Asia Industry Market Overview

8/3/2019 Asia Industry Market Overview

1/40

Asia Pacic

Industrial Market OverviewR E G I O N A L R E S E A R C H

OurKnowledge is your Property

B I -ANN UAL UPDATE | MAY | 2009


2/40COLLIERS INTERNATIONAL | REGIONAL RESEARCH2

ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY | 2009

Reional Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

International Comparison. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-11

Single-user Warehouse Land Values, Capital Values and Monthly

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Single-user Factory Land Values, Capital Values and Monthly

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Multi-user High-Specs Average Monthly Gross Rents . . . . . . . . . . . . . . . . .11

Local Market Norm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-15

Single-user Warehouse Land Values, Capital Values and Monthly

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Single-user Factory Land Values, Capital Values and Monthly

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-19

Melbourne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Sydney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-25

Beijing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Guangzhou . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Shanghai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Hon Kon SAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-27

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-29

New Delhi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-31

Jakarta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Greater Tokyo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-35

Auckland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Wellington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

Sinapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36-37

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Taipei . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Defnitions & Terminoloy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

This is the eighth issue o the Asia

Pacic Industrial Market Overview,

which covers 13 cities in 9 countries,

or the review period o October

2008 to March 2009. With this bi-

annual update, we hope to provide

an overview o industrial markets

catering to multi-national corporations

and a comparison o industrial real

estate costs across the key cities o the

Asia Pacic. Three types o industrial

properties are tracked in this report,

namely single-user actory premises,

single-user warehouse premises

and multi-user high-specications

industrial premises, as these are the

preerred choices o multi-national

corporations. This publication eatures

land and capital values, as well as rents

o single-user industrial premises; and

rents o multi-user high-specication

actories.

Contents


3/40COLLIERS INTERNATIONAL | REGIONAL RESEARCH 3


EXECUTIVE SUMMARY

Regional Overview

This May issue o the Asia Pacic Industrial Market Overview is enhancedby the addition o Taiwan, bringing the total number o countries and citiessurveyed to nine and 13, respectively.

The industrial property markets o the Asia Pacic region deteriorated in theperiod o review between October 2008 and March 2009 as a result o thelingering global nancial crisis.

Led by a slump in demand or exports, many export-oriented Asia Paciccities slipped into recession in the last quarter o 2008. To arrest the slide ineconomic growth and to boost domestic demand, cities in the region have cuttheir interest rates and/or approved a large stimulus budget or 2009.

With manuacturing plants operating at excess capacity due to the slump indemand, an increasing number o manuacturers across the Asia Pacic regionare adopting cost cutting measures such as reducing their workorce and realestate requirements or holding back their expansion plans. As a result, demandor industrial space cooled considerably in the six months under review.

Investors continued to remain cautious in the ace o uncertain economicconditions and declining rents. Stricter requirements by banks resultinggenerally in a lower loan-to-value ratio and/or higher borrowing rates, havealso constrained sales.

Against such a backdrop, industrial rents, land and capital values which largelycontinued to hold rm in the last review period amidst the global downturnnally buckled and contracted during the period between October 2008 and

March 2009 or all cities surveyed except or Jakarta.

The extent o declines in rents, land and capital values was more severewhen measured in US Dollars or Sydney, Melbourne, Jakarta, Auckland andWellington as their local currencies had depreciated signicantly against theUS dollar during the review period. On the contrary, industrial rents, landand capital values or Tokyo recorded a rise when measured in US Dollar as itslocal currency had strengthened against the US Dollar between October 2008and March 2009.

The economies o most cities in the Asia-Pacic region are likely to be inrecession in the next 12 months notwithstanding the interest rates cuts andlarge stimulus budget. As such, demand or industrial properties is likely tostay weak. With the exception o Jakarta and Shanghai where rents, land andcapital values are expected to hold rm, those in the remaining cities surveyedare orecast to see declines o up to 30% over the next 12 months.




The purpose o the International Comparison tables is only to acilitate easy and equal comparison o single-user industrial costs. However,

payment schemes vary with each country. Some countries may have the practice o paying annual land rent, whilst others pay lump sumland premium or through other modes. Colliers International does not iner that industrial land and buildings in these cities may be acquiredthrough the same schemes or on the basis stated in the table.

International Comparison

1. Land values are expressed in US$ per sq ft per plot ratio

2. Capital values refer to the values of both land and building3. Values provided are for multi-user warehouse buildings

continued on page 5

SINgLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS

CITY

VALUE AS OF MARCH 2009(US$)

12-MONTH FORECAST (US$) bASIS OF LAND AND CAPITAL VALUES

LAND

VALUE1

(PSF)

CAPITAL

VALUE2

(PSF)

MONTHLY

gROSSRENT(PSF)

LAND

VALUE1

(PSF)

CAPITAL

VALUE2

(PSF)

MONTHLY

gROSSRENT(PSF)

LAND

TENURE(YEARS)

PLOT

RATIO

LAND

AREA(Sq FT)

gROSS

FLOORAREA(Sq FT)

Auckland

Auckland 13.27 49.82 0.46 9.95 40.90 0.40 60 1.0 100,000 100,000

Manukau 14.15 43.90 0.43 10.61 36.36 0.39 60 1.0 100,000 100,000

North Shore 16.60 61.30 0.55 12.45 50.86 0.49 60 1.0 100,000 100,000

Beijing

Tianzhu 19.21 75.84 0.41 19.44 74.38 0.41 60 1.0 100,000 100,000

Tongzhou 9.49 58.19 0.37 9.49 57.46 0.35 60 1.0 100,000 100,000

Greater Tokyo

Yokohama - Daikokuuto 14.97 156.21 1.72 14.22 148.40 1.61 60 1.0 100,000 100,000

Kawasaki - Higashi Ogishima 33.47 181.23 1.79 31.80 172.17 1.66 60 1.0 100,000 100,000

Tokyo - Heiwajima 120.43 294.42 2.79 114.41 279.70 2.58 60 1.0 100,000 100,000

Tokyo - Ariake 116.18 220.88 1.99 110.37 209.84 1.99 60 1.0 100,000 100,000

Tokyo - Shinsuna 148.13 269.64 2.26 140.72 256.16 2.26 60 1.0 100,000 100,000

Chiba - Urayasu 44.60 128.87 1.23 42.37 122.43 1.23 60 1.0 100,000 100,000

Chiba - Shibayama 3.58 96.51 1.15 3.40 91.69 1.07 60 1.0 100,000 100,000

Guangzhou

GETDD 8.73 52.29 0.41 8.72 52.26 0.41 60 1.0 100,000 100,000

Hong Kong3

Ramp Access - 187.02 0.97 - 158.97 0.83 60 1.0 100,000 100,000

Cargo Lit Access - 172.51 0.69 - 129.38 0.56 60 1.0 100,000 100,000

Jakarta

Bekasi 6.29 15.63 - 6.29 15.63 - 60 1.0 100,000 100,000

Melbourne

East & South East 9.79 43.30 0.38 9.53 42.34 0.38 60 1.0 100,000 100,000

Fringe 29.79 95.16 0.71 29.10 94.26 0.69 60 1.0 100,000 100,000

North 8.65 42.46 0.47 8.53 41.86 0.47 60 1.0 100,000 100,000

West 7.40 38.87 0.32 7.28 38.20 0.32 60 1.0 100,000 100,000

SINGLE-USER WAREHOUSE




EXECUTIVE SUMMARY


SINgLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS (CONTD)

CITY

VALUE AS OF MARCH 2009 (US$) 12-MONTH FORECAST (US$) bASIS OF LAND AND CAPITAL VALUES

LANDVALUE1

(PSF)

CAPITALVALUE2

(PSF)

MONTHLYgROSSRENT(PSF)

LANDVALUE1

(PSF)

CAPITALVALUE2

(PSF)


LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

New Delhi

Delhi - East 87.67 57.52 0.58 82.06 52.10 0.53 60 1.0 100,000 100,000

Delhi - West 166.00 52.53 0.65 157.82 49.50 0.61 60 1.0 100,000 100,000

Delhi - South 156.06 71.64 0.81 148.98 65.13 0.73 60 1.0 100,000 100,000

Delhi - North 124.91 71.64 0.30 115.83 65.13 0.26 60 1.0 100,000 100,000

Delhi - NH24 30.72 34.91 0.39 27.03 31.34 0.34 60 1.0 100,000 100,000

Delhi - NH1 15.41 - 0.19 14.23 - 0.17 60 1.0 100,000 100,000

Delhi - NH8 - 16.35 0.24 - 14.99 0.20 60 1.0 100,000 100,000

Shanghai

Pudong New Area 38.01 51.75 0.48 38.01 51.75 0.48 60 1.0 100,000 100,000

Singapore

East 36.12 98.40 0.91 30.71 83.26 0.84 60 1.0 100,000 100,000

Sydney

South 54.16 146.26 0.98 47.84 130.59 0.98 60 1.0 100,000 100,000

Southwest 14.75 72.17 0.59 12.69 64.43 0.59 60 1.0 100,000 100,000

West 24.03 126.26 0.84 20.67 113.40 0.84 60 1.0 100,000 100,000

Wellington

Ngauranga 9.04 44.86 0.42 8.14 41.44 0.40 60 1.0 100,000 100,000

Petone 9.17 41.90 0.42 8.25 38.98 0.39 60 1.0 100,000 100,000

Seaview 9.17 41.90 0.42 8.25 38.86 0.40 60 1.0 100,000 100,000


1. Land values are expressed in US$ per sq ft per plot ratio2. Capital values refer to the values of both land and building




0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00

Jakarta - Bekasi

Delhi - NH8

Delhi - NH24

Melbourne - West

Wellington - Petone

Wellington - Seaview

Melbourne - North

Melbourne - East & South East

Auckland - Manukau

Wellington - Ngauranga

Auckland - Auckland

Shanghai - Pudong New Area

Guangzhou - GETDD

Delhi - West

Delhi - East

Beijing - Tongzhou

Auckland - North Shore

Delhi - South

Delhi - North

Sydney - SouthwestBeijing - Tianzhu

Melbourne - Fringe

Greater Tokyo - Chiba - Shibayama

Singapore - East

Sydney - West

Greater Tokyo - Chiba - Urayasu

Sydney - South

Greater Tokyo - Yokohama - Daikokufuto

*Hong Kong - Cargo Lift Access

Greater Tokyo - Kawasaki - Higashi Ogishima

*Hong Kong - Ramp Access

Greater Tokyo - Tokyo - Ariake

Greater Tokyo - Tokyo - Shinsuna

Greater Tokyo - Tokyo - Heiwajima

Warehouse Capital Values (US$ psf)


INTERNATIONAL COMPARISON OF WAREHOUSE CAPITAL VALUES

* Values provided are for multi-user warehouse buildings

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00


Jakarta - Bekasi

Guangzhou - GETDD

Melbourne - West

Melbourne - North


Beijing - Tongzhou

Greater Tokyo - Yokohama -

New Delhi - Greater Noida


Wellington - Petone

Wellington - SeaviewBeijing - Tianzhu

Auckland - Auckland

Auckland - Manukau

Sydney - Southwest


New Delhi - IMT Manesar

Sydney - West

Greater Tokyo - Kawasaki - Higashi

Melbourne - Fringe

Singapore - East



New Delhi - Noida

Sydney - South




0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00


Jakarta - Bekasi

Guangzhou - GETDD

Melbourne - West

Melbourne - North


Beijing - Tongzhou

Greater Tokyo - Yokohama - Daikokufuto

New Delhi - Greater Noida


Wellington - Petone

Wellington - Seaview

Beijing - Tianzhu

Auckland - Auckland

Auckland - Manukau

Sydney - Southwest


New Delhi - IMT Manesar

Sydney - West

Greater Tokyo - Kawasaki - Higashi Ogishima

Melbourne - Fringe

Singapore - East



New Delhi - Noida

Sydney - South




INTERNATIONAL COMPARISON OF WAREHOUSE LAND VALUES

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00

Greater Tokyo - Chiba - ShibayamaJakarta - Bekasi

Melbourne - WestMelbourne - North

Guangzhou - GETDDWellington - Ngauranga

Wellington - PetoneWellington - Seaview

Beijing - TongzhouMelbourne - East & South East

Auckland - AucklandAuckland - ManukauSydney - Southwest

Greater Tokyo - Yokohama - DaikokufutoDelhi - NH1

Auckland - North ShoreBeijing - Tianzhu

Sydney - WestMelbourne - Fringe

Delhi - NH24Greater Tokyo - Kawasaki - Higashi Ogishima

Singapore - EastShanghai - Pudong New Area

Greater Tokyo - Chiba - UrayasuSydney - South

Delhi - EastGreater Tokyo - Tokyo - Ariake

Greater Tokyo - Tokyo - HeiwajimaDelhi - North

Greater Tokyo - Tokyo - ShinsunaDelhi - SouthDelhi - West

Warehouse Land Values (US$ psf per plot ratio)Warehouse Land Values (US$ ps per plot ratio)

Warehouse Capital Values (US$ ps)




EXECUTIVE SUMMARY


INTERNATIONAL COMPARISON OF WAREHOUSE MONTHLY GROSS RENTS

* Values provided are for multi-user warehouse buildings

0.00 0.50 1.00 1.50 2.00 2.50 3.00

Delhi - NH1Delhi - NH8

Delhi - NorthMelbourne - WestBeijing - Tongzhou

Melbourne - East & South EastDelhi - NH24

Beijing - TianzhuGuangzhou - GETDDWellington - Petone

Wellington - NgaurangaWellington - SeaviewAuckland - ManukauAuckland - AucklandMelbourne - North

Shanghai - Pudong New AreaAuckland - North Shore

Delhi - EastSydney - Southwest

Delhi - West*Hong Kong - Cargo Lift Access

Melbourne - FringeDelhi - South

Sydney - WestSingapore - East

*Hong Kong - Ramp AccessSydney - South

Greater Tokyo - Chiba - ShibayamaGreater Tokyo - Chiba - Urayasu

Greater Tokyo - Yokohama - DaikokufutoGreater Tokyo - Kawasaki - Higashi Ogishima

Greater Tokyo - Tokyo - AriakeGreater Tokyo - Tokyo - Shinsuna


Warehouse Monthly Gross Rents (US$ psf)Warehouse Monthly Gross Rents (US$ ps)





SINgLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS

CITY

VALUE AS OF MARCH 2009 (US$) 12-MONTH FORECAST (US$) bASIS OF LAND AND CAPITAL VALUES

LANDVALUE1

(PSF)

CAPITALVALUE2

(PSF)


LANDVALUE1

(PSF)

CAPITALVALUE2

(PSF)


LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

Beijing

Shang Di 41.71 126.95 1.14 41.71 126.95 1.14 60 1.0 100,000 100,000

Yi Zhuang 3.90 58.24 0.63 3.80 57.55 0.59 60 1.0 100,000 100,000

Greater Tokyo

Tokyo - Ota 63.36 126.03 - 61.46 122.25 - 60 1.0 100,000 100,000

Yokohama - Naka 33.01 107.46 - 32.02 104.23 - 60 1.0 100,000 100,000

Chiba - Ichikawa 34.64 123.38 - 33.60 119.68 - 60 1.0 100,000 100,000

Chiba - Mihama 16.24 75.33 - 15.75 73.07 - 60 1.0 100,000 100,000

Saitama - Ageo 12.81 71.78 - 12.43 69.63 - 60 1.0 100,000 100,000

Guangzhou

GETDD 8.73 54.24 0.51 8.72 54.00 0.50 60 1.0 100,000 100,000

Hong Kong3

Low Quality - 110.92 0.70 - 77.64 0.53 60 1.0 100,000 100,000

Mid Quality - 145.99 0.86 - 102.19 0.64 60 1.0 100,000 100,000

Prime Quality - 221.80 1.03 - 155.26 0.77 60 1.0 100,000 100,000

Jakarta

Bekasi 6.35 19.43 - 6.35 19.43 - 60 1.0 100,000 100,000

Karawang 4.41 17.54 0.29 4.41 17.54 0.29 60 1.0 100,000 100,000

Melbourne

East & South East 9.79 43.30 0.38 9.53 42.34 0.38 60 1.0 100,000 100,000

Fringe 29.79 95.16 0.71 29.10 94.26 0.69 60 1.0 100,000 100,000

North 8.65 42.46 0.47 8.53 41.86 0.47 60 1.0 100,000 100,000

West 7.40 38.87 0.32 7.28 38.20 0.32 60 1.0 100,000 100,000

New DelhiDelhi - East 82.10 60.78 0.66 76.85 56.01 0.61 60 1.0 100,000 100,000

Delhi - West 155.46 64.04 0.70 147.80 58.62 0.65 60 1.0 100,000 100,000

Delhi - South 146.15 78.16 0.90 139.52 71.64 0.83 60 1.0 100,000 100,000

Delhi - North 124.69 71.64 0.29 115.43 65.13 0.26 60 1.0 100,000 100,000

Delhi - NH24 28.99 34.91 0.37 25.51 31.34 0.34 60 1.0 100,000 100,000

Delhi - NH1 14.54 - 0.19 13.43 - 0.17 60 1.0 100,000 100,000

Delhi - NH8 - 16.35 0.24 - 14.99 0.20 60 1.0 100,000 100,000

Shanghai

Minhang District 15.15 46.96 0.31 15.15 46.96 0.31 60 1.0 100,000 100,000

Pudong New Area 16.74 43.07 0.31 16.74 43.07 0.31 60 1.0 100,000 100,000Singapore

Central 51.00 101.36 0.94 43.35 86.16 0.87 60 1.0 100,000 100,000

SINGLE-USER FACTORY

1. Land values are expressed in US$ per sq ft per plot ratio2. Capital values refer to the values of both land and building3. Values provided are for multi-user factory buildings




EXECUTIVE SUMMARY


0.00 50.00 100.00 150.00 200.00 250.00

Delhi - NH8

Jakarta - Karawang

Jakarta - Bekasi

Delhi - NH24

Melbourne - West

Melbourne - North



Shanghai - Minhang District

Guangzhou - GETDD

Beijing - Yi Zhuang

Delhi - East

Delhi - West

Delhi - North

Greater Tokyo - Saitama - Ageo

Greater Tokyo - Chiba - Mihama

Delhi - South

Melbourne - Fringe

Singapore - Central

Greater Tokyo - Yokohama - Naka

*Hong Kong - Low Quality

Greater Tokyo - Chiba - Ichikawa

Greater Tokyo - Tokyo - Ota

Beijing - Shang Di

*Hong Kong - Mid Quality

*Hong Kong - Prime Quality

Factory Capital Values (US$ psf)

INTERNATIONAL COMPARISON OF FACTORY LAND VALUES

INTERNATIONAL COMPARISON OF FACTORY CAPITAL VALUES

* Values provided are for multi-user factory buildings

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00

Beijing - Yi Zhuang

Jakarta - Karawang

Jakarta - Bekasi

Melbourne - West

Melbourne - North

Guangzhou - GETDD


Greater Tokyo - Saitama - Ageo

Delhi - NH1


Greater Tokyo - Chiba - Mihama


Delhi - NH24

Melbourne - Fringe

Greater Tokyo - Yokohama - Naka

Greater Tokyo - Chiba - Ichikawa

Beijing - Shang Di

Singapore - Central

Greater Tokyo - Tokyo - Ota

Delhi - East

Delhi - North

Delhi - South

Delhi - West

Factory Land Values (US$ psf per plot ratio)





* Values provided are for multi-user factory buildings

INTERNATIONAL COMPARISON OF FACTORY MONTHLY GROSS RENTS

0.00 0.20 0.40 0.60 0.80 1.00 1.20

Delhi - NH1

Delhi - NH8

Delhi - North

Jakarta - Karawang



Melbourne - West

Delhi - NH24

Melbourne - East & South EastMelbourne - North

Guangzhou - GETDD

Beijing - Yi Zhuang

Delhi - East

Delhi - West

*Hong Kong - Low Quality

Melbourne - Fringe

*Hong Kong - Mid Quality

Delhi - South

Singapore - Central

*Hong Kong - Prime Quality

Beijing - Shang Di

Factory Monthly Gross Rents (US$ psf)




EXECUTIVE SUMMARY


MULTI-USER HIgH-SPECS AVERAgE MONTHLY gROSS RENTS

CITY

AS OF MARCH 2009 12-MONTH FORECAST bASIS OF RENTAL RATES

AVERAgE MONTHLYgROSS RENT

(US$ PSF)

AVERAgE MONTHLYgROSS RENT

(US$ PSF)

LEASETERM

(YEARS)

LOCATION NET FLOORAREA

(Sq FT)

RENT FREEPERIOD

(MONTH)

Auckland 0.62 0.56 3 Suburban 10,000 1

Beijing 1.17 1.17 3 Suburban 10,000 1

Hong Kong 1.79 1.26 3 Suburban 10,000 1

Melbourne 1.11 1.11 3 Suburban 10,000 1

New Delhi - East 0.76 0.68 3 to 9 Suburban 10,000 Negotiable

New Delhi - West 0.76 0.72 3 to 9 Suburban 10,000 Negotiable

New Delhi - South 0.90 0.82 3 to 9 Suburban 10,000 Negotiable

New Delhi - North 0.44 0.40 3 to 9 Suburban 10,000 Negotiable

New Delhi - NH24 0.46 0.42 3 to 9 Suburban 10,000 Negotiable



Shanghai 1.10 1.10 3 Suburban 10,000 1

Singapore 2.24 1.57 3 Suburban 10,000 1

Sydney 0.78 0.78 3 Suburban 10,000 1Taipei - Neihu Technology Park 0.92 0.84 3 to 5 Suburban 10,000 1 to 2

Greater Tokyo - Kanagawa Science Park 5.16 4.87 3 Suburban 10,000 1

Greater Tokyo - Yokohama Business Park 3.44 3.44 3 Suburban 10,000 1

Greater Tokyo - Hakusan Hi-Tech Park 3.73 3.44 3 Suburban 10,000 1

Wellington 0.47 0.45 3 Suburban 10,000 1

MULTI-USER HIGH-SPECS

INTERNATIONAL COMPARISON OF HIGH-SPECS MONTHLY GROSS RENTS

0.00 1.00 2.00 3.00 4.00 5.00 6.00

New Delhi - NH1New Delhi - NH8

New Delhi - North

New Delhi - NH24

Wellington

Auckland

New Delhi - East

New Delhi - West

Sydney

New Delhi - South

Taipei - Neihu Technology Park

Shanghai

Melbourne

Beijing

Hong Kong

Singapore

Greater Tokyo - Yokohama Business ParkGreater Tokyo - Hakusan Hi-Tech Park

Greater Tokyo - Kanagawa Science Park

High-Specs Average Monthly Gross Rents (US$ psf)




Local Market Norm

The purpose o the Local Market Norm tables is only to provide an understanding o single-user industrial costs in the context o the various

submarkets. The land tenure, plot ratio, land and building size quoted are based on recent oerings and transactions in each local market.However, payment schemes vary with each country. Some countries may have the practice o paying annual land rent, whilst others paylump sum land premium or through other modes. Colliers International does not iner that industrial land and buildings in these cities maybe acquired through the same schemes.

SINgLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS1

CITY LOCALCURRENCY

IN LOCAL CURRENCY AS OFMARCH 2009

IN US$ AS OF MARCH 2009bASIS OF LAND, CAPITAL VALUES

AND MONTHLY gROSS RENTS(LOCAL MARKET NORM)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

Auckland

Auckland NZ$ 32.34 136.36 0.95 18.18 76.65 0.53 Freehold 0.5 30,000 15,000

Manukau NZ$ 30.32 111.57 0.86 17.04 62.71 0.48 Freehold 0.5 100,000 50,000

North Shore NZ$ 35.58 145.41 1.03 20.00 81.73 0.58 Freehold 0.5 105,000 52,500

Beijing

Tianzhu CNY 118.31 484.50 2.83 17.31 70.88 0.41 50 0.7 150,000 105,000

Tongzhou CNY 60.04 371.74 2.54 8.78 54.38 0.37 50 0.9 120,000 108,000

Greater Tokyo

Yokohama -Daikokuuto

JPY 2,039 14,586 135 20.79 148.77 1.38 Freehold 4.0 107,639 430,556

Kawasaki - HigashiOgishima

JPY 3,155 14,214 121 32.18 144.98 1.23 Freehold 3.0 1,076,390 3,229,170

Tokyo - Heiwajima JPY 10,357 22,203 183 105.64 226.48 1.86 Freehold 3.0 1,614,585 4,843,755

Tokyo - Ariake JPY 14,987 24,061 177 152.87 245.43 1.81 Freehold 2.0 107,639 215,278

Tokyo - Shinsuna JPY 17,288 25,176 177 176.34 256.80 1.81 Freehold 2.0 215,278 430,556

Chiba - Urayasu JPY 6,431 15,793 121 65.59 161.09 1.23 Freehold 2.0 53,820 107,640

Chiba - Shibayama JPY 418 9,011 90 4.26 91.92 0.92 Freehold 2.0 215,278 430,556

Guangzhou

GETDD CNY 56.31 305.50 2.56 8.24 44.69 0.37 50 1.5 150,000 225,000

Hong Kong4

Ramp Access HK$ - 1,450.00 7.55 - 187.02 0.97 N.A. N.A. N.A. N.A.

Cargo Lit Access HK$ - 1,337.50 5.38 - 172.51 0.69 N.A. N.A. N.A. N.A.

Jakarta

Bekasi Rp 61,608 140,749 - 5.56 12.71 - 30 2.4 10,000 24,000


1. Values and rents may not be quoted in $ psf in local market practice2. Land values are expressed as per sq ft per plot ratio3. Capital values refer to the values of both land and building4. Values provided are for multi-user warehouse buildings

continued on page 13




EXECUTIVE SUMMARY

Local Market Norm

SINgLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS1 (CONTD)

CITY LOCALCURRENCY

IN LOCAL CURRENCY AS OFMARCH 2009 IN US$ AS OF MARCH 2009

bASIS OF LAND, CAPITAL VALUESAND MONTHLY gROSS RENTS

(LOCAL MARKET NORM)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

Melbourne

East & South East A$ 19.50 90.00 0.62 13.40 61.86 0.43 Freehold 0.6 40,000 24,000

Fringe A$ 59.39 213.00 1.21 40.82 146.39 0.83 Freehold 0.6 30,000 18,000

North A$ 17.25 88.26 0.77 11.86 60.66 0.53 Freehold 0.6 40,000 24,000

West A$ 14.75 87.00 0.55 10.14 59.80 0.38 Freehold 0.6 30,000 18,000

New Delhi

East Rs 6,944 4,416 34 139.16 88.50 0.68 Freehold 0.6 5,000 3,000

West Rs 13,148 4,033 38 263.49 80.82 0.76 Freehold 0.6 7,000 4,200

South Rs 12,361 5,500 48 247.71 110.22 0.95 Freehold 0.6 10,000 6,000

North Rs 9,166 5,500 18 183.69 110.22 0.35 Freehold 0.6 15,000 9,000

NH24 Rs 2,159 2,562 23 43.27 51.34 0.46 99 0.6 15,000 9,000

NH1 Rs 1,083 - 11 21.70 - 0.22 99 0.6 15,000 9,000

NH8 Rs - 1,200 14 - 24.05 0.28 99 0.6 15,000 9,000

Shanghai

Pudong New Area CNY 232.00 330.62 3.26 33.94 48.37 0.48 50 0.6 150,000 90,000

Singapore

East S$ 56.00 130.00 1.20 36.86 85.57 0.79 30+30 2.0 150,000 300,000

Sydney

South A$ 90.58 224.00 1.24 62.26 153.96 0.85 Freehold 1.2 220,000 264,000

Southwest A$ 30.22 140.00 0.91 20.77 96.22 0.63 Freehold 1.2 60,000 72,000

West A$ 37.20 167.00 0.94 25.57 114.78 0.65 Freehold 1.2 430,000 516,000

Wellington

Ngauranga NZ$ 21.44 114.02 0.83 12.05 64.09 0.47 Freehold 0.5 70,000 35,000

Petone NZ$ 19.65 106.49 0.82 11.05 59.86 0.46 Freehold 0.5 100,000 50,000

Seaview NZ$ 19.65 106.49 0.83 11.05 59.86 0.47 Freehold 0.5 100,000 50,000


1. Values and rents may not be quoted in $ psf in local market practice2. Land values are expressed as per sq ft per plot ratio3. Capital values refer to the values of both land and building




Local Market Norm

SINgLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS1

CITY LOCALCURRENCY



(LOCAL MARKET NORM)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

Beijing

Shang Di CNY 240.58 657.43 6.22 35.19 96.18 0.91 50 1.1 390,000 429,000

Yi Zhuang CNY 27.88 390.33 4.52 4.08 57.10 0.66 50 1.3 42,000 54,600

Greater Tokyo

Tokyo - Ota JPY 10,183 17,651 - 103.87 180.04 - Freehold 2.0 16,146 32,292

Yokohama - Naka JPY 4,258 11,706 - 43.43 119.40 - Freehold 2.0 107,634 215,268

Chiba - Ichikawa JPY 4,043 11,520 - 41.24 117.50 - Freehold 2.0 215,278 430,556

Chiba - Mihama JPY 2,412 9,848 - 24.61 100.44 - Freehold 2.0 32,292 64,584

Saitama - Ageo JPY 1,903 9,383 - 19.41 95.71 - Freehold 2.0 32,292 64,584

Guangzhou

GETDD CNY 56.31 316.90 3.15 8.24 46.36 0.46 50 1.5 150,000 225,000

Hong Kong4

Low Quality HK$ - 859.96 5.46 - 110.92 0.70 N.A. N.A. N.A. N.A.

Mid Range HK$ - 1,131.88 6.66 - 145.99 0.86 N.A. N.A. N.A. N.A.

Prime Quality HK$ - 1,719.63 7.97 - 221.80 1.03 N.A. N.A. N.A. N.A.

Jakarta

Bekasi Rp 62,212 174,950 - 5.62 15.80 - 30 2.4 15,000 36,000

Karawang Rp 40,653 140,749 3,100 3.67 12.71 0.28 30 2.4 70,000 168,000

Melbourne

East & South East A$ 19.50 90.00 0.62 13.40 61.86 0.43 Freehold 0.6 40,000 24,000

Fringe A$ 59.39 213.00 1.21 40.82 146.39 0.83 Freehold 0.6 30,000 18,000

North A$ 17.25 88.26 0.77 11.86 60.66 0.53 Freehold 0.6 40,000 24,000

West A$ 14.75 87.00 0.55 10.14 59.80 0.38 Freehold 0.6 30,000 18,000

New Delhi

East Rs 6,944 4,666 39 139.16 93.51 0.78 Freehold 1.25 5,000 6,250

West Rs 13,148 4,916 41 263.49 98.52 0.82 Freehold 1.25 7,000 8,750

South Rs 12,361 6,000 53 247.71 120.24 1.06 Freehold 1.25 10,000 12,500

North Rs 9,722 5,500 17 194.83 110.22 0.34 Freehold 1.25 15,000 18,750

NH24 Rs 2,159 2,562 22 43.27 51.34 0.44 99 1.25 15,000 18,750

NH1 Rs 1,083 - 11 21.70 - 0.22 99 1.25 15,000 18,750

NH8 Rs - 1,200 14 - 24.05 0.28 99 1.25 15,000 18,750

SINGLE-USER FACTORY

1. Values and rents may not be quoted in $ psf in local market practice2. Land values are expressed as per sq ft per plot ratio3. Capital values refer to the values of both land and building4. Values provided are for multi-user factory buildings

continued on page 15




EXECUTIVE SUMMARY

Local Market Norm

SINgLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY gROSS RENTS1 (CONTD)

CITYLOCAL

CURRENCY



(LOCAL MARKET NORM)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDVALUE2

(PSF)

CAPITALVALUE3

(PSF)

MONTHLYRENT(PSF)

LANDTENURE(YEARS)

PLOTRATIO

LANDAREA

(Sq FT)

gROSSFLOORAREA

(Sq FT)

Shanghai

Minhang District CNY 95.00 300.00 2.13 13.90 43.89 0.31 50 1 150,000 150,000

Pudong New Area CNY 105.00 320.00 2.52 15.36 46.81 0.37 50 1 150,000 150,000

Singapore

Central S$ 81.57 140.00 1.30 53.69 92.15 0.86 30 + 30 2.5 100,000 250,000

SINGLE-USER FACTORY

1. Values and rents may not be quoted in $ psf in local market practice2. Land values are expressed as per sq ft per plot ratio3. Capital values refer to the values of both land and building




Australia

ECONOMIC INDICATORS

INDICATORS PERIOD DATA

Year-on-Year GDP Growth October 2008 - March 2009 -1.2%

Year-on-Year Manuacturing Output Growth Rate October 2008 - March 2009 2.6%

Total Imports October 2008 - March 2009 A$24.5 billion

Total Exports October 2008 - March 2009 A$7.3 billion

Container Throughput (TEUs) October 2008 - March 2009 n.a.

Air Cargo Throughput (Tonnes) October 2008 - March 2009 n.a.

*n.a. denotes not available

ECONOMIC INDICATORS FOR MELBOURNE

MELBOURNE

Factory and WarehouseIn response to the changing economic conditions, the Reserve`Bank o Australia cut the ocial cash rate rom 7.0% to 3.25%in the period under review, with urther cuts anticipated. Theinfation rate or Melbourne, too, decreased to 3.2% or theDecember 2008 quarter rom 4.8% in the September 2008quarter.

Investment sales activity was most active within the sub A$5`million range, with private investors taking advantage oalling interest rates and vendors being orced to meet themarket. However, tightened lending conditions resulted inthe medium to higher-end property market being locked in astalemate, thereby contributing to the absence o signicantsale transactions exceeding A$5 million during the periodunder review. As a result, land and capital values eased by anaverage o 1.8% and 1.1%, respectively.

Tenant demand declined considerably across most regions`during the latter hal o 2008, with many businesses opting to

postpone any previous relocation plans and instead, choosingto renew leases. The majority o leasing activity occurredwithin the smaller end market (building areas under 10,760 sqt) while tenant demand or medium to larger sized warehousesell signicantly, with marketing periods commonly exceedingsix months. But on the whole, Melbournes industrial net acerents remained relatively stable between October 2008 andMarch 2009, whilst incentive levels within the West and Eastregions increased on average by 5% as landlords competed tosecure tenants.

Major lease transactions in the period under review include`Breeze Logistics 53,800 sq t commitment to 1464 FerntreeGully Road, Knoxeld; and, Corus 48,420 sq t commitmentto 1/66-74 Micro Circuit, Dandenong.

Amongst the new completion o warehouse space in the period`

October 2008 to March 2009 was a 59,180-sq t warehouseor a transport and logistics provider, GKR Transport at theWyndham Industrial Estate.

With the ocial cash rate reduced by 375 basis points since`end-September 2008, to 3.25% in March 2009, and withurther reductions anticipated, private investors are expectedto continue to return to the market as buying opportunitiesresulting rom orced sales and vendors being compelled tomeet the market rise. Capital values are, thus, likely to remainunder pressure and are expected to decline by between 0.9%and 2.2% on average in the next 12 months. Average landvalues are oreseen to decline by a steeper range o between

1.4% and 2.6% during the same time period.Except or eastern and south-eastern Melbourne where rents`are orecast to ease by an average o 1.6% over the next 12months, rents or the remaining submarkets surveyed areorecast to hold rm. However, incentives oered by landlordsare likely to increase across all grades and regions over thenext 12 months amidst a climate o weakened demand andlandlords competing to secure tenants.




EXECUTIVE SUMMARY

A U S T R A L I A

TRANSACTIONS

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

107 William Angliss Drive, Laverton North Warehouse Lease Moreton Hire 44,632

1464 Ferntree Gully Road, Knoxeld Warehouse Lease Breeze Logistics 53,800

Buildings 6, 7 & 8 Aquatica Business Park, 344Lorimer Street, Port Melbourne

Warehouse Lease Staging Connections 33,679

1/66-74 Micro Circuit, Dandenong Warehouse Lease Corus 48,420

Units 5, 6 & 7 97 Lewis Road, Wantirna Warehouse Lease ANL Lighting 39,285

MAJOR TRANSACTIONS IN MELBOURNE

Australia




Australia

ECONOMIC INDICATORS


Year-on-Year GDP Growth October 2008 - March 2009 -0.02%

Year-on-Year Manuacturing Output Growth Rate October 2008 - March 2009 n.a.

Total Imports October 2008 - March 2009 A$60.2 billion

Total Exports October 2008 - March 2009 A$23.1 billion

Container Throughput (TEUs) October 2008 - March 2009 n.a.

Air Cargo Throughput (Tonnes)


October 2008 - March 2009 n.a.

ECONOMIC INDICATORS FOR SYDNEY

SYDNEY

Factory, Warehouse and High-SpecsActivity in the pre-commitment market eased in the last`quarter o 2008 due to the global nancial crisis and soteningeconomic outlook. This, coupled with rising constructioncosts, has put a halt to speculative development or the time-being.

As speculative development activity took a breather, land`values or warehouses in Sydney slid by between 4.7% and14.9% during the review period. Capital values o warehousesalso declined, by between 1.2% and 3.6% on average duringthe review period.

Despite the uncertain economic environment, the cut in`the ocial cash rate to 3.25% in March 2009 and increasing

industrial yields have persuaded some investors to enter theinvestment market. Major transactions which took place,despite the cautious investor market due to the nancialmarket meltdown, include the sale o a 63,593-sq t buildingat 70 Euston Road, Alexandria or A$10,000,000 and alarge 266,396-sq t warehouse in Erskine Park to Linox or

A$25,000,000.

Sydneys industrial market is expected to continue to soten`over the next 12 months with land values and capital valuesdecreasing by up to 15%. Investment sales activity is expectedto pick up in the second hal o 2009 as real estate investmenttrusts are orced to ofoad their assets to re-weight theirdebt.




EXECUTIVE SUMMARY

TRANSACTIONS

BUILDING / LAND PLOT PROPERTY TYPE LEASE / SALE TENANT / PURCHASERFLOOR / LAND

AREA (SQ FT)

Homebush Corporate Park Warehouse Lease Grays Online 274,813

9-15 Gundah Road, Mount Ku-ring-gai Warehouse Lease Auspods 26,770

Lidcombe Business Park Warehouse Lease Rentokil 75,595

8 Distribution Place, Seven Hills Warehouse Lease Cabac 132,600

Capicure Drive Warehouse Lease Schnelder Electric 193,750

Lockwood Road, Erskine Park Warehouse Lease Corporate Express 462,525

Beauchamp Road & Botany Road, PortBotany

Warehouse Lease PJM Logistics 80,729

6 MacDonald Road, Ingleburn Warehouse Lease Australia Post 54,896

70 Euston Road, Alexandria Warehouse Sale Undisclosed 63,593

6-8 Helles Avenue Moorebank Warehouse Sale Private Investor 21,400

Lot 5&6 Lenore Drive, Erskine Park Warehouse Sale Linox 266,396

MAJOR TRANSACTIONS IN SYDNEY

Australia




China

ECONOMIC INDICATORS


Year-on-Year GDP Growth January 2008 - December 2008 9.0%

Year-on-Year Manuacturing Output Growth Rate January 2008 - December 2008 2.2%

Total Imports October 2008 - December 2008 CNY291.3 billion

Total Exports October 2008 - December 2008 CNY98.4 billion

Container Throughput (TEUs) October 2008 - December 2008 n.a.Air Cargo Throughput (Tonnes)


October 2008 - December 2008 326,000

ECONOMIC INDICATORS FOR BEIJING

BEIJING

Factory and WarehouseBeijings economic growth slowed to 9.0% in 2008 whilst`the growth rate o manuacturing output slowed to 2.2% aso end-2008, a decrease o 6.1 percentage points rom 1H08to 2H08. To sustain economic growth, several local districtcouncils continued to promote and introduce new incentivesto incubate the industrial property market.

As a result, the land sales market remained active, led by`domestic demand or owner-occupancy. For example, BOETechnology Group and Suning Appliance acquired landlots o 188,616 sq t and 1.6 million sq t, respectively, orindustrial development in Beijing Economic TechnologicalDevelopment Area (BDA) and warehouse development inthe Beijing Tongzhou Logistics Park. This provided supportor actory land values in Shangdi to hold rm and warehouseland values in Tianzhu to nudge up by 6.7% during the periodo review. The actory land values in Tongzhou and warehouseland values in Yi Zhuang, however, plummeted by 32.7% and40.8% during the six-month period ending March 2009 asthe government marked down land prices signicantly toentice high-prole manuacturers to set up operations inthese submarkets.

The leasing demand or industrial properties, however,`slackened with limited deals concluded, mostly by domestic

enterprises. For example, Shenzhen Sundan, a local homeappliance retailer, leased 10,764 sq t in BDA DHL warehouse.On the other hand, multi-national corporations suspended orroze their expansion plans, resulting in a sharp decrease inleasing demand or industrial space. Echoing the weakeneddemand, landlords started cutting asking rentals in the last

quarter o 2008 to attract tenants. As a result, the overallrental decreased by 7.7%, 9.3%, 7.8% and 15.8% in thesubmarkets o Tianzhu, Tongzhou, Shangdi, and Yi Zhuangareas, respectively, during the review period.

Capital values o warehouses and actories decreased`moderately by up to 3.3% between October 2008 and March2009. No signicant transactions were recorded, exceptor ProLogis which, on 23 November 2008, announcedan agreement to sell its regional operations in China andproperty und interests in Japan to GIC Real Estate or a totalconsideration o USD1.3 billion.

The outlook or the industrial market should be challenging`albeit the stimulus plans announced by both the centraland local government may likely take gradual eect in thelatter hal o 2009. Rents o industrial properties are expectedto soten by up to 6.2% year-on-year (YoY) in the next 12months.




EXECUTIVE SUMMARY

TRANSACTIONS


Beijing Economic Development AreaDHL warehouse

Warehouse Lease Shenzhen Sundan 10,764

Beijing Tianzhu Airport Industrial Zone Land Sale ChinaAMC 13,207

Tongzhou Industrial and Logistics Park Land Sale SNP Leeung 93,162

Tongzhou Industrial and Logistics Park Land Sale Liando Jinqiao Real Estate 593,834

Tongzhou Industrial and Logistics Park Land Sale Suning Appliance 1,552,682

Beijing Zhongguancun Area Land Sale Beijing Institute o Aeronautical Materials 685,402

Beijing Economic Development Area Land Sale BOE Technology Group Co., Ltd 188,616

MAJOR TRANSACTIONS IN BEIJING

China




China

ECONOMIC INDICATORS


Year-on-Year GDP Growth October 2008 - December 2008 12.3%

Year-on-Year Manuacturing Output Growth Rate October 2008 - March 2009 n.a.

Total Imports October 2008 - February 2009 CNY87.9 billion

Total Exports October 2008 - February 2009 CNY102.1 billion

Container Throughput (TEUs) October 2008 - January 2009 126,580



October 2008 - January 2009 204,100

ECONOMIC INDICATORS FOR GUANGZHOU

GUANGZHOU

Factory and WarehouseGuangzhous manuacturing industry is weakening on the back`o the contraction in global demand or manuactured goodsamidst the global economic downturn. This is evidencedby the all in imports and exports rom US$3.3 billion andUS$3.8 billion, respectively, in October 2008 to US$2.2billion and US$2.0 billion, respectively, in February 2009.

The global economic downturn had also led to companiesturning their preerence towards leasing instead o owning anindustrial unit.

All the above actors have caused the average capital`values o warehouses and actories to decrease by 4.3% and5%, respectively, during the review period. Data rom theGuangzhou City Land Resources and Housing Authorityshowed that the average land values or warehouses andactories had also eased in the review period, by 1.8%. Incontrast, the average rent o industrial space rose during thereview period, by between 3.3% and 8.5%, uelled by the

shortage o high quality industrial space or rent, companiespreerence towards leasing, as well as shortened lease periodsto six months or one year.

The land sale market during the review period was dominated`by local corporations. Notable land transactions concluded

in the period under review include those by the GuangzhouAutomobile Group Motor Co., Ltd., the Guangdong TianhongCable Co., Ltd., and the NHK-HK-UNI Spring (Guangzhou)Co., Ltd., which acquired 14.7 million sq t, 418,669 sq t and129,491 sq t o land, respectively, in the Hualong ModernIndustrial Park in Panyu, the Yonghe Economic Zone, andthe Economic Development Zone in Luogang, respectively.

Looking ahead, the uncertain business environment will have`a drag on the industrial market. The rents, land and capitalvalues o actories and warehouses are predicted to easeslightly by up to 0.6% in the next 12 months.




EXECUTIVE SUMMARY

TRANSACTIONS


AREA (SQ FT)

Jiulong Industrial District, Luogang Land Sale Guangzhou Lont Electronic Co.,Ltd. 201,816

Daiguan Road, Tianhe Land Sale Guangzhou Hongtai Sotware TechonologyCo., Ltd

113,070

Development Zone, Luogang Land Sale Yongjie Automobile Transportation Co., Ltd 38,668

Hualong Modern Industrial Park, Panyu Land Sale Guangzhou Automobile Group Motor Co.,Ltd

14,678,260

Yonghe Economic Zone, EconomicDevelopment Zone, Luogang

Land Sale Guangdong Tianhong Cable Co., Ltd 418,669

Development Zone, Luogang Land Sale NHK-HK-UNI Spring (Guangzhou) Co., Ltd 129,491

Jiulong Industrial District, Luogang Land Sale Meiqianuo International Holding Co., Ltd 116,624

MAJOR TRANSACTIONS IN GUANGZHOU

China




China

ECONOMIC INDICATORS



Year-on-Year Manuacturing Output Growth Rate August 2008 - January 2009 -2.4%

Total Imports August 2008 - January 2009 CNY4,627.5 billion

Total Exports August 2008 - January 2009 CNY5,734.8 billion

Container Throughput (TEUs) August 2008 - January 2009 1.4 million

Air Cargo Throughput (Tonnes) August 2008 - January 2009 1.5 million

ECONOMIC INDICATORS FOR SHANGHAI

SHANGHAI

Factory and Warehouse

Shanghai industrial property market slowed down noticeably`amidst the volatile external environment and moderation othe China economy as witnessed by the 2.4% contraction inindustrial output rom August 2008 to January 2009 comparedto a 14.9% growth rom February 2008 to July 2008. Thedownturn o the global economy has also hit exports and

resulted in the slowdown o growth in container throughputrom 16.7% recorded or the six-month period ending August2007 to 0.9% or the six-month period ending January 2009.

Shrinking demand or industrial space on the back o a`slowing economy resulted in some landlords and developerslowering their asking rents or prices in order to secure tenantsor boost sales to improve cash fows. Consequently, rents andcapital values o industrial properties recorded declines o upto 12.7% on average during the period o review. Aggressiveincentives were also oered, such as extending rent-reeperiod in addition to more competitive rents and prices.

Despite the slowing economy, the land auction market held`

steady. However, unding pressures on the back o the tightercredit market resulted in some landlords in the secondaryland sales market succumbing to lower bidding prices rominvestors. Consequently, land prices ell between 3.1% and

5.8% during the six-month period between October 2008 andMarch 2009.

Supply o new industrial properties during the period June to`December 2008 decreased markedly to 2.0 million sq t, downby nearly 70% compared with the same period a year ago. Many

developers halted or slowed down the construction progressdue to pressure on unding amidst the shrinking demand.

Major transactions during the review period included`Heidelberg Graphic Equipment Ltds purchase o a 292,549-sq t land parcel in Qingpu Industrial Park and Degussa-AJ(Shanghai) Initiators Co., Ltds purchase o a 371,408-sqt land lot in Baoshan Industrial Park. On the lease ront,Mitsubishi Logistics leased a 174,377-sq t warehouse inProLogis Park Pudong Heqing while Parker Hannin leased a191,599-sq t actory in ProLogis Park Jinqiao.

Although the global economic slowdown will prevail`or some time, the economic stimulus introduced by theCentral Government should provide some support or themanuacturing sector and in turn, the industrial market.This will help to hold rents, land and capital values steady atcurrent levels over the next 12 months.




EXECUTIVE SUMMARY

TRANSACTIONS


ProLogis Park Pudong Heqing Warehouse Lease Mitsubishi Logistics 174,377

ProLogis Park Jinqiao Factory Lease Parker Hannin 191,599

Qingpu Industrial Park Land Sale Heidelberg Graphic Equipment Ltd 292,549

Baoshan Industrial Park Land Sale Degussa-AJ(Shanghai)Initiators Co., Ltd 371,408

MAJOR TRANSACTIONS IN SHANGHAI

China




Hong Kong SAR

ECONOMIC INDICATORS


Year-on-Year GDP Growth July 2008 - December 2008 -0.5%

Year-on-Year Manuacturing Output Growth Rate September 2008 - February 2009 -33.0%

Total Imports September 2008 - February 2009 HK$1,357.0 billion

Total Exports September 2008 - February 2009 HK$1,291.0 billion

Container Throughput (TEUs) September 2008 - February 2009 11.0 millionAir Cargo Throughput (Tonnes) September 2008 - February 2009 1.6 million

ECONOMIC INDICATORS FOR HONG KONG SAR

HONG KONG SAR

FactoryHong Kongs re-export trade perormance continued to`deteriorate during the review period amidst contraction inglobal demand or imports on the back o the global economicdownturn. The territorys overall re-export growth slippedinto negative territory in November 2008 and the pace ocontraction accelerated rom -4.1% YoY in November 2008

to -22.4% YoY in February 2009. Meanwhile, the value ototal exports dropped 23.0% YoY in February 2009 thesharpest all registered since the oil crisis in the 1970s.

Leasing demand or actory space sotened during the review`period as an increasing number o companies downsized theirpremises or relocated to cheaper alternatives in order to keepoperating costs low as a strategy to weather the prevailingeconomic downturn. As such, the average rental or actoriesdeclined 18.9% to HK$6.76 per sq t during the six-monthperiod ended February 2009, compared to a positive growth o3.1% recorded during the preceding six-month period.

Uncertainty about rental direction and the economic outlook,`

and more importantly, the lack o sucient nancing rombanks, resulted in only 873 transactions recorded or the six-month period ending February 2009. This refected a declineo 65.4% compared to the preceding six-month period and isthe lowest level since 1999. On the price ront, the averageprice o actory premises declined 17.5% during the six-monthperiod ending February 2009 to HK$1,543 per sq t.

Despite alling rents, the prevailing low interest rateènvironment presents a market entry opportunity or a groupo property investors with strong equity positions whose primeacquisition targets are quality strata-titled developments. Forexample, Rolex (Hong Kong) Limited acquired two foors in

Kodak House Phase 2 in North Point rom Sun Hung KaiProperties or a total consideration o HK$300 million, or anaverage unit price o HK$4,531 per sq t based on a total foorarea o 66,208 sq t. Rolex is reported to be retaining the twofoors or owner-occupation.

Looking ahead, worsening global trade on the back o globalèconomic consolidation will remain the key actor limitingnew leasing demand or industrial properties. Rentals andcapital values o actory premises are orecast to be pressureddown by 25% and 30% respectively over the next 12 months.

WarehouseIn tandem with shrinking re-export trade, cargo throughput`contracted considerably during the review period. Containerthroughput declined 9.6% YoY during the six-month periodended February 2009, compared with an increase o 5.3%YoY in the preceding six-month period. Air cargo throughputdeclined 18.3% YoY during the six-month period endedFebruary 2009, compared with an increase o 3.8% YoY in thepreceding six-month period. This has aected the perormanceo the trading and logistics sector, the main demand drivero the warehouse sub-sector. A number o logistics operatorswere seen returning a portion o their space to their vendorsin view o the current dicult market conditions.

Slackened leasing demand or warehouse properties resultedìn the average rental or cargo lit access warehouse declining18.9% between August 2008 and February 2009 to HK$5.38per sq t per month, while capital values ell 24.1% duringthe same period to HK$1,338 per sq t. The average rentalor ramp access warehouse also plunged, by 20.5% betweenAugust 2008 and February 2009 to HK$7.55 per sq t permonth, while capital values ell 27.1% during the same periodto HK$1,450 per sq t.

On top o alling rents, to retain tenants, individual landlordsàre also proactively oering their tenants avourable terms,such as long leases o up to six years, together with a cap on

rental growth on renewal o the lease.

Depending on the availability o physical provisions such as`ramp access, rentals and prices are expected to decline 15%to 25% over the next 12 months.




EXECUTIVE SUMMARY

High-Specs Industrial BuildingAs with the actory and warehouse sub-sectors, the high-specs`Industrial-Oce buildings (I-O) have similarly suered romthe contraction in leasing demand amid the deterioration othe re-export trade perormance.

During the six-month period ending February 2009, the`average I-O rent declined 20.3% to HK$13.90 per sq t permonth.

Hong Kong SAR

Large oce supply in the pipeline in decentralised districts`will create additional downward pressure on I-O rentals,which are expected to drop 30% over the next 12 months.

TRANSACTIONS


AREA (SQ FT)

Smile Centre Factory Lease Logistic company 97,750

Sue Yue Co Ltd Godown No.3 Warehouse Sale Local developer Undisclosed

Two foors, Kodak House Phase II Factory Sale Rolex (Hong Kong) Limited 66,208

Inormtech Industrial Centre Factory Sale Local investor 95,582

MAJOR TRANSACTIONS IN HONG KONG SAR




India

ECONOMIC INDICATORS


Year-on-Year GDP Growth April 2008 - March 2009 7.1%

Year-on-Year Manuacturing Output Growth Rate April 2008 - March 2009 4.1%

Total Imports April 2008 - February 2009 Rs 1,223.2 billion

Total Exports April 2008 - February 2009 Rs 705.2 billion

Container Throughput (TEUs) April 2008 - September 2008 n.a.Air Cargo Throughput (Tonnes)


April 2008 - September 2008 n.a.

ECONOMIC INDICATORS FOR INDIA

NEW DELHI

Factory and WarehouseThe Delhi Government announced that the ollowing sectors`will be allowed to set up Special Economic Zones (SEZs) inthe countrys capital: inormation technology enabled services(ITES), electronic hardware and sotware, nanotechnology,biotechnology, gems and jewellery, non-conventional energy

equipment, ashion and garments (excluding dyeing) andhigher technical education institutes providing world-classmanpower. The development o SEZs will provide a much-needed boost to industrial supply in Delhi.

Due to prevailing negative sentiments across the globe,`a substantial decrease in investors activities has beenwitnessed or all the segments o the industrial propertymarket. Consequently, land and capital values as well as rentsotened during the six-month review period o October 2008to March 2009.

Nevertheless, demand or Noida Authoritys land plots`remained buoyant, with 5,500 applications received or 191

industrial plots measuring 21,528 sq t each in Phases II andIII during the review period. All 191 plots were alloted onthe basis o a draw o lots at xed rates o INR516 per sq t orPhase II and INR534 per sq t or Phase III.

Despite the short-term turbulence in the market, some`companies remained condent in the long-term prospects othe India market. For example, Arshiya International Ltd,a logistics company, received approval rom the Board oApprovals o the SEZs to set up a ree trade and warehousingzone (FTWZ) at Khurja in Uttar Pradesh (part o Nationalcapital Region). This is the companys second FTWZ in thecountry and is expected to be completed by end-2009.

The slower economy and weaker manuacturing output`growth are, however, expected to have a drag on the industrialmarket. Rents, land and capital values o industrial spacecould see declines o up to 14%, 12% and 10%, respectivelyover the next 12 months.




EXECUTIVE SUMMARY

TRANSACTIONS


Building Warehouse Lease Spice Jet 15,000

Building Warehouse Lease Markson Television 12,000

Building Factory Lease Relexo Foot ware 14,000

Building Factory Lease Pidilite 10,000

Building Service Station Lease Udiya Service Station 22,000

Building Service Station Lease Tata Motors 20,000

Building Business ProcessOutsourcing

Lease ATS 18,000

Building Business ProcessOutsourcing

Lease Inovision 18,000

Building Factory Sale Anand Button 28,000

MAJOR TRANSACTIONS IN NEW DELHI

India




JAKARTA


Indonesias economy is expected to grow by between 3%`and 4% this year, down rom an earlier orecast o 5%. Tobolster demand and stimulate economic growth, Indonesiasmonetary authority, Bank Indonesia, has slashed its keyinterest rate or the th consecutive month to 7.75% inMarch 2009 rom 9.5% in October 2008.

In spite o the slowing economy and manuacturing output,`industrial rents, capital and land values remain unchangedduring the period o review. In the leasing market, industriallandlords have resisted raising rents as they are ocused onhelping their tenants survive through these dicult times.Some measures taken include allowing tenants to postponetheir maintenance cost payment or one to two months atzero interest. As or land values, they had been propped up bythe increased in Sales Value o Taxable Object (or NJOPas known in Indonesia) issued by the Government. This isthe value on which tax is computed or land ownership inIndonesia.

Sales activity slowed in the period o review as industrial`developers turned cautious on the back o the slowingeconomy and held back development and the launch onew projects. The weakening Indonesian Rupiah againstthe US Dollar also contributed to slow sales, particularly orprojects quoted in US Dollar denominations. Nevertheless,

the industrial property market is seeing demand rom localcompanies who rely more on the domestic market instead oexports. These companies have continued to expand theiroperations so as to be ready or the upturn. For example, PT.Timah Tbk, an integrated tin mining company, acquired a914,932-sq t land parcel in the Krakatau Industrial Estateduring the period o review.

While the economy is expected to slow down, demand rom`local companies will provide some support to the industrialmarket. As such the industrial market is orecast to remainstable in the next 12 months.

Indonesia

ECONOMIC INDICATORS



Year-on-Year Manuacturing Output Growth Rate January 2008 - December 2008 3.7%

Total Imports January 2008 - December 2008 US$142.6 billion

Total Exports January 2008 - December 2008 US$151.5 billion

Container Throughput (TEUs) January 2008 - December 2008 11.1 million



January 2008 - December 2008 n.a.

ECONOMIC INDICATORS FOR JAKARTA




EXECUTIVE SUMMARY

TRANSACTIONS


Greenland International IndustrialCenter

Land Sale Carpet manuacturer 2,152,780

Greenland International IndustrialCenter

Land Sale Disposable sanitary napkin company 753,473

Bekasi Fajar Industrial Estate Land Sale Toyota 2,475,697

MM2100 Land Sale Heavy equipment manuacturer romJapan 245,417

Modern Cikande Land Sale Frozen ood company 538,195

Krakatau Industrial Estate Cilegon Land Sale PT. Timah Tbk 914,932

Krakatau Industrial Estate Cilegon Land Sale Cheetham Salt 269,098

Delta Silicon Land Sale LPG station 118,403

MAJOR TRANSACTIONS IN JAKARTA

Indonesia




Japan

ECONOMIC INDICATORS



Year-on-Year Manuacturing Output Growth Rate July 2008 - December 2008 -14.8%

Total Imports July 2008 - December 2008 JPY16,852.4 billion

Total Exports July 2008 - December 2008 JPY14,062.0 billion

Container Throughput (TEUs) July 2008 - December 2008 3.6 million

Air Cargo Throughput (Tonnes) July 2008 - December 2008 994,001

ECONOMIC INDICATORS FOR GREATER TOKYO

GREATER TOKYO

Factory and Warehouse Japans economy is showing signicant downturn. Gross`domestic product contracted by 3.2% quarter-on-quarter(QoQ) in the last three months o 2008 (-12.1% annualised),the worst perormance since the rst quarter o 1974.

The ocially announced posted land prices as o January 2009`showed declines across the board, by 3.0% on a nationwidebasis and 2.7% or Greater Tokyo. Industrial rents declinedmore signicantly with the submarkets o Chiba-Shibayama,Chiba-Urayasu and Kawasaki-Higashi Ogishima experiencingup to 15.5% decrease during the review period.

Major completions in the review period include ProLogis`Park Ichikawa I, a ve-storey warehouse building with a grossfoor area o 1.6 million sq t located 1.5 km rom a highwayintersection and 16 km away rom Tokyo.

Industrial sales transactions were limited during the period`o review due to the economic recession and nancingdiculties. The ew which were successully concluded weremostly by J-REITs. They included the sale o IIF Musash-Murayama Logistic Centre or JPY8.04 billion in February2009, Shinonome Logistic Centre which was sold or JPY11.8

billion in February 2009; and Kazo Logistic Centre which wasacquired or JPY3.79 billion in March 2009.

As Japans economy is expected to continue deteriorating`or the time being, industrial rents, land and capital valuesare oreseen to remain depressed. Land and capital values areorecast to ease by 3% to 5% and rents by 6% to 8% over thenext 12 months.

TRANSACTIONS


CRE Logi-Square Sagamihara Warehouse Sale Subsidiary o Mitsubishi Co. 251,468

IIF Musash-Murayama Logistic Center Warehouse Sale SPC o Mitsui & Co., Realty ManagementLtd.

440,074

Shinonome Logistic Center(47% o total)

Warehouse Sale Japan Logistics Fund, Inc. 174,160

Kazo Logistic Center Warehouse Sale Japan Logistics Fund, Inc. 270,503

MAJOR TRANSACTIONS IN GREATER TOKYO




EXECUTIVE SUMMARY

New Zealand

ECONOMIC INDICATORS


Year-on-Year GDP Growth December 2008 0.2%

Year-on-Year Manuacturing Output Growth Rate December 2008 -2.0%

Total Imports October 2008 - February 2009 NZ$18.3 billion

Total Exports October 2008 - February 2009 NZ$17.2 billion

Container Throughput (TEUs) October 2008 - February 2009 16.3 million

Air Cargo Throughput (Tonnes) October 2008 - February 2009 77,877

ECONOMIC INDICATORS FOR NEW ZEALAND

AUCKLAND

Ofce / WarehouseCurrently, both the Resource Management Act (RMA) andÒverseas Investment Act in New Zealand are under review.The majority o the RMA reorms are concentrating onimproving the resource consent processes, plan developmentand plan change processes, the streamlining o processes orprojects o national signicance and overall decision making.

The review o the Overseas Investment Act aimed to makethe Act easier or constructive oreign investment, andmake oreign investment more simple and attractive, while atthe same time protecting sensitive land, assets and resources.

Meanwhile, the global economy deteriorated rapidly in the`latter hal o 2008, in response to ongoing losses and volatilityin international nancial markets. The Reserve Bank o NewZealand cut the ocial cash rate (OCR) to 3% in March thisyear, the lowest rate since its inception in March 1999. Inaddition to the substantial change in monetary policy settings,there has been a large stimulus rom scal policy. Thesechanges coupled with sizeable exchange rate depreciation

should act to support the New Zealand economy. Nevertheless, banks high pre-leasing requirements beoreàpproving loans under the current weak market condition,has limited developers access to unds or development. Asa result, demand or development sites weakened and landvalue ell signicantly by 12% on average during the reviewperiod.

While the OCR is likely to remain lower or longer, increasing`competitions within New Zealand banks or cash deposits andthe continued high cost o oshore unding are pressuringlong-term xed interest rates or property mortgages andbusiness loans up. This, coupled with tightening o available

nance amid cautious tenant attitudes, is constraining sales.Investors are also opting to take a wait and see approach todetermine the ull extent o the market downturn beorecommitting. As a result, capital values o industrial premises

eased by up to 5.5% on average in the six-month reviewperiod ending March 2009.

However, despite more cautious investor attitudes, demandòr prime grade, well tenanted and located industrial premisesremained rm. For example, a 109,200-sq t industrial space

at 41 Nesdale Avenue in Wiri currently leased to FivestarDistribution was acquired by a private investor or NZ$12.05million, refecting a yield o 8.97%.

In the leasing market, landlords decisions to oer attractiveìncentives to keep the ace rent up has helped to cushion thedrop in rents to 5% on average in the period under review.Some leasing deals successully concluded between October2008 and March 2009 included a 61,400-sq t design-build industrial warehouse located at Pukekiwiriki Placein Highbrook Business Park, currently under construction.The property was leased by Goodman Property Trust toSchneider Electric on a ten-year lease term or NZ$835,000a year. Lewis Holdings leased its industrial premises locatedat 68 Harris Road and 14 Oenhauser Drive in East Tamakito NZL Group on a seven-and-a-hal-year term returningNZ$855,771 per annum. The property comprises a 90,200-sqt oce, warehouse and canopy, and 53,800 sq t o usableyard space.

Several new buildings have come on-stream during the review`period and these included a 82,000-sq t design-build premisesor DHL Global Forwarding at Westney Industry Park and a133,200-sq t purpose-built distribution centre at 8 HautuDrive in Wiri or the Amalgamated Hardware MerchantsGroup (AHM). In addition, a number o design-buildindustrial premises amounting to 645,800 sq t are currently

under construction and are scheduled to come online in thenext 12 months. A ew proposed developments are still onthe drawing board, waiting or tenants pre-commitmentbeore commencing construction.




New Zealand

TRANSACTIONS

BUILDING / LAND PLOT PROPERTY TYPE LEASE / SALE TENANT / PURCHASER

FLOOR / LAND

AREA (SQ FT)

47 Wil liam Pickering Drive, Albany Oce/Warehouse Lease Eagleburgmann New Zealand 20,600

7 John Glenn Avenue, North Harbour Oce/Warehouse Lease Maxwell Marine International 23,500

68 Harris Road and 14 Oenhauser Drive, East Tamaki Oce/Warehouse Lease NZL Group 90,200

320 Rosebank Road, Avondale Oce/Warehouse Lease Doyle Sails 67,700

51 Aintree Avenue , Airport Oaks Oce/Warehouse Lease Husqvarna Outdoor 40,400

Pukekiwiriki Place, Highbrook Oce/Warehouse Lease Schneider-Electric 61,400

372 Rosebank Road, Avondale Oce/Warehouse Lease Vernon Carriers 24,000

Unit B & C, 89-91 Captain Springs Road, Onghunga Oce/Warehouse Lease Ecodiesel 60,800

Westney Industry Park Oce/Warehouse Lease DHL Global Forwarding 82,000

41 Nesdale Avenue, Wiri Oce/Warehouse Sale Private Investor 109,200

7 Basalt Place, East Tamaki Oce/Warehouse Sale Family Trust 25,100

39 Rawene Road, Birkenhead Oce/Warehouse Sale Owner Occupier 21,200

11 Aetna Place, Henderson Oce/Warehouse Sale Syndicator 69,900

16 Dalgety Drive, Wiri Oce/Warehouse Sale Owner Occupier 13,700

MAJOR TRANSACTIONS IN AUCKLAND

The outlook or the industrial market remains volatile.`Demand or development sites is expected to weaken urtherand land values could decline by 25% in the 12 months ahead.Rentals are orecast to all by another 10% on average whilecapital values are expected to drop by an average o 17.3%

over the next 12 months. During this same time period, yieldsare predicted to stabilise in the range o 8% to 9% on averageor new and prime investment grade stock.




EXECUTIVE SUMMARY

New Zealand

WELLINGTON

Ofce / WarehouseA lack o development nance and higher lease pre-`commitment requirements rom the banks continuedto strangle new developments and dampen demand ordevelopment sites. As a result, the high land values achievedover the years have come to an end with prices dropping byapproximately 25% on average during the period o review.

Investment activity continued to slow with owner occupiers`being the main driver o demand at the smaller end.For example, an owner-occupier acquired a 14,900-sq t

warehouse built in the 1980s located at 3-5 Glover Streetin Ngauranga or NZ$1.65 million with vacant possession.Enquiries on larger scale industrial properties remained scarce.Nevertheless, capital values managed to hold rm during theperiod o review.

Rents, too, remained static in the review period October 2008`to March 2009. Leasing deals concluded include Nautilus

TRANSACTIONS


14 Tunnel Grove, Lower Hutt Oce/Warehouse Lease General Cable 24,300

15 Birmingham Street, Paraparaumu Oce/Warehouse Lease Harvey Norman 5,400

115 Hutt Park Road, Lower Hutt Oce/Warehouse Lease ERS New Zealand 20,900

3-5 Glover Street, Ngauranga Oce/Warehouse Sale Owner Occupier 14,900

69 Waione Street, Petone Oce/Warehouse Sale Private Investor 41,200

MAJOR TRANSACTIONS IN WELLINGTON

Properties JV leasing 24,300 sq t o industrial space with a5,800-sq t yard at 14 Tunnel Grove in Lower Hutt to GeneralCable or NZ$187,500 per annum on a three-year lease.

Stable rents and capital values were attained despite the`weakening economic climate partially because supply was heldin balance with levels o occupier demand. Greater dicultyin sourcing nance has reduced development activity and anumber o developments were put on hold. Consequently,no new industrial developments were added to the supplypipeline during the review period.

Slow economic growth together with an unsettled nancial`market will result in moderate downward movements oless than 10% in land values, rents and capital values in theWellington industrial sector in the next 12 months. Yieldsare projected to soten by another 25 basis points in this timeperiod.




Singapore

ECONOMIC INDICATORS



Year-on-Year Manuacturing Output Growth Rate July 2008 - December 2008 -10.9%

Total Imports July 2008 - December 2008 S$222.5 billion

Total Exports July 2008 - December 2008 S$233.3 billion

Container Throughput (TEUs) October 2008 - March 2009 13.0 millionAir Cargo Throughput (Tonnes) July 2008 - December 2008 913,000

ECONOMIC INDICATORS FOR SINGAPORE

SINGAPORE


The Government announced the 2009 Budget in January`2009. Measures which could help manuacturing concernsand developers o industrial properties ease their cash fowinclude a 40% property tax rebate or industrial landlords, twoyears deerment o property tax or land under developmentand a 15% rental rebate or tenants and land lessees o JTCCorporation and the Housing and Development Boardsindustrial properties. These measures will provide some supportor the industrial property market in this dicult time.

The decline in exports as a result o contraction in global`demand led to excess capacity o manuacturing plants andprompted many rms to shelve their expansion plans ordownsize their industrial premises, thus leading to lowerdemand or industrial properties. The average rents andcapital values o actory space dipped 12.8% and 17.6%,respectively, in the review period, compared to a 6.4% and6.9% growth seen in the previous review period rom April2008 to September 2008.

Weakening exports also translated into sotening demandòr warehouse acilities. Average rents and capital values owarehouse space saw a drop o 13.0% and 13.3%, respectively,in the period under review.

Major completions o industrial space during the study periodìnclude a 128,000-sq t light industrial building at SerangoonNorth Avenue 6 by Credit Suisse and a 80,700-sq t lightindustrial building at Changi North Rise by Thales AerospaceAsia Pte Ltd.

Acquisition o industrial properties in the review period`were limited to smaller properties partly due to tighter creditand investors decisions to limit their risk exposure in theuncertain market. Some o the more signicant transactionsin the industrial property market in the October 2008 to

March 2009 period were the sale o a 123,693-sq t landparcel at Ubi Avenue 4 or S$26.3 million to Sim Lian LandPte Ltd and the sale o a 61,820-sq t land parcel at KallangPudding Road or S$10.8 million to Orion-Four DevelopmentPte Ltd. Acquisitions by listed real estate investment trusts(REITs) have grinded to a halt because o the diculty inraising unds, increased costs o unds and the sharp spike indistribution yields due to alling stock prices.

The weak showing o the economy and export growth in`the rst three months o 2009 (-11.5% and -29.0% YoYrespectively) led to the Government revising downwardsits 2009 orecast or economic growth to between -9% and-6% and export growth to between -13% and -10%. Thiswill weigh heavily on demand or industrial properties inthe next 12 months. Land prices, capital values and rentso industrial space might drop by up to 15% in the next 12months.

High-Specs Industrial BuildingThe steep alls in oce rents due to shrinking demand amid`growing supply had signicantly slowed down the relocationo qualiying oce users to high-specs premises. Thiscontributed to the sluggish demand or high-specs space inthe review period.

As a result, rents o high-specs space eased by 7.8% to S$3.41`per sq t per month in the six-month period rom October2008 to March 2009.

Tighter credit conditions and alling rents curtailed buyingìnterest in high-specs buildings. In the period under review,only one high-specs building Applied Materials Building

at Changi Business Park, was sold to Union Investment RealEstate AG or S$63 million or S$318 per sq t o gross foorarea.




EXECUTIVE SUMMARY

TRANSACTIONS

BUILDING / LAND PLOT PROPERTY TYPE LEASE / SALE TENANT / PURCHASERFLOOR / LAND AREA

(SQ FT)

10 Changi South Street 2 Warehouse Lease Deutsche Post Global Mail(Australia) Pte Ltd

17,480

Agilent Technologies Factory Lease 3M 43,418

New Tech Park High-Specs Lease Schaeer (Singapore) Pte Ltd 11,829

Ubi Avenue 4 Land Sale Sim Lian Land Pte Ltd 142,030

Kallang Pudding Land Sale Orion-Four Development Pte Ltd 61,820

Applied Materials Building High-Specs Sale Union Investment Real Estate AG 198,056

MAJOR TRANSACTIONS IN SINGAPORE

Singapore

Moving orward, the infux o high-specs space completing`in 2009 amounting to an estimated 2.5 million sq t, coupledwith sluggish demand are likely to exert downward pressure oup to 30% on rents in the next 12 months.




Taiwan

ECONOMIC INDICATORS



Year-on-Year Manuacturing Output Growth Rate January 2008 - December 2008 -10.9%

Total Imports October 2008 - February 2009 NT$64.6 billion

Total Exports October 2008 - February 2009 NT$76.2 billion

Container Throughput (TEUs) October 2008 - February 2009 13.0 million

Air Cargo Throughput (Tonnes) October 2008 - February 2009 261.8 million

ECONOMIC INDICATORS FOR TAIWAN

TAIWAN

High-Specs Industrial Building

The prolonged nancial turmoil resulted in the Taiwanese`economy growing by just 0.1% in 2008, compared to 5.7 %in 2007. Demand rom Taiwans key export markets such asthe United States, China, and Hong Kong dropped as theireconomies urther weakened, causing manuacturing outputor 2008 to shrink by 10.9%

Aected by the weakened economy, many companies,`including those located in the Neihu Technology Park, areadopting cost cutting measures such as downsizing theirworkorce, real estate requirements or relocating to moreaordable business premises or locations. This led to a risein the average vacancy rate o the park to 16.0% as o March2009.

Correspondingly rents declined by 5.0% in the six-month`review period between October 2008 and March 2009 toNT$31.03 per sq t per month.

The overall stock o high-specs space in Neihu Technology`Park increased by 890,978 sq t between October 2008 andMarch 2009 to 26.1 million sq t. Among the major newcompletions in the review period were Elitegroup ComputerSystems Building (315,630 sq t), Chong-Hong Suntech City(177,900 sq t), and Chu-Chen Building (131,539 sq t).

In the next 12 months, more than 700,000 sq t o new`high-specs space are expected to be completed in the NeihuTechnology Park, adding urther pressure on vacancy ratesand rents. Rents o high-specs space are expected to declineby 7.8% to NT$28.61 per sq t per month on average in thenext 12 months.

TRANSACTIONS


Tokyo Technology Plaza High-Specs Sale MiTAC INC. 93,170

MAJOR TRANSACTIONS IN TAIPEI




EXECUTIVE SUMMARY

1. MULTI-NATIONAL CORPORATION (MNCs)

A multi-national corporation is dened as a large company that hasoperations in multiple nations and that requires industrial space.

2. FACTORY

Unless otherwise stated, this reers to single-user industrial spacecatering to MNCs or production / manuacturing purpose.

3. WAREHOUSE

Unless otherwise stated, this reers to single-user industrial spacecatering to MNCs with warehousing requirements as well as theirbusiness as third party logistics, distribution and warehousing.

4. HIGH-SPECIFICATIONS (HIGH-SPECS) INDUSTRIALSPACE

This reers to mu

Asia Industry Market Overview

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