Advanced Process to Deliver Benefits to Landlords

“The future of property Management in Vietnam”

February 2016

Agenda

• JLL Property Management Asia Pacific Coverage • Property Management Service Cycle • Property Management Delivery

• Our Systems • Benefits to clients • References

Australia

New Zealand

Indonesia

Singapore

Vietnam

Thailand India

China

Taiwan

Korea Japan

Philippines

Hong Kong & Macau

India •1,980 Property

Management professionals •Manage over 153 million

sq ft of space

Thailand •1,100 Property

Management professionals •Manage over 50 million sq

ft of space

Vietnam •30 Property Management

professionals •Manage over 1.4 million sq

ft of space

Philippines •120 Property Management

professionals •Manage over 11 million sq

ft of space

New Zealand •21 Property Management

professionals •Manage over 5 million sq ft

of space

Taiwan •26 Property Management

professionals •Manage over 9 million sq ft

of space

Japan •185 Property Management

professionals •Manage over 49 million sq

ft of space

Korea •27 Property Management

professionals •Manage over 8 million sq ft

of space

China •6,582 Property

Management professionals •Manage over 627 million

sq ft of space

Hong Kong & Macau •4,849 Property

Management professionals •Manage over 78 million sq

ft of space

Indonesia •118 Property Management

professionals •Manage over 50 million sq

ft of space

Singapore •280 Property Management

professionals •Manage over 31 million sq

ft of space

Australia •832 Property Management

professionals •Manage over 99 million sq

ft of space

Asia Pacific’s Largest Management Firm

PAM ASIA PACIFIC Q3 2015 stats •16,098 PAM professionals •Manage over 1.2 billion sq ft

of space

3

Property Management Service Cycle

Services throughout development to operations and disposal

YOU

Design: Management

considerations for operations

Development: Prepare budgets, service charge,

operation manuals

Pre opening: HR procedures, fitting out

control, lease management

Operations: Accounting, engineering,

tenant relations, lease renewals

Asset Management: Drive revenues,

control expenditure,

disposal strategies

Benefits to the Owners

Getting it right from the start

Smooth operations will help increase customer satisfaction

Optimise Asset Performance

Maximise Control and Minimise Risk

Property Management Delivery

7 7

Integrated Service Delivery

Human Resource

Financial control and

management

Engineering and

Sustainability Management

Operations Management,

security, cleaning,

landscaping

Operational and

accounting audits

Budgeting and asset

management strategies

Tenant Relations

Site Operations Executive Support

Comprehensive coverage in site operations including Risk Mgt, Engineering Mgt, Health & Safety, Document Control, Vendors & Contracts Mgt, Security Mgt, HR Mgt, Financial Mgt etc.

Periodic audits to assess and ensure compliance in critical focus areas – Finance, HR, Procurement and operations.

Staff are a key component to success – Ensure you have the right staff and management teams in place

Integrated Operations

CMO – Operational Compliance

• ‘OpsAIDE’ - Operational Audit Induction Direction and Education - is our self-performed review of internal management practices and business processes

• This program ensures that processes, guidelines, and expectations are actively delivered in the field.

• CMO Compliance records the outcomes of OPS AIDE audits, allowing for the management and measuring of compliance to Jones Lang LaSalle’s Operational Risk Management platform.

• CMO Compliance enables us to benchmark the results across the portfolio and pinpoint specific areas of training. This in turn results in our ability to more efficiently and consistently manage risk exposures for the owners.

Building the best talent in the industry for you

Training

Provides premium property management training services to our staff and clients Offers ad hoc training, short-term courses and property management certificates and diplomas

Online

Face-to-face

PAM Academy

17

PAM Academy

Our systems – MRI and Acumen

MRI Property Management

• Industry-leading application for Lease Administration, Property Management and Accounting

• Real-time reporting, including functional

dashboards, allows for greater consistency and visibility across your entire portfolio

• Risk minimisation through proactive

management that identifies issues as they emerge, and enables faster and more effective response to incidents.

MRI Property Management • Lease Administration • Management of real estate from stand-alone properties up to large portfolios, both physical and financial, in one

centralised location • Review of historic, current, and projected tenant charges, lease, and asset management information • Accounts Payable and Receivable • Streamlined procedures that minimise manual intervention while improving control of supplier payments • Automated processes and validation to ensure errors are minimised: Accounts Payable automatically checks for duplicate

invoices and verifies whether funds are available before cheque processing begins • Online expenditure management – online approval and release of invoices to be paid • Banking interface automation that facilitates accuracy and efficiency in payments and receipting • General Ledger and Reporting • Integrated financial ledgers that enable complete control, analysis, and reporting of past, present, and future financial

status • Integrated purchase order module to enable expenditure control and automatic expenditure accruals • Supports multiple accounting ledgers, including actual, budget, and forecast to allow for financial comparison and

benchmarking

Acumen Reporting Platform • Single integrated digital and mobile platform

for reporting and analysis

• Visualisations enable large quantities of data to be presented in an easy to read manner, highlighting focus areas

• Portfolio snapshots with drill down analysis

• Benchmarking of expenses and retail metrics

• Alerts and Watch-list accessible at any time and with email notification

• Reports, leases and plans available via a secure web-based portal

• Owner Preferences that manage data presentation such as currency, area, ownership % and accounting basis for the Asia Pacific region

Executive Summary

• The Executive Summary page gives a snapshot overview of building performance

• Financial and Tenancy metrics are included to give a broad view of performance in all key areas.

• Consolidate all properties in your portfolio, view one property at a time, or create your own selection

Finance

• The Finance module lets you quickly see how each property is performing against Budget or Forecast, for the current month or year-to-date, with the ability to drill down into more detail on the P&L, Arrears and Capex.

• The colour coding of variances provides both numerical and visual analysis of those items that require attention.

.

Tenancy Management

• Tenancy Management shows a high level view of leasing activity, occupancy and upcoming expiries in one place, enabling users to see the outcome of tenant retention programs and leasing campaigns.

• An instant visual story of occupancy and expiry profiles, by both area and income provide exposure risk analysis to the major tenant types of office, retail and industrial.

Retail

• The Retail module has the unique measures of sales, occupancy cost, traffic and average spend, so we have designed dedicated dashboards that provide performance measurement for these metrics.

• The dashboards will benchmark performance against the same month, prior year, the prior 12 months of MAT, Urbis and the JLL average, as well as other centres within the same portfolio.

• The performance of the large Tenant chains can also be compared across your centres.

Planalysis – Retail Data Analysis

• Planalysis is a data visualisation tool that brings retail property management information to life on a graphical colour-coded floor plan.

• Planalysis achieves this by providing:

• Attractive interactive visualisations which facilitate the interpretation of information.

• Powerful and automated charting and graphical representation of data,

• Tools to quickly understand trends, relationships between data and to analyse performance,

• A simple, intuitive and effective user friendly interface that is accessible by non-technical users.

Leasing Strategy

Assess upcoming vacancies to mitigate risk and identify opportunities for consolidation of tenancies

PAM Evolution

Evolution

Evolution: Tenant Portal

Evolution: PPM Schedule

Evolution: Asset Register

Benefits of Good Management to Clients

Benefits • Tenant retention • Increased rents • Increased building life cycle • Increased Asset Value

JLL Added Value • Full range of Management Systems included • Real Corporate support structure • Regionally and Globally Respected Brand

Results of good operational management:

Selected references and Key Clients

2

Banking and Financial Services

Insurance and Pension Funds

Healthcare and Pharmaceuticals

Consumer Goods and Retail

Computing and Technology

Oil, Gas & Resources

Professional and Business Services

Key Clients – Asia Pacific

Beijing Yintai Centre

Gateway Plaza, Premier Office Building

Citigroup Towers Shanghai

Taipei 101 – 2.1 million

The Exchange, Tianjin

Major Commercial Buildings- Asia Pacific

Major Commercial Buildings- Thailand

Thai Summit Tower Energy Complex Empire Tower Park Venture Sathorn Square

Retail Clients

HOMNICEN REAL ESTATE TPL HOLDINGS BEIJING CAPITAL OUTLETS MACQUARIE Retail Mall Retail Mall Retail Outlets Retail 70,000 sq.m 350,000 sq.m ( 3 properties) 350,000 sq.m (3 properties) 1.2 M sq.m (10 properties) Huaguoyuan North China North China 9 Malls 2013 2013/2014 2013/2014 2010 SET-UP Design review, leasing and shopping centre set-up. Dedicated team of headquarter staff from the East and West region and a seconded team comprising of leasing, property management and retail operations

SET-UP & OPERATIONS Shopping centre set-up a dedicated team of headquarter staff from Central and North region and a seconded team comprising property management and retail operations staff.

SET-UP Shopping centre marketing & operations set-up. a dedicated team of headquarter staff from East China and North region comprising marketing and retail operations experience.

Re-launch 2010 Shopping centre set-up a dedicated team of headquarter staff from Central and North region and a seconded team comprising property management and retail operations staff.

Summary

Essential Property Management Skills – Must have

• Good Communication • Strong processes and auditing • Advanced IT Systems • Be Proactive • Think value add – Don’t be a “mailbox” • Knowledge of tenants • Leasing competency

Get it right from the start!

Summary • Get your preferred property managers involved if possible at

the design and development stage • Ensure your managers are referenced and understand the

situation • Property managers should be seen as a key contributor to

the success of a building Benefits • Well thought through management strategies will lead to

o Smooth operations o Tenant retention o Increased rents o Increase asset value

CCTV headquarters

Questions and Answers

Thank you

Presented by Dexter Norville