M A R K E T B E AT WUXI Retail Q4 2019

YoY 12-Mo. No New Projects in Q4, Accelerated Development in Emerging Submarkets Chg Forecast No new projects entered the market in Q4. However, new high-quality malls are expected in Xishan District in 2020, including Yaohan and Wuyue Plaza. Residents living between Wuxi Railway Station and Wuxi East Station will also enjoy a greater choice of prime shopping mall, besides Livat, 8.8% in the near future. New metro line construction is also expected to spur retail development, benefiting Huishan District and High-Tech District, Disposable Income Growth which are expected to host more prime regional shopping centres. Generally speaking, the development of Wuxi’s emerging area submarkets accelerated in 2019, with most completed malls now sufficiently mature and individual to attract a spectrum of different consumers at different 0.3% times of the day. Population Growth (2018) Festival Season Drives Footfall Traffic 8.3% Wuxi celebrated the 70th anniversary of the foundation of the People’s Republic of China with the opening of the expanded section of Metro Line 1. Accommodation and The new section affords greater convenience for citizens traveling to the city’s major retail destinations, such as Rongchuan g Mall. With the onset Catering Revenue Growth of winter, the ski slope at Rongchuang Mall attracted families in Wuxi, and even from Shanghai, to experience winter sport activities rarely seen in Source: Wuxi Statistics Bureau East China. Similar retail offerings to attract customers and boost shopper loyalty were also found in Wuxi’s emerging areas. Malls prepared indoor The forecast is based on Oxford Economics campaigns, events and performances during the festival season, enhancing the overall consumer shopping experience. Among the activities in Q4, Mixc’s cooperation with cultural creative brand, Wu Huang Wan Shui, was an experiential retail concept seen for the first time in the city. WUXI ECONOMIC INDICATORS JAN - SEPT 2019 ‘First Store Economy’ Continues to Grow YoY 12-Mo. After entering China in 2017, famous U.S. cake brand, Lady M opened its first store in Wuxi’s Center 66 in November. Previously, Lady M had Chg Forecast targeted just five China city markets, and this sixth opening has highlighted Wuxi’s retail market potential. Other F&B brand s including Lelecha also 8.7% marked their first appearance in Wuxi in the quarter. During the winter period F&B brands are still able to attract many cust omers in Wuxi, and this Total Retail appeal has gone a long way to help boost sales in other retail sectors such as clothing. On the back of the Q4 festive season performance, the Sales Growth citywide average occupancy rate recorded a new high of 97.5%, while the citywide average rental rose to RMB 592.0 per sq m per month. 7.0% GDP Growth

RENT / VACANCY RATE RETAIL SUPPLY PIPELINE BY SUBMARKET 2.6% CPI Growth

Source: Wuxi Statistics Bureau The forecast is based on Oxford Economics M A R K E T B E AT WUXI Retail Q4 2019

MARKET STATISTICS UNDER CNSTR TILL 2023 OVERALL AVG RENT SUBMARKET INVENTORY (SQM) VACANT (SQM) VACANCY RATE (SQM) (RMB/SQM/MO)* CHONG’AN TEMPLE 436,500 3,829 0.9% - 456-1,520 SHENGLIMEN 122,000 7,700 6.3% - 486-600 GUANGYI NEW CITY 228,000 4,712 2.1% 254,000 210-240 TAIHU 180,000 6,400 3.6% - 300 XINWU DISTRICT 335,000 18,100 5.4% 100,000 450-600 TAIHU NEW CITY 515,400 4,874 1.0% - 200-400 W UXI TOTALS 1,816,900 45,615 2.5% 966,656 200-1,520

* Rental rates are calculated by NLA and considered as consistently achievable for prime space (usually the ground floor) in major shopping centers, excluding management fee, promotional fee and other fees.

SIGNIFICANT STORE OPENINGS Q4 2019 SHAUN BRODIE PROPERTY SUBMARKET TENANT SECTOR Head of Occupier Research, Greater China The Mixc Taihu New City Lelecha Food & Beverage 42-43/F, Tower 2, Plaza 66, 1366 Nanjing West Road The Mixc Taihu New City Baitaoshuo New Retail Shanghai Tel: +86 21 2208 0529 / [email protected] Center 66 Chong’An Temple Lady M Food & Beverage Center 66 Chong’An Temple Szefong Rice Cuisine Food & Beverage Grand Orient Department Store Chong’An Temple Dunkin Food & Beverage cushmanwakefield.com

SIGNIFICANT PROJECTS UNDER CONSTRUCTION PROPERTY SUBMARKET EXPECTED OPENING DATE SQM Xishan Yaohan Guangyi New City 154,000 2020 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Xishan Wuyue Plaza Guangyi New City 100,000 2020 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for Yuanrong Plaza Others 125,000 2021 real estate occupiers and owners. Cushman & Wakefield is Xinwu Wanda Plaza Xinwu 100,000 2021 among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other serv ices.

©2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to itsaccuracy.