Diapositive 1

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KEY DEMOGRAPHICS
Asia Europe (25 countries) USA
3,800 million 455 million 291 million
42 million km² 4 million km² 9 million km²
US 4,969 US 23,600 US 36,300
1,720 million 220 million 142 million
per inhabitant
Sources Economist Intelligence Unit - Eurostat
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GDP GROWTH IN ASIA
China
Hong Kong
India
Indonesia
Japan

12
10
8
6
4
2
0
1999
2000
2001
2002
2003
2004
2005
-2
Source Economist Intelligence Unit
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GDP GROWTH IN ASIA
Singapore
Vietnam
Philippines
Thailand
Taiwan
Malaysia

9.5
8
6.5
5
3.5
2
0.5
1999
2000
2001
2002
2003
2004
2005
-1
-2.5
Source Economist Intelligence Unit
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CHINA 4 OF WORLD GDP

• Consumption
• 27 of worlds steel
• 7.5 of oil
• 34 of coal
• 40 of cement
• 2004 FDI totaled US 60.6 billion
• Disposable income per capita
• 1 135 urban residents
• 353 rural population
• Private economy
• 47 between 1989 and 2003
• generates ¼ more jobs than the state sector

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CHINA GROWTH ENGINE

• Middle Class
• 5 of total population in 2004
• 45 of total population in 2020
• 2004 25 million Chinese can now afford to travel
  abroad
• 2008 estimation 50 million
• Retail sales
• Growth of 13.3
• 450 million mobile phones

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INDIA THE NEXT CHINA ?

• Strong economic growth (outsourcing from the US
  and Europe)
• Engineers average salary 8,000 (Germany
  40,000 )
• Intel US 40 million invested in Bangalore
  2,400 employees
• Inadequate infrastructure
• -gt Offices moving out of central Delhi and
  Mumbai

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OFFICE MARKETS

• Office part of a mixed use development with
  retail, hotels, .
• Office markets less speculative
• than the residential market
• 2004 general rents firming
• -gt 30 in 2004 in Hong Kong
• 15 forecast in 2005
• Growing focus on second and
• third tier cities
• Premium office space in Asia 34 million m²
• gt 240 since 1996

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OFFICE MARKETS KEY FIGURES
Rent
Vacancy Rate
US /m²/year

25
700
20.0
600
20
16.5
500
14.5
15
400
8.0
300
10.7
10
7.8
8.0
7.5
200
3.5
5
100
0
0
Beijing
Seoul
Taipei
Tokyo
Mumbai
Shanghai
Hong Kong
Singapore
Ho Chi Minh
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OFFICE MARKETS KEY FIGURES

US / m²
Price
Yield
20,000
16
15.00
18 000
14
16 000
12
11.00
14 000
9.60
10
9.00
12 000
8.00
10 000
8
8 000
5.25
6.00
6
6 000
4.00
4
4 000
2
2 000
0
0
Beijing
Seoul
Tokyo
Mumbai
Shanghai
Singapore
Hong Kong
Ho Chi Minh
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OFFICE MARKET TRENDS
Hong Kong Tokyo
Shanghai Manila
Sunny
Taipei Jakarta Ho Chi Minh
Singapore Bangkok Kuala Lumpur Beijing Seoul
Chilly
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INVESTMENT TRENDS

• Transparency -gt launch of REITs in Singapore,
  Japan, South Korea, Malaysia and China
• Region attractiveness
• Direct Property investments

Morgan Stanley Beijing, Shanghai, Tianjin
GE Capital Japan
Macquerie ING Shanghai
Carlyle Planned Seoul, Beijing, Shanghai
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SIGNIFICANT TRANSACTION
Beijing Yintai Centre Surface 350,000
m² Date 1st Quarter 2005 Merrill Lynch
purchased a US 30 million stake Owner
Beijing Yintai Property
Under development Delivery June 2007 Total
investment US 480 million
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INVESTMENT TRENDS

• Indirect Property investments
• Early investors in Seoul now selling out
• But Mismatch between reality and expectations

ERGO Tru Asia (sister company of MEAG) Has taken a position in Shui On Properties (developer)
UBS and Hongtai Trust and Investment launch of a fund management joint venture
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SIGNIFICANT TRANSACTION
Star Tower Location Seoul, South
Korea Surface 210,000 m² Date 4th Quarter
2004 Price US 816 825 million Seller
Lone Star Fund III Purchaser GIC Real Estate
Pte Ltd Yield 8-9
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ASIE HIGHLIGHTS

• Regional consumption 5.3 en 2004
• Tourism strong driver for development
• South Korea real estate sector attracting
  overseas investors

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ASIE CHALLENGES

• Level of Education
• Rising disposable incomes
• Growth in consumption
• Sustainability
• Global city/regional planning
• Regeneration or new towns?
• Conservation of heritage assets