MARCH 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY. CBD MARKET Report.

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1 MARCH 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY CBD MARKET Report

2 TABLE OF CONTENTS HCMC CBD MARKET REPORT MARCH 2014 Market Highlights Page OFFICE MARKET Market Overview Outlook Table Map RETAIL MARKET Market Performance Outlook Map Table HOTEL MARKET Map Table Market Performance Outlook SERVICED APARTMENT Market Performance Outlook Table / Map CONTACTS

3 MARCH 2014 COMMERCIAL OFFICE MARKET Asia Pacific Office Rents Map, 4Q 2013 Prime Office Rent in CBD, 4Q2013 (US$/sq ft/annum) Vacancy Rate, 2013 Forecast Direction 2014 Forecast Direction 2014 Supply Forecast 2014 (million sq ft) Supply Forecast 2015 (million sq ft) Forecast Direction 2015 Forecast Direction 2015 Market Performance The average asking rent of Grade A and B office buildings was unchanged during last month. Owners of developments of both segments also succeeded in retaining occupancy rate at approximately 90% on average. Construction resumed at Le Meridien, one of the major Grade A supply of 2014, and it is expected to put in operation this April. Outlook According to Asia Pacific Office Rents Map in 4Q13 from Colliers International, HCMC is expected to keep up with rental growth, though moderate, in emerging South East Asia cities during this year. Although showing steady gain in recent years, Vacancy Rate of HCMC still stays at double digit figure. However, given promising on efficient absorption and limited new supply of top graded office buildings in CBD area, this rate is expected to fall in period. GRADE A PERFORMANCE GRADE B PERFORMANCE P.2 Colliers International

4 MARCH 2014 COMMERCIAL OFFICE MARKET Office Market Overview No Name Address Completion Year NLA (sq m) Service Charges (*) Occupancy rate NFA asking rent (*) 1 Saigon Centre 65 Le Loi , % Saigon Tower 29 Le Duan , % Sunwah Tower 115 Nguyen Hue , % The Metropolitan 235 Dong Khoi , % Diamond Plaza 34 Le Duan , % Kumho Asiana Plaza 39 Le Duan , % Bitexco Financial Tower 45 Ngo Duc Ke , % President Place 93 Nguyen Du , % Times Square Nguyen Hue , % Lim Tower 9-11 Ton Duc Thang , % 28.0 Grade A 187, % OSIC 8 Nguyen Hue , % Yoco Building 41 Nguyen Thi Minh Khai , % Somerset Chancellor Court Nguyen Thi Minh Khai , % Central Plaza 17 Le Duan , % Saigon Riverside Office 2A-4A Ton Duc Thang , % Saigon Trade Center 37 Ton Duc Thang , % Harbour View Tower 35 Nguyen Hue , % MeLinh Point Tower 02 Ngo Duc Ke , % Zen Plaza Nguyen Trai , % Bitexco Office Building Nguyen Hue , % The Landmark 5B Ton Duc Thang , % Opera View Dong Khoi , % Indochina Park Tower 4Bis Nguyen Dinh Chieu , % Petro Tower 1-5 Le Duan , % City Light 45 Vo Thi Sau , % The Landcaster 22Bis Le Thanh Ton , % Gemadept Tower 5 Le Thanh Ton , % Fideco Tower Ham Nghi , % Havana Tower 132 Ham Nghi , % Sailing Tower 51 Nguyen Thi Minh Khai , % Royal Center 235 Nguyen Van Cu , % TMS 172 Hai Ba Trung , % Bao Viet Tower 233 Dong Khoi , % Green Power Tower 35 Ton Duc Thang , % Vincom Center Le Thanh Ton , % Saigon Royal 91 Pasteur , % A&B Tower 76 Le Lai , % Maritime Bank Tower 192 Nguyen Cong Tru % Empress Tower 138 Hai Ba Trung , % Sunny MB Tower 259 Tran Hung Dao , % 22.0 Grade B 377, % 23.1 * US$/ sq m/ month (on net area) P.3 Colliers International

5 MARCH 2014 CBD OFFICE MAP P.4 Colliers International

6 MARCH 2014 RETAIL MARKET Market Performance VACANT VINCOM CENTER IN MARCH 2014 Average rental rate and occupancy rate of both retail podium and department store were generally flat during last month. Department store remained fully occupied while retail podium retained vacant rate around 13% given limited available prime space. Owners of shopping mall in CBD areas stayed strong with high offered rents regardless significant drop of 6% in occupancy rate in February. Increasing vacant spaces can be found in central shopping mall including VinCom Center B and Unionsquare. Outlook According to the General Statistics Office, Consumer Price Index (CPI) in Ho Chi Minh City (HCMC) rise slightly by 0.24% in February, the lowest increase in the past decade because of the pull back in purchasing power. A weak consumer spending and unchanged high rental pressure tenants of CBD retail centers to relocate or consolidate their brands. Fashion and baby products are major categories moving out since early of the year, especially those located in back-front plots. As of our expectation at the end of last year, there is an increasing numbers of tenants relocating from CBD malls to high street shops. Affordable rents and convenient accessibility are major driving factors although finding site with sufficient floor spaces within central districts is not easy actually. Although there are new take-ups of new brand fashions and spa and clinic stores, the inadequate replacements will soon influence the operator s pricing strategy of prime retail areas. RETAIL PODIUM MARKET PERFORMANCE, FEBRUARY 2014 SHOPPING CENTER MARKET PERFORMANCE, FEB14 P.5 Colliers International

7 MARCH 2014 CBD RETAIL MAP P.6 Colliers International

8 KUMHO MARCH 2014 MONTHLY RETAIL MARKET MARKET REPORT HCMC CBD MARKET REPORT No Name of Project / Building Address Location Completion Year NLA (sq m) Average Rental (US$/sq m/month) Occupancy Rate 1 Hotel Continental Saigon Dong Khoi District % 2 Caravelle Hotel 19 Lam Son Square District % 3 New World Hotel 79 Le Lai District , % 4 Sheraton Saigon 88 Dong Khoi District % 5 Opera View Lam Son Square District , % 6 Rex Arcade 141 Nguyen Hue District , % 7 ICON Ngo Duc Ke District , % 8 President Place 93 Nguyen Du District % 9 Times Square Nguyen Hue District , % Retail Podium 23, % 1 Diamond Plaza 34 Le Duan District , % 2 Zen Plaza Nguyen Trai District , % 3 Parkson Saigon Tourist 35 Le Thanh Ton District , % 4 Kumho Asiana Plaza 35 Le Duan District , % Department Store 39, % 1 Saigon Center 65 Le Loi District , % 2 City Plaza 230 Nguyen Trai District , % 3 Tax Center 135 Nguyen Hue District , % 4 Saigon Square Nam Ky Khoi Nghia District , % 5 Nowzone Nguyen Van Cu District , % 6 Saigon Square Ton Duc Thang District , % 7 Vincom Center B 72 Le Thanh Ton District , % 8 Taka Plaza 102 Nam Ky Khoi Nghia District , % 9 Union Square Dong Khoi District , % Shopping Centre 113, % MARCH 2014 HOTEL MARKET HCMC CBD MARKET REPORT No Name of Hotel Address Location Completion Year Total Room Occupancy ARR(*) 1 Caravelle 19 Lam Son Square District % New World Saigon 76 Le Lai District % Sofitel Plaza Saigon 17 Le Duan District % Rex 141 Nguyen Hue District % Renaissance Riverside 8-15 Ton Duc Thang District % Lotte Legend Hotel 2A-4A Ton Duc Thang District % Sheraton 88 Dong Khoi District % Park Hyatt Saigon 02 Lam Son Square District % Majestic Saigon 1 Dong Khoi District % InterContinental Asiana 39 Le Duan District % Nikko Saigon 235 Nguyen Van Cu District % Pullman Hotel 146 Tran Hung Dao District % 94 5 Star 3,633 75% Continental Saigon Dong Khoi District % 92 2 Norfolk Hotel Le Thanh Ton District % 97 3 Duxton 63 Nguyen Hue District % 81 4 Royal City 133 Nguyen Hue District % 55 5 Palace Saigon Nguyen Hue District % 67 6 Oscar 68A Nguyen Hue District % 64 7 Liberty Central 179 Le Thanh Ton District % 78 8 Grand 08 Dong Khoi District % 95 9 Liberty Central Riverside 17 Ton Duc Thang District % 85 4 Star 1,161 75% 78 P.7 Colliers International

9 MARCH 2014 CBD HOTEL MAP P.8 Colliers International

10 MARCH 2014 HOTEL MARKET Market Overview Vietnam welcomed 842,026 overseas arrivals, grown TRAVEL PURPOSES OF INTERNATIONAL VISITORS TO VN dramatically 47.6% over the same period. Germany visitors have posted the highest rise of 266.9%, followed by China and Cambodia. During the time, the domestic tourists were around 9.5 million, a y-o-y increase of 21.8%, gathering in VND47 trillion (US$2.2 billion) in revenue. In the first two months of the years, HCMC welcomed 778,000 foreign guests, increased 11% over the same period last year. Outlook We expect moderate new supply of top-graded hotel segments located in prime CBD area during this year. Le Meridien Saigon is announced to open this June whereas operation time of Reverie Times Square is undisclosed. Stayed on top of Unionsquare shopping malls, Vinpearl Luxury Hotel Saigon has been converted into office function by new owner. Source: Statistical Office in HCMC, Colliers International FUTURE SUPPLY BY CONSTRUCTION, MARCH 2014 RENDER OF CT HOTEL LE LOI ON PASTEUR STREET, D1 Source: Statistical Office in HCMC, Colliers International HOSPITALITY REVENUE BY TYPE, MARCH 2014 Source: Statistical Office in HCMC, Colliers International Source: Public Domain P.9 Colliers International

11 MARCH 2014 HOTEL MARKET Market Performance 5-star hotels in CBD showed positive figures for both average rental and occupancy rate during February. The average rent reached US$155 while occupancy rate slightly rised 2%. Meanwhile, 4-star segment also gained in occupancy rate though offered rate dropped 2% last month. After gradual growth in occupancy rate of top-graded hotels in CBD locations since last quarter of 2013, we expect a downward trend from this month regarding the end of peak holiday season. PERFORMANCE OF 5-STARS HOTEL PERFORMANCE OF 4-STARS HOTEL FEBRUARY 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview CBD SERVICED APARTMENTS PERFORMANCE SERVICED APARTMENTS SUPPLY BY DISTRICT P.10 Colliers International

12 MARCH 2014 SERVICED APARTMENT MARKET Market Performance Both Grade A and B serviced apartments were almost flat during last month in monthly average rental rate as well as occupancy rate. In February, developers of Grade A serviced apartment buildings retained average occupancy rate at 94% and asking rent at monthly US$33.8 per sq. m. That of Grade B segment was 79% and US$26.5 respectively. Outlook SERVICED APARTMENT FUTURE SUPPLY BY YEAR It is expected that CBD serviced apartments sector will experience slow activity in short term as this is not preferred time for house transfer or relocation. Both average occupancy rate and asking rent of top-tier serviced apartments in central area are expected to fall in second half of 2014 driven by new available supplies from Times Square. No Project Name Address Location Completion Year Total Room Average Occupancy ARR(*) 1 Somerset Chancellor Court Nguyen Thi Minh Khai District % 36 2 Sedona Suites 65 Le Loi District % 30 3 Nguyen Du Park Villas 111 Nguyen Du District % 30 4 The Landmark 5B Ton Duc Thang District % 26 5 The Landcaster 22 Bis Le Thanh Ton District % 37 6 InterContinental Asiana Saigon 39 Le Duan District % 36 * US$/sq m/month ** Not including VAT and service charge *** Buildings are sorted by Year of Completion Grade A % 34 1 Somerset HCM 8A Nguyen Binh Khiem District % 26 2 Saigon Sky Garden 20 Le Thanh Ton District % 26 3 Norfolk Mansion Ly Tu Trong District % 33 4 Diamond Plaza 34 Le Duan District % 29 5 Garden View Court 101 Nguyen Du District % 31 6 Spring Court 1Bis Phung Khac Khoan District % 18 7 Ben Thanh Luxury Ky Con District % 25 8 Vincom Center 72 Le Thanh Ton District % 26 9 Lafayette De Saigon 08 Phung Khac Khoan District % Nikko Saigon 235 Nguyen Van Cu District % Saigon City Residence 8A/3D2 Thai Van Lung District % 30 Grade B % 26.5 P.11 Colliers International

13 MARCH 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

14 MARCH 2014 About Colliers International Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we integrate the resources of real estate specialists worldwide to accelerate the success of our partners. We connect through a shared set of values that shape a collaborative environment throughout our organization that is unsurpassed in the industry. With more than 100 professionals in 2 offices in Vietnam, the team is market driven and has proven and successful track record with both international and local experience. From Hanoi to Ho Chi Minh City, we provide a full range of real estate services Research > > Market research across all sectors > > Market analysis, advisory, and strategy Valuation & Advisory Services > > Valuation for land, existing property or development sites > > Feasibility studies to determine NPV, IRR and highest & best use Office Services > > Tenant Representation > > Landlord Representation Residential Sales & Leasing Retail Services Investment Services Real Estate Management Services Corporate Services Industrial Leasing The foundation of our services is the strength and depth of our experience. Please contact, If you would like to recieve our other research reports Publication Coverage Frequency Content Availability Research & Forecast Report Vietnam Cities Quarterly All market sectors Publicly available CBD Report HCMC CBD Monthly Office, Retail, Hotel and Serviced Apartment Asia Pacific Office Report Vietnam Property Market Report Development Recommendation Asia Pacific including Vietnam Publicly available Quarterly Office market Publicly available Vietnam cities Quarterly All market sectors On subscription Vietnam cities At request All market sectors On subscription 482 offices in 62 countries on 6 continents United States Canada Latin America Asia Pacific EMEA $2 billion in annual revenue 2.5 billion square feet under management : 140 : 42 : 20 : 195 : 85 COLLIERS INTERNATIONAL 13,500 professionals and staff HO CHI MINH CITY Bitexco Office Building, 7th Floor Nguyen Hue Street District 1, HCM City, Vietnam Tel: HANOI Capital Tower, 10th Floor 109 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam Tel: QUANG NGUYEN Research Manager quang.nguyen@colliers.com YEN NGUYEN Research Analyst yen.nguyen@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved. Accelerating success