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CBRE Big Breakfast Q4
Its Official -
The Markets Not Dead
Sheraton Hotel
Wednesday, October 5, 2011
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CBRE | Page 2
Time to Face the Pain.Change is Here
Changes
Rebranding CBRE ING Real Estate to CBRE Investors
Competitive golf Rugby World Cup Trinh Duc (France) US$ 6,000 apartments
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CBRE | Page 3
As One GAP Closes, Another GAP Opens
GAP announced closures of 200 out of 900 stores, yet
its message here is
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CBRE | Page 4
20 of the Worlds Most Iconic Skyscrapers
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The Dong Khoi Strip.
More vacancy on Dong Khoi
than Orchard, 5th Avenue, orRegent Street
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Whos Playing Chicken Now?
Commoditization in the office sector with 70,000 sm on-line (Nha Be and D.4) Rents are no longer a defining factor, they are the ONLY factor
No predictions for the bottom with >10 quarters ofdownward pressure Established Grade As able to maintain top-most rates in the
market, and new entrants feeling most pressure with sub US$ 20
rentals
Landlord flexibility growing with stepped rental terms onoffer now, and.the market is responding
Hot Deals done at Vincom and Bitexco as take-up slowlyincreases in new Grade As
Increasingly better deals on offer for Office tenants
Average Grade A Rents for Q2 Vietnam = US$ 38 / sm / month Singapore = US$ 77 / sm / month
The office market gets bleached
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The Bounce
From stocks
Diversifying investments Trying to catch the next up cycle
To Real Estate???
To Gold
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All that Glitters
Gold
Source: SJC website: www.sjc.com.vn
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VN Index
Source: FPSTwebsite: www.fpst.com.vn
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Under the Ice, the Water Moves
Investment deals being done FDI, M&A, Hotels, land sites, JV partners, en-bloc
Retailers have more choice than ever before as moreformal retail locations open for lease and Landlords
offering attractive terms
Residential units are selling and buyers are SIGNING
Anticipated residential developments moving closer tohand-over Expansion of buy-to-let properties and potential change in
demographic as buyers become end-users!
Luxury remains in discussion with Vietnam rankinglower regionally (Q2) Vietnam = US$ 4,325 / sm Beijing = US$ 8,468 / sm Singapore = US$ 24,974 / sm
Dont be Deceived/Naive
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The Headlines
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The Global Economy & Vietnam
Do the financial woes from the
Western banks affect us? HSBC announces job growth in Asia
with cuts elsewhere Standard Chartered announces job
growth in Asia with cuts in the West Bank of America announces job cuts in
the West while we see it seeking toenter in Asia
With Q3 ending, we have leasedMORE office space YTD than we didin ALL of 2010 ?!
Sheltered or suffering?
Source: Financial Times, 1 August 2011
F&B, Education, Medical sectors seeingbooms
New market entrants look to open offices
in both HN and HMC, rather than only 1as in the pastSource: WSJ online: 12 September 2011
Source: Bloomberg.com 4 August 2011
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Strategies to ensure future success
Beautification & branding of the country city Make it a regional place to visit due to its attractiveness,shopping, hospitality, etc.
Improve its look more plantings, walk-ways, fresh
signage, canopies, footpaths (clearing up the sidewalks) Consider closing streets to pedestrian only traffic inner-
city promenades
Eliminating tourist visa complications Infrastructure Thu Thiem Tunnel (Nov. 2011)
Property refurbishment / conversions
Ways to move forward
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Conversion & Refurbishment
From old to new less time, less money, greater ROI
Speed to Market CostsConversion: 1 year US$ 3mNew Build: 4 years US$ 8 10m
Convert your property andBeat The Market.
From Hotel to Serviced Apartment
Refurbish your property andBeat The Market.
Face Lift Dont Slide from A to C
Upgrade RentRefurbished: Grade A US$30/sm8 years old: Grade C US$15/sm
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Strategies to ensure future success
Investing for families future home, not just familiesfuture
Work, live, learn, love, play, shop, die Government push for affordable housing US$ 100k or
less, and smaller sized units
Improve investment attraction policies Promoting the Industrial sector with development of
supporting supplier industry
Long term vision dont lose your site!
Ways to move forward
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Thank you.www.cbrevietnam.com
187 U.S. andCanada Offices
14 LatinAmericaOffices
109 EuropeOffices
25 Middle East andAfrica Offices
55 AsiaOffices
30 Australia & NewZealand Offices
2011 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make noguarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, priorsale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not representcurrent or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
