Prime Views MAY 2017 SINGAPORE

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1 Prime Views MAY 17 SINGAPORE

2 SINGAPOREOffice Market 12 The CBD comprises of the following submarkets: Marina Bay, Raffles Place, Shenton Way/Tanjong Pagar, City Hall/Marina Centre, Orchard and Bugis. Marina Bay is the premium business district with a high concentration of tenants from the banking, insurance and financial services sector. Major banks such as DBS and Standard Chartered are anchor tenants occupying multiple floors in prime Marina Bay buildings. City Hall/Marina Centre & Bugis 8 There are a total of twelve prime office buildings in, seven of which are located in Marina Bay, two in Raffles Place, and one apiece in Shenton Way/ Tanjong Pagar, City Hall/Marina Centre and Bugis. Office Market No. Building Name Completion Date Submarket Net Lettable Area (SF) 7 1 Asia Square Tower 1 11 Marina Bay 1,260,000 2 Asia Square Tower 2 13 Marina Bay 784, Marina Bay Financial Centre Tower 1 10 Marina Bay 6, Marina Bay Financial Centre Tower 2 Marina Bay Financial Centre Tower 3 One Raffles Quay North Tower One Raffles Quay South Tower 10 Marina Bay 1,000, Marina Bay 1,300, Marina Bay 767, Marina Bay 565, Marina Bay, Raffles Place & Shenton Way / Tanjong Pagar 8 Ocean Financial Centre 11 Raffles Place 865,000 9 CapitaGreen 14 Raffles Place 702, Guoco Tower 16 Tanjong Pagar 884, South Beach 15 City Hall / Marina Centre 515, DUO Tower 16 Bugis 568,000 Source: Cushman & Wakefield Research

3 SINGAPORE Prime Office Market at a Glance (Marina Bay Only) GROSS EFFECTIVE RENTS $16 SUPPLY, ABSORPTION & VACANCY RATE 1, Rent () $ $10 $8 1,0 12% 10% 800 8% 400 6% 4% 0 11 $ PRIME STOCK ( 000 sf) 3% 16 6,318 SQF 15 5,018 SQF Absorption 15 Vacancy 16 2% 0% TENANT PROFILE Professional Services Real Estate 12 Supply 3% Vacancy Rate (%) % Supply & Absorption ( 000 sf) $14 Media 2% Other 9% Metals & Minerals 4% Tech 6% Legal 8% Banking, Insurance & Financial Services 65% Source: Cushman & Wakefield Research

4 SINGAPOREKey Themes Flight to Quality Grade A CBD office rents are expected to bottom out in 17 The office leasing market appears to be stabilizing. While the flight-to-quality trend bodes well for the new projects, rents for older buildings may come under pressure as landlords source for tenants to backfill space vacated by companies which are relocating to Marina One and Guoco Tower. June Chua Executive Director Head of Leasing Cushman & Wakefield 16 saw a wave of flight to quality as tenants seized the opportunity to lock in long leases in the new premium developments at attractive rental rates. Despite relocating to buildings with more efficient floor plates, some firms are still expanding and taking up additional space. Structural Shift in Office Leasing Market There has been a structural shift in the office leasing market due to reduced demand from banks, the largest occupier of prime CBD space. However, other sectors with healthy growth potential such as tech, insurance, professional services and co-working are gaining momentum and are likely to drive leasing demand in 17. Supply Pressures to Alleviate While 17 will see a supply influx of 2.3 million sf from the completions of Marina One and UIC Building, the inflow of supply will ease significantly post-17 with less than 1 million sf completing annually. The next large wave of supply totaling 2 million sf will only be seen in 21, comprised of the Central Boulevard GLS site and the redevelopment of Golden Shoe. Capital Values Remain Resilient Office capital values have remained resilient despite declining rents, supported by institutional and individual investors with a long-term horizon. Investor demand for assets in is expected to remain healthy given the stable political landscape and safe haven status of the market. Source: Cushman & Wakefield Research

5 SINGAPOREMarket Snapshot Qatar Investment Authority s acquisition of Asia Square Tower 1 set a record as the largest single-tower office transaction in Asia Pacific Significant New Lease Transactions in Last 4 Quarters (Prime Office Buildings) Property SF Tenant Submarket Transaction Date 1 Marina One 250,000 Facebook Marina Bay 1Q17 2 Marina One 90,000 Prudential Marina Bay 4Q16 3 Marina One 70,000 BP Marina Bay 4Q16 4 Guoco Tower 70,000 ING Bank Tanjong Pagar 4Q16 5 Guoco Tower 55,000 Uber Tanjong Pagar 4Q16 6 Marina One 180,000 PWC Marina Bay 3Q16 7 Marina One 100,000 Julius Baer Marina Bay 3Q16 8 Guoco Tower 100,000 Dentsu Aegis Network Tanjong Pagar 3Q16 9 Asia Square Tower 2 80,000 Mitsui Marina Bay 3Q16 10 Marina One 140,000 Bank of Tokyo-Mitsubishi UFJ Marina Bay 2Q16 Major Sale Transactions in Last 4 Quarters (Grade A Office Buildings) Property SF Seller Buyer Submarket Price (SGD Mn) Unit Price (SGD/SF) Transaction Date 1 One George Street (50% stake) 446,000 CapitaLand Commercial Trust FWD Group Raffles Place 592 2,650 2Q17 2 PWC Building 356,000 DBS Bank Manulife Raffles Place 747 2,100 1Q17 3 Capital Square (50% stake) 386,000 Alpha Investment Partners ARA Asset Management Raffles Place 463 2,400 3Q Asia Square Tower 1 CapitaGreen (60% stake) 1,300,000 BlackRock 702,000 CapitaLand & Mitsubishi Estate Asia Qatar Investment Authority CapitaLand Commercial Trust Marina Bay 3,380 2,600 2Q16 Raffles Place 960 2,276 2Q16 6 Straits Trading Building 162,000 Sun Venture MYP (Dr. Tahir) Raffles Place 560 3,5 2Q16

6 SINGAPOREUpcoming Prime Supply Marina One Prime landmark in Marina Bay Will be completed by mid-17, owned by M+S which is a joint venture between Khazanah Nasional Berhad and Temasek Holdings, the sovereign wealth funds of Malaysia and respectively Strategically located in the heart of Marina Bay Approximately 1,880,000 sf of premium quality office space over 30 floors and two office towers Two high-density floors straddle the East and West towers to provide 100,000 sf of space each, which is one of the largest floor plates in Asia Unique design with an inner biodiversity garden known as the Green Heart which will be the largest public plaza in the CBD Panoramic views of the CBD skyline and Marina Bay coastline The integrated development also includes a 140,000 sf retail component with gourmet restaurants and 1,042 luxury residential units Transportation Links Changi Airport by MRT 40min Woodlands Checkpoint by Car 30 min Cruise Centre by MRT min

7 For more information, please contact: OCCUPIER & INVESTOR SERVICES Steve Saul Managing Director T +(65) steve.saul@cushwake.com June Chua Executive Director, Leasing T +(65) june.chua@cushwake.com Shaun Poh Executive Director, Capital Markets T +(65) shaun.poh@cushwake.com RESEARCH SERVICES Sigrid Zialcita Managing Director Research & Investment Strategy Asia Pacific T +(65) sigrid.zialcita@cushwake.com Christine Li Director, Research Tel: +(65) christineli.mw@cushwake.com GLOBAL OCCUPIER SERVICES Chris Browne Managing Director Global Occupier Services Asia Pacific T +(65) chris.browne@cushwake.com Disclaimer: Cushman & Wakefield (C&W) is known the world-over as an industry knowledge leader. Through the delivery of timely, accurate, high-quality research reports on the leading trends, markets around the world and business issues of the day, we aim to assist our clients in making property decisions that meet their objectives and enhance their competitive position. In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis, C&W also provides customized studies to meet specific information needs of owners, occupiers and investors. Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 17 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients ideas and putting them into action. To learn more, visit www. cushmanwakefield.com or on Twitter. This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets or developments contained in this material. The information on which this report is based has been obtained from sources we believe to be reliable, but we have not independently verified such information and we do not guarantee that the information is accurate or complete. Published by Corporate Communications. 17 Cushman & Wakefield, Inc. All rights reserved. Cushman & Wakefield, 3 Church Street #09-03 Samsung Hub