8/8/2019 Bangalore - 1Q 2010

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2002 2003 2004 2005 2006 2007 2008 1Q2010

 2009

Source: Central Statistical Organization, Consensus Economics

ECONOMIC INDICATORS

Latest Release AverageFY 2008 FY 2009

Real GDP Growth Oct - Dec 09 6.0% 9.0% 6.7%

Industrial Production Jan-10 16.7% 8.3% 2.4%

Prices (CPI) Feb-10 14.9% 6.2% 9.1%

Prime Lending Rate Apr-10 11.0%-12.0% 12.5% 11.5%-12.5%

Surging Absorption

Vacancy Rates

Stabilised Rentals

Outlook

Total projected supply for the year is 12.42 million sq.ft; more than thedouble of the supply delivered in 2009 and the first quarter of 2010accounted for approximately 1.23 million sq.ft. of it. Outer Ring Road(Sarjapur – Hebbal) micro market continues to witness significantquantum of supply and has contributed for the entire supply during thequarter. Whitefield is another key micro market likely to witnessapproximately 6.3 million sq.ft supply in the coming quarters.

Demand* was recorded at approximately 2.54 million sq.ft, comprising of pre-commitments of 546,000 sq.ft during 1Q 2010. One of the

noteworthy trends in the first quarter has been high levels of freshabsorption of approximately 1.99 million sq.ft. Absorption has increasedby 11% as against the absorption in the first quarter of 2009. Theabsorption has been the highest in the peripheral micro markets of Outer Ring Road, Whitefield, Electronics city etc., accounting for nearly57% of the total absorption. Nearly 60% of the total number of transactions registered in the first quarter were in excess of 20,000 sq.ft.and the market has also witnessed a few deals above 100,000 sq.ft.

*Demand = Fresh pre commitments + Fresh absorption for the quarter 

The city's overall vacancy level continued at 15% in the first quarter of 2010. With minimal addition to supply and marginal increase in secondgeneration supply, the vacancy levels have remained constant. Increasingsupply in the last couple of years and marginal absorption has resulted inhigh vacancy of 21% in peripheral location as compared to other micromarkets. CBD/ Off CBD micro market witnessed a marginal decrease invacancy to 13% this quarter and the suburban vacancy levels haveremained constant at 5%.

There hasn't been significant change in rentals across most micromarkets in the first quarter of 2010. CBD/Off CBD micro market withmarginal decrease in vacancy, coupled with increased absorption andinflux of grade A developments has seen a minor increase in rentals.

With absorption trends likely to gain pace in the coming quarters, rentalsacross select micro markets are likely to witness an upward trend.

MARKETBEAT

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION

BANGALORE OFFICE REPORT

1Q 2010

This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it isaccurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty orrepresentation, express or implied, is made to the accuracy or completeness of the information contained herein, and same issubmitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any speciallisting conditions imposed by our principals.

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GRADE A RENTS AS OF 1Q 2010

Location Average Achievable Rent* % Change from 6 mthNet on GFA) (Local Currency) Outlook

INR €  US$ 3 1/sq.ft. /sq.m /sq.ft. mth yr  /mth /yr /yr ago ago

( 

CBD/Off CBD 73 155 19 3%

Suburban 48 102 13 2% è

Peripheral - ITPL 48 102 13 0% 0% è

Peripheral - 1 25 53 7 0% è

Peripheral - 2 42 89 11 0% è

-12%

-17%

-11%

-7%

è

Legend

Market RisingìMarket StableèMarket Fallingî

Suburban: CV Raman Nagar, Koramangala, Indiranagar etcPeripheral – 1: Whitefield and Electronics CityPeripheral – 2: Outer Ring Road (Sarjapur-Hebbal)* Warm Shell includes core facility, high side air conditioning and 100% power back up

SIGNIFICANT NEW LEASE TRANSACTIONS

Building Tenant Sq. Ft. Location

Pritech Park Cap Gemini 150,000 Outer Ring Road

Prestige Dynasty Citrix 120,000 Ulsoor

ITPB Societe General 100,000 Whitefield

SVR Fortuna Flextronics 90,000 Electronics City

SIGNIFICANT PROJECTS UNDER CONSTRUCTION

Building Location Office GFA Completion(Sq. Ft.) Date

Prestige Shanthineketan Whitefield 3,100,000 2Q 10

Vrindavan Tech Village ORR 900,000 2Q 10(Sarjapur-Hebbal)

Bearys Global Whitefield-Hoskote 600,000 3Q 10Research Triangle Road

SUPPLY, ABSORPTION AND RENT TRENDS

Million sq.ft. INR/sq.ft/month

Supply Absorption CBD Rents