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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW

December 2011

Accelerating success.

TABLE OF CONTENTS
ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW
This is the thirteenth issue of the Asia Pacific Industrial Market Overview, which covers 13 cities in nine countries, for the review period of April to September 2011. With this bi-annual update, we hope to provide an overview of industrial markets catering to multinational corporations and a comparison of industrial real estate costs across the key cities of the Asia-Pacific. Three types of industrial properties are tracked in this report, namely singleuser factory premises, single-user warehouse premises and multi-user high-specifications industrial premises, as these are the preferred choices of multinational corporations. This publication features land and capital values, as well as rents of single-user industrial premises; and rents of multi-user high-specification factories.

| DECEMBER 2011

Regional Overview

Australia

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Melbourne ............................................................................................................ 5 Sydney ................................................................................................................. 6 China 7-9 Beijing ...................................................................................................................7 Guangzhou ........................................................................................................... 8 Shanghai .............................................................................................................. 9 Hong Kong SAR India 10-11 12 New Delhi ...........................................................................................................12 Indonesia 13

Jakarta ................................................................................................................ 13 Japan 14 Greater Tokyo .....................................................................................................14 New Zealand 15-16

Auckland .............................................................................................................15 Wellington ...........................................................................................................16 Singapore Taiwan 17-18 19

Taiwan .................................................................................................................19 International Comparison 20-26

Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents .................................................................................. 20 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 23 Multi-user High-Specs Average Monthly Gross Rents..................................... 26 Local Market Norm 27-29

Single-user Warehouse Land Values, Capital Values and Monthly Gross Rents .................................................................................. 27 Single-user Factory Land Values, Capital Values and Monthly Gross Rents .................................................................................. 29 Definitions & Terminology 30

REGIONAL OVERVIEW
The economies of the Asia Pacific region showed slower growth weighed down by concerns over the anaemic state of the US economy and European sovereign debt woes. The more open economies, like Singapore and Taiwan, saw a marked slowdown in GDP growth on a year-on-year (YoY) basis during the current review period, due to shrinkages in manufacturing output. On the other hand, manufacturing sectors in China and Indonesia remained buoyant bolstered by their strong domestic markets. Economic performance varies for countries recently hit by natural disasters. While the Japanese economy remained in recession, the Pacific region was more resilient, evident from the low positive growth in New Zealands and Australias GDP numbers. Of the 182 industrial submarkets across the 13 Asia Pacific cities surveyed, 88.0% or a total of 160 submarkets either showed growth or were stable during the period between April and September 2011. This is similar to the 88.0% of the 184 industrial submarkets surveyed during the previous period between October 2010 and March 2011. We were unable to track the Urayasu submarket which remained inundated after the earthquake and tsunami in March. In line with the downgrading of general business sentiments globally, land and capital values as well as rents for industrial space saw slower growth averaging at 4.7%, 3.6% and 2.7% during the six months ending September 2011, compared with the average growth of 5.1%, 4.2% and 3.7%, respectively in the previous six-month period. However, high-specs industrial space bucked this trend, and with a higher average rental growth of 4.1% in this review period compared with the 2.0% recorded in the previous one. In total, 43 out of 53 industrial submarkets surveyed in the Asia Pacific region saw their land values either holding steady at the levels of six months ago or trending up. Notably, in Jakartas Bekasi and Karawang, average land prices soared by a record breaking 45.0% during the six months between April and September 2011 due to the aggressive growth of the automotive industry in Indonesia combined with a drought in industrial land supply. In contrast, limited availability teamed with cautious investor sentiments kept values stable in Sydney and Auckland. Land values were also flat in Guangzhous GETDD as multinational corporations shied away from acquiring industrial land, following a series of measures introduced by the Chinese government to regulate the real estate market. The remaining submarkets which saw decreases in land values are primarily located in quake-stricken Japan. Moving on to building sales, 49 out of the 58 submarkets surveyed recorded either flat or an increase in capital values. Growth was strongest in Hong Kong, as uncompromising vendors kept factory and warehouse prices soaring by up to 19.2% and 16.4% respectively. Its economic rival, Singapore, saw warehouse capital values increase by as much as 16.0%, up from the 7.2% recorded in the previous review period, underpinned by occupier demand and acquisition interest from REITS. Capital values were stable in Delhi and Shanghai as credit-tightening measures and high financing costs slowed industrial growth and dampened investor sentiments. Surprisingly, in spite of the booming Indonesian economy, capital values grew at a slower rate of 6.0%, down from the 19.7% increase recorded in the previous review period ending March 2011. This was attributed to lower activity levels in the current review period.

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REGIONAL OVERVIEW
Of the 54 submarkets surveyed, only three saw rents heading south in the six-month period ending September 2011. Tokyos Shinsuna submarket saw industrial rents easing by 3.9% while Delhis NH24 saw a 1.9% drop each in both its warehouse and factory rents. The leasing market remained subdued in Australia and New Zealand with no change in rental levels from that of half a year ago. On the other hand, warehousing facilities in Hong Kong saw double-digit rental growth, fuelled by robust demand. Rapid expansions by third-party logistics (3PLs) players, including mainland Chinese operators, looking to establish their regional hubs in Hong Kong pushed rents upwards. However, tenant needs remained unmet given the mismatch of availability and occupiers space requirements in excess of 100,000 sq ft. For now, Asia continues to drive the global economic recovery, but the region is not immune to the seemingly never-ending euro zone woes and lacklustre recovery of the US economy. The outlook for the Asia Pacific industrial property market turned cautiously optimistic with stabilised values and rents expected in most submarkets over the next 12 months. Open economies like Hong Kong, which are extremely vulnerable to global economic headwinds, are already seeing a deceleration in their external trade growth in the review period. As such, Hong Kong expects industrial property rents and values to head south in the year ahead. On the other hand, the red hot Indonesian economy is expecting even better economic performance in 2012, underpinned by strong domestic consumption, solid investment inflows and higher export numbers. This is expected to drive growth in land and capital values as well as rents of industrial properties from 10.0% to 25.0% over the next year.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

AUST R A L I A
ECONOMIC INDICATORS FOR MELBOURNE ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

April - September 2011 April - September 2011 April - September 2011 April - September 2011 April - September 2011 January - June 2011

1.65% -0.50% A$17.6 billion A$4.9 billion 1,252,769 77,763

MELBOURNE Factory and Warehouse Demand for industrial space continued to grow during the review period between April and September 2011, driven by companies moves to expand and consolidate their premises on the back of healthy business sentiments amid Australias strong economic fundamentals of low unemployment, low public debt and a long pipeline of mining and resource-sector related investments. However, global uncertainties arising from unresolved debt woes in the United States (US) and Europe tempered optimism and put a cap on the growth of industrial land and capital values as well as rents which thus remained unchanged during the six-month review period between April and September 2011. On the sales front, the number of investment sales transactions between April and September 2011 decreased though their total transaction volume has increased. A total of 11 investment sales (A$5 million and above) was transacted in Victoria from April to September 2011, as compared to 16 transactions in the preceding six-month period ending March 2011. The total value transacted during the review period was in excess of approximately A$270 million, a jump from the A$160 million recorded between October 2010 and March 2011. Industrial users caution on the back of the heightened global uncertainties resulted in a stronger leasing market than the vacant possession sales market in the six months to September 2011. Nonetheless, leasing volume remained below the historical average and leases are now signed on terms shorter than the long-term average of seven to 10 years.
MAJOR TRANSACTIONS IN MELBOURNE TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Approximately 2.29 million sq ft of space (involving deals above 32,000 sq ft) were leased between April and September 2011, with the bulk of 34.6% (or 793,106 sq ft) located in the west. This is about 11.9% below the six-month average of approximately 2.6 million sq ft over the last five years and 33.9% above the 1.71 million sq ft leased in the previous review period of October 2010 to March 2011. Notable leasing deals include Tasman Logistics committing to a 150,598-sq ft warehouse at the corner of Robinsons Road and Sunline Drive in Truganina; Shields Transport leasing a 148,004-sq ft warehouse at Oxford Road in Laverton North; and Ascent Primacy Services taking up a 97,952-sq ft warehouse at Ordish Road in Dandenong South. Increased demand for new space, in turn, raised construction activity. Approximately A$87 million worth of industrial space was initiated between April and September 2011 as opposed to A$51 million committed to over the six months to March 2011. Overall, the industrial market is expected to firm up towards the end of 2011, supported by increasing demand and a tightening supply of quality stock given its limited availability. Increasing tenant demand coupled with low supply across all industrial regions should continue to push vacancies down, thereby supporting upward pressure on rentals. In turn, this should provide opportunities for investors to acquire more industrial properties for their portfolio and to take advantage of the relatively high yields and growth potential. However, more new supply is expected to come on stream in the next few years as developers commence development of new industrial space to ride on the current tight supply situation. Hence, land and capital values as well as rents are forecast to stay relatively stable or strengthen marginally over the next 12 months.

Lot H - Arkwright Drive, Dandenong South Lot F - Ordish Road, Dandenong South 221 Maidstone Street, Altona 2-8 Oxford Road, Laverton North Cnr Robinsons Road & Sunline Drive, Truganina West Park Industrial Estate, Derrimut Coles Distribution Centre

Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse

Lease Lease Lease Lease Lease Sale Sale

Marine Power International Ascent Primacy Services Werribee Nissan Shields Transport Tasman Logistics IOOF CorVal Partners

85,638 97,952 115,691 148,004 150,598 404,777 746,477

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

AUST R A L I A
ECONOMIC INDICATORS FOR SYDNEY ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

January - June 2011 April - September 2011 January - June 2011 January - June 2011 January - June 2011 April - September 2011

0.3% n.a. A$141.4 billion A$150.0 billion 968,123 n.a.

SYDNEY Factory, Warehouse and High-Specs An ongoing lack of new industrial development coupled with steady tenant demand has kept the Sydney industrial market tight over the past six months. The continuing lack of available stock has been compounded by withdrawals in industrial stock in some micromarkets, as some owners plan to redevelop their industrial buildings into new office, retail and residential properties after assessing the highest and best use of their sites. The leasing market has remained stable over the past six months with the majority of leases signed being renewals, as an ongoing lack of confidence and uncertainty in the economy stalls the implementation of companies expansion plans. This stability has helped rents and incentives for both Prime and Secondary grade stock to remain stable over the past six months. Notable lease transactions during the review period include YHI Australias lease of a 75,066-sq ft warehouse at 11 Grand Avenue, Camellia and P&O Trans Australia (POTA)s lease of a 102,100-sq ft warehouse at Yennora Distribution Centre. In the same centre, Queensland Cotton Corporation Ltd also took up space at a 99,333 sq ft warehouse. On the same note, land and capital values also held steady over the review period. The largest sale transaction in Sydneys industrial
MAJOR TRANSACTIONS IN SYDNEY TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

market over the past six months is Avivas acquisition of a 50% interest in the Big W and Dick Smith Properties at Mirvacs Hoxton Distribution Park. The sale price was A$97.4 million, which equates to a tight yield of 7.5%. A number of institutional landowners in Sydneys Central West have begun to capitalise on the lack of space in the market with a number of speculative developments under construction. One example is the recently completed 1-23 Templar Road development in which Dexus Property speculatively built a 226,042-sq ft Prime grade building. The outlook for Sydneys industrial market remains positive over the next six to 12 months with the Australian dollar expected to remain strong, thus sustaining importers demand for industrial space. On the other hand, stock levels are expected to remain tight as new developments remained largely subdued. This ongoing tight supply of Prime Grade space is expected to lead to a slight growth in rents of up to 1.1% and a reduction in incentives for tenants over the next 12 months. This could lift land and capital values by up to 2.0% over the same period.

25 Sirius Road, Lane Cove 57 - 67 Roberts Road, Greenacre 19 Chifley Street, Smithfield 8 - 40 Euston Road, Alexandria Hoxton Distribution Park 283 Coward Street, Mascot 11 Grand Avenue, Camellia 13 Bessemer Street, Blacktown Yennora Distribution Centre, Loftus Road, Yennora Yennora Distribution Centre, Loftus Road, Yennora

Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse

Sale Sale Sale Sale Sale Lease Lease Lease Lease Lease

Private Private Leda Holdings Bunnings Properties Aviva Toll YHI Australia Pty Ltd Nilfisk Advance Queensland Cotton Corporation Ltd P&O Trans Australia (POTA)

87,153 106,800 199,322 291,693 1,423,322 73,520 75,066 77,593 99,333 102,100

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

CHINA
ECONOMIC INDICATORS FOR BEIJING ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

January June 2011 January June 2011 January June 2011 January June 2011 January June 2011 January June 2011

8.0% 16.6% US$158.6 billion US$27 billion n.a. 852,400

BEIJING Factory and Warehouse Beijing managed to stage a strong economic performance in 1H 2011. GDP expanded by 8.0% YoY, and imports and exports grew by 34.1% and 4.0%, to US$158.6 billion and US$27 billion, respectively during this period. Air cargo throughput also increased to 852,400 tonnes in the January to June 2011 period, up 17.2% YoY, in line with the upbeat economic performance. The robust economic performance thus lent support to growth in industrial land values. Land values in Tianzhu, Tongzhou and Shangdi increased 9.0%, 5.0% and 4.3% from the last review period, to CNY109.16, CNY65.74 and CNY310.58 per sq ft, respectively, while land values in Yizhuang remained flat at CNY55.17 per sq ft. Noticeably, state-owned companies and manufacturing enterprises were key demand drivers for industrial land during the review period. For instance, the Beijing Pearl River Investment and Development Company invested CNY870 million to develop a logistics industrial park with a land area of 3,168,895 sq ft in the Tongzhou Economic Development Zone. In addition, Unity Opto Technology and Maxwell Machinery and Electronic Equipment Co. Ltd, each purchased a 535,892-sq ft plot and a 166,389-sq ft site, respectively in Yizhuang. Industrial rents also posted growth in the six months ending September 2011. Rents in Tianzhu and Tongzhou increased by 5.9% and 4.9% compared with the last review period to CNY2.97 and CNY2.64 per sq ft per month, respectively. Similarly, rents in Shangdi and Yizhuang recorded hikes of 5.2% and 5.7%, to CNY6.71
MAJOR TRANSACTIONS IN BEIJING TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

and CNY4.69 per sq ft per month, respectively. Rental growth was achieved on the back of firm leasing demand that was driven by overseas and domestic e-business, Food and Beverage (F&B) and Business-to-Consumer (B2C) companies that are expanding in Beijing. For example, Want Want took up approximately 107,639 sq ft of warehouse space in China Logistics Corp, located in Tongzhou District, while Tiantian.com and Watsons each leased approximately 129,000 sq ft in GLP Daxing Park. Near-term fixed supply amid firm leasing demand also contributed to rental growth. The supply of industrial space remained stable in the review period from April to September 2011 as there were no new completions in Beijings industrial market. Going forward, the supply of prime logistics parks remains limited and is expected to be insufficient to meet the strong demand from the e-business, F&B, manufacturing, B2C and third-party logistics (3PL) enterprises. Meanwhile, investors continue to find Beijings industrial market alluring, announcing expansion plans and/or creations of joint ventures. For instance, Kerry Logistics, Hutchison Port, Beijing Inland Port International Logistics and New Concord recently came together to form a joint venture company that will be headquartered in Beijing to invest in logistics properties and related businesses in China with a total investable capital of CNY2 billion. Hence, land and capital values as well as rents are expected to maintain their growth by up to 6.0% in the next 12 months.

China Logistics Corp GLP Daxing Park GLP Daxing Park Yizhuang, BDA Yizhuang, BDA Tongzhou Economic Development Zone

Warehouse Warehouse Warehouse Land Land Land

Lease Lease Lease Sale Sale Sale

Want Want Tiantian.com Watsons Maxwell Machinery & Electronic Equipment Unity Opto Technology Beijing Pearl River Investment and Development Company

107,639 129,100 129,170 166,389 535,892 3,168,895

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

CHINA
ECONOMIC INDICATORS FOR GUANGZHOU ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January - June 2011 January - August 2011 March - August 2011 March - August 2011 March - August 2011 March - August 2011

11.0% 10.3% US$30.2 billion US$29.4 billion 7.4 million 763,300

GUANGZHOU Factory and Warehouse Guangzhous economy continued to grow at a robust pace of 11.0% YoY in the first half of 2011. From January to August, Guangzhous manufacturing output reached CNY980.57 billion, up 10.3% YoY, supported by increased growth rates in the petrochemical and electronics manufacturing industries. In particular, there was a steady increase of high-technological product output during this period. The local export and import volume from March to August was also at a strong US$59.65 billion, up 11.4% compared to the same period last year. As such, domestic and overseas logistics firms, electronics manufacturing industries and consumer goods retailers continued to lift demand for industrial space during the six months from April to September 2011. Consequently, the average rents and capital values for warehouses and factories in Guangzhou Economic and Technological Development District (GETDD) rose by up to 4.9% during this period. In contrast, the overall land values in the GETDD stayed relatively unchanged from the levels six months ago as sentiments were weighed down by measures introduced by the government to regulate the real estate market since 2010. Some of these measures include monetary tightening policies through interest rate hikes as well as the requirement for the municipal land resource office to report to the provincial land resource office, land transactions that were sealed at prices exceeding 50% of reserve prices.
MAJOR TRANSACTIONS IN GUANGZHOU TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

Noticeably, multinational firms were more cautious in acquiring industrial land plots, while domestic corporations from the food, communications, electronics, automotive products and mechanical manufacturing industries remained active in buying land plots. The latter group clinched 15 out of the 17 plots auctioned in the GETDD from April to September 2011. These included China Banknote Printing and Minting Corporations acquisition of a 2,192,038-sq ft plot in Guangzhou Science City and Guangzhou Kingfa Sci. & Tech. Co. Ltds acquisition of a 853,203-sq ft site in Jiulong Industrial Park. In September, a new subsidy policy was introduced by the government of the GETDD to encourage companies to lease standard factories in the district. Favourable investment policies and a robust domestic economy are expected to continue to support demand for industrial properties. In addition, the recent rapid development of Chinas e-business is expected to raise the demand for quality warehouses going forward. Thus, capital and rental values of factory and warehouse space could grow by up to 4.2% in the next 12 months. Land values, on the other hand, are forecast to stay unchanged at current levels through the next 12 months.

Development Zone, Luogang Guangzhou Science City Development Zone, Yonghe Jiulong Industrial Park Guangzhou Science City

Land Land Land Land Land

Sale Sale Sale Sale Sale

SK Group Biostime Guangdong Yanlong Dairy Guangzhou Kingfa Sci. &Tech. Co. Ltd China Banknote Printing and Minting Corporation

169,416 365,894 536,031 853,203 2,192,038

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

CHINA
ECONOMIC INDICATORS FOR SHANGHAI ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January June 2011 April September 2011 April September 2011 April September 2011 April September 2011 April September 2011

8.4% 9.4% US$116.8 billion US$108.9 billion 16.5 million 1.9 million

SHANGHAI Factory and Warehouse Growth momentum in Shanghais industrial property market slowed between April and September 2011 as the fragile economic recovery in the US and Europes sovereign debt crisis weighed on market sentiment. Additionally, a tightened credit environment led to higher financing cost and this dampened investment sales. Local industrial investors and developers without the privilege of accessing offshore funding began to experience financial difficulties. Multinational corporations with access to offshore financing were less affected. Consequently, capital values gained an average of just 1.4% during the six-month review period ending September 2011, in contrast to an average growth rate of 5.0% in the six months ending March 2011. Land values, however, continued to grow steadily at an average of approximately 8.5% as inflationary pressures persisted and local governments selective stance in allocating sites restricted supply. Rental values recorded an average growth rate of approximately 5.0%, helped by the continued demand for industrial space from booming sectors such as e-commerce businesses. Leasing transactions concluded during the review period include eFrances lease of a 12,860-sq ft factory in Minhang district and Phoenix Waigaoqiaos lease of a 2,281,788-sq ft warehouse in Pudong New Area.
MAJOR TRANSACTIONS IN SHANGHAI TRANSACTIONS BUILDING/LAND PLOT Minhang Pudong New Area PROPERTY TYPE Factory Warehouse LEASE/SALE Lease Lease TENANT/PURCHASER eFrance Phoenix Waigaoqiao FLOOR/LAND AREA (SQ FT) 12,860 2,281,788

Looking ahead, although domestic monetary policy measures and external economic shocks will continue to weigh on the Chinese economy and Shanghais industrial sector, land, capital and rental values of industrial properties in Shanghai are expected to receive strong support at current levels as Shanghais industrial sector evolves over time to accommodate higher value-added industries. Industrial land usage will continue to shift towards the higher-end of the tertiary value chain, including corporate headquarters, research and development (R&D) and operations centres. Meanwhile, the Chinese governments effort aimed at curbing speculative investment in the residential market may generate investment spill overs to the industrial segment, lending further support to the market. Thus, land, capital and rental values have the potential to increase by up to 8.0% in the next 12 months.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

H O N G KO N G S A R
ECONOMIC INDICATORS FOR HONG KONG SAR ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

January - June 2011 March August 2011 March August 2011 March August 2011 March August 2011 March August 2011

6.29% -0.67% HK$1,931 billion HK$1,702 billion 12.5 million 2.0 million

HONG KONG SAR Factory Triggered by the Hong Kong Monetary Authoritys call to strengthen risk management in residential mortgage lending business in June 2011 and the growing uncertain economic outlook, banks in Hong Kong tightened their loan policies in 3Q 2011. For industrial property mortgages, banks have generally lowered their property valuations and reduced the loan-to-value ratio to between 30.0% and 40.0%. Tightened credit led to a contraction in industrial property transaction volume during the review period with the decline particularly profound in the second half of the review period from July to September 2011. The number of strata-titled transactions which decreased 6.1% quarter-on-quarter (QoQ) to 2,108 in 2Q 2011, plunged by a steep 37.9% QoQ to 1,310 transactions in 3Q 2011. Chevalier Internationals acquisition of the whole block of an industrial building at 29 to 33 Tsing Yi Road (253,470 sq ft) for a total consideration of HK$286 million, and Central Source Limiteds purchase of the 311,700-sq ft Emperor International Square in Kowloon Bay for HK$850 million, were among the sales transactions that occurred between April and September 2011. Notwithstanding the contraction in property transaction volume, factory prices continued their upward climb by 15.4% during the review period, to HK$2,549 per sq ft as of September 2011. This was partly the result of vendors holding firm on their asking prices given their low holding costs. As well, healthy tenant demand on the back of positive spill-over from the traditional office sector due to sustained office rental growth enabled factory rents to gain 10.4% between April and September 2011, to HK$8.56 per sq ft per month. This also supported capital value growth for factory space during the review period. The persistently weak economic recovery in the core export markets the US and the European Union has started to take its toll on Hong Kongs external trade performance, as reflected in a deceleration in its external trade growth during the review period. In fact, various organisations have downgraded their economic growth forecasts for the coming quarters for Hong Kong. Demand for industrial premises is thus expected to soften amid a deceleration in the growth of local consumption and exports of goods and services. In turn, factory rents are expected to see downward adjustments if the global economic performance remain sluggish in the coming quarters. Over the next 12 months, factory rents and prices are anticipated to decrease by about 5.0% and 12.0%, respectively. Warehouse The continued growth of local consumption and re-export volume (the latter expanded by 10.2% YoY to HK$1,667 billion during the period from March to August 2011) had led to a flurry of warehouse space expansions by third-party logistics (3PLs) players looking to capture growing demand for logistics services from outsourcing activities. Noticeably, 3PLs that engaged in local distribution and the export of fashion and electronics products were the most active group of tenants seeking additional spaces. New demand for warehousing facilities was also seen from individual multinational fashion companies and overseas 3PLs, including mainland Chinese operators, looking to establish their regional hub in Hong Kong to serve their business needs in Southeast Asia and the south China region. These tenants were seeking warehouse premises with sizes of 100,000 sq ft or above. However, there are currently no available warehouse premises in the market that match their size requirements. Robust demand for warehousing facilities saw the average rents of cargo lift access warehouses increasing 10.8% to HK$6.82 per sq ft per month while those of ramp access warehouses increased 11.5% to HK$9.81 per sq ft per month during the six months under review. Similar to the factory sector, the sustained rental growth underpinned the price performance of warehouses. Thus, the capital values of cargo lift access warehouses and ramp access warehouses rose by 16.4% and 15.3% to HK$2,487 per sq ft and HK$2,600 per sq ft, respectively during the review period. One notable transaction was the sale of a 50% interest in Interlink, a 2.4-million sq ft logistics warehouse development in Tsing Yi that is scheduled for completion in January 2012, by Goodman Group to Canada Pension Plan Investment Board for a total of HK$2.26 billion.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

H O N G KO N G S A R
Looking forward, given the weak global macroeconomic climate, warehouse rentals are expected to decrease 2.0% to 3.0% over the next 12 months while their prices are expected to decline 9.0% to 13.0% during the same period. During the six-month period ending September 2011, the average I-O rental increased 7.9% to HK$16.56 per sq ft per month. However, in line with the general softening in demand for industrial space amid an uncertain economy outlook, I-O rents are expected to decline 5.0% in the next 12 months.

High-Specs Industrial Building Similar to the factory sector, the high-specs Industrial-Office buildings (I-O) received positive spill over demand from an increase in rentals in the office market.
MAJOR TRANSACTIONS IN HONG KONG SAR TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE

TENANT/PURCHASER

FLOOR/LAND AREA (SQ FT)

Tsuen Wan International Centre Texaco Centre Tsuen Wan International Centre Oceanic Industrial Centre Wai Yuen Tong Medicine Building 29 - 33 Tsing Yi Road Emperor International Square Interlink

Industrial Industrial Industrial Industrial Industrial Industrial Industrial Warehouse

Lease Lease Lease Lease Sale Sale Sale Sale

Ingrid Millet Zara Asia JSI Logistics I.T. Apparels Local Investor Chevalier International Central Source Limited Canada Pension Plan Investment Board

22,000 43,054 45,004 92,753 126,677 253,470 311,700 50% interest

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INDIA
ECONOMIC INDICATORS FOR INDIA ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

April - September 2011 April - September 2011 April - August 2011 April - August 2011 April - September 2011 April - September 2011

8.25% n.a US$189.3 billion US$134.9 billion n.a. n.a.

NEW DELHI Factory and Warehouse The Reserve Bank of India (RBI) has tightened monetary policy during the review period from April to September 2011, which saw its Repo Rate (i.e. the rate at which the Reserve Bank of India lends money to commercial banks) soaring from 6.89% to 8.0%. The continuous hike in the cost of debt resulted in a slowdown in industrial growth, which grew at a slower 7.3% during January to June 2011 versus an 11.8% growth in the same period last year. Despite challenges from an escalating cost of debt, sentiments in the Delhi industrial property market remained healthy on the back of various efforts by the government to develop and grow their industrial sector. For example, the state government has decided to reduce the multiplicity of authorities in industrial areas in Delhi so as to streamline the process of entrepreneurs having to obtain clearance from various government agencies to set up businesses in these industrial estates. The lease and maintenance administration of most of the industrial estate, which is presently under the purview of both the Delhi Development Authority (DDA) and the Municipal Corporation of India (MCD), will be handed over to the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC). For a start, DSIIDC has identified areas at Narela, Bawana, Patparganj and Okhla as pilots for upgrading and managing the estates under the build-operate and transfer (BOT) concession to a private partner for 15 years. To bring more investments and industries to Delhi, DSIIDC is also planning to develop a knowledge-based industrial park in Baprola. The estimated cost of this industrial park is INR12 billion.
MAJOR TRANSACTIONS IN NEW DELHI TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

As such, in spite of the turbulent global economic conditions, demand for Delhi/NCR industrial properties remained relatively stable during the review period with land and capital values registering an average increase of 4.0% while rental values grew at an average rate of 2.0%. Lease transactions concluded in the review period include Jayshree Polyplastics lease of a 100,000-sq ft factory at Bhiwadi; Ananad Raj Industriess lease of a 60,000-sq ft factory at Manesar; and Yamahas lease of a 56,000-sq ft warehouse along Mathura Road. As part of the governments Relocation of Industries Scheme to move industries from residential areas to conforming zones, DSIISC has recently allotted 51 industrial plots at Bawana and Bhorgarh through a draw of lots. With this allotment, the total number of plots or flatted factories allotted under this scheme since its launch in 1996 has gone up to around 22,500. About 85.0% of the units are either under construction or are already completed. With the improvements in Delhis industrial infrastructure and business environment, Delhi could emerge as an attractive investment destination in the coming years. This could fuel demand for industrial space to accommodate the growing businesses. Thus, capital values and rents of the industrial properties are expected to continue to record growths in the range of 2.0% to 5.0% in the next 12 months.

Bhiwadi Mathura Road Manesar Bhiwadi NH8

Factory Warehouse Factory Factory Agriculture Land for Logistics Operations

Lease Lease Lease Lease Purchase

Manufacturing Company of Nuts and Bolts (Undisclosed) Yamaha Anand Raj Industries Pvt. Ltd Jayshree Polyplastic Pvt. Ltd Logistics Company (Undisclosed)

28,000 56,000 60,000 100,000 10 acres

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

I N D O N ES I A
ECONOMIC INDICATORS FOR JAKARTA ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
* n.a. denotes not available

January June 2011 January June 2011 April September 2011 April September 2011 April September 2011 April September 2011

6.5% 5.6% US$85,854.7 million US$107,113.7 million n.a. n.a.

JAKARTA Factory and Warehouse The Indonesian industrial land sales market saw heightened activity in the current review period, particularly for larger land parcels in excess of 1.08 million sq ft. This was driven by strong domestic consumption and aggressive growth of the automotive industry. All in, land sold in the first three quarters of 2011 totalled 897 ha, exceeding the 543 ha registered in the entire year of 2010. Yearto-date, the automotive industry remained the dominant purchaser accounting for 45.0% of total land sales (in ha). With no additional industrial land being supplied, robust demand drove the average land prices in Karawang and Bekasi up by a record 45.0% during the six months between April and September 2011, faster than the 14.9% recorded in the previous review period. Notable land transactions that occurred in the six months ending September 2011 included Denso Indonesias purchase of a 28-ha plot at Bekasi Fajar and the sale of a 31-ha parcel at KIIC to an undisclosed party. On the other hand, a relatively less active investment sales market led capital values of industrial buildings to grow at a slower rate of 6.0% in the current review period, down from the 19.7% increase recorded in the previous review period ending March 2011.
MAJOR TRANSACTIONS IN JAKARTA TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

The industrial leasing market remained quiet with no notable leasing transactions in the current review period between April and September 2011. However, rents saw a 5.8% increase, up from a 3.4% contraction reported for the period between October 2010 and March 2011, due to volatility in exchange rates. Underpinned by strong domestic consumption, solid investment inflows and improving export performance, the Indonesian economy is forecasted to see robust expansion in the range of 6.5% to 6.9% in 2012, higher than the 6.3% estimated for the entire year of 2011. This is expected to continue to stoke developers and investors optimism and translate to growth in land and capital values, as well as rents of industrial properties from 10.0% to 25.0% over the next 12 months.

Modern Cikande Bekasi Fajar Jababeka Suryacipta Jababeka Jababeka KI Mitrakarawang Jababeka Bekasi Fajar KIIC

Land Land Land Land Land Land Land Land Land Land

Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale

Indochem Food Industry (Undisclosed) Plastics & Metal Manufacturing (Undisclosed) Automotive Component (Undisclosed) Consumer Goods (Undisclosed) Pharmacy Automotive (Undisclosed) Automotive (Undisclosed) Denso Indonesia Undisclosed

645,834 1,076,390 1,560,766 1,614,585 1,832,016 2,152,780 2,152,780 2,473,544 3,013,892 3,336,809

COLLIERS INTERNATIONAL |

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

JA PA N
ECONOMIC INDICATORS FOR GREATER TOKYO ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)
1) Nationwide 2) Tokyo port (Tokyo-kou, Narita) and Yokohama Port (Yokohama, Kawasaki, Chiba and Kisarazu) 3) Tokyo custom and Yokohama custom 4) Narita Airport

January - June 2011 January - June 2011 January - June 2011 January - June 2011 January - June 2011 January - June 2011

-0.8%1) -4.7%1) 14.57 trillion2) 11.77 trillion2) 3.60 million3) 934,1794)

GREATER TOKYO Factory and Warehouse Weighed down by the March 2011 earthquake, the Japanese economy contracted in 2Q 2011 by 0.5% for the third consecutive quarter on a QoQ basis. On an annualised basis, the Japanese economy contracted by 2.1% YoY in 2Q 2011. As such, the industrial property market stayed in the doldrums. The investment sales market was sluggish in the current review period ending September 2011 as cautious investors continued to monitor the market from the sidelines. Thus, land and capital values have generally softened since the previous survey conducted six months ago. Rental performance remained mixed. For the six-month period ending in September 2011, rents in Daikokufuto saw a 4.8% increase, while the Shinsuna submarket saw industrial rents easing by 3.9%. With the exception of the Urayasu submarket, rents in the remaining submarkets surveyed were unchanged from their levels recorded in March 2011. The Urayasu submarket remained flooded/submerged, following the earthquake and tsunami in March 2011. Prologis Park Kawajima, a five-storey multi-tenanted logistics facility with a total gross floor area of 1.8 million sq ft, was completed in July. It is located in Kawajima of Saitama with convenient access to major roads. As of the end of September, 70.0% of the development was leased to two tenants, one of which is Hitachi Collabonext Transport System Co. While the Japanese economy appears to be on the recovery path now that supply-side constraints caused by the earthquake are gradually being resolved and total exports and business investments are seeing a slight growth, it is nevertheless still susceptible to externalities such as the health of other major global economies. Manufacturers and those in the export trade are especially concerned with the further strengthening of the Japanese Yen. These factors will continue to weigh on the Japanese industrial property market, giving land and capital values as well as rents little room for growth. They are thus, generally forecast to stay unchanged in the next 12 months.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

NEW ZEALAND
ECONOMIC INDICATORS FOR NEW ZEALAND ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

June 2011 June 2011 April September 2011 April September 2011 April September 2011 April September 2011

1.5% 1.5% NZ$23.3 billion NZ$22.9 billion 39.3 million 93,953

AUCKLAND Office/Warehouse The industrial sector continues to lead the commercial property market with a total return of 9.0% for the year ending September 2011 according to the Investment Property Databank/Property Council of New Zealand. The investment market showed signs of stabilising. Approximately NZ$117 million worth of industrial properties (total for sales of individual properties at NZ$2 million or more) were transacted in the first half of 2011, down from the NZ$292 million recorded in 1H 2010. Consequently, capital values increased moderately by up to 2.3% on average in the current six months review period ending September 2011. Notable investment transactions included the purchase of 5-7 Fraser Road (111,783 sq ft) at Mt Wellington to a private investor. Industrial land values, too, are trending upwards on the back of limited availability of land for sale in South Auckland. However, the shortage of buyers kept land value growth moderate at not more than 2.0% between April and September 2011. Major land transactions that occurred in the review period included the sale of a 330,097 sq ft parcel at 111 Luan Avenue to Eldamos Investments for over NZ$10.5 million. Leasing activity continues particularly in the under 21,000 sq ft market. Nevertheless, the overall vacancy rate dropped marginally from 5.3% in February 2011 to 5.1% in August 2011. As such, monthly rents are stabilising, and now range between NZ$0.76 per sq ft and NZ$0.83 per sq ft for prime warehouses across Auckland industrial precincts. A significant leasing deal during this review period was Goodyear and Dunlop Tyres (NZ) taking up a 102,548-sq ft development in 415 East Tamaki Road in East Tamaki. Colliers Real Estate Confidence Survey September 2011 shows that industrial investors feel the most optimistic about the year ahead compared to the other property sectors. Specifically, 41.0% of Auckland industrial investors forecast improving conditions for the next 12 months, up from just 34.0% six months ago. Against this backdrop, industrial land and capital values and rentals are likely to see a 2.0% to 5.0% upside through the next 12 months.

MAJOR TRANSACTIONS IN AUCKLAND TRANSACTIONS


BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

6b Wagener Place, St Lukes 89-91 Captain Springs Road, Penrose 78 Ellice Road, Wairau Park 67 Arrenway Drive, Albany 5 Henry Rose Place, Albany 23 Zelanian Drive, East Tamaki Business Parade North, East Tamaki 415 East Tamaki Road, East Tamaki 67 Arrenway Drive, Albany 9 Pacific Rise, Mt Wellington 5-7 Fraser Road, Mt Wellington 111 Lunn Ave, Mt Wellington

Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Land

Lease Lease Lease Lease Lease Lease Lease Lease Sale Sale Sale Sale

Wilhelmsen Ship Services TIC (Reverse Logistics) NZ Phoenix Aluminium Dimension Shopfitters Transpacific Industrial (NZ) Exclusive Tyre Distributors (NZ) National Aluminium Goodyear and Dunlop Tyres (NZ) Lewis Holdings Private Investor Private Investor Eldamos Investments

9,591 19,246 15,629 30,699 32,292 35,521 61,548 102,548 30,699 31,495 111,783 330,097

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

NEW ZEALAND
WELLINGTON Office/Warehouse The Wellington investment market remains active, largely in the sub-NZ$2 million price bracket. For the first half of 2011, over NZ$61 million worth of industrial properties were sold. This is close to 50.0% of the NZ$136 million chalked up for the whole of 2010. Hence, land and capital values held steady in the six months between April and September 2011. Significant transactions that occurred during this six-month review period included the sale of 38-40 Bouverie Street (78,210 sq ft) in Petone to Beijing Gold for NZ$6.7 million. The leasing market, too, has remained stable over the six months ending September 2011. As such, rents remained unchanged as of half a year ago with prime monthly warehouse rents currently ranging between NZ$0.66 per sq ft NZ$0.77 per sq ft. The majority of the transactions occurred in the sub-10,764 sq ft market. Notably, a 6,900-sq ft industrial building in Petone was leased by Pennrith Holdings to Scafit for NZ$600,000 a year.
MAJOR TRANSACTIONS IN WELLINGTON TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

In contrast with the buoyant mood in Auckland, Wellington investor confidence is down in general for the 12 months ahead. Industrial investor confidence dropped to -9.0% in September this year from -2.0% in March 2011. However, it has improved from the -18.0% recorded a year ago. As such, land values are expected to stay stable over the next 12 months.

35 - 43 Hutt Road, Petone 56 Takapu Road, Grenada Astra Print, 97 - 102 Hutt Road, Kaiwharawhara 199 Gracefield Road, Gracefield 46 Railway Avenue, Lower Hutt 9 - 15 Meachen Street, Lower Hutt 38 - 40 Bouverie Street, Petone

Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse Office/Warehouse

Lease Lease Lease Sale Sale Sale Sale

Scafit Wellington Scrap Metals Wickliffe NZ Private Investor Azzurro Holdings Chelmsford Properties Beijing Gold

6,953 32,292 33,110 15,952 27,233 36,597 78,210

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| COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

SINGAPORE
ECONOMIC INDICATORS FOR SINGAPORE ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

April 2011 September 2011 April 2011 September 2011 April 2011 September 2011 April 2011 September 2011 April 2011 September 2011 April 2011 September 2011

3.5% 3.7% S$232,317 million S$259,212 million 15,190.6 933,905

SINGAPORE Factory and Warehouse Singapores GDP growth slowed to 3.5% YoY in the period from April to September 2011 compared with the sterling 10.7% YoY growth seen in the previous review period from October 2010 to March 2011, as upheavals on the global economic front rattled confidence and dampened demand for goods and services. Nonetheless industrial investment and land sales remained active underpinned by occupier demand and interest from REITS and developers. For instance, Sabana REIT made four purchases 3A Joo Koon Circle, 21 Joo Koon Crescent, 2 Toh Tuck Link and 39 Ubi Road 1 totalling S$132.3 million in the current review period. Other major buildings transacted within the six months ending September 2011 include Seagates premises at Ang Mo Kio for S$91.5 million and Singatronics facility at Chai Chee Lane for S$21 million. These led land and capital values to extend their climb by as much as 16.0% during the current review period, up from the 7.2% to 9.3% recorded in the previous review period. The leasing market was also active and dominated by relocations and company expansions. Rents for factories in the central area rose 4.1% in the current six-month review period to average S$1.50 per sq ft per month in September 2011, while monthly rents for warehouse space in the eastern part of the island grew 5.1% in the past six months to average S$1.44 per sq ft. According to the Urban Redevelopment Authority (URA), some 1.91 million sq ft of single-user factories were added onto stock in the current review period, 10.0% higher than the 1.73 million sq ft net of new completions seen in the previous six months. Developments completed in the six months ending September 2011 included CN Logistics 121,600-sq ft factory at Changi North Way and Kawah Enterprises factory at Ubi Link. The outlook ahead is less rosy. Business sentiments have been adversely affected by events in the west. According to the latest Business Times-UniSIM Business Climate Survey, close to two-thirds of the companies surveyed said prospects for the next six months are worse than a year ago. Given the murky outlook for the global economy and the pressing need to maintain Singapores competitive edge, it is unlikely that the JTC Corporation (JTC) would raise land prices further in the months ahead. Capital values and rents of single-user industrial space should also remain stable in the year ahead, balanced by cautious user demand and limited availability. High-Specs Industrial Building The high-specs industrial sector is susceptible to weakening confidence in the global economy and thus slowed considerably in the period from April to September 2011. Despite investor caution amid heightened global uncertainties, Real Estate Investment Trusts (REITs) continue to look out for accretive purchases. Notably, Ascendas REITs purchased the Nordic European Centre in the International Business Park for S$121.6 million. Rents for high-specs space remained under pressure due to the ample supply of new high-specs and suburban office space in the pipeline. Consequently, rental growth for multi-user high-specs space more than halved from 11.0% in the October 2010 to March 2011 period to 4.8% in the current review period. At the end of September 2011, the average monthly gross rent for high-specs space stood at S$3.28 per sq ft. Major leasing deals concluded during this time included Nordson SEA (Pte) Ltd taking up about 15,800 sq ft at 2 Corporation Place. Growth in office rents slowed and has likely reached peak levels, resulting in less cost incentives for qualifying office users to relocate to high-specs space. Given the cloudy economic outlook, leasing activities in the short to medium term ahead, is likely to be dominated by renewals and consolidations. As such, high-specs rents are expected to stay stable, with an increase of up to 5.0% for ground floor space, in the year ahead.

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

SINGAPORE
MAJOR TRANSACTIONS IN SINGAPORE ECONOMIC INDICATORS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

2 Corporation Place 21 Changi North Way 52 Tanjong Penjuru 18 New Industrial Road 21 Joo Koon Crescent 39 Ubi Road 506 Chai Chee Lane (Singatronics) 2 Toh Tuck Link 3A Joo Koon Circle Nordic European Centre 7000 Ang Mo Kio Avenue 5

High-Specs Warehouse Warehouse Factory Factory Factory Factory Factory Factory High-Specs Factory

Lease Lease Lease Sale Sale Sale Sale Sale Sale Sale Sale

Nordson SEA (Pte) Ltd Armor Asia Imaging Supplies Pte Ltd Cummins Diesel Sales Corporation TAS Services Pte Ltd Sabana Shariah Compliant REIT Sabana Shariah Compliant REIT Undisclosed Sabana Shariah Compliant REIT Sabana Shariah Compliant REIT Ascendas REIT Undisclosed

15,791 45,500 110,860 30,225 99,575 136,195 172,137 180,735 217,580 305,458 1,070,644

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

TA I WA N
ECONOMIC INDICATORS FOR TAIWAN ECONOMIC INDICATORS
INDICATORS PERIOD DATA

Year-on-Year GDP Growth Year-on-Year Manufacturing Output Growth Rate Total Imports Total Exports Container Throughput (TEUs) Air Cargo Throughput (Tonnes)

April - September 2011 April - September 2011 April - September 2011 April - September 2011 April - September 2011 April - September 2011

4.18% 5.61% US$145,563 million US$158,873 million 6.8 million 847,973

TAIWAN High-Specs Industrial Building Taiwans GDP grew at a moderated 4.2% YoY between April and September 2011 compared with the 9.7% recorded in the previous corresponding period. Weakening global demand caused capitalintensive industries, such as semiconductors and thin film transistor liquid crystal display (TFT-LCD) manufacturers, to reduce capital expenditure. This, in turn, led the capital formation growth rate to drop to a negative 13.5% YoY in 3Q 2011 and manufacturing output to shrink 5.6% YoY during the review period. This dented sentiments in the high-specs industrial market. As a result, net take-up of high-specs space in Neihu Technology Park fell by a hefty 46.6% from the previous review period to 725,049 sq ft. This was notwithstanding the continued gravitation of traditional industries and hi-tech enterprises to Neihu Technology Park due to its attractiveness as a maturing business district. Developments such as A+ Sun Tech City, Fubon Ruei Kwang Building and Metropolitan Era Headquarters enjoyed net take-up above 30,000-sq ft each, primarily from expansionary moves. Major leasing deals during the review period included Compal Electronics Co., Sumei Chemical Co. and Lite-On Clean Energy Co. taking up 120,687-sq ft in Colorful International Building, 19,605-sq ft in Dubai Building and 19,320-sq ft in Solomon Neihu Building, respectively. The plunge in net take-up in the current review period was, however, mitigated by a miserly supply of 107,309 sq ft from the completion of Chi-Sing Xi Hu Building in 2Q 2011. As a result, the vacancy rate in Neihu Technology Park dipped 2.2 percentage points to 12.3% in
MAJOR TRANSACTIONS IN TAIPEI TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASER FLOOR/LAND AREA (SQ FT)

September 2011 the lowest vacancy level since 4Q 2008. This prompted rents to climb 0.8% from NT$31.32 per sq ft per month in March 2011 to NT$31.57 per sq ft per month in September 2011. This was the highest rental growth in the past three years. The current market price for high-specs space remains high and showed no sign of abating. While low yields kept investors away, owner-occupiers, on the other hand, have displayed a gradual acceptance of the current pricing. This was evident from the few purchases made in 3Q 2011, including Taiwan Fixed Network Co.s acquisition of the 284,430-sq ft data centre in Neihu for NT$2.87 billion, TCI Co.s acquisition of the 14,382-sq ft Shin Chi Tsai Hsing Building for NT$171 million and King Polytechnic Engineering Co.s acquisition of the 10,554-sq ft 21 Century Plaza for NT$211 million. Notably, Chong Hong Construction Co. purchased a 32,936-sq ft land parcel at Xihu for development of hi-specs space for NT$2.19 billion or a record high of NT$66,493 per sq ft. The economic crisis in the Eurozone and the US is likely to impact Taiwans economic growth adversely in the near future. However, net take-up is expected to grow given that the high market price is likely to drive users to lease instead of owner-occupy their premises for cost-savings purposes. The vacancy rate of high-specs space in Neihu Technology Park may thus fall below 11.0% by the end of 2011. As such, rentals are expected to remain flat or show a slight increase in the next 12 months.

Solomon Neihu Building Dubai Building Colorful International Building The Plot in Xihu 21 Centry Plaza Shin Chi Tsai Hsing Building The Data Centre in Neihu

High-Specs High-Specs High-Specs Land High-Specs High-Specs High-Specs

Lease Lease Lease Sale Sale Sale Sale

Lite-On Clean Energy Co. Sumei Chemical Co. Compal Electronics, Inc. Chong Hong Construction Co. King Polytechnic Engineering Co. TCI Co. Taiwan Fixed Network Co

19,320 19,605 120,687 32,936 10,554 14,382 284,430

COLLIERS INTERNATIONAL |

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON

The purpose of the International Comparison tables is only to facilitate easy and equal comparison of single-user industrial costs. However, payment schemes vary with each country. Some countries may have the practice of paying annual land rent, while others pay a lump sum land premium or through other modes. Colliers International does not infer that industrial land and buildings in these cities may be acquired through the same schemes or on the basis stated in the table.
SINGLE-USER WAREHOUSE SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
VALUE AS OF SEPTEMBER 2011 (US$) CITY LAND VALUE1 (PSF) CAPITAL VALUE2 (PSF) MONTHLY GROSS RENT (PSF) 0.54 0.52 0.61 0.47 0.42 1.40 1.82 2.26 3.32 2.39 2.16 0.47 1.26 0.88 0.58 0.93 0.48 0.47 0.23 0.30 0.44 0.63 0.40 0.94 0.75 0.61 1.28 1.23 0.73 1.13 0.53 0.48 0.45 12-MONTH FORECAST (US$) LAND VALUE1 (PSF) CAPITAL VALUE2 (PSF) MONTHLY GROSS RENT (PSF) 0.55 0.54 0.62 0.50 0.44 1.40 1.82 2.26 3.32 2.39 2.06 0.48 1.23 0.85 0.59 0.94 0.48 0.47 0.23 0.31 0.46 0.66 0.42 0.96 0.78 0.64 1.28 1.24 0.74 1.15 0.53 0.48 0.45 BASIS OF LAND AND CAPITAL VALUES LAND TENURE (YEARS) PLOT RATIO LAND AREA (SQ FT) GROSS FLOOR AREA (SQ FT) 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Auckland3 Auckland Manukau North Shore Beijing Tianzhu Tongzhou Greater Tokyo4 Chiba - Urayasu Kawasaki - Higashi Ogishima Tokyo - Ariake Tokyo - Heiwajima Tokyo - Shinsuna Yokohama - Daikokufuto Guangzhou GETDD Hong Kong5 Ramp Access Cargo Lift Access Jakarta Bekasi Melbourne East & Southeast Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Pudong New Area Singapore East Sydney South Southwest West Wellington Ngauranga Petone Seaview 36.17 37.06 14.83 71.37 64.67 57.52 36.17 37.06 14.83 71.37 64.67 57.52 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 75.95 16.94 29.97 147.05 92.58 135.89 77.63 17.22 30.34 148.67 93.90 137.72 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 58.74 167.16 58.74 167.16 60 1.0 100,000 48.49 63.17 49.64 63.60 60 1.0 100,000 18.14 23.22 36.28 97.86 150.11 178.68 189.04 20.85 41.70 66.43 79.71 79.71 63.77 18.87 23.94 37.01 101.73 155.67 186.71 191.22 21.54 43.09 67.76 81.04 81.04 63.77 60 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 100,000 14.09 41.79 12.11 10.61 69.97 135.85 63.61 50.21 14.24 42.21 12.23 10.72 70.67 137.21 64.24 50.70 60 60 60 60 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 13.52 25.99 16.23 28.59 60 1.0 100,000 333.7 319.26 302.00 278.07 60 60 1.0 1.0 100,000 100,000 9.37 47.67 9.39 49.62 60 1.0 100,000 40.49 135.34 142.63 184.21 17.51 199.28 256.30 330.65 306.68 181.46 40.49 135.34 142.63 184.21 17.51 199.28 256.30 330.65 306.68 181.46 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 19.07 11.17 83.94 65.10 20.02 11.68 88.97 65.79 60 60 1.0 1.0 100,000 100,000 18.48 17.56 25.00 74.75 74.30 86.50 18.76 17.82 25.25 78.49 78.02 90.82 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio 2. Capital values refer to the values of both land and building 3. Rental series for Auckland was revised wef Sep 2011 4. The Urayasu submarket remained flooded. Land & capital values are not available. 5. Values provided are for multi-user warehouse buildings

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF WAREHOUSE LAND VALUES (SEPTEMBER 2011)
Delhi - West De lh i-We st Greater ky o- - Tokyo Sh in su na Gr ea te r To Tokyo To ky o-- Shinsuna Delhi - South De lh i-So ut h Delhi - North De lh i-No rt h Gr eaGreater TokyoToTokyo He iw ajim a te r To ky o- - ky o- - Heiwajima Greater ky o- - Tokyo Ar ia ke Gr ea te r To Tokyo To ky o-- Ariake De lh i-Ea st Delhi - East Sy dne y-So ut h Sydney - South SiSingapore - East ngap or e-Ea st S hangha i-Pu-do ng N ew AArea Shanghai Pudong New re a MeMelbourne - Fringe lb ou rn e-Fr in ge re at er T ok yo -Kaw as ak i-HiHigashi Ogishima Greater Tokyo - Kawasaki - ga sh i-Ogishima WeWellington - Petone lli ng to n-Pe to ne De lh i-NH 24 Delhi - NH 24 WeWellington - Ngauranga lli ng to n-N gaur ang a Sy dne y-We st Sydney - West Au ck land -N-or th SShore Auckland North ho re De lh i-NH 8 Delhi - NH 8 Be iji ng -T Tianzhu Beijing - ia nz hu Au Auckland - uc kl an d ck land -A Auckland De lh i-NH 11 Delhi - NH Au Auckland - anu ka u ck land -M Manukau Gr ea te Greater Tokyo koYokohama - Daikokufuto r To ky o- Yo - ha ma -D ai ko ku fu to Sy Sydeny - Southwest dne y-So ut hw es t WeWellington - Seaview lli ng to n-Se av ie w Me lb ou rn e-Ea st East & South as t Melbourne - & S ou th E East J ak ar ta -B ek as i Jakarta - Bekasi Me Melbourne - North lb ou rn e-No rt h Be Beijing -on gz ho u iji ng -T Tongzhou MeMelbourne - West lb ou rn e-We st G uang zh ou -GET DD Guangzhou - GET DD
0.00 20 .004 20.00 0.00 40.00 60 .008 60.00 0.00 80.00 10 0.00 100.00 12 0.00 120.00 14 0.00 140.00 160. 00 160.00 18 0.00 180.00 200 .00 200.00

Wa re ho us Warehouse Land (US$ p sf p er pper plot ratio) e Land V al ue s Values (US$ psf lo t ra ti o)

INTERNATIONAL COMPARISON OF WAREHOUSE CAPITAL VALUES (SEPTEMBER 2011)


Hong Kong - mp A cce ss * Ho ng K on g-Ra Ramp Access* Gr eaGreater TokyoToTokyo He iw ajim a te r To ky o- - ky o- - Heiwajima Hong g-Ca Cargo Lift cce ss * Ho ng K onKong -rg o Li ft AAccees* Greater ky o- - Tokyo Sh in su na Gr ea te r ToTokyo To ky o-- Shinsuna Gr ea te r ToTokyo To ky o--Ar ia ke Greater ky o- - Tokyo Ariake Greater Tokyo wa sa ki -H ig as hi O gi sh im a Gr ea te r To ky o- Ka - Kawasaki - Higashi Ogishima Greater Tokyo Yokohama - Daikokufuto Gr ea te r To ky o- Yo-ko ha ma -D ai ko ku fu to Singapore - East Si ngap or e-Ea st Sydney - South Sy dne y-So ut h Sydney - West Sy dne y-We st M Melbourne -F ri ng e el bo ur ne - Fringe Sydeny - Southwest Sy dne y-So ut hw es t Au Auckland - or th S ho re ck land -N North Shore Be iji ng -T ia nz hu Beijing - Tianzhu De lh i-So ut h Delhi - South De lh i-No rt h Delhi - North Au ck land -AAuckland Auckland - uc kl an d AuAuckland-MManukau ck land - anu ka u Wellington - gaur ang a We lli ng to n-NNgauranga Melbourne - t & So ut h East M el bo ur ne -E as East & SouthEa st De lh i-Ea st Delhi - East BeBeijing - on gz ho u iji ng -T Tongzhou We lli ng to n-Pe to ne Wellington - Petone De lh i-We st Delhi - West M Melbourne -N or th el bo ur ne - North S hangha i-Pu- do ng N NewA re a Shanghai Pudong ew Area We lli ng to n-Se av ie w Wellington - Seaview M Melbourne - Westt el bo ur ne -W es GGuangzhou - GET DD uang zh ou -GET De lh i-NH 24 Delhi - NH Ja ka rt a-Be ka si Jakarta - Bekasi De lh - NH 8 Delhi i-NH 8 0.00 50 .00 50.00 10 0.00 100.00 15 0.00 150.00 200 .00 200.00 250 .003 250.00 00 .00 300.00 350. 00 350.00 400 .00 400.00

Wa re ho us e Ca piCapital Values((US$ psf) f) Warehouse ta l Va lu es US $ ps


* Values provided are for multi-user warehouse buildings

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF WAREHOUSE MONTHLY GROSS RENTS (SEPTEMBER 2011)
Greater Tokyo Tokyo - ei wa jim a G re at er T ok yo -T-ok yo -H Heiwajima Greater Tokyo - Tokyo - Shinsuna G re at er T ok yo -T ok yo -Shi ns un a Greater Tokyo - Tokyo - ri ak e G re at er T ok yo -T ok yo -AAriake Greater Tokyo - oh am a-Da ik ok uf ut o G re at er T ok yo -Yok Yokohama - Daikokufuto Greater Tokyo - as ak i-Hi Higashi Ogishima G re at er T ok yo -KawKawasaki -ga sh i Og is hi ma G reGreater ok yo -CChiba -Ura ya su at er T Tokyo - hi ba - Urayasu SiSingapore - East ngap or e-Ea st Ho ng K on g-Ra mp A Access* Hong Kong - Ramp cce ss * Sydney - South Sy dne y-So ut h Sydney - West Sy dne y-We st De lh i-So ut h Delhi - South MeMelbourne - Fringe lb ou rn e-Fr in ge Ho ngHong Kong - Cargo ft A Accees* K on g-Ca rg o Li Lift cce ss * De lh i-We st Delhi - West Sydeny - ut hw es t Sy dne y-SoSouthwest De lh i-Ea st Delhi - East S hangha i-Pu-do ng N ew AArea Shanghai Pudong New re a Auckland North ho re Au ck land -N-or th SShore Me lbMelbourne - East S ou th EEast ou rn e-Ea st & & South as t AuAuckland-A Auckland ck land - uc kl an d WeWellington - Ngauranga lli ng to n-N gaur ang a AuAuckland-MManukau ck land - anu ka u We lli ng to n-Pe to ne Wellington - Petone MeMelbourne - North lb ou rn e-No rt h Me lb ou rn e-We st Melbourne - West G uang zh ou -GET DD Guangzhou - GET DD Be iji ng -TTianzhu Beijing - ia nz hu We lli ng to n-Se av ie w Wellington - Seaview De lh i-NH 24 Delhi - NH 24 BeBeijing - on gz ho u iji ng -T Tongzhou De lh i-No rt h Delhi - North De lh i-NH 8 Delhi - NH De lh i-NH 1 Delhi - NH 0.00 0.50 1.00 1.50 2.00 2.50 2.50 3.00 3.00 3.50 3.50

Wa re ho us e Mo nt hl y G ro ss R en ts (Rents (US$ psf) Warehouse Monthly Gross US $ ps f)

* Values provided are for multi-user warehouse buildings

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| COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
SINGLE-USER FACTORY SINGLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
VALUE AS OF SEPTEMBER 2011 (US$) CITY LAND VALUE1 (PSF) CAPITAL VALUE2 (PSF) MONTHLY GROSS RENT (PSF) 1.32 0.70 0.46 0.90 1.10 1.35 0.34 0.58 0.93 0.48 0.47 0.23 0.30 0.44 0.66 0.40 0.92 0.75 0.42 0.40 1.27 12-MONTH FORECAST (US$) LAND VALUE1 (PSF) CAPITAL VALUE2 (PSF) MONTHLY GROSS RENT (PSF) 1.39 0.72 0.48 0.85 1.05 1.28 0.40 0.59 0.94 0.48 0.47 0.24 0.30 0.47 0.68 0.42 0.94 0.76 0.45 0.43 1.27 BASIS OF LAND AND CAPITAL VALUES LAND TENURE (YEARS) PLOT RATIO LAND AREA (SQ FT) GROSS FLOOR AREA (SQ FT) 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Beijing Shang Di Yi Zhuang Greater Tokyo Chiba - Ichikawa Chiba - Mihama Saitama - Ageo Tokyo - Ota Yokohama - Naka Guangzhou GETDD Hong Kong3 Low Quality Mid Quality Prime Quality Jakarta Bekasi Karawang Melbourne East & South East Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Minhang District Pudong New Area Singapore Central 85.30 164.97 85.30 164.97 60 1.0 100,000 20.28 21.82 53.18 49.30 21.25 22.26 53.69 49.91 60 60 1.0 1.0 100,000 100,000 17.12 17.67 34.92 93.89 147.84 162.20 179.06 20.85 38.92 68.42 79.71 89.68 73.07 17.80 18.49 36.29 95.27 150.43 168.83 179.68 21.20 40.31 71.08 79.71 93.00 73.07 60 60 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 100,000 100,000 14.09 41.79 12.11 10.61 69.97 135.85 63.61 50.21 14.24 42.21 12.23 10.72 70.67 137.21 64.24 50.70 60 60 60 60 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 13.52 9.19 32.49 27.30 16.23 11.49 35.74 30.03 60 60 1.0 1.0 100,000 100,000 243.45 303.53 432.61 213.50 266.20 379.40 60 60 60 1.0 1.0 1.0 100,000 100,000 100,000 9.37 47.63 9.39 49.62 60 1.0 100,000 40.82 20.15 15.14 79.05 39.35 144.40 90.36 83.97 153.34 127.06 40.82 20.15 15.14 79.05 39.35 144.40 90.36 83.97 153.34 127.06 60 60 60 60 60 1.0 1.0 1.0 1.0 1.0 100,000 100,000 100,000 100,000 100,000 57.91 8.29 147.79 67.71 58.41 8.71 155.18 68.51 60 60 1.0 1.0 100,000 100,000

1. Land values are expressed in US$ per sq ft per plot ratio 2. Capital values refer to the values of both land and building 3. Values provided are for multi-user factory buildings

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF FACTORY LAND VALUES (SEPTEMBER 2011)
De lhi--W es t Delhi West De lhi- South Delhi -Sou th De lhi - North Delhi -N or th Delhi East De lhi--E as t SiSingapore - Central l ngap or e-Ce nt ra Gr GreaterTo ky o- To ky o-Otaa ea te r Tokyo - Tokyo - Ot Beijing ngShanghai D i Be iji - -Shang Di Melbourne -F ri ng Me lbo ur ne - Fringee Greater Tokyo - Chiba - Ichikawa Gr ea te r To ky o- Ch ib a-Ic hi ka wa Gr eaGreater TokyoYoYokohama - Naka te r To ky o- - ko ha ma -N ak a Delhi --N H2 4 De lhi NH 24 Shanghai - Pudong ew Area S hangha i-Pu do ng N NewA re a Shanghai Minhang is tr ic S hangha i-Mi- nhang DDistrictt Greater ky o- Ch ib a-Mi ha ma Gr ea te r ToTokyo - Chiba - Mihama Delhi - -N H8 De lhi NH 8 Delhi - -N H1 De lhi NH 1 Greater Tokyo - Saitama - Ageo Gr ea te r To ky o- Sa it am a-Ag eo Melbourne - t & So ut h East Me lbo ur ne -E asEast & South Ea st Jakarta rt Karawang Ja ka - a-Be ka si Melbourne - North Me lbo ur ne -N or th Melbourne -W es Me lbo ur ne- Westt GGuangzhou - GET DD uang zh ou -GET Jakarta - Karawang Ja ka rt a-Ka ra wa ng Beijing - Yi huan g Be iji ng -Yi ZZhuang 0.00 0.00 50 .001 50.00 00 .001 100.00 50 .00 150.00 200 .00 200.00

Fa ct or y Land V al ue s (U S$ psf per er p lot r at io ) Factory Land Values (US$ p sf p plot ratio)

INTERNATIONAL COMPARISON OF FACTORY CAPITAL VALUES (SEPTEMBER 2011)

Hong Kong - im e Quality* Ho ng K on g-Pr Prime Qu alit y* Ho Hong on g-MiMidQu alit y* ng K Kong - d Quality* Ho Hong Kong - Low Qu al it y* ng K on g-Lo w Quality* Si Singapore - Centrall ngap or e-Ce nt ra Gr ea te r To ky o- To ky o- Ota Greater Tokyo - Tokyo - Ot a Be iji - Shanghai Di Beijing ng -Shang D i GrGreater To ky o-Chiba a-Ichikawa ea te r Tokyo - Ch ib - Ichikawa Melb ou rn e-Fr in ge Melbourne - Fringe Gr ea te r To ky o--Yo ko ha ma -Naka Greater Tokyo Yokohama - Naka Gr ea te r To ky o- Ch ib a-Miha ma Greater Tokyo - Chiba - Mihama De lh i-So ut h Delhi - South Gr ea te r To ky o- Sa it am a-Ag eo Greater Tokyo - Saitama - Ageo De lh i-No rt h Delhi - North De lh i-We st Delhi - West Me lb ou rn e-E as t & So ut h E as t Melbourne - East &De lh i-E as t South East Delhi - East Be iji ng -Yi Z huan g Beijing Yi Zhuang Me lb ou-rn e-No rt h Melbourne North S hangha i-Minhang D-is tr ic t Shanghai Melb ou rn e-We st - Minhang District Melbourne West S hangha i-Pu do ng N ew - A re a Shanghaiuang zh ouNew Area G - Pudong -GETD D De - i-NH 24 Guangzhou lh GET DD Ja ka rt a-Be ka si Delhi - NH 24 Ja ka rt a-Ka ra wa ng Jakarta - Karawang Delh i-NH 8 Delhi - NH 8 0.00 0.00 50 .001 50.00 00 .001 100.00 50 .00 150.00 200 .00 200.00 250 .003 300.00 00 .00 250.00 350 .00 350.00 400 .00 400.00 450 .00 450.00 500 .00 500.00

Fa ct or y Ca pi ta l Va lu es ( US $ ps f) Factory Capital Values (US$ psf)

* Values provided are for multi-user factory buildings

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| COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF FACTORY MONTHLY GROSS RENTS (SEPTEMBER 2011)
Hong Kong - im e Quality* Ho ng K on g-Pr PrimeQu al it y* Be ijin Shanghai Di Beijing -g-S hang D i Singapore - Central Si ngap or e-Ce nt ra l Ho Hong Kong - Mid Quality* ng K on g-Mid Qu al it y* MeMelbourne - Fringe lb ou rn e-Fr in ge De lh i-So ut h Delhi - South Ho ng K on g-Lo Low Quality* Hong Kong - w Qu al it y* De lh i-We st Delhi - West Be ijin g-YiYi Zhuang Beijing - Z huan g De lh i-Ea st Delhi - East Me lbMelbourne -st & S ou th E as t ou rn e-Ea East & South East MeMelbourne - North lb ou rn e-No rt h MeMelbourne - West lb ou rn e-We st G uang zh ou -GET DD Guangzhou - GET DD De lh i-NH 24 Delhi - NH S hangha i-Mi -nhang D District Shanghai Minhang is tr ic t S hangha i-Pu-do ng N ew AArea Shanghai Pudong New re a De lh i-No rt h Delhi - North JaJakarta - Karawang ka rt a-Ka ra wa ng De lh i-NH 8 Delhi - NH De lh i-NH 1 Delhi - NH 0.00 0.50 0.50 1.00 1.00 1.50 1.50

Fa cto ry M on th ly G ro ss R en ts ( US $ ps f) Factory Monthly Gross Rents (US$ psf)

* Values provided are for multi-user factory buildings

COLLIERS INTERNATIONAL |

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

INTERNATIONAL COMPARISON
MULTI-USER HIGH-SPECS MULTI-USER HIGH-SPECS AVERAGE MONTHLY GROSS RENTS
AS OF SEPTEMBER 2011 12-MONTH FORECAST AVERAGE MONTHLY GROSS RENT (US$ PSF) 1.43 2.02 1.64 0.29 0.46 0.55 0.86 0.55 1.12 0.90 1.34 2.65 1.11 1.08 3.68 4.78 4.05 LEASE TERM (YEARS) 3 3 3 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 to 9 3 3 3 3 3 3 BASIS OF RENTAL RATES LOCATION Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban Suburban NET FLOOR AREA (SQ FT) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 RENT FREE PERIOD (MONTH) 1 1 1 Negotiable Negotiable Negotiable Negotiable Negotiable Negotiable Negotiable 1 1 1 1 1 1 1

CITY
Beijing Hong Kong Melbourne New Delhi - NH1 New Delhi - NH8 New Delhi - NH24 New Delhi - East New Delhi - North New Delhi - South New Delhi - West Shanghai Singapore Sydney Taipei - Neihu Technology Park Greater Tokyo - Hakusan Greater Tokyo - Kanagawa Greater Tokyo - Yokohama

AVERAGE MONTHLY GROSS RENT (US$ PSF) 1.41 2.13 1.63 0.28 0.44 0.53 0.82 0.54 1.08 0.88 1.30 2.52 1.11 1.07 3.68 4.78 4.05

INTERNATIONAL COMPARISON OF HIGH-SPECS MONTHLY GROSS RENTS (SEPTEMBER 2011)


Gr ea te r To ky o - K anagaw a Greater Tokyo - Kanagawa Greater Tokyo - Yokohama G re at er T ok yo - Yo ko ha ma G re at Greater TokyoH ak us an er T ok yo - - Hakusan Si ngap or e Singapore Ho Hong Kong ng K on g Me Melbourne lb ou rn e Be ijin g Beijing Shanghai S hangha i Sy dne y Sydney Ne w De Delhi So ut h New lh i - - South Ta ip ei Taipei hu T echn ol og y Pa rk - N ei - Neihu Technology Park Ne w De Delhi We st New lh i - - West Ne w De Delhi Ea st New lh i - - East Ne wNew lh i - NoNorth De Delhi - rt h Ne w DeDelhi - NH24 New lh i - NH 24 Ne w DeDelhi - NH 8 New lh i - NH 8 New lh i NH 1 Ne w DeDelhi--NH 1 0.00 1.00 1.00 2.00 2.00 3.00 3.00 4.00 4.00 5.00 6.00 6.00

Hi gh- S pec s Av er age Mo nt hl y Gr os s Re nt s (U S$ p sf )) Hi gh- S pec s Av er age Mo nt hl y Gr os s Re nt s (U S$ p sf High-Specs Average Monthly Gross Rents (US$ psf)

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

LOCAL MARKET NORM

The purpose of the Local Market Norm tables is only to provide an understanding of single-user industrial costs in the context of the various submarkets. The land tenure, plot ratio, land and building size quoted are based on recent offerings and transactions in each local market. However, payment schemes vary with each country. Some countries may have the practice of paying annual land rent, while others pay a lump sum land premium or through other modes. Colliers International does not infer that industrial land and buildings in these cities may be acquired through the same schemes.
SINGLE-USER WAREHOUSE SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1
IN LOCAL CURRENCY AS OF SEPTEMBER 2011 CITY LOCAL CURRENCY LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 0.83 0.76 0.84 2.97 2.64 107.00 96.00 157.00 169.00 146.00 132.00 IN US$ AS OF SEPTEMBER 2011 LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 0.64 0.58 0.64 0.47 0.42 1.40 1.26 2.06 2.21 1.91 1.73 BASIS OF LAND, CAPITAL VALUES AND MONTHLY GROSS RENTS (LOCAL MARKET NORM) LAND TENURE (YEARS) PLOT RATIO LAND AREA (SQ FT) GROSS FLOOR AREA (SQ FT) 15,000 50,000 52,500 105,000 108,000 107,640 3,229,170 215,278 4,843,755 430,556 430,556

Auckland4 Auckland Manukau North Shore Beijing Tianzhu Tongzhou Greater Tokyo5 Chiba-Urayasu Kawasaki - Higashi Ogishima Tokyo - Ariake Tokyo - Heiwajima Tokyo - Shinsuna Yokohama Daikokufuto Guangzhou GETDD Hong Kong6 Ramp Access Cargo Lift Access Jakarta Bekasi Melbourne East & South East Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Pudong New Area Singapore East Sydney South Southwest West A$ A$ A$ 89.25 24.39 32.60 158.25 126.20 126.30 1.10 0.79 0.90 87.30 23.86 31.89 154.78 123.44 123.53 1.07 0.77 0.88 Freehold Freehold Freehold 1.2 1.2 1.2 220,000 60,000 430,000 264,000 72,000 516,000 S$ 77.94 189.00 1.44 59.94 145.36 1.11 30+30 2.0 150,000 300,000 CNY 275.15 375.19 3.86 43.30 59.04 0.61 50 0.6 150,000 90,000 Rs Rs Rs Rs Rs Rs Rs 1,250.00 1,600.00 2,500.00 7,600.00 10,800.00 13,876.00 14,681.00 1,500.00 3,000.00 5,000.00 6,000.00 6,000.00 4,800.00 13.00 17.50 25.50 36.50 23.00 54.00 43.00 25.55 32.70 51.10 155.34 220.74 283.62 300.07 30.66 61.32 102.20 122.64 122.64 98.11 0.27 0.36 0.52 0.75 0.47 1.10 0.88 99 99 99 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 0.6 0.6 0.6 15,000 15,000 15,000 5,000 15,000 10,000 7,000 9,000 9,000 9,000 3,000 9,000 6,000 4,200 A$ A$ A$ A$ 19.74 58.53 16.95 14.86 102.19 213.68 92.90 78.97 0.66 1.12 0.54 0.56 19.31 57.25 16.58 14.54 99.96 209.00 90.87 77.24 0.64 1.10 0.53 0.55 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 40,000 30,000 40,000 30,000 24,000 18,000 24,000 18,000 Rp 111,544.15 196,954.36 11.97 21.13 30 2.4 10,000 24,000 HK$ HK$ 2,600.00 2,487.50 9.81 6.82 333.70 319.26 1.26 0.88 N.A N.A N.A N.A N.A N.A N.A N.A CNY 56.18 258.93 2.74 8.84 40.74 0.43 50 1.5 150,000 225,000 JPY JPY JPY JPY JPY JPY 2,972.00 13,594.00 9,551.00 16,740.00 1,856.00 12,170.00 21,739.00 19,416.00 22,296.00 13,192.00 38.93 178.08 125.12 219.29 24.31 159.43 284.78 254.35 292.08 172.82 Freehold Freehold Freehold Freehold Freehold Freehold 2.0 2.0 2.0 2.0 2.0 2.0 53,820 1,076,390 107,639 1,614,585 215,278 107,639 CNY CNY 109.16 65.74 498.50 386.62 17.18 10.34 78.44 60.84 50 50 0.7 0.9 150,000 120,000 NZ$ NZ$ NZ$ 32.89 27.4788 39.1374 149.41 137.90 149.84 25.32 21.15 30.12 115.00 106.14 115.33 Freehold Freehold Freehold 0.5 0.5 0.5 30,000 100,000 105,000

Continued on next page >

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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

LOCAL MARKET NORM


< Continued from previous page

SINGLE-USER WAREHOUSE SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1
IN LOCAL CURRENCY AS OF SEPTEMBER 2011 CITY LOCAL CURRENCY LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 0.77 0.70 0.66 IN US$ AS OF SEPTEMBER 2011 LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 0.59 0.54 0.51 BASIS OF LAND, CAPITAL VALUES AND MONTHLY GROSS RENTS (LOCAL MARKET NORM) LAND TENURE (YEARS) PLOT RATIO LAND AREA (SQ FT) GROSS FLOOR AREA (SQ FT) 35,000 50,000 50,000

Wellington Ngaurang Petone Seaview NZ$ NZ$ NZ$ 62.71 58.06 23.23 132.57 120.12 106.84 48.23 44.65 17.87 101.96 92.38 82.17 Freehold Freehold Freehold 0.5 0.5 0.5 70,000 100,000 100,000

1. Values and rents may not be quoted in $ psf in local market practice 2. Land values are expressed as per sq ft per plot ratio 3. Capital values refer to the values of both land and building 4. Rental series for Auckland was revised wef Sep 2011 5. The Urayasu submarket remained flooded. Land & capital values are not available. 6. Values provided are for multi-user warehouse buildings

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| COLLIERS INTERNATIONAL

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | DECEMBER 2011

LOCAL MARKET NORM


SINGLE-USER FACTORY SINGLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS1
IN LOCAL CURRENCY AS OF SEPTEMBER 2011 CITY LOCAL CURRENCY LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 6.71 4.69 2.66 7.01 8.57 10.48 2,992.22 0.66 1.12 0.54 0.56 13.50 17.00 25.50 38.00 23.00 53.00 43.00 2.68 2.98 1.50 IN US$ AS OF SEPTEMBER 2011 LAND VALUE2 (PSF) CAPITAL VALUE3 (PSF) MONTHLY GROSS RENT (PSF) 1.06 0.74 0.42 0.90 1.10 1.35 0.32 0.64 1.10 0.53 0.55 0.28 0.35 0.52 0.78 0.47 1.08 0.88 0.42 0.47 1.15 BASIS OF LAND, CAPITAL VALUES AND MONTHLY GROSS RENTS (LOCAL MARKET NORM) LAND TENURE (YEARS) PLOT RATIO LAND AREA (SQ FT) GROSS FLOOR AREA (SQ FT) 429,000 54,600 430,556 64,584 64,584 32,292 215,268 225,000 N.A N.A N.A 36,000 168,000 24,000 18,000 24,000 18,000 18,750 18,750 18,750 6,250 18,750 12,500 8,750 150,000 150,000 250,000

Beijing Shang Di Yi Zhuang Greater Tokyo Chiba - Ichikawa Chiba - Mihama Saitama - Ageo Tokyo - Ota Yokohama - Naka Guangzhou GETDD Hong Kong4 Low Quality Mid Quality Prime Quality Jakarta Bekasi Karawang Melbourne East & Southeast Fringe North West New Delhi Delhi - NH1 Delhi - NH8 Delhi - NH24 Delhi - East Delhi - North Delhi - South Delhi - West Shanghai Minhang District Pudong New Area Singapore Central S$ 116.75 195 89.79 149.97 30+30 2.5 100,000 CNY CNY 118.21 127.19 315.82 340.54 18.60 20.01 49.70 53.59 50 50 1.0 1.0 150,000 150,000 Rs Rs Rs Rs Rs Rs Rs 1,250.00 1,290.00 2,550.00 7,786.00 11,302.00 13,450.00 14,848.00 1,500.00 2,800.00 5,150.00 6,000.00 6,750.00 5,500.00 25.55 26.37 52.12 159.14 231.01 274.91 303.48 30.66 57.23 105.26 122.64 137.97 112.42 99 99 99 Freehold Freehold Freehold Freehold 1.25 1.25 1.25 1.25 1.25 1.25 1.25 15,000 15,000 15,000 5,000 15,000 10,000 7,000 A$ A$ A$ A$ 19.74 58.53 16.95 14.86 102.19 213.68 92.90 78.97 19.31 57.25 16.58 14.54 99.96 209.00 90.87 77.24 Freehold Freehold Freehold Freehold 0.6 0.6 0.6 0.6 40,000 30,000 40,000 30,000 Rp Rp 111,544.15 71,364.65 246,192.42 184,381.33 11.97 7.66 26.42 19.78 30 30 2.4 2.4 15,000 70,000 HK$ HK$ HK$ 1,896.80 2,364.96 3,370.66 243.45 303.53 432.61 N.A N.A N.A N.A N.A N.A N.A N.A N.A CNY 56.18 258.70 8.84 40.71 50 1.5 150,000 JPY JPY JPY JPY JPY 3,710.00 2,331.00 1,751.00 9,893.00 3,952.00 10,498.00 9,197.00 8,547.00 16,722.00 10,777.00 48.60 30.54 22.94 129.60 51.77 137.52 120.48 111.97 219.06 141.18 Freehold Freehold Freehold Freehold Freehold 2.0 2.0 2.0 2.0 2.0 215,278 32,292 32,292 16,146 107,634 CNY CNY 310.58 55.17 711.52 421.88 48.87 8.68 111.96 66.39 50 50 1.1 1.3 39,000 42,000

1. Values and rents may not be quoted in $ psf in local market practice 2. Land values are expressed as per sq ft per plot ratio 3. Capital values refer to the values of both land and building 4. Values provided are for multi-user factory buildings

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D E F I N I T I O N A N D T E R M I N O LO GY
1. MULTI-NATIONAL CORPORATION (MNCs) A multinational corporation is defined as a large company that has operations in multiple nations and that requires industrial space. 6. MONTHLY GROSS RENT FOR HIGH-SPECS SPACE This is the monthly rent payable to a landlord less all tenant inducements, e.g. rent-free periods. It includes the amount of interest income foregone for the security deposit, maintenance fees (i.e. fees for maintaining common areas, e.g. security, building insurance and normal water and energy consumption) and statutory real estate charges (e.g. property tax). Data is expressed as per sq ft of net floor area, which includes common areas such as toilets, corridors, stairways, lift lobbies, etc. A three-year lease term is common in most countries in the Asia Pacific region.

2. FACTORY Unless otherwise stated, this refers to single-user industrial space catering to MNCs for production/ manufacturing purposes.

3. WAREHOUSE Unless otherwise stated, this refers to single-user industrial space catering to MNCs with warehousing requirements as well as their business as third-party logistics, distribution and warehousing.

7. MONTHLY GROSS RENT FOR SINGLE-USER INDUSTRIAL SPACE This is the monthly rental payable to a landlord for a whole industrial premises by a single tenant. Data is expressed as per sq ft of gross floor area. A three-year lease term is common in most countries in the Asia Pacific region.

4. HIGH-SPECIFICATIONS (HIGH-SPECS) INDUSTRIAL SPACE This refers to multi-user industrial premises catering to MNCs with floor areas of about 10,000 sq ft, fitted with higher than normal specifications and offering hybrid office-industrial characteristics. This type of space is suitable for high value-added, technology-based manufacturing, information technology, product development, and research and development.

5. LAND Land refers to vacant prepared land with roads, drainage, electricity supply, water supply, telephone service and sewerage. The land is typically located within industrial estates that are frequently inquired by MNCs and located between 10 and 100 km of the metropolitan area. In addition, the land is also a single-user, single-development site, as opposed to one that is intended for parcellation for multiple users.

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