KEY DEMOGRAPHICS AsiaEurope (25 countries) USA 3,800 million455 million291 million 42 million km²4 million km²9 million km² US$ 4,969US$ 23,600US$ 36,300 1,720 million220 million142 million Sources : Economist Intelligence Unit - Eurostat per inhabitant

GDP GROWTH IN ASIA % Source: Economist Intelligence Unit ChinaHong KongIndiaIndonesiaJapan

Source: Economist Intelligence Unit % SingaporeVietnamPhilippines ThailandTaiwanMalaysia 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: $ 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 % of total population in : 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 Minh % US $/m²/year Tokyo Beijing Seoul Singapore Taipei

Hong Kong Tokyo Beijing Shanghai Mumbai Ho Chi Minh Seoul Singapore , Price Yield US $ / m² % OFFICE MARKETS: KEY FIGURES

OFFICE MARKET TRENDS Steady/ Cooling Down Cooling Further Warming Up Hotter Still Hong Kong Tokyo Hong Kong Tokyo Shanghai Manila Shanghai Manila Taipei Jakarta Ho Chi Minh Taipei Jakarta Ho Chi Minh Singapore Bangkok Kuala Lumpur Beijing Seoul Singapore Bangkok Kuala Lumpur Beijing Seoul Sunny Chilly

Transparency -> launch of REITs in Singapore, Japan, South Korea, Malaysia and China Region attractiveness: Direct Property investments INVESTMENT TRENDS Morgan StanleyBeijing, Shanghai, Tianjin GE CapitalJapan Macquerie & INGShanghai 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: 4 th 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