52 38.90 Lufthansa 905,997 828,820 384,155 585,664 24.2 24.7 6,981,950 7,810,770 24.75 24.86

East Chang An Avenue 0 0 -104,991 59,643 6.6 5.7 6,307,067 6,307,064 22.16 24.73

East 2nd Ring 1,442,739 0 671,172 590,077 44.0 33.3 5,504,411 5,504,411 23.69 24.21 Chengdu Renmin Road 2,341,816 1,216,321 2,871,292 3,300,987 60.0 55.0 4,785,673 6,001,994 19.60 21.23 Chunxilu, Yanshikou 0 484,376 199,982 496,851 10.0 20.0 1,999,857 2,484,233 16.33 17.15 East Street 0 0 245,148 204,288 18.0 15.0 1,361,913 1,361,913 19.60 21.23 Shuncheng Street-Luomashi 0 1,495,633 193,212 142,008 20.0 15.0 946,685 2,442,318 15.51 16.33 Guangzhou Yuexiu 0 0 96,326 57,167 7.6 6.3 4,338,799 4,338,799 17.47 17.80 Tianhe 4,613,408 13,247,250 1,730,232 5,809,115 27.5 39.8 18,332,450 31,743,032 23.31 23.68 Haizhu 0 1,183,060 161,459 605,437 21.2 35.7 1,076,390 2,259,450 16.33 16.33 Shanghai Huangpu 395,520 0 350,735 -21,101 9.2 9.9 3,333,182 3,333,182 34.34 34.81 Jingan 1,666,768 1,743,031 1,196,713 1,328,645 19.8 20.5 7,387,286 9,130,317 38.75 39.51 Lujiazui-Pudong 2,100,381 6,208,230 1,033,833 3,005,092 23.9 31.3 17,012,347 23,220,577 30.66 28.34 Zhuyuan-Pudong 2,180,852 627,848 1,428,261 -70,807 27.5 36.8 5,036,516 5,664,363 27.20 24.42 Changning 341,474 0 306,826 -19,452 12.5 12.9 4,850,805 4,850,805 28.95 29.72 Luwan 699,654 0 668,543 -6,758 4.7 4.9 3,801,777 3,801,777 37.46 38.55 Xuhui 0 1,288,493 -434,706 1,082,260 15.3 15.5 4,294,958 5,583,450 31.53 32.31 Hong Kong Central 0 0 198,308 137,819 4.3 3.6 21,266,625 21,266,625 151.38 187.72 Wanchai 0 237,344 161,415 215,758 4.9 4.9 11,095,267 11,332,611 72.51 84.84 HK Island East 434,350 0 240,883 142,130 6.5 5.3 10,974,830 10,974,830 49.76 54.73

Tsim Sha Tsui 0 0 -112,281 39,465 6.4 5.8 6,361,390 6,361,390 59.85 67.04

Taipei CBD 697,264 0 419,781 635,715 13.3 10.0 19,186,894 19,186,894 26.29 26.61 Seoul CBD 4,155,833 0 2,481,174 1,107,369 10.5 6.9 30,670,639 30,670,639 24.45 25.65 KBD 329,902 0 809,451 204,520 2.3 1.5 26,105,717 26,105,717 21.36 22.50 YBD 949,004 2,835,343 529,378 1,670,117 4.4 9.7 16,729,297 19,564,640 16.30 17.27 Tokyo

CBD 4,001,307 5,758,695 N/A N/A 7.5 7.5 N/A N/A 95.82 94.73

Jakarta CBD 2,269,030 3,127,903 2,372,697 1,876,600 11.5 13.3 45,948,721 49,076,624 17.24 17.91 Non-CBD 1,302,335 1,258,117 863,491 998,029 12.7 13.2 19,032,642 20,484,509 12.27 12.42 Kuala Lumpur KLCA 1,172,000 2,454,000 700,000 700,000 10.5 15.4 28,420,000 30,874,000 22.80 23.17 Manila Makati 0 0 177,540 -84,615 8.1 9.0 9,317,135 9,317,135 16.89 18.37 Ortigas 0 0 233,760 143,752 11.5 8.6 4,961,404 4,961,404 12.57 13.66

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T R E N D S & F O R E C A S T S

(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)

(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F 2010 F 2011 F Singapore CBD 1,906,000 1,555,241 1,638,334 1,611,453 8.9 8.0 21,191,297 22,746,538 56.21 61.76 Bangkok CBD 837,431 290,625 269,098 322,917 17.5 17.0 17,945,940 18,236,565 22.73 24.11

Ho Chi Minh City

CBD 1,421,481 307,417 964,801 533,750 25.0 10.0 2,533,402 2,878,105 59.09 46.82 Bangalore Overall 910,000 3,280,000 1,330,000 3,050,000 15.0 17.0 65,033,175 68,313,175 11.17 11.96 CBD 270,000 450,000 350,000 550,000 16.0 18.5 N/A N/A 17.81 18.61 SBD 0 970,000 750,000 1,000,000 9.0 9.5 N/A N/A 10.63 11.96 PBD 640,000 1,860,000 230,000 1,500,000 19.0 21.5 N/A N/A 4.79 5.32 Chennai

Overall 2,068,500 5,586,250 747,100 N/A 22% N/A 28,868,500 34,454,750 11.96 12.23

CBD 0 822,500 70,100 N/A N/A N/A 1,575,000 2,397,500 15.42 15.95

SBD 0 703,500 33,000 N/A N/A N/A 5,845,000 6,548,500 12.23 12.49

PBD 2,068,500 4,060,250 644,000 N/A N/A N/A 21,448,500 25,508,750 7.98 7.98

Mumbai

Overall 3,365,000 2,057,000 1,416,000 N/A N/A N/A 75,545,000 N/A 51.31 51.84

CBD 0 930,000 870,000 N/A N/A N/A N/A N/A 85.07 85.07

SBD 2,060,000 940,000 229,000 N/A N/A N/A N/A N/A 43.86 45.19

PBD 1,305,000 187,000 317,000 N/A N/A N/A N/A N/A 25.25 25.25

New Delhi

Overall 3,368,000 3,900,000 957,000 N/A 18.5 N/A 56,994,158 60,894,158 43.60 44.13

CBD 0 400,000 43,000 N/A 6.1 N/A 1,861,000 2,261,000 71.51 71.78 SBD 168,000 0 55,000 N/A 15.0 N/A 8,150,000 8,150,000 39.88 40.67 PBD 3,200,000 3,500,000 859,000 N/A 23.0 N/A 46,983,158 50,483,158 19.67 19.67 Adelaide CBD 0 0 215,278 322,917 6.8 5.0 13,799,320 13,777,792 29.78 30.63 Canberra CBD 796,529 0 645,834 150,695 8.0 7.5 3,110,767 3,110,767 32.76 34.04 Melbourne CBD 736,789 0 968,751 1,076,390 7.2 7.4 19,678,347 19,678,347 34.43 36.55 Perth CBD 1,532,833 88,264 538,195 538,195 13.6 10.7 16,282,196 16,370,460 51.48 53.61 Sydney CBD 1,353,141 1,805,644 430,556 807,293 6.2 7.9 25,794,319 27,599,964 55.01 57.67 Auckland CBD 0 301,389 241,746 110,427 11.0 14.0 4,258,866 4,560,255 21.43 20.97 Wellington CBD 581,251 300,313 523,287 213,394 3.0 6.2 2,144,933 2,445,246 23.87 23.34

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GREATER CHINA

Beijing

Prime offi ce 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 fl oor area basis, and exclusive of management fees and rent free period. Capital values are quoted on RMB per sq m.

Chengdu

Prime offi ce 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 fl oor area basis, and exclusive of management fees. Capital values are quoted on RMB per sq m.

Guangzhou

Prime offi ce 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 fl oor area basis, and exclusive of any management fees and government taxes. Capital values are quoted on US$ per sq m.

Shanghai

Prime offi ce 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 fl oor area basis, and exclusive of any management fees. Capital values are quoted on RMB per sq m.

Hong Kong

Prime offi ce 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 fl oor area basis, which are exclusive of management fees, and government tax. Prices are quoted in HK$ per sq ft, and are measurable on gross fl oor area basis.

Taipei

Prime offi ce 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 fl oor area basis.

D E F I N I T I O N S A N D T E R M I N O L O G Y

NORTH ASIA

Seoul

Major offi ce 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 fl oor 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 fl oor area basis. Capital values are quoted in Won per sq m.

Tokyo

The quality offi ce 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. Offi ce space is measured on an internal fl oor area basis. Capital values are quoted in Yen per tsubo.

SOUTHEAST ASIA

Jakarta

The quality offi ce 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. Offi ce space is measured on lettable fl oor area basis. Capital values are quoted in Rupiah per sq m.

Kuala Lumpur

Prime offi ce 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 fl oor area basis, which are inclusive of service charges and property taxes. Capital values are quoted in Ringgit per sq ft.

Manila

Prime offi ce 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 fl oor area basis, and exclusive of any management fees. Capital values are quoted in Peso per sq m.

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D E F I N I T I O N S A N D T E R M I N O L O G Y

Singapore

The quality offi ce 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 fl oor 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 offi ce 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 fl oor area basis, and inclusive of service charges. Capital values are quoted in Baht per sq m.

Ho Chi Minh City

The quality offi ce 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 fl oor area basis, and exclusive of management fees and government tax. Capital values are quoted on US$ per sq m.

INDIA

Bangalore

Prime offi ce 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 Whitefi eld.

Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Offi ce space is commonly measured on *super built up area basis.

Chennai

Prime offi ce 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. Offi ce 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 affi liated 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 affi liated 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 fi rm of Colliers International Property Consultants, an affi liation of independent companies with over 290 offi ces throughout more than 60 countries worldwide

Mumbai

Prime offi ce 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. Offi ce space is commonly measured on *super built up area basis.

New Delhi

Prime offi ce 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.

Offi ce 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 fl oor lobby, and caretaker’s offi ce/fl at throughout the building.

** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.

AUSTRALASIA

Australia

Prime offi ce buildings are located in the CBD and generally favored by MNCs.

Rents are quoted on net fl oor 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 offi ce buildings are located in the CBD.

Rents are quoted on net fl oor 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.