SUPPLY, DEMAND & PIPELINE PROJECTS

Transcription

1 VIETNAM RETAIL PROPERTY MARKET SUPPLY, DEMAND & PIPELINE PROJECTS Presented by: Mr. Richard Leech - Executive Director CB Richard Ellis (Vietnam) January 27th, 2010

2 Vietnam Retail Market HIGHLIGHTS Another year of consecutive growth in retail sales, around 18%, highlighting the continued strength of local demand for goods and services CBD rentals remain steady. Many renovated shophouses taking up excess demand Numerous mid-end and high-end brands entering Vietnam in the last year: Naf Naf, Morgan de Toi, Mexx, Aldo, Hard Rock Café, Debenhams. Many Non-CBD shopping centres are still having difficulty maintaining tenants and low absorption rate i.e. Saigon Paragon and The Gardens Hanoi. The CBD retail saw the first major new supply in 2009 with the opening of Vincom Galleries, Hanoi and in HCMC with Kumho Asiana Plaza both of which launched with under 20% vacancy. CB Richard Ellis Page 2

3 Vietnam Retail Market Renovation and improvement of shophouse retail will continue to put pressure on rents, especially outside the city centre. The issues faced by non-cbd retail centres highlights issues of tenant mix. More projects may turn to master leases with professional retailers (department store, mall operator) ENT (Economic Needs Test) required for foreign owned retailers to open 2nd stores. FORECAST More luxury retailers to enter the market Continued international-style retailing: multi-brand stores, new F&B concepts Conversions of wet markets into formal trade centres. Growing demand to come from: Expanding Vietnamese retail chains nationwide rollout Arriving International brands as WTO hangover wears off CB Richard Ellis Page 3

4 VIETNAM HO CHI MINH CITY

5 HCMC Retail Market - Modern Retail Centre s Total HCMC stock 256,025sm GFA (22 shopping centres and department stores) Department stores: 98,840 sm GFA Shopping centres: 157,185 sm GFA Occupancy Rate Averages: 95.3% Rental Rate Average prime rents (GF+1F) in the CBD: US$99.1/sm/mo Average prime rents (GF+1F) out of the CBD: US$46.6/sm/ mo Highest Rents in the CBD : up to US$ 250 per sm per month CB Richard Ellis Page 5

6 HCMC Current Retail Supply Major Projects CB Richard Ellis Page 6

7 HCMC Retail Current Supply HCMC CUMMULATIVE STOCK AND NEW SUPPLY FROM DEPARTMENT STORES AND SHOPPING CENTRES sm 300, , , , ,000 50, Existing supply New supply Retail supply more than doubled in 2 years CB Richard Ellis Page 7

8 HCMC Average Retail Rents Current Market AVERAGE PRIME RENTS OF SHOPPING CENTRES AND DEPARTMENT STORES $ $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $ Average prime rent in CBD Average prime rent out of CBD CB Richard Ellis Page 8 * Centers with vacancies being forced to reduce rents

9 HCMC Future Supply Project until 2013 HCMC FUTURE SUPPLY BY REGION sm 400, , , , , , ,000 50, CBD Non CBD Total new supply until 2013: 740,000 sqm triple the current supply None-CBD retail space to increase almost 50% in 2010 and 7 times more in 2013 CB Richard Ellis Page 9

10 HCMC Future Supply Typical Projects until 2013 EXPECTED FUTURE RETAIL SUPPLY Promenada (Phase 2) Binh Duong 38, Platinum Plaza Binh Chanh Berjaya Financial Tower Dist 10 Le Van Tam Underground Park Royal Garden Dist 7 SJC Tower Dist 1 Vincom Eden Dist 1 Tan Phong Shopping Complex Dist 7 Saigon M&C Dist 1 Times Square Dist 1 Promenada (Phase 1) Binh Duong The Crescent Dist 7 Bitexco Financial Tower Dist 1 Vincom Chi Lang Dist 1 30,904 22,000 8,292 27,104 70,000 23,000 14,566 44,000 44,000 11,090 53, , ,464 CB Richard Ellis Page 10 The Everich Dist 11 24,000

11 HCMC Future Supply Typical Projects until 2013 CB Richard Ellis Page 11

12 HCMC Future Retail Supply THE EVERICH Location: Ba Thang Hai Street, Dist. 11 Developer: Phat Dat Corporation GFA: 24,000 m 2 Confirmed tenant: Lotte Mart Concept: Hypermarket & Retail Status: Fitting-out Expected Opening: Q CB Richard Ellis Page 12

13 HCMC - New Mega/ Regional Retail Developments VINCOM CENTER Location: 70-72, Le Thanh Ton, Dist. 1 Developer: Vincom JSC GFA: 53,700 sqm (5 levels above ground and 3 levels underground) Expected Opening: 30 th April 2010 Status: Under construction - 80% leased CB Richard Ellis Page 13

14 HCMC Future Retail Supply BITEXCO FINANCIAL TOWER Location: 45 Ngo Duc Ke, Dist 1, HCMC Developer: BitexcoLand Concept: Grade A Office & Retail Retail GFA: 20,000sqm including 3 upper levels Attraction: Iconic landmark of in HCMC, Sky lounge, VIP Club Opening: Oct 2010 CB Richard Ellis Page 14

15 HCMC Future Retail Supply TIMES SQUARE Location: Nguyen Hue - Dist 1 HCMC (located with 2 frontages: Nguyen Hue & Dong Khoi Streets) Developer: Time Square (Vietnam) Investment Joint stock Co. Concept: Complex of high-end hotel, apartments, a business center, luxury shopping and entertainment facilities Retail GFA : 14,5662 sqm (split on 5 floors) Attraction: An L shape integrated world-class tower bringing to Ho Chi Minh City its first true one-stop contemporary luxury lifestyle destination. Opening: Quarter CB Richard Ellis Page 15

16 HCMC Future Retail Supply Location: Dist 2 - Ho Chi Minh city Developer: Daewon Thu Duc Housing Development Corporation Concept: 36 storeys international commercial center, office building and apartment complex Retail GFA :20,000 sqm Attraction: Beautiful Landmark at the gate of HCMC, promising to provide luxury modern urban, comfortable living environment and international standards offices and shopping center Opening: TBC CANTAVIL AN PHU CB Richard Ellis Page 16

17 HCMC Future Retail Supply THE FLEMINGTON PHASE 2 Location: Le Dai Hanh, Dist. 11 Developer: Paujar (Taiwan) Retail GFA: 7,500 sm (5 levels) Concept: Retail F&B & Office Services Expected Completion: Q Status: Under construction CB Richard Ellis Page 17

18 SAIGON M&C TOWER Location: Ton Duc Thang, Dist.1 Developer: JV of M&C Co. - Saigon Tourist Eastern Asia Commercial Bank (VN) GFA: 23,000 sm Expected Completion: 2010 Status: Under construction HCMC Future Retail Supply CB Richard Ellis Page 18

19 HCMC Future Retail Supply SAIGON PEARL Location: 92 Nguyen Huu Canh, Binh Thanh Dist. Developer: Vietnam Land SSG Concept: Saigon Pearl is designed to provide an all-in-one-fully-serviced, high quality commercial, high- rise residential and office facilities, complemented with professional landscaping and management services. Saigon Pearl will set a new standard for high quality urban lifestyle in Vietnam Retail GFA: 8,000 sm (2 levels) Expected Completion: Sept 2010 Status: Final construction phase CB Richard Ellis Page 19

20 HCMC - New Mega/ Regional Retail Developments CRESCENT MALL Location: Phu My Hung City GFA: 44,000 sqm Expected Completion: 2011 Status: Under construction Infrastructure: well-developed Prime location in Financial Centre Area CB Richard Ellis Page 20

21 HCMC - New Mega/ Regional Retail Developments PROMENADA Location: Binh Duong Developer: ECC Invest / Gucco Land GFA: 82,000 sm (2 phases) Expected Completion: Q3/2011 & Q3/2012 Status: Under construction Infrastructure: well-developed Adjacent to VSIP and Song Be Golf Course CB Richard Ellis Page 21

22 HCMC - New Mega/ Regional Retail Developments SUNRISE CITY Nguyen Huu Tho, Dist 7 GFA: 70,000 sm Completion : Q Under construction Developer : Novaland Strategic Asset Manager : Pacific Star CB Richard Ellis Page 22

23 HCMC - New Mega/ Regional Retail Developments METROPOLIS Location: Thu Thiem, Dist.2 Developer: BTA Total construction: 600,000 sm Expected Completion: 2012 Status: Under planning Infrastructure: Thu Thiem Bridge opened to traffic on 9th January, 2008 CB Richard Ellis Page 23

24 HCMC - New Mega/ Regional Retail Developments SPORTS CITY Location:An Phu Ward, Dist. 2 Developer: Keppel Land GFA: 80,000 sm Expected Completion: 2012 Status: Under planning Demographics:133,257 Infrastructure: Thu Thiem Bridge completed early 2008, Thu Thiem Tunnel under construction CB Richard Ellis Page 24

25 HCMC - New Mega/ Regional Retail Developments THAO DIEN PEARL Developer: SSG2 Location: District 2 HCMC GFA: 20,000 sqm Expected Completion: 2012 Status: Under Planning Infrastructure: modern, easy CB Richard Ellis Page 25

26 HCMC - New Mega/ Regional Retail Developments SAIGON FINANCIAL CENTRE Location: Le Hong Phong, Dist.10 Developer: Berjaya (Malaysia) GFA: 186,464 sm Expected Completion: 2013 Status: Under planning Infrastructure: developed CB Richard Ellis Page 26

27 VIETNAM HANOI

28 Hanoi Retail Market Modern Retail Center Total Stock 103,576 sm GLA (13 major shopping centres/dept. stores) Most are located in CBD areas (Hoan Kiem, Hai Ba Trung) Occupancy Rate 83.3% CBD shopping centres stay strong (0.38% vacancy) Non-CBD shopping centres encounter vacancies (36.92% vacancy) Average Rental Rate Average prime rents (GF+1F) in the CBD: US$80/sm/month (Q4 2009) Average prime rents (GF+1F) out of the CBD: US$35/sm/month (Q4 2009) Highest Rents in the CBD: up to US$146/sm/mo CB Richard Ellis Page 28

29 Hanoi Retail Current Supply Retail supply more than doubled in 2 years CB Richard Ellis Page 29

30 Hanoi Retail Supply _ Major Projects Existing Projects Future Projects CBD CB Richard Ellis Page 30

31 Hanoi Retail Future Supply Project Until 2012 Total new supply until 2012: sqm- 5 times more than the current supply Most are in None-CBD (especially new urban area in the West of Hanoi Still limited space within CBD CB Richard Ellis Page 31

32 Hanoi Future Retail Supply GRAND PLAZA HANOI Location: Tran Duy Hung Str., Cau Giay Dist. Owner: IDJ Financial Land Area:19,689sqm Gross Floor Area: 150,146sqm (Hotel, Office & Retail) Retail: 27,461sqm GFA Expected Completion: Q2, 2010 CB Richard Ellis Page 32

33 Hanoi Future Retail Supply SAVICO PLAZA HANOI Location: Nguyen Van Linh Str., Long Bien Dist. Owner & Developer : Savico JSC Description :The biggest commercial complex at the North-East gateway to Hanoi, consisting of a shopping mall and a business center Retail Concept: A shopping mall with hypermarket anchor tenant Retail NLA : 52,000 sqm (1 basement + 3 floors) Expected Completion: 2011 CB Richard Ellis Page 33

34 Hanoi Future Retail Supply HANOI CITY COMPLEX Location: Dao Tan Lieu Giai Str., Ba Dinh Dist. Developer: Lotte No. of floors: 63 (incl. 5 basements) Site area:14, sqm Total gross area:253, sqm (Retail, Office, Residential) Retail Podium (Bas5-7F): 34, sqm Lotte Department Store Latest ground breaking: 22 Oct 2009 Expected Grand Opening: 2012 Concept: Lotte Department Store CB Richard Ellis Page 34

35 Hanoi Future Retail Supply KEANGNAM HANOI LANDMARK TOWER Location: Pham Hung Str., Tu Liem Dist. Developer: Keangnam Enterprises Ltd. Gross Floor Area: 579,000sqm (Retail, Office, Apartments for sales, Hotel, Serviced Apartments) Retail: 82,875sqm GFA (6 floors) Ground breaking: Q3, 2007 Expected Grand Opening: 2012 CB Richard Ellis Page 35

36 Hanoi Future Retail Supply YEN SO PARK SHOPPING MALL Location: Yen So Ward, Hoang Mai Dist. Owner & Developer : Gamuda Land Group Description : The Center of all commercial activities, complimented by the festive retail, offices, hotels and convention center. Land Area: 3.85 ha Retail NLA : 49,253 sqm (4 Storey Podium) Completion: 2012 Status: Under planning CB Richard Ellis Page 36

37 Hanoi Future Retail Supply HANOI CIPUTRA HANOI MALL Location: Lac Long Quan, Tay Ho Dist. Owner: Citra Westlake Description: Regional shopping mall Net Lease able Area: 114,000 sqm (incl. food court, cinema, department store, Big C hypermarket) Expected Completion: 2012 CB Richard Ellis Page 37

38 Hanoi Future Retail Supply TIMES SQUARE HANOI Location: Pham Hung, Tu Liem Dist. Developer: VinaCapital Five Star Hotel (300 rooms), Grade A Office (20,000sqm) & Retail (30,000sqm) Land Area: 4 ha Net Leasable Retail Area: 30,000 sqm Ground Breaking: Dec 2008 Completion: 2012 CB Richard Ellis Page 38

39 Hanoi Future Retail Supply INDOCHINA PLAZA HANOI Location: Xuan Thuy, Cau Giay Dist. Developer: IndochinaLand Luxury Apartments (2 towers, 25 & 30 floors), Office (15 floors) & Retail (5 floors) Total GFA: 124,489sqm Net Leasable Retail Area: 19,929sqm Ground Breaking: Q4, 2008 Completion: 2012 CB Richard Ellis Page 39

40 Hanoi Future Retail Supply HANOI ROYAL CITY Location: 74 Nguyen Trai, Thanh Xuan Dist. Developer: Vincom Jsc Development area of 169,220 sm - A city within a city with Hotel, schools, condominiums, retail, offices Retail Total GFA: 200,000sqm Ground Breaking: Jan, 2010 Expected Completion: Q4, 2014 CB Richard Ellis Page 40

41 So why do retailers continue to consider the VIM nations? CONDITIONS Upside Growing young population and accelerating urbanisation Growing urban upper and middle class Continued industrialization and technological progress = wealth Changing lifestyles = openness to western brands and consumption habits CONDITIONS Downside Fragile economic environment Strong domestic competition Need capital and patience.and lots of it Undeveloped infrastructure Poor and relatively small. CB Richard Ellis Page 41

42 CB RICHARD ELLIS (VIETNAM) Ho Chi Minh City office Ha Noi office 12 floor, Me Linh Point Tower 2 Ngo Duc Ke District 1 12A floor, Vincom City Towers 191 Ba Trieu Hai Ba Trung District Mr. Richard Leech Executive Director richard.leech@cbre.com CB Richard Ellis Page 42

43 THANK YOU! 2009 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. CB Richard Ellis Page 43