Marc Townsend

Chairman, CBRE Cambodia

2020

CONTENTS

Overview

1 2 3 4

Infrastructure ResidentialLand

Retail

5 6 7 8

Office Fearless

Forecast

Tourism &

Hospitality

2020: The Year So Far

OUR GREEN NET STATISTICS FOR PHNOM PENH» Q1 2020 «

GREEN NET PROJECTS BY TYPE GREEN NET PROJECTS BY DISTRICT

0

20

40

60

80

100

120

140

160

180

405GREEN NET PROJECTS

Source: CBRE Research, Q4 2019

NUMBER OF GREEN NET PROJECTS

6

18%

14%

13%

13%

12%

8%

7%

6%

6%3%

Boeng Keng Kang Toul Kork Chamkarmon

Sen Sok Doun Penh Chroy Chongvar

Mean Chey 7 Makara Russey Keo

Chbar Ampov

1Overview

8

CAMBODIA OVERVIEWEconomic Indicators 2012 2013 2014 2015 2016 2017 2018 2019e 2020f

GDP (Bn USD) 14.1 15.3 16.7 18.2 20.2 22.1 24.57 25.9 29.7

GDP Growth (%) 7.3 7.4 7.1 7.0 6.9 7.0 7.5 7.1 6.8

GDP Per Capita (USD) 973 1,042 1,135 1,171 1,265 1,372 1,476 1,679 1,816

Inflation (%) 2.9 2.9 3.9 1.7 3.5 3.1 3.2 3.3 2.3

No. of Foreign Tourist Arrivals (Million) 3.6 4.2 4.5 4.8 5.0 5.6 6.2 6.7 7.0

Banking and Finance 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2

KHR/USD (Official) 4,084 4,037 4,086 4,039 4,032 4,060 4,034 4,055

1-Year USD Lending rate (%)* 11.50 11.50 11.50 11.50 11.42 11.11 11.05 10.68

1-Year USD Deposit rate (%)* 4.25 4.25 4.25 4.35 4.41 4.44 4.67 4.59

Real Estate Indicators 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4

Prime Condo Price (USD/SQM) 3,212 3,147 3,211 3,226 3,260 3,272 3,254 3,190 3,184

Prime Office Rent (USD/SQM/Month) 25.4 25.4 25.5 25.3 25.6 25.6 25.6 25.5 25.6

Source: National Bank of Cambodia, Ministry of Economy and Finance, Asian Development Bank, World Bank & IMF

Source: National Bank of Cambodia & CBRE Research

* Average rate of ACLEDA, UCB, Canadia, Vattanac, Maybank, Bank of China, CIMB & ABA

Source: CBRE Research, Q4 2019

8

10Photo: Phnom Penh Post

FDI BOOSTS CAMBODIANECONOMY IN 2019

43%

11%7%

6%

6%

27%China

South Korea

Vietnam

Singapore

Japan

Others

Source: National Bank of Cambodia 2020

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

1

2

3

4

5

2016 2017 2018 2019E 2020F

Billion

Financial Sector Non-financial Sector Percentage Change

Source: National Bank of Cambodia 2020

10

12%2019 FDI = USD 3.9bnY-O-Y

FDI by Source

11

2019: PEAK CONSTRUCTION?

$9.3 4,446 18.5Billion Projects Million SQM

2019

$5.2Billion

2,867 11.4Projects Million

SQM

2018

11Photo: Phnom Penh PostSource: Ministry of Land Management, Urban Planning and Construction

Approved Projects

12

DIVERSIFICATION OF DEVELOPMENT FUNDING

CASH

CONSTRUCTION

LOANS

INFORMAL FUND

STRUCTURES

BONDS

IPO

OFF-SHORE

LENDING

CROWD

FUNDING

FORMAL FUND

STRUCTURES

VENTURE

CAPITAL

13

0

100

200

300

400

500

600

700

800

2000 2005 2010 2015 2020

Num

ber of com

panie

s liste

d

Vietnam Thailand Cambodia

CAMBODIA STOCK EXCHANGE DEVELOPMENT

CSX | Est. 2011

Energy & Utilities, Commerce, Garment

$800 Million 5

Listed Companies

Banking, Insurance, Real Estate, Petroleum, Electricity, Commerce and Pharmaceuticals

VN-INDEX |

Est. 2000

391Listed

Companies

$124 Billion

Source: Various stock exchanges

2Infrastructure

24

INFRASTRUCTURE

24

Depot Spur

Line: 4.8km

Airport Spur Line:

2.6km

Corridor 4:

10.5km

Corridor 1:

9.6km

Corridor 2:

11.8km

RING ROAD

MASS TRANSIT

HIGHWAY INFRASTRUCTURE

AIRPORTS

3Land

26

REGIONAL LAND VALUE COMPARISON

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

HO CHI MINH BANGKOK PHNOM PENH

CBD Inner City

FAR: 9 - 10 FAR: 9 - 12 FAR: 10 - 12

26

Source: CBRE Research, 2019

PHNOM PENH

REMAINS

FAVOURABLE

FOR REAL ESTATE

DEVELOPMENT

28

2013 2016 2019

PHNOM PENH CITY CENTER (PPCC)

INFRASTRUCTURE - LAND VALUE’S BEST FRIEND

29

2008 2009 20192014

LAND VALUE IN

DIAMOND ISLAND| CURRENT AVERAGE PRICE

USD4,700/SQMAVERAGE PRICEIN 2009

$1,300/SQM

INFRASTRUCTURE - LAND VALUE’S BEST FRIEND

30

20192013

LAND VALUE ALONG

HUN SEN BLVD. CURRENT AVERAGE PRICE

USD 2,000/SQMAVERAGE PRICEIN 2013

$200/SQM

INFRASTRUCTURE - LAND VALUE’S BEST FRIEND

2009 2016

4Residential

Market Outlook

NEW LAUNCHES AND COMPLETIONS OVER THE COURSE OF 2019

NEW LAUNCHES

27 NEW LAUNCHES

OVER 16,500 UNITS

INTRODUCED TO THE

MARKET IN 2019

COMPLETIONS

11 COMPLETIONS

OVER 3,800 UNITS

COMPLETED IN 2019+

SOME PROJECTS WERE PARTLY COMPLETED

Source: CBRE Research, 2019

HIGH-END

24%

AFFORDABLE

30%

S U P P L Y B Y S E G M E N T | 2 0 2 0 F

MID-RANGE

46%

HIGH-END

23%

AFFORDABLE

24%

2019 | 18,000 UNITS

MID-RANGE

53%

CONDOMINIUM

SUPPLY 2020F

30%

46%

24%

Affordable Mid-Range High-End

SUPPLY EXPECTED TO INCREASE

55% Y-O-Y COMPARED TO 2019

28K

UNITS

Source: CBRE Research, Q4 2019

2018 2019

9PROJECTS

4,560

UNITS

5,230

UNITS

13

PROJECTS

LAUNCHES OF “AFFORDABLE” PROJECTS RISING

Cambodian millennials todrive affordable condominiumsales

20 CONDOMINIUMSECTOR TRENDS

BUYERS

Buyers shifting towards developments that offer sense of community, livability, and walkability

20DEVELOPERS

Developers to face challenges in condominium development as the market become more competitive

The interconnection between developments and projects becomes critical to success

5Retail

44

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Shopping Mall Shopping Center

Community Mall Retail Podium

SUPPLY 314,000 SQM

2019

575,700 SQM

202083%

SHOPPING MALL COMMUNUTY MALL

53%

SHOPPING CENTER RETAIL PODIUM

26%

11%

10%

44Source: CBRE Research, Q4 2019

RETAIL MARKET

45

0

50

100

150

200

250

300

350

2017 2018 2019

New Entry Expansion

2019

NEW ENTRIES

REMAIN STRONG

BRAND EXPANSION

SLOWS

45Source: CBRE Cambodia, Q4 2019

RETAIL MARKET

46

15%

3%

63%

15%

4%Fashion

Auto Parts

Food and

Beverage

Health and

Beauty

Service

46

17 NEW F&B BRAND ENTRIES

15 ARE MILK TEA BRANDS

EQUIVALENTS TO 88% OF THE TOTAL F&B ENTRIES

Source: CBRE Cambodia, Q4 2019

RETAIL MARKET SOME NEW BRAND ENTRIES

More construction delays expected

Professionalisation through internationalisation of operators, asset managers, owners and developers

Lifestyle, wellness and leisure lead the way as malls seek to diversify

Redevelopment of non-retail buildings and renovation of

older retail projects48

2020

RETAILSECTOR TRENDS

6Office

50

OFFICE MARKET

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Grade C Grade B Grade A

CENTRALLY OWNED

SUPPLY

50

2009

58,000+

sqm

2019

370,000+

sqm

6.3x

53,000 SQM

111,000 SQM

206,000 SQM

GRADE A

GRADE B

GRADE C

Source: CBRE Cambodia, Q4 2019

EXISTING INVENTORY Q4 2019

51

OFFICE MARKET UPCOMING CENTRALLY-OWNED SUPPLY 2020

51

21

TK CENTRAL

THE COMMUNE

C5 OLYMPIA CITY

THE POINT AMASS CENTRAL TOWER

SATHAPANA BANK

SAYON PP

SOMA HQ

ONE PARK1

2

3

45

6

7

8

9

9

3

8

4

6

5

7

GRADE B

GRADE B

GRADE B

GRADE B GRADE B

GRADE B

GRADE B

GRADE C

GRADE A

14,366 SQM

5,622 SQM

14,000+ SQM

8,386 SQM 7,511 SQM

12,000 SQM

9,000+ SQM

3,000+ SQM

17,900 SQM

Source: CBRE Cambodia, Q4 2019

52

OFFICE MARKETREGIONAL COMPARISON OF CURRENT SUPPLY

1.3 M

SQM

HCMC

25 X

370,000

SQM

Phnom Penh

9 M

SQM

BANGKOK

3.5 X

Source: CBRE Research

54

OFFICE OCCUPANCY

DESPITE INCREASING

DEAL SIZES

AND

NET ABSORBTION RATES

AVERAGE OCCUPANCY IS

EXPECTED TO FALL BACK DUE TO

SUPPLY INCREASE.

TENANTS INCREASINGLY SEEK

QUALITY STOCK, USING

OFFICE SPACE AS A TOOL TO

ATTRACT TOP TALENT.

Source: CBRE Cambodia, Q4 2019

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F2021F

Occupancy Rate Updated Forecast (Feb 2020)

Banking and insurance take the most space, followed closely by flexible workspace operators

Head leasing becomes a major outlet for developer risk

Strata title office developments sees a wave of regulations and a lack of new

launches56

2020

OFFICESECTOR TRENDS

Fit-out contractors start using AI to design workspaces

Working from home becomes the new normal in 2020

Some buildings become unlettable

7Tourism &Hospitality

58

2019: TOURIST ARRIVALS COMPARED TO REGION

Source: Ministry of Tourism, October 2019 & CBRE Cambodia Source: Bangkok Post 58

1.4% y-o-y

6.7 Mvisited

8.1% y-o-y

40 Mvisited

18 Mvisited

Source: Vietnam Ministry of Tourism

16.2% y-o-y

20

09

227% SIEM REAP INT’L AIRPORT

PHNOM PENH INT’L AIRPORT

1.3M tourist arrivals

0.5M tourist arrivals

1.7M tourist arrivals

0.6M tourist arrivals

20

19

136%

Source: Ministry of Tourism

60

WHAT’S NEXT? | The Case of Da Nang

60

20FLIGHTS / DAY

0FLIGHTS / DAY

DEC2019

FEB2020

61

RECOGNIZABLE NAMES

HOTELS: PHNOM PENH

3 & 4 Star hotels dominate the market

3

12Hotels

153Hotels

4

2Hotels

135Hotels

5

1Hotels

13Hotels

+1KKeys

20KKeys

2019

200961

Source: CBRE Cambodia

MARC’SFEARLESS FORECAST2020

MARC’S FEARLESS FORECAST FOR 2020

20 Cambodian companies list on the CSX in the next 12 months

1 Government stops imports of secondhand cars4

Cambodian government slashes the number of construction permits to control supply and credit growth

2 Drought, flood, fire, virusheatwave - all in 12 months5Cashless payment overtakes cash in urban areas6Online gaming makes a

comeback3

© 2020 Advantage Property Services Co., Ltd, trading as CBRE Cambodia, part of the CBRE affiliate network. All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, includingprojections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independentlyassessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offerto sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior expresswritten permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

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