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

Sources : Economist Intelligence Unit - Eurostat

per inhabitant

GDP GROWTH IN ASIA

%

Source: Economist Intelligence Unit

-2

0

2

4

6

8

10

12

1999 2000 2001 2002 2003 2004 2005

China Hong Kong India Indonesia Japan

Source: Economist Intelligence Unit

%

-2.5

-1

0.5

2

3.5

5

6.5

8

9.5

1999 2000 2001 2002 2003 2004 2005

Singapore Vietnam PhilippinesThailand Taiwan Malaysia

GDP GROWTH IN ASIA

CHINA: 4% OF WORLD GDP

Consumption:

• 27% of world’s 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

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

CHINA: GROWTH ENGINE

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 -> Offices moving out of central

Delhi and Mumbai

OFFICE MARKETS

• Office: part of a mixed use development with retail, hotels, ….

• Office markets less speculative than the residential market

• 2004: general rents firming-> +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–> +240% since 1996

OFFICE MARKETS: KEY FIGURES

Rent Vacancy Rate

Hong Kong

Shanghai

Mumbai

Ho Chi M

inh

10.78.0

7.5

20.0

16.5

7.8

3.5

8.0

14.5

0

100

200

300

400

500

600

700

0

5

10

15

20

25

%US $/m²/year

Tokyo

Beijing

Seoul

Singapore

Taipei

Hong K

ong

Tokyo

Beijing

Shanghai

Mumbai

Ho Chi M

inh

Seoul

Singapore

15.00

8.00

6.00

4.00

5.25

9.609.00

11.00

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20,000

0

2

4

6

8

10

12

14

16

Price YieldUS $ / m² %

OFFICE MARKETS: KEY FIGURES

OFFICE MARKET TRENDS

Steady/CoolingDown

WarmingUp

CoolingFurther

HotterStill

Hong KongTokyo

Hong KongTokyo

ShanghaiManila

ShanghaiManila

TaipeiJakarta

Ho Chi Minh

TaipeiJakarta

Ho Chi Minh

SingaporeBangkok

Kuala LumpurBeijingSeoul

SingaporeBangkok

Kuala LumpurBeijingSeoul

Sunny

Chilly

• Transparency -> launch of REITs in Singapore, Japan, South Korea, Malaysia and China

• Region attractiveness:

Direct Property investments

INVESTMENT TRENDS

Morgan Stanley Beijing, Shanghai, Tianjin

GE Capital Japan

Macquerie & ING Shanghai

Carlyle Planned

Seoul,

Beijing,

Shanghai

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

Under development

Delivery June 2007

Total investment: US$ 480 million

SIGNIFICANT TRANSACTION

• 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

INVESTMENT TRENDS

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%

SIGNIFICANT TRANSACTION

ASIE: HIGHLIGHTS

• Regional consumption: + 5.3% en 2004• Tourism: strong driver for development • South Korea: real estate sector attracting

overseas investors

ASIE: CHALLENGES

• Level of Education

• Rising disposable incomes

• Growth in consumption

• Sustainability

• Global city/regional planning

• Regeneration or new towns?

• Conservation of heritage assets