Presented by: Marc Townsend, Managing Director Hieu Le, Director of Office Service Richard Colville, Director of Asset Management

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1 Presented by: Marc Townsend, Managing Director Hieu Le, Director of Office Service Richard Colville, Director of Asset Management 1 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

2 VIETNAM IN THE FOREIGN PRESS 2 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

3 VIETNAM IN THE FOREIGN PRESS 3 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

4 FDI In Q Real Estate FDI Grows Strong Vietnam Registered FDI in 2M 2017: USD3.4 billion, up 21.5% y-o-y Manufacturing 75% % 7% 10% 10% 2M % Real Estate Retail, Vehicle Sales Others Top FDI Investors, USD million, 2M 2017 Major Deals, 2M 2017 Taiwan Thailand BritishVirginI Japan South Korea China Singapore Singaporean investor invested US$285 million in Vietnam-Singapore IP III in Binh Duong Province. 2. China invested US$220 million for manufacturing in Tay Ninh Province. 3. Kolon Industries invested in manufacturing in Binh Duong Province. 4. Wenzhou Hendy Mechanism and Plastics Co. invested US$150 million in Lam Son IZ in Bac Giang Province. Source: CBRE Vietnam, Q Source: GSO 4 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

5 DASHBOARD PRODUCED MONTHLY National ECONOMIC INDICATORS 2Y 1Y 6M 3M 1M Current BANKING & FINANCE 2Y 1Y 6M 3M 1M Current VN-Index CPI (%) y-o-y USD/VND (inter-bank) 21,458 22,300 21,949 22,232 22,232 22,252 Trade balance (US$, bil) Retail & services Turnover (VND, tril) (1.0) (0.4) (0.1) (1.2) Local gold (VND mil/tael) Lending Rate (%)* 8.1% 7.6% 8.2% 7.7% 9.1% 8.5% Deposit rate (%)** (1-year term) 6.4% 6.7% 6.7% 6.5% 6.7% 7.1% Source: GSO, Feb, 2017 Source: GSO, SBV, SJC & HSX, Mar, 2017 REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current NEW LAUNCHES 2Y 1Y 6M 3M 1M Current Real Estate Holding & Development Listed Companies HCMC New launches (unit) 70,705 35,780 16,285 8,316 3,199 2,890 Real Estate Services Listed Companies HN New launches (unit) 51,851 30,760 19,223 11,526 5,814 2,814 Source: Stockbiz, Mar 2017 Source: CBRE, Mar, 2017 (*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only. (**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards. 5 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

6 OCCUPIERS DASHBOARD Real Estate Index HCMC REAL ESTATE INDEX Total supply (thousand sm) Rental Grade A (US$/sm/mth) Rental Grade B (US$/sm/mth) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2,228 2,307 2,326 2,377 2,377 2,377 2,377 2,421 2,429 $34.2 $34.9 $35.0 $35.9 S35.7 $38.7 $35.7 $36.6 $37.0 $19.1 $19.2 $19.7 $19.8 $19.7 $19.9 $19.9 $21.0 $22.0 Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

7 HCMC INFRASTRUCTURE In Asia's Infrastructure Race, Vietnam is Among The Leaders 7 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

8 HCMC INFRASTRUCTURE Bridges, Overpasses To Solve Congestion Nguyen Van Cu Bridge connection line 2018 Overpass Truong Son Tan Son Nhat airport Overpass Nguyen Kiem Nguyen Thai Son Nguyen Tri Phuong Bridge connection line CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

9 HCMC INFRASTRUCTURE Flooding Continues a Challenge 2/2/ /3/2017 Nguyen Huu Canh Street, Binh Thanh District Song Hanh Street, District 12 Vo Van Ngan Street, Thu Duc District Ba Huyen Thanh Quan Street, District 3 9 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

10 New Projects To Solve Infrastructure Issues: Flooding And Traffic Congestion Hiep Phuoc Station 66km embankment Bach Dang Station Electric bus Water bus Lo Gom Station 10 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

11 HCMC INFRASTRUCTURE Thu Thiem Updates CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

12 HCMC INFRASTRUCTURE Improving Connection To District 7 METRO LINE NO. 4 CBD Kenh Te 2 Bridge Nguyen Khoai Bridge Thu Thiem 3 Bridge Kenh Te 2 Bridge Thu Thiem 4 Bridge Nguyen Van Linh Nguyen Huu Tho Overpass/Tunnel 12 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

13 HR & COMPLIANCE Big Occupiers HR Retention and Compliance 13 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

14 OFFICE APAC Research: How Millennials Work Source: Millennials: Myths and Realities, CBRE Research, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

15 OFFICE MARKET 15 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

16 DISTRICT 7 South East: PMH NUA, Nha Be District and District 7 Part of PMH Sky Garden RichLane Residences Oakwood Part of PMH Sky Garden SC VivoCity South Saigon Development Corporation s land for villa developments 16 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

DISTRICT 7 South East: PMH NUA, Nha Be District and District 7 IPC Office Tower Hoang Anh Gia Lai Residential Development Kenton Node Residential Development Rach Dia bridge connecting Nha Be

17 DISTRICT 7 South East: PMH NUA, Nha Be District and District 7 IPC Office Tower Hoang Anh Gia Lai Residential Development Kenton Node Residential Development Rach Dia bridge connecting Nha Be District and District 7 Nha Be District Phu My Hung District 8 Nguyen Van Linh Highway 10 lanes, the most modern urban route in HCMC, connecting D7 and National Highway (linking to the North of Vietnam) Fire Safety Center Quoc Cuong Gia Lai Residential Development 17 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

DISTRICT 7 South East: District 8 District 8 Suburban area with abundant stock of affordable condominiums RMIT University An Asian campus of Melbournebased

Ton Duc Thang University Private University One of the largest and fastest growing universities in Vietnam.

18 DISTRICT 7 South East: District 8 District 8 Suburban area with abundant stock of affordable condominiums RMIT University An Asian campus of Melbournebased university RMIT - Australia's biggest tertiary institution. The purpose-built facility was opened in 2001 Another campus in Hanoi. Ton Duc Thang University Private University One of the largest and fastest growing universities in Vietnam. One of the total 4 campuses (2 in HCMC, 1 in the West of Vietnam, 1 in the Central of Vietnam) Nha Be District Large number of land plot projects Relatively underdeveloped Ong Lon bridge connecting District 7 and District 8 18 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

District 1 District 4 South Saigon Development Corporation s land Land

19 DISTRICT 7 North: District 4 and District 1 Upcoming Police Academy Novaland Sunrise City (District 7) The iconic Bitexco in District 1 District 1 District 4 South Saigon Development Corporation s land Land plot for sale and villa developments 19 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

20 OFFICE Limited To No New Supply Every Year New Grade A & B supply by Quarter, HCMC Office NLA (sm) 1,100,000 1,050,000 1,000, , , ,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Current Supply by Grade, Q Existing Supply New Supply 30% Grade A 70% Grade B Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

OFFICE New Supply In 2017 Since 2011, District 7 welcomes its first

Opened: 22 nd March, 2017 GFA: 28,384 sm Etown Central GFA: 67,760 sm Q1

Q4 2017 1. Deustches Haus GFA: 38,621 sm 2.

21 OFFICE New Supply In 2017 Since 2011, District 7 welcomes its first Decentralized Grade A Building Mapletree Business Center Officially Opened: 22 nd March, 2017 GFA: 28,384 sm Etown Central GFA: 67,760 sm Q SGGP Newspaper GFA: 8,000 sm Q Viettel Complex GFA: 65,971 sm Q Deustches Haus GFA: 38,621 sm 2. Saigon Centre Phase 2 GFA: 40,000 sm 1 Q Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

22 OFFICE Rents And Vacancy 15% 10% Vacancy Rents Grade B Grade A Grade B Grade A 2017 Q1 Q4 Q Q2 Q1 Q4 Q Q2 Q1 Q4 Q Q2 Q1 5% 0%0% 5% 10% 15% $40 $30 $20 $10 $0 $0 $10 $20 $30 $40 Grade B 2.6% Source: CBRE Vietnam, Q Grade A 6.4% Grade B US$ % y-o-y +4.8% q-o-q Grade A US$ % y-o-y +1.2% q-o-q 22 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

23 OFFICE New Grade B Supply To Quickly Be Absorbed Net Absorption Net Absorption, HCMC Office NLA (sm) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Source: CBRE Vietnam, Q Grade A Grade B 23 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

24 OFFICE Limited Supply in District 7 New supply and Net absorption by year, District 7, Q ,000 25,000 20,000 NLA (sm) 15,000 10,000 5, Q New Supply Net Absorption Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

25 OFFICE District 7 s Vacancy Rate And Net Absorption Rents and Vacancy, District 7, Q Rents (US$/sm/month) % 24% 18% 12% 6% Vacancy Rate (%) Q Rents Vacancy 0% Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

OFFICE Demand Largely From Relocation And Expansion

2016 25% 75% 9% 91% Q1 2017 IT, Financials and Logistics

500-1000 sm 250-499 sm > 1000 sm Source: based on CBRE s

26 OFFICE Demand Largely From Relocation And Expansion Tenants Profiles New letting Relocation & Expansion Q % 75% 9% 91% Q IT, Financials and Logistics to be dominant Enquired Sizes 19% 19% 26% 36% sm sm sm > 1000 sm Source: based on CBRE s enquiries, 2017 y-t-d 26 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

27 FORTUNE GLOBAL 500 Fortune Companies in Vietnam Food & Drug Stores Telecommunications Apparel Transportation Chemical Technology Energy Engineering & Construction Household products Business Service Motor Vehicles & Parts Retailing Wholesalers Finance Health Care Industrials Food, Beverages & Tobacco Hotels, Restaurants & Aeorospaces & Defense Materials Media No. of companies Source: CBRE Vietnam, Q companies in companies in CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

28 OCCUPIERS DASHBOARD Major Transactions Building Sector Size in sm Rent (US$ psm) Service Charge (US$ psm) MAJOR TRANSACTIONS IN HCMC MARKET Q TNR Design 500 $19 $5 PEARL PLAZA Sourcing 1,133 $19 $6 SAIGON TRADE CENTER Software 164 $22 $6.5 SAIGON GIAI PHONG Insurance 560 $20 $5 LOTTERY TOWER Fashion 400 $12 $4 VINCOM CENTER Trading 314 $23 $5 SAIGON TRADE CENTER Technology 156 $21 $6.5 CENTEC TOWER Technology 308 $27 $6 60 NGUYEN DINH CHIEU Trading 270 $17 $5 SUNWAH Consultancy 175 $40 $6 PHU MY HUNG Retail 317 $15 $7 METROPOLITAN Fashion 575 $34 $6 DIAMOND PLAZA Real Estate 400 $32 $8 PICO PLAZA Fashion 975 $12 $5 Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

29 OFFICE Future Supply Spirit of Saigon GFA: 15,000 sm 2. Saigon M&C GFA: 49,000 sm 3. VietCapital Center GFA: 38,621 sm 4. The Khai GFA: 15,000 sm 5. The Prince GFA: 15,000 sm SJC Tower GFA: 38,000 sm 2. Tax Center GFA: 35,000 sm 3. Nexus Tower GFA: 133,834 sm 4. Capitaland at Vinhome Golden River GFA: N/A sm One Hub GFA: 159,462 sm 6. Tan Son Nhat Plaza GFA: 128,190 sm 7. Crescent Mall Phase 2 GFA: 36,297 sm 5 Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

30 OFFICE Supply Trend: Co-Working Space Still Expanding Dreamplex to open second coworking space Dreamplex 2 Grand Opening on 2 nd March, 2017 Toong at the Oxygen under construction 30 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

relocate and expand to higher quality buildings Diversified Demand High demand from traditional sectors The surge of

31 OFFICE Demand Trend: Opportunities abound for the market Ongoing Supply Excess supply coming from CBD and Non- CBD area Rents are expected to become more competitive Higher demand still comes for CBD Flight to value Big occupiers to relocate and expand to higher quality buildings Diversified Demand High demand from traditional sectors The surge of IT expansion Start-up boom: Growth of co-working space Source: CBRE Vietnam, Q CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

32 GREEN BUILDINGS 32 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

Building A Review of the Costs and Benefits for Developers,

33 GREEN BUILDINGS Improved Occupant Health & Wellbeing Source: World Green Building Council The Business Case for Green Building A Review of the Costs and Benefits for Developers, Investors and Occupants 33 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic Compound

34 IMPACT OF GREEN BUILDINGS ON COGNITIVE FUNCTION Harvard-CBRE Research Study 1 Allen JG, MacNaughton P, Satish U, Santanam S, Vallarino J, Spengler JD Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic Compound Exposures in Office Workers: A Controlled Exposure Study of Green and Conventional Office Environments. Environ Health Perspect DOI: /ehp CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

IMPACT OF GREEN BUILDINGS ON COGNITIVE FUNCTION Harvard-CBRE Research Study 2 Source: Allen JG, MacNaughton P, Satish U, Santanam S, Vallarino J, Spengler JD. 2015.

35 IMPACT OF GREEN BUILDINGS ON COGNITIVE FUNCTION Harvard-CBRE Research Study 2 Source: Allen JG, MacNaughton P, Satish U, Santanam S, Vallarino J, Spengler JD Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic Compound Exposures in Office Workers: A Controlled Exposure Study of Green and Conventional Office Environments. Environ Health Perspect DOI: /ehp CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

36 IMPACT OF GREEN BUILDINGS ON COGNITIVE FUNCTION Harvard-CBRE Research Study 2 Allen JG, MacNaughton P, Satish U, Santanam S, Vallarino J, Spengler JD Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic Compound Exposures in Office Workers: A Controlled Exposure Study of Green and Conventional Office Environments. Environ Health Perspect DOI: /ehp CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

37 IMPACT OF GREEN BUILDINGS ON COGNITIVE FUNCTION Harvard-CBRE Research Study 2 Allen JG, MacNaughton P, Satish U, Santanam S, Vallarino J, Spengler JD Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic Compound Exposures in Office Workers: A Controlled Exposure Study of Green and Conventional Office Environments. Environ Health Perspect DOI: /ehp CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

38 GREEN INTERIOR FIT OUT Tenant Specification Building and site selection (connectivity, landscape) Tenant owned system efficiency (energy & water) Fit out material and waste disposal Indoor thermal comfort and human health (low emitting materials, etc.) 38 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

39 GREEN BUILDINGS IN VIETNAM Offices Or Factories President Place Deutsches Haus Mapletree Business Centre 39 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

40 CBRE SUSTAINABILITY Capabilities CBRE s Asia Sustainability team brings the full power of our global platform to benefit Clients across the region with solutions for their investor or occupier needs. SUSTAINABLE STRATEGY & CONSULTING CORPORATE SUSTAINABILITY REPORT (CSR) CONSULTING POLICY & PROCEDURE DEVELOPMENT GRESB REPORTING SUSTAINABILITY BENCHMARKING GREEN BUILDING DUE DILIGENCE STAKEHOLDER ENGAGEMENT GREEN BUILDING CERTIFICATION ENERGY AUDITS GREEN TRANSACTION ADVISORY HEALTH & WELLBEING CONSULTING 40 CBRE OFFICE OCCUPIER OUTLOOK Q1 2017

For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. Research & Consulting T +84 8 3824 6125 F +84 8 3823 8418 Email: research.vietnam@cbre.

41 For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. Research & Consulting T F research.vietnam@cbre.com All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

Mapletree s Portfolio in Vietnam Operating Assets Development

19 storeys, 5 basemen ts CentrePoint HCMC, Phu Nhuan 16 storeys,

Centre HCMC, D7 HCMC, D1 HCMC, D7 5 storeys, 2 basement s

rooms) & a retail podium 17 storeys, 2 basements MBC @ BD Binh

units, 243 resi units Lancer HCMC, D2 808 units GFA (sqm) 26,107

22,674 28,129 40,526 80,000 23,010 N/A 40,291 65,000 Usage

Retail Office/ Retail / SA & Hotel Office Business Park / High

42 Mapletree s Portfolio in Vietnam Operating Assets Development Projects Asset Location Storeys / Units Pacific Place Hanoi CBD 19 storeys, 5 basemen ts CentrePoint HCMC, Phu Nhuan 16 storeys, 2 basements SC VivoCity Kumho Asiana Plaza Mapletree Business Centre HCMC, D7 HCMC, D1 HCMC, D7 5 storeys, 2 basement s 21storey office, 32 storey SA (260 units), 21 storey hotel (305 rooms) & a retail podium 17 storeys, 2 basements BD Binh Duong N/A Oakwood Residence& Residential blk HCMC, D7 237 SA units, 243 resi units Lancer HCMC, D2 808 units GFA (sqm) 26,107 44,733 64, ,000 28, ,557 62, ,446 NLA (sqm) 22,674 28,129 40,526 80,000 23,010 N/A 40,291 65,000 Usage Acquisition year/ Completion year Office / Retail / SA Office Retail Office/ Retail / SA & Hotel Office Business Park / High Tech Serviced Apt & Residential Residential N/A 2017 /

Mapletree Business Centre Facts Development Construction start May 2015 (Start of superstructure) Construction end 22 Dec 2016 Total construction period 9 months basements + piling 14 months

43 Mapletree Business Centre Facts Development Construction start May 2015 (Start of superstructure) Construction end 22 Dec 2016 Total construction period 9 months basements + piling 14 months superstructure + finishing Total: 23 months, excluding 6- month delay TDC Total: 51 mil USD Land: 13 mil USD Building: 38 mil USD Key consultants Architecture: CPG MEP: JRP C&S: AECOM Other facts Land tenure Till Dec 2060 (44 years remaining) Site coverage 55% PR 6 Basement Parking lots 2 basements of 7,500 sqm 90 car lots 1,500 motorbike lots 43

Don t believe everything you read in the media about the Vietnam Property Market

Don t believe everything you read in the media about the Vietnam Property Market Presented by: Mr. Marc Townsend, Managing Director, CBRE Vietnam HO CHI MINH CITY 19th January 2017 1 CBRE MARKET INSIGHTS