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Presented by:Presented by:Mr. Richard Leech Mr. Richard Leech --
Executive DirectorExecutive DirectorCB Richard Ellis (Vietnam)CB Richard Ellis (Vietnam)
January 14th, 2010January 14th, 2010
VIETNAM RETAIL PROPERTY VIETNAM RETAIL PROPERTY
MARKET MARKET
SUPPLY, DEMAND & SUPPLY, DEMAND &
PIPELINE PROJECTSPIPELINE PROJECTS
CB Richard Ellis | Page 2
Vietnam Retail Market
Another year of consecutive growth in retail sales, around 18%, highlighting the continued strength of local demand for goods and servicesCBD rentals remain steady. Many renovated shophouses taking up excess demandNumerous mid-end and high-end brands entering Vietnam in the last year: Naf Naf, Morgan de Toi, Mexx, Aldo, Hard Rock Café, Debenhams.Many Non-CBD shopping centres are still having difficulty maintaining tenants and low absorption rate i.e. Saigon Paragon and The Gardens Hanoi.The CBD retail saw the first major new supply in 2009 with the opening of Vincom Galleries, Hanoi and in HCMC with Kumho Asiana Plaza both of which launched with under 20% vacancy.
HIGHLIGHTS
CB Richard Ellis | Page 3
Renovation and improvement of shophouse retail will continue to put pressure on rents, especially outside the city centre.
The issues faced by non-CBD retail centres highlights issues of tenant mix. More projects may turn to master leases with professional retailers (department store, mall operator)
ENT (Economic Needs Test) – required for foreign owned retailers to open 2nd stores.
FORECAST
Vietnam Retail Market
More luxury retailers to enter the marketContinued international-style retailing: multi-brand stores, new F&B conceptsConversions of wet markets into formal trade centres.Growing demand to come from:
•Expanding Vietnamese retail chains – nationwide rollout•Arriving International brands as WTO hangover wears off
VIETNAM
HO CHI MINH CITY
CB Richard Ellis | Page 5
HCMC Retail Market - Modern Retail Centre’s
Total HCMC stock – 256,025sm GFA (22 shopping centres and department stores)
Department stores: 98,840 sm GFAShopping centres: 157,185 sm GFA
Occupancy Rate – Averages: 95.3%
Rental RateAverage prime rents (GF+1F) in the CBD:
US$99.1/sm/moAverage prime rents (GF+1F) out of the CBD:
US$46.6/sm/ moHighest Rents in the CBD :
up to US$ 250 per sm per month
CB Richard Ellis | Page 6
HCMC Current Retail Supply – Major Projects
CB Richard Ellis | Page 7
HCMC Retail Current Supply
Retail supply more than doubled in 2 years
HCMC CUMMULATIVE STO CK AND NEW SUPPLY FRO M DEPARTMENT STO RES AND SHO PPING CENTRES
0
50,000
100,000
150,000
200,000
250,000
300,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
sm
Existing supply New supply
CB Richard Ellis | Page 8
Current Market
HCMC Average Retail Rents
* Centers with vacancies being forced to reduce rents
AVERAGE PRIME RENTS O F SHO PPING CENTRES AND DEPARTMENT STORES
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Average prime rent in CBD Average prime rent out of CBD
CB Richard Ellis | Page 9
HCMC Future Supply – Project until 2013HCMC FUTURE SUPPLY BY REGIO N
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2010 2011 2012 2013
sm
CBD Non CBD
Total new supply until 2013: 740,000 sqm – triple the current supplyNone-CBD retail space to increase almost 50% in 2010 and 7 times more in 2013
CB Richard Ellis | Page 10
HCMC Future Supply – Typical Projects until 2013EXPECTED FUTURE RETAIL SUPPLY
24,000
53,960
11,090
44,000
44,000
14,566
23,000
70,000
27,104
8,292
30,904
140,000
38,000
22,000
186,464
The EverichDist 11
Vincom Chi LangDist 1
Bitexco Financial TowerDist 1
The CrescentDist 7
Promenada (Phase 1)Binh Duong
Times SquareDist 1
Saigon M&CDist 1
Tan Phong Shopping ComplexDist 7
Vincom EdenDist 1
SJC TowerDist 1
Royal GardenDist 7
Le Van Tam Underground Park
Berjaya Financial TowerDist 10
Platinum PlazaBinh Chanh
Promenada (Phase 2)Binh Duong
2010
2011
2012
2013
CB Richard Ellis | Page 11
HCMC Future Supply – Typical Projects until 2013
CB Richard Ellis | Page 12
Location: Ba Thang Hai Street, Dist. 11
Developer: Phat Dat Corporation
GFA: 24,000 m2
Confirmed tenant: Lotte Mart
Concept: Hypermarket & Retail
Status: Fitting-out
Expected Opening: Q1 2010
THE EVERICHTHE EVERICH
HCMC Future Retail Supply
CB Richard Ellis | Page 13
Location: 70-72, Le Thanh Ton, Dist. 1Developer: Vincom JSCGFA: 53,700 sqm (5 levels above ground
and 3 levels underground)Expected Opening: 30th April 2010Status: Under construction - 80% leased
HCMC - New Mega/ Regional Retail Developments
VINCOM CENTER
CB Richard Ellis | Page 14
Location: 45 Ngo Duc Ke, Dist 1, HCMC
Developer: BitexcoLand
Concept: Grade A Office & Retail
Retail GFA: 20,000sqm – including 3 upper levels
Attraction: Iconic landmark of in HCMC, Sky lounge, VIP ClubOpening: Oct 2010
BITEXCO FINANCIAL TOWERBITEXCO FINANCIAL TOWER
HCMC Future Retail Supply
CB Richard Ellis | Page 15
HCMC Future Retail Supply
Location: 22 -36 Nguyen Hue - Dist 1 – HCMC (located with 2 frontages: Nguyen Hue & Dong Khoi Streets)
Developer: Time Square (Vietnam) Investment Joint stock Co.
Concept: Complex of high-end hotel, apartments, a business center, luxury shopping and entertainment facilities
Retail GFA : 14,5662 sqm (split on 5 floors)
Attraction: An L shape integrated world-class tower bringing to Ho Chi Minh City its first true one-stop contemporary luxury lifestyle destination.
Opening: Quarter 2 - 2011
TIME SQUARETIME SQUARE
CB Richard Ellis | Page 16
HCMC Future Retail Supply
Location: 600A Dien Bien Phu street, Ward 22, Binh Thanh Dist, Ho Chi Minh city
Developer: Daewon Hoan Cau Housing Development JVC., LTD
Concept: super-class, luxury, utilities, security and the extremely modern inside apartments
Retail GFA : 776 sqm ( 2 floors)
Attraction: The beauty of CANTAVIL"s view, presents sky blue lake with pristine early morning mist. Transform your ordinary days into extraordinary days .
Opening: quarter 1 - 2009
CANTAVIL HOAN CAUCANTAVIL HOAN CAU
CB Richard Ellis | Page 17
Location: Le Dai Hanh, Dist. 11Developer: Paujar (Taiwan)Retail GFA: 7,500 sm (5 levels) Concept: Retail F&B & Office ServicesExpected Completion: Q4 2010Status: Under construction
THE FLEMINGTON – PHASE 2
HCMC Future Retail Supply
CB Richard Ellis | Page 18
HCMC Future Retail Supply
Location: Ton Duc Thang, Dist.1Developer: JV of M&C Co. - Saigon
Tourist – Eastern Asia Commercial Bank (VN)
GFA: 23,000 smExpected Completion: 2010
Status: Under construction
SAIGON M&C TOWER
CB Richard Ellis | Page 19
HCMC Future Retail Supply
Location: 92 Nguyen Huu Canh, Binh Thanh Dist.Developer: Vietnam Land SSGRetail GFA: 8,000 sm (2 levels)Expected Completion: TBCStatus: Planning
SAIGON PEARL
CB Richard Ellis | Page 20
HCMC - New Mega/ Regional Retail Developments
Location: Phu My Hung CityGFA: 44,000 sqmExpected Completion: 2011Status: Under constructionInfrastructure: well-developedPrime location in Financial
Centre Area
CRESCENT MALL
CB Richard Ellis | Page 21
Location: Binh DuongDeveloper: ECC Invest / Gucco
LandGFA: 82,000 sm (2 phases)Expected Completion: Q3/2011 &
Q3/2012Status: Under constructionInfrastructure: well-developedAdjacent to VSIP and Song Be
Golf Course
HCMC - New Mega/ Regional Retail Developments
PROMENADA
CB Richard Ellis | Page 22
Nguyen Huu Tho, Dist 7GFA: 70,000 sm Completion : Q4 2012 Under constructionDeveloper : NovalandStrategic Asset Manager :
Pacific Star
HCMC - New Mega/ Regional Retail Developments
SUNRISE CITY
CB Richard Ellis | Page 23
Location: Thu Thiem, Dist.2Developer: BTATotal construction: 600,000 smExpected Completion: 2012Status: Under planningInfrastructure: Thu Thiem Bridge
opened to traffic on 9th January, 2008
HCMC - New Mega/ Regional Retail Developments
METROPOLIS
CB Richard Ellis | Page 24
Location:An Phu Ward, Dist. 2Developer: Keppel LandGFA: 80,000 smExpected Completion: 2012Status: Under planningDemographics:133,257Infrastructure: Thu Thiem Bridge
completed early 2008, Thu Thiem Tunnel under construction
HCMC - New Mega/ Regional Retail Developments
SPORTS CITY
CB Richard Ellis | Page 25
Developer: SSG2Location: District 2 HCMCGFA: 20,000 sqmExpected Completion: 2012Status: Under PlanningInfrastructure: modern, easy
HCMC - New Mega/ Regional Retail Developments
THAO DIEN PEARL
CB Richard Ellis | Page 26
Location: Le Hong Phong, Dist.10Developer: Berjaya (Malaysia)GFA: 186,464 smExpected Completion: 2013Status: Under planningInfrastructure: developed
HCMC - New Mega/ Regional Retail Developments
SAIGON FINANCIAL CENTRE
VIETNAM
HANOI
CB Richard Ellis | Page 28
Hanoi Retail Market – Modern Retail Center
Total Stock ≈ 103,576 sm GLA (13 major shopping centres/dept. stores) Most are located in CBD areas (Hoan Kiem, Hai Ba Trung)
Occupancy Rate ≈ 83.3% CBD shopping centres stay strong (0.38% vacancy) Non-CBD shopping centres encounter vacancies (36.92% vacancy)
Average Rental RateAverage prime rents (GF+1F) in the CBD: US$80/sm/month (Q4 2009)Average prime rents (GF+1F) out of the CBD: US$35/sm/month (Q4 2009)Highest Rents in the CBD: up to US$146/sm/mo
CB Richard Ellis | Page 29
Hanoi Retail Current Supply
Retail supply more than doubled in 2 years
CB Richard Ellis | Page 30
Hanoi Retail Supply _ Major Projects
Existing Projects
Future Projects
CBD
CB Richard Ellis | Page 31
Hanoi Retail Future Supply – Project Until 2012
Total new supply until 2012: 510.000sqm- 5 times more than the current supplyMost are in None-CBD (especially new
urban area in the West of HanoiStill limited space within CBD
CB Richard Ellis | Page 32
GRAND PLAZA HANOI
Hanoi Future Retail Supply
Location: Tran Duy Hung Str., Cau Giay Dist.
Owner: IDJ Financial
Land Area:19,689sqm
Gross Floor Area: 150,146sqm (Hotel, Office
& Retail)
Retail: 27,461sqm GFA
Expected Completion: Q2, 2010
CB Richard Ellis | Page 33
SAVICO PLAZA HANOI
•Location: Nguyen Van Linh Str., Long Bien Dist.
•Owner & Developer : Savico JSC
•Description :The biggest commercial complex at the North-East gateway to Hanoi,
consisting of a shopping mall and a business center
•Retail Concept: A shopping mall with hypermarket anchor tenant
•Retail NLA : 52,000 sqm (1 basement + 3 floors)
•Expected Completion: 2011
Hanoi Future Retail Supply
CB Richard Ellis | Page 34
Location: Dao Tan – Lieu Giai Str., Ba Dinh Dist.Developer: LotteNo. of floors: 63 (incl. 5 basements)Site area:14,094.00 sqmTotal gross area:253,394.59 sqm (Retail, Office,
Residential)Retail Podium (Bas5-7F): 34,682.07 sqm – Lotte
Department StoreLatest ground breaking: 22 Oct 2009Expected Grand Opening: 2012Concept: Lotte Department Store
HANOI CITY COMPLEX
Hanoi Future Retail Supply
CB Richard Ellis | Page 35
Location: Pham Hung Str., Tu Liem Dist.
Developer: Keangnam Enterprises Ltd.
Gross Floor Area: 579,000sqm (Retail, Office, Apartments
for sales, Hotel, Serviced Apartments)
Retail: 82,875sqm GFA (6 floors)
Ground breaking: Q3, 2007
Expected Grand Opening: 2012
KEANGNAM HANOI LANDMARK TOWER
Hanoi Future Retail Supply
CB Richard Ellis | Page 36
YEN SO PARK SHOPPING MALLLocation: Yen So Ward, Hoang Mai Dist.
Owner & Developer : Gamuda Land Group
Description : The Center of all commercial
activities, complimented by the festive retail,
offices, hotels and convention center.
Land Area: 3.85 ha
Retail NLA : 49,253 sqm (4 Storey Podium)
Completion: 2012
Status: Under planning
Hanoi Future Retail Supply
CB Richard Ellis | Page 37
Location: Lac Long Quan, Tay Ho Dist.
Owner: Citra Westlake
Description: Regional shopping mall
Net Lease able Area: 114,000 sqm
(incl. food court, cinema, department
store, Big C hypermarket)
Expected Completion: 2012
HANOI
CIPUTRA HANOI MALL
Hanoi Future Retail Supply
CB Richard Ellis | Page 38
TIMES SQUARE HANOILocation: Pham Hung, Tu Liem Dist.
Developer: VinaCapital
Five Star Hotel (300 rooms), Grade A Office (20,000sqm) & Retail (30,000sqm)
Land Area: 4 ha
Net Leasable Retail Area: 30,000 sqm
Ground Breaking: Dec 2008
Completion: 2012
Hanoi Future Retail Supply
CB Richard Ellis | Page 39
INDOCHINA PLAZA HANOILocation: Xuan Thuy, Cau Giay Dist.
Developer: IndochinaLand
Luxury Apartments (2 towers, 25 & 30 floors), Office (15 floors) & Retail (5 floors)
Total GFA: 124,489sqm
Net Leasable Retail Area: 19,929sqm
Ground Breaking: Q4, 2008
Completion: 2012
Hanoi Future Retail Supply
CB Richard Ellis | Page 40
HANOI ROYAL CITYLocation: 74 Nguyen Trai, Thanh Xuan Dist.
Developer: Vincom Jsc
Development area of 169,220 sm - A city within a city with Hotel, schools, condominiums, retail, offices
Retail Total GFA: 200,000sqm
Ground Breaking: Jan, 2010
Expected Completion: Q4, 2014
Hanoi Future Retail Supply
CB Richard Ellis | Page 41
So why do retailers continue to consider the VIM nations?
CONDITIONS – Upside
Growing young population and accelerating urbanisationGrowing urban upper and middle classContinued industrialization and technological progress = wealthChanging lifestyles = openness to western brands and consumption habits
CONDITIONS – Downside
Fragile economic environmentStrong domestic competitionNeed capital and patience ….and lots of itUndeveloped infrastructurePoor and relatively small.
CB Richard Ellis | Page 42
Ha Noi office
12A floor, Vincom City Towers191 Ba Trieu
Hai Ba Trung District
Ho Chi Minh City office
12 floor, Me Linh Point Tower2 Ngo Duc KeDistrict 1
CB RICHARD ELLIS (VIETNAM)
Mr. Richard Leech – Executive Director [email protected]
CB Richard Ellis | Page 43
THANK YOU!
www.cbrevietnam.com
© 2009 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.