170619-viettel-complex-tenant-event-os ... - vietnam · pdf file1 cbre office occupier outlook...

1 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017

Presented by:

Hieu Le, Office Advisory and Transactional Director, CBRE Vietnam

Richard Colville. Asset Management Director, CBRE Vietnam

Wednesday, 21st June 2017

HO CHI MINH CITY


VIETNAM IN THE FOREIGN PRESS


Public Transportation UpdateINFRASTRUCTURE

Metro line no. 1

Water bus

Underground packagestarted on 26 May 2017

Trial ride at the end of JuneFirst route operates in July

Bicycle

Possibility to Develop a Bike - Sharing System in Ho Chi Minh City

Short of capital for Metro line no. 1


Public Facilities INFRASTRUCTURE

Flood prevention project

Bui Vien Pedestrian street

Source: VNExpress, Baomoi.


Airport UpdateINFRASTRUCTURE

Tan Son Nhat airport - expansion

Long Thanh International airport

Finalising expansion plan in December 2017.

3B3

Expansion plan -group 3Construction in: 2-3 yearsTotal investment:VND 19,350 billion

Source: VNExpress, CafeF, Baomoi.

Da Nang airport – International terminal

3 phasesConstruction in: 2017-2030 yearsTotal investment:VND 336,630 billion

Construction in: 1.5 years

Total investment:VND 3,500 billionSite area: 2.1 haGFA: 48,000 sm

Ready for operating

http://baomoi-photo-2-td.zadn.vn/17/06/13/50/22522678/1_118869.jpg


HCMC CBD to Tan Son Nhat Airport by Helicopter INFRASTRUCTURE

Source: VNExpress.

Helicopter type: EC-155B1Range: 671 kmCapacity: 2 pilots and 12 passengersRoute: Times Square to Tan Son Nhat airport

Other Helicopter pads in HCMC CBD

HH

H

H

H

H


FDIStable Flow of FDI into Real Estate

51%

23%

7%4%

15%Manufacturing

Mining

Real Estate

Retail and wholesale,vehiclesOthers

25%

75%

1. Samsung increased US$2.5billion of capital in Bac Ninh Province.

2. Japanese JV with PVN and PVGas. in a project in Kien Giang worth US$1.27 billion

3. Taiwan invested US$485.8million in a polyester manufacturing company in Binh Duong Province.

4. Coca-Cola Vietnam had increased capital of US$319.8million.

5. Singaporeans investor committed US$285 million in Vietnam-Singapore IP III in Binh Duong Province.

2007

Source: Vietnamese General Statistics Office.

5M 2017

Vietnam Newly Registered FDI in 5M 2017: USD5.6 billion

Top FDI Investors, USD million, 5M 2017 Major FDI projects in 5M 2017

Total FDI 5M 2017:

• Newly Registered: USD5.6 billion• Increased Capital: USD4.7 billion• Shares Purchase: USD1.8 billion

USD12.1 billion, up 10.4% y-o-y

4,420

1,945

1,239

1,008

828

South Korea

Japan

Singapore

China

Taiwan


DASHBOARD – PRODUCED MONTHLY

(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.

Source: Stockbiz, May 2017

Source: GSO, Jun, 2017 Source: GSO, SBV, SJC & HSX, Jun, 2017

NEW LAUNCHES 2Y 1Y 6M 3M 1M Current

HCMC New launches (unit) 71,935 38,007 17,896 12,470 7,219 3,352

HN New launches (unit) 54,872 35,422 19,324 10,612 5,073 2,282

Source: CBRE, Jun, 2017

ECONOMIC INDICATORS 2Y 1Y 6M 3M 1M Current

CPI (%) y-o-y 1.0 2.3 4.5 5.0 4.3 3.2

Trade balance (US$, bil) (1.2) (0.4) (0.4) (1.2) (0.8) (0.8)

Retail & services Turnover (VND, tril) 199.1 286.2 302.9 309.3 317.5 323.5

BANKING & FINANCE 2Y 1Y 6M 3M 1M Current

VN-Index 569.6 616.0 672.7 717.4 716.9 738.2

USD/VND (inter-bank) 21,673 22,352 22,067 22,350 22,350 22,396

Local gold (VND mil/tael) 34.9 33.3 35.6 36.8 36.7 36.3

Lending Rate (%)* 8.1% 7.3% 7.8% 9.1% 9.5% 9.5%

Deposit rate (%)**(1-year term) 6.4% 6.7% 6.7% 6.7% 6.7% 6.7%

REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current

Real Estate Holding & Development Listed Companies

45.20 50.29 47.77 51.20 49.47 51.10

Real Estate Services Listed Companies 54.8 29.48 33.74 45.8 44.69 45.30


Real Estate Index OCCUPIERS DASHBOARD

HCMC REAL ESTATE INDEX

2015 2016 2017

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Total supply (thousand sm GFA) 2,228 2,307 2,326 2,377 2,377 2,377 2,377 2,421 2,429 2,493

Rental Grade A(US$/sm/mth) $34.2 $34.9 $35.0 $35.9 S35.7 $38.7 $35.7 $36.6 $37.0 $36.3

Rental Grade B(US$/sm/mth) $19.1 $19.2 $19.7 $19.8 $19.7 $19.9 $19.9 $21.0 $22.0 $21.0

Source: CBRE Vietnam , Q1 2017


OFFICE MARKET UPDATE


2017 is the year of Decentralization OFFICE

Viettel Complex Q2 2017 Mapletree

Business Center Q1 2017

Saigon Giai Phong Newspaper Q1 2017

Deustches Haus Q3 2017

Saigon Centre P2 Q3 2017

Etown Central Q4 2017

Lao Dong News Q3 2017


Etown Central – GFA: 67,760 sm

New Supply In 2017OFFICE

The First ever large scale Grade B office complex in District 10

Q1 2017

Q3 2017

Q4 2017

211. Deustches Haus – GFA: 38,621 sm

2. Saigon Centre Phase 2 – GFA: 40,000 sm

3. Lao Dong News – GFA: 5,000 sm

Viettel Complex – GFA: 65,971 smQ2 2017

Viettel ComplexOfficially Opened: 21st June, 2017GFA: 65,971 sm


SGGP Newspaper –GFA: 8,000 sm

3


Limited To No New Supply For The Past Two Years OFFICE

New Grade A & B supply by Quarter, HCMC Office


Current Supply by Grade, Q2 2017 Current Supply by District, Q2 2017

0200,000400,000600,000800,000

1,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

NLA

(sm

)

Grade A Existing Supply Grade A New Supply Grade B Exising Supply Grade B New Supply

29%

71%

Grade A

Grade B58%

11%

9%

7%2%

13% District 1

District 7

Tan Binh

District 3

District 10

Others


Rents and Vacancy OFFICE

Grade B4.0%

Grade A5.3%

+1.7% y-o-y

+5.7% y-o-y

-1.7% q-o-q

-4.0% q-o-q

Grade BUS$ 21.0

Grade AUS$ 36.3


0%

2%

4%

6%

8%

10%

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22015 2016 2017

Vaca

ncy

Rat

e (%

)

Ask

ing

Ren

t (U

S$/

sm/m

onth

)

Grade A Vacancy Grade B VacancyGrade A Asking Rent Grade B Asking Rent

15 CBRE TỔNG QUAN THỊ TRƯỜNG VĂN PHÒNG | Q2 2017

Net Absorption

Grade B to continue good absorption momentum OFFICE

Net Absorption, HCMC Office, Q2 2017

-10,0000

10,00020,00030,00040,00050,00060,00070,00080,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

NLA

(m2)

Grade A Grade B

Nguồn: CBRE Vietnam Quý 2 2017


Decentralized Districts to perform well when there’s new supply OFFICE

Rents and Vacancy, Decentralized Districts, Q2 2017


(4,000) (2,000)

- 2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

Net

Abs

ortio

n (N

LA s

m)

District 3 District 7 Tan Binh Phu Nhuan District 10


Demand Largely From Asia OFFICE

New letting

Relocation & Expansion

9%

91%

Q2 2017Q1 2017

21%

79%

Source: based on CBRE’s enquiries, 2017 y-t-d

Demand by OriginsDemand by Purposes

Local tenants 29%International tenants

APAC 55%

EMEA 12%

AMERICAS 5%

http://en.wikipedia.org/wiki/File:Flag_of_Vietnam.svg


Preferred Leasing Space is getting Larger OFFICE

Source: based on CBRE’s enquiries, 2017 y-t-d

0%

20%

40%

60%

80%

100%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

0 - 249 sm 250 - 499 sm 500 - 1000 sm 1000+ sm

Manufacturing, Real Estate and Telecommunication to step up

Enquired Size

Manufacturing24%

Real Estate/ Construction 19%

Telecommunication/ Media 10%


Major TransactionsOCCUPIERS DASHBOARD

MAJOR TRANSACTIONS IN

HCMC MARKETQ2 2017

Building Sector Size in sqm Rent(US$ sqm)

Service Charge (US$ sqm)

TNR Energy 350 $21.00 $6.00

Viettel Complex IT 317 $20.50 $5.50

Diamond Plaza Aviation 174 $32.00 $8.00

Viettel Complex IT 197 $20.00 $5.50Diamond Plaza Media 172 $31.00 $8.00

Lim 1 Pharmaceutical 390 $28.00 $6.00

Viettel Complex Business Center 638 $19.00 $5.50

Bitexco Financial Tower Business Center 1,000 $40.00 $8.00

Landmark Real Estate 600 $20.00 $6.00

Mapletree Business Center Service (Transportation) 2,400 $16.00 $6.00

Green Power Media 173 $26.00 $6.00

Viettel Complex Pharma 639 $19.00 $5.50A&B Tower Trading 450 $33.00 $6.00



Future Supply OFFICE


2018 - 2019

1. Spirit of Saigon – GFA: 15,000 sm

2. Saigon M&C – GFA: 49,000 sm

3. VietCapital Center – GFA: 38,621 sm

4. The Khai – GFA: 15,000 sm

5. The Prince – GFA: 15,000 sm

1 2

3

4

5

3

2020 1

1. SJC Tower – GFA: 38,000 sm

2. Tax Center – GFA: 35,000 sm

3. Nexus Tower – GFA: 133,834 sm

4. Capitaland at Vinhome Golden River – GFA: N/A sm

5. One Hub – GFA: 159,462 sm

6. Tan Son Nhat Plaza – GFA: 128,190 sm

7. Crescent Hub – GFA: 36,297 sm

7

42

3

6

5


“Co-working spaces are large occupiers capable to generating stable revenue over a long period of time,” – Primed for Growth, Co-working Space in Vietnam

Co-working Space: Alternative Supply and Anchor Tenant OFFICE

Source: CBRE Vietnam , Q2 2017; CBRE Vietnam Major Report: Primed for Growth, Co-working Space in Vietnam


Lim 2 Tower

OFFICE Supply Trend: Build – Occupy – Lease

Total Building NLA: 15,964 sm

Owner Occupied: 47%

Public Leasing NLA: 8,400 sm

Vietcombank Tower

Developer: Cho Dui co., Ltd.

Year Completed: Q2 2015

Developer: Vietcombank –

Bonday – Ben Thanh Tourist

JV Co., Ltd.



Owner Occupied: 47%



Viettel Complex


Owner Occupied: 41%


Developer: Viettel


SGGP Building

Developer: Saigon Giai

Phong Newspaper



Owner Occupied: 42%


23 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017*Hanoi skyline

VIETTEL TOWER


CBRE is proud to manage and lease this project

Biggest Office complex in HCMC this year Biggest ever in District 10 District 10: central location, high population, investor

interest Convenient Amenities: both onsite and nearby Retail: Bac Binh Mall & Berjaya Mall opening in

neighborhood Benefits from future infrastructure improvement: Metro &

Road

VIETTEL TOWER


VIETTEL TOWER

Viettel Tower


VIETTEL TOWER


VIETTEL TOWEREAST & SOUTH DIRECTION – DISTRICT 1 & 3

Viettel Group

BitexcoFinancial

TowerTimes Square

Lim 2 Tower Nam A

Bank

Thien Hoa Electrical Supply

Store

District 1 (CBD) / D3 Fringe

10-15 minutes from Viettel

Vietcombank

New Pacific Hotel (4-star)

New Epoch Hotel (3-

star)


VIETTEL TOWERNORTH DIRECTION – TAN BINH & PHU NHUANDISTRICT

Viettel Group

Cach Mang Thang Tam

Lan Anh Stadium

District 10

Phu Nhuan District

Saigon Railway Station5 minutes from Viettel Tower

Tan Binh District

Tan Son Nhat Airport15-20 minutes from Viettel

Tower


VIETTEL TOWERWEST DIRECTION – DISTRICT 10

Viettel Group

Children’s Hospital 1

Ky Hoa HotelHa Do Centrosa –

Apartment ($2.100/sqm) & from

$600.000 for Townhouse

Managed by CBRE

Bac Binh Mall

People’s Hospital 115

Pham Ngoc Thach University of

Medicine


CBRE is selected to set up operation and deliver ongoing management

Construction Completion Transition from Project Support Tenants for their fitting out Bring local & international experience to benefit occupiers CBRE manages 45 active projects in Vietnam (1.5million

sqm) This is our biggest single building: commitment to quality

VIETTEL TOWER


CBRE team onsite for you Property Management

Office Retail

Customer Service – Q&A, maximize your experience Leasing Support – guide you through process Back of House – for a smooth operation Welcome

VIETTEL TOWER


CBRE can also help outsource your non core activities

Reception – switchboard & mail handling Pantry & Catering provision Janitorial – cleaning & pest control Transportation & Messenger service Handyman – keep your fitout in good condition Offsite storage Contingency planning

VIETTEL TOWER


VIETTEL TOWERRETAIL PODIUM– TOWER A

Viettel Group

Highland CoffeeGround Floor

Viettel StoreGround Floor

BankGround Floor

Training Center & Education

Level 1 –1,795sqm

Food & BeverageLevel 2 –2,000sqm

Gym/FitnessLevel 3 –3,080sqm


VIETTEL TOWERTYPICAL FLOOR PLAN

Viettel Group


VIETTEL TOWERHANDOVER STANDARD

Viettel Group

All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information containedherein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubtits accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessingthe 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 offer to sell or buy or subscribefor 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 bealtered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorisedpublication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arisingby reason of any person using or relying on information in this publication.

For more information regarding this presentation please contact:CBRE Vietnam Co., Ltd. – Research & ConsultingT +84 8 3824 6125

F +84 8 3823 8418

Email: [email protected]

170619-viettel-complex-tenant-event-os ... - vietnam · pdf file1 cbre office occupier outlook...

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