Thailand Country Report

15 November 2013

Bandung, Indonesia

This contains confidential and proprietary information of VPC Asia-Pacific and is intended for the exclusive use of the parties to whom it wasprovided by VPC Asia-Pacific. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity,without VPC Asia-Pacific's permission. The findings and/or opinions expressed herein are the intellectual property of VPC Asia-Pacific and aresubject to change without notice.

1

Agenda

• Thai Economic Outlook

• Bangkok Property Update

• Recap: Our Service Offerings

2

Thailand: Economic Overview

• Slowdown in Economic Growth Expectation: The Thai real GDP is expected

to register a growth of 3.2% to 3.7% in 2013 (2012: 6.2%), due to a very high

base of the 2012 figure, post the flood crisis. The economy also experienced

weak exports during the second half of 2013.

• Inflation Stable: The Thai inflation has been tamed remaining below 3% while

unemployment is still below 1%.

• Weaker Baht: Thai Baht has depreciated (from THB 29/USD as of April 2013

to THB 31-32/ USD).

3

Thailand plans Massive $76bn Investment In Infrastructure by 2020

Route and Station “Concepts” for High-speed Rail in Thailand

4

Bangkok Mass Rapid Transit Map

Current and To-be (5 years from now)

Current To-be

5

Agenda

• Thai Economic Outlook

• Bangkok Property Update

• Recap: Our Service Offerings

6

Property Overview

• Slowdown in Property Sector: The property market performance in Thailand

was generally softened in 2013 due to declining liquidity as Central Bank has

tightened the housing loan requirements. Oversupply in some Bangkok property

areas is also a concern where developers continue to launch new projects closer to

future mass transit lines.

• Condominium Oversupply Becoming a Concern: In tandem with the moderate

overall property market performance, response to new launches in the Bangkok

residential market had declined. Local consumption power has been dampened

owing to Government 1st car incentive in 2012. The property market outlook for

property in prime area is still strong, also due to foreign investor appetite for

Bangkok condominium properties, supported by the weakening of the Baht against

other currencies. With more completions of residential projects, which have been

launches in the prior few years, it is expected to slow down in overall rental and

selling price growth.

7

Property Overview

• Office Outlook Positive: In the office/commercial market, the performance

continues to be robust in 2013 and is expected to continue so in the next few

years. The average occupancy rate of offices in Bangkok continues to increase to

89% in 2H2013. The limited good supply is the key driver on rental rate increase

where average grade A office can command about USD 25 per square meter and

that of grade B office is about USD 18 per square meter.

• Retails Outlook Stable: Meanwhile, the performance in the retail sector continues

to be strong in 1H2013. The average occupancy rate in Bangkok continues to be

above 95% in 1H2013. However, it will be a challenging year for retailers in

2H2013 and 2014 due to reduction of the purchasing power of consumers. Same

store sales of the whole sale players such as Tesco and Big C are experience a

negative growth.

8

Property Overview

• Hotel Outlook Stable-to-Positive: The hotel sector remained stable-to-positive

with tourist arrivals increasing by 17.5%, pushing average occupancy rates up for

all hotel grades. More supply is expected in the next coming few years by about

10% in terms of the number of room keys.

• REITs regulations are in the final stage of being finalized to replace Property Fund

in 2014, as a new vehicle for real estate fund raising.

• Overall, the property market will be more challenging year in 2H2013 and 2014.

9

Agenda

• Thai Economic Outlook

• Bangkok Property Update

• Recap: Our Service Offerings

10

Lynn Phillips Group Overview

Property is Our Business

Thai Property

Appraisal Lynn

Phillips Co., Ltd.

VPC Thailand

Established in 1987

•Provides property

valuation and land

surveyor services for

throughout Thailand

with 16 branches

•Approved valuer by

the Securities and

Exchange

Commission of

Thailand (SEC)

Thai Building

Surveyors Lynn

Phillips Co., Ltd.

VPC Thailand

Established in 2007

•Provides building

surveyor services

•Approved License

for Building Surveyor

by the Department of

Public Works and

Town & Country

Planning under

Ministry of Interior,

Thailand

JVS Financial

Advisory Co., Ltd.

Established in 1995

•Provides financial

advisory services to

both listed and non-

listed companies

•Approved Financial

Advisory by the

Securities and

Exchange

Commission of

Thailand (SEC)

PA Lynn Phillips

Co., Ltd.

VPC Thailand

Established in 1989

•Provides property

management,

research,

consultancy, and

agency services

•Approved agency

license under Real

Estate Broker

Association

Lynn Phillips

Mortgage Credit

Foncier Co., Ltd.

Established in 1977/

Acquired in 2006

•Takes deposit and

provides mortgage and

commercial loans

•Approved financial

institution license by

the Bank of Thailand

(BOT)

•Deposit insured under

the Deposit Protection

Agency (DPA)

Lynn Phillips

Asset

Management Co.,

Ltd.

Established in 2010

•Manages financial

institutions’ non-

performing assets

•Approved asset

management license

by the Bank of

Thailand (BOT)

Professional Services Financial Services

The VPC Thailand affiliates are independently operated

businesses and member firms of VPC Asia Pacific in association

with Cluttons, an affiliation of independent companies with 70

offices through more than 20 countries worldwide.