Myanmar | One Giant Leap for Real Estate

Tony Picon | Associate Director | Colliers International Thailand New Myanmar Investment Summit 2012 PARKROYAL, Yangon

Map of Yangon | How we zone the city

Outside Yangon City

Thilawa Port 25 km

NO VACANCIES Hospitality Challenges

Hotel market | Crunch time

SUPPLY BY LOCATION OF UPPER SCALE HOTEL ROOMS

1000 800 Rooms 600 400 200 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Downtown Area Inner City Area Outer City Area

Source : Colliers International Thailand Research

Hotel | Supply shortage

UPPER SCALE/LUXURY HOTEL ROOMS

16,000 14,000 12,000 10,000 Rooms 8,000 6,000 4,000 2,000 0 Yangon Vientiane City
Source : Colliers International Thailand Research 5

Bangkok

Hospitality | Making up for lost time

No new Upper Scale hotels for past 10 years Office space kept hotels alive Sudden influx leading to near full occupancy Room rates beginning to soar Serviced Apartments in same situation Bonanza expected over next three years

Three to four year timeframe

Few nearly completed projects Economy/three star hotels Refurbish existing properties Improve old hotels Mandalay/Nay Pyi Taw airports Apartments for lease Training

The 150 dollar per sq m office of the future

Historical supply Office in Yangon

HISTORICAL SUPPLY FOR YANGON

80,000 60,000 40,000 20,000 1993 1994 1995 1997 1996 1998 2000 1999 2001 2002 2004 2003 2005 2006 2008 2007 2009 2011 2010

Area (Sq M.)

Year Supply at the start of the year

Source : Colliers International Thailand Research 9

Additional supply during the year

Office supply | A long way to go

SUPPLY IN VARIOUS LOCATIONS

160,000 140,000 120,000 Area (Sq M) 100,000 80,000 60,000 40,000 20,000 0 Empire Tower (Bangkok) Yangon City Phnom Pehn Vientiane

Source : Colliers International Thailand Research 10

Office market | Future trends

HISTORICAL SUPPLY FOR YANGON AND HO CHI MINH CITY

2008 Hanoi 550,000 sq m HCMC Rents top $100 sq m Grade A Full occupancy

1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Yangon
Source : Colliers International Thailand Research 11

HCMC

The next industrial revolution

Industrial Estate

PROPORTION OF INDUSTRIAL ESTAE LAND IN YANGON AND OTHER STATES / DIVISIONS

Source : Department of Human Settlement and Housing Development (DHSHD) and Colliers International Thailand Research

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Industrial Estates in Myanmar

HIS TORICAL S UPPLY IN MYANMAR 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Area (Hectare)

Year Supply at the start of the year Additional supply during the year

Source : Department of Human Settlement and Housing Development (DHSHD) and Colliers International Thailand Research 1 hectare = 6.25 rai

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Ports for future opportunity

Thilawa Sittwe Kyaukphu Dawei Pathein

But wait and see

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A real hardship posting?

Serviced apartment market

HISTORICAL SUPPLY IN YANGON

800 600 Units 400 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Supply at the start of the year
Source: Colliers International Thailand Research 17

Additional supply during the year

Hardship posting
Very limited serviced apartments Quality condominiums in short supply but changing Hospitals vary in quality Construction sites will define next few years Power cuts will still be part of life

Not everybodys choice but .......

But delightful

Accelerating Success 2nd largest commercial real estate 2nd most recognized commercial real estate brand globally Over 12,500 professionals 512 Offices in 61 Countries Over 2 billion sq ft under management US$ 2 billion in revenue

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