OPPORTUNITIES FOR TENANTS
IN A DOWN MARKET
IN A DOWN MARKETIN A DOWN MARKET
IN A DOWN MARKET
15
1515
15
th
thth
th
April 2009
April 2009April 2009
April 2009
PRESENTED TO EUROCHAM BY RICHARD LEECH
PRESENTED TO EUROCHAM BY RICHARD LEECHPRESENTED TO EUROCHAM BY RICHARD LEECH
PRESENTED TO EUROCHAM BY RICHARD LEECH
CB Richard Ellis | Page 2
Agenda
AgendaAgenda
Agenda
 Where Are We Now
 Hanoi Office Market
 Hanoi Serviced Apartment Market
 Seizing Market Opportunities inc. Lease
Restructuring
CB Richard Ellis | Page 3
Internal Conditions & Drivers
CB Richard Ellis | Page 4
Where we are now?
Where we are now?Where we are now?
Where we are now?

secure reliable incomesecure reliable income
secure reliable income that will see them through this economic
downturn and a significant amount of planned new supply. They are offering capital
contributions to fit-outs, free rent periods, enhanced flexibility, and lower face rents to
attract quality tenants for longer lease term durations.
CB Richard Ellis | Page 5
Stock Market Rising
Stock Market Rising Stock Market Rising
Stock Market Rising -
--
- 30 Day Trend
30 Day Trend30 Day Trend
30 Day Trend
Graph from VNDirect
CB Richard Ellis | Page 6
This heat graph shows the individual listings and the color show
This heat graph shows the individual listings and the color showThis heat graph shows the individual listings and the color show
This heat graph shows the individual listings and the color shows the number of views.
s the number of views. s the number of views.
s the number of views.
Lighter blue is fewer views, darker purple represents more views
Lighter blue is fewer views, darker purple represents more viewsLighter blue is fewer views, darker purple represents more views
Lighter blue is fewer views, darker purple represents more views.
..
.
Web Analytical Data
Web Analytical Data Web Analytical Data
Web Analytical Data –
––
– Heat Graph

Market
Tenants
TenantsTenants
Tenants
Lack of space
Lack of spaceLack of space
Lack of space
Less favourable rental terms
Less favourable rental termsLess favourable rental terms
Less favourable rental terms
Tenants
TenantsTenants
Tenants
Lower Rents
Lower RentsLower Rents
Lower Rents
Time favours Tenant
Time favours TenantTime favours Tenant
Time favours Tenant
Landlords
LandlordsLandlords
Landlords
High Vacancy
High VacancyHigh Vacancy
High Vacancy
Lower Cash flow
Lower Cash flowLower Cash flow
Lower Cash flow
Landlords
LandlordsLandlords

)
Change in Office Rents in the Region as at Q4/2008
Change in Office Rents in the Region as at Q4/2008 Change in Office Rents in the Region as at Q4/2008
Change in Office Rents in the Region as at Q4/2008
-30
-20
-10
0
10
20
30
HCMC Hanoi HongKong Singapore Manila Bangkok Jakarta
Percentage Change
Quarter-on-Quarter Year-on-year
CB Richard Ellis | Page 10
Office Rent Cycle
Office Rent Cycle Office Rent Cycle
Office Rent Cycle –
––
– Hanoi Office Market
Hanoi Office Market Hanoi Office Market
Hanoi Office Market
2005-2008 Q2 2008
Q1/2009 2010-2011
Hanoi City
Hanoi CityHanoi City
Hanoi City
Phase
PhasePhase
Phase

700,000
800,000
900,000
1,000,000
2007 2008 2009 2010
year
sm
Source: CBRE (Vietnam)
CB Richard Ellis | Page 12
Source: CBRE (Vietnam
Source: CBRE (VietnamSource: CBRE (Vietnam
Source: CBRE (Vietnam)
) )
)
Asking rents of Grade A and B
Asking rents of Grade A and BAsking rents of Grade A and B
Asking rents of Grade A and B
AVERAGE ASKING RENTS OF HANOI GRADE A & B
AVERAGE ASKING RENTS OF HANOI GRADE A & B AVERAGE ASKING RENTS OF HANOI GRADE A & B
AVERAGE ASKING RENTS OF HANOI GRADE A & B
OFFICE PROPERTIES 2007 - 2009
OFFICE PROPERTIES 2007 - 2009OFFICE PROPERTIES 2007 - 2009
OFFICE PROPERTIES 2007 - 2009
$0
$10
$20
$30
$40
$50
$60

Opera Business Center, Asia
Tower, Vietcombank Tower
63 Ly Thai To, Central Building,
Pacific Place, Sun City
$35-$45
$35-$45$35-$45
$35-$45
$55-$60
$55-$60$55-$60
$55-$60
$45-$55
$45-$55$45-$55
$45-$55
CB Richard Ellis | Page 14
Occupancy rates in existing buildings
Occupancy rates in existing buildingsOccupancy rates in existing buildings
Occupancy rates in existing buildings
RECENT HANOI OFFICE MARKET OCCUPANCY STATISTICS
RECENT HANOI OFFICE MARKET OCCUPANCY STATISTICSRECENT HANOI OFFICE MARKET OCCUPANCY STATISTICS
RECENT HANOI OFFICE MARKET OCCUPANCY STATISTICS
90.64%
90.64%90.64%
90.64%98%
98%98%
98%97.3%
97.3%97.3%
97.3%Overall
OverallOverall
Overall
83.37% 97.3% 95.0% Grade B

VinaconexVinaconex
Vinaconex Tower
TowerTower
Tower
12,800
12,80012,800
12,800US$22
US$22US$22
US$22
Plaschem
PlaschemPlaschem
Plaschem Plaza
PlazaPlaza
Plaza
40,000
40,00040,000
40,000Unknown
UnknownUnknown
Unknown
Cau
CauCau
Cau Giay
GiayGiay
Giay New Submarket
New SubmarketNew Submarket
New Submarket
3,000
3,0003,000
3,000unknown
unknownunknown

99
9
15,000
15,00015,000
15,000US$20
US$20US$20
US$20-
--
- US$22
US$22US$22
US$22
CMC Building
CMC BuildingCMC Building
CMC Building
6,160
6,1606,160
6,160US$30
US$30US$30
US$30
CDC Building
CDC BuildingCDC Building
CDC Building
23,000
23,00023,000
23,000Approx US$50
Approx US$50Approx US$50
Approx US$50
Capital Tower
Capital TowerCapital Tower
Capital Tower

Proposed headline rent & GFA
Proposed headline rent & GFA Proposed headline rent & GFA
Proposed headline rent & GFA –
––
– 2009 new buildings
2009 new buildings2009 new buildings
2009 new buildings
New Hanoi Grade A&B Office Supply
New Hanoi Grade A&B Office SupplyNew Hanoi Grade A&B Office Supply
New Hanoi Grade A&B Office Supply
* The above rentals include Service Charge, exclude VAT
* The above rentals include Service Charge, exclude VAT* The above rentals include Service Charge, exclude VAT
* The above rentals include Service Charge, exclude VAT
CB Richard Ellis | Page 16
Source: CBRE (Vietnam
Source: CBRE (VietnamSource: CBRE (Vietnam
Source: CBRE (Vietnam)
) )
)
Hanoi office market
Hanoi office market Hanoi office market
Hanoi office market –
––
– Net absorption & vacancy rate
Net absorption & vacancy rateNet absorption & vacancy rate
Net absorption & vacancy rate
NET ABSORPTION AND VACANCY RATE OF GRADE A & B
NET ABSORPTION AND VACANCY RATE OF GRADE A & B NET ABSORPTION AND VACANCY RATE OF GRADE A & B
NET ABSORPTION AND VACANCY RATE OF GRADE A & B
OFFICE PROPERTIES

2009 Q1
sm
-10%
0%
10%
20%
30%
40%
50%
60%
Net Absorption Vacancy Rate
CB Richard Ellis | Page 17
CB Richard Ellis | Page 18
Hanoi My Dinh New Urban Area office supply in 2008, 2009
Hanoi My Dinh New Urban Area office supply in 2008, 2009Hanoi My Dinh New Urban Area office supply in 2008, 2009
Hanoi My Dinh New Urban Area office supply in 2008, 2009