Office Market in Asia Emphasis on Serviced Offices in Hong Kong and Singapore Note: This Document Is for Representation Purposes Only

Office market in Asia Emphasis on serviced offices in Hong Kong and Singapore Note: This document is for representation purposes only. The facts and figures reported are masked. The report does not claim to accurately represent any industry, business entity, or person.

According to Regus and CBRE Group Inc, the serviced office market • In Tokyo, the office rents have been decreasing in the period of sector is currently small, but has a very significant long-term market xxxx-xxxx. The pipeline office supply is projected at x,xxx thousand outlook: sqm in xxxx, xxx thousand sqm in xxxx and x,xxx thousand sqm in Total available office space xxxx. Competitive landscape Serviced and co- • The prominent serviced office suppliers in the Asia region are working offices Regus plc, The Executive Centre Limited, Servcorp Limited and x% Compass Offices.

Prominent players 200 x Traditional offices x% 150

Office market outlook xxxx 100 x • According to Colliers International, the outlook for the Asia office x real-estate market looks optimistic, with an increasing number of 50 x multinationals expanding in human resources and corporate acquisitions. 0 • In China, Colliers anticipates companies in e-commerce and Offices in China and Singapore finance to show high growth which could mean increased demand Regus The Execuitve Centre for office space. Compass Offices Servcorp • Chengdu, Bangkok and Ho Chi Minh City will experience growth in the supply of office space, leading to flat rent rates.

Source: Web search

Foundation year: xxxx Products offered: Office space, serviced office space, virtual offices, meeting rooms, business lounges, day offices, co-working Headquarters: Luxembourg City, Luxembourg Other information: Biggest provider of serviced offices, recently entered in a joint-venture with the Singaporean government for the development of a new site

Global Asia and Pacific

Number of employees Number of employees x,xxx +x.x% x,xxx x,xxx +xx.x% x,xxx xxxx xxxx xxxx xxxx Revenue (GBPm) £ Revenue (GBPm) £

x,xxx.x +x.x% x,xxx.x xxx.x +x.x% xxx.x xxxx xxxx xxxx xxxx

Sources: Annual reports, company website

Global Asia and Pacific

Locations Locations xx Hong Kong x,xxx +xx.x% x,xxx xxxx xxxx xx Singapore

Workstations Workstations

xxx,xxx +xx.x% xxx,xxx xx,xxx +xx.x% xx,xxx xxxx xxxx xxxx xxxx

Sources: Annual reports, company website

Asia and Pacific workstations

Total Asia and xxxx Mature xxxx Expansion xxxx Expansion Closures Total Global Pacific

Workstations (avg) xx,xxx x,xxx x,xxx xxx xx,xxx xxx,xxx

Occupancy (%) xx.xx% xx.xx% xx.xx% xx.xx% xx.xx% xx.xx%

Revenue (GBPm) xxx.x xx.x x.x x.x xxx xxxx.x

Net income (GBPm) xx.x x.x -x.x - xx.x xx.x

Revenue per available - - - - x,xxx x,xxx workstation (GBP)

Period end workstations (xx - - - - xx,xxx xxx,xxx Dec xxxx)

Source: Annual report

Hong Kong locations

Country City Location Offices China Hong Kong Regus xxx QRC x China Hong Kong One IFC xxF x China Hong Kong Entertainment Building x China Hong Kong The Center x China Hong Kong AIA Central x China Hong Kong xxx QRC x China Hong Kong Shui On Centre x China Hong Kong Central Plaza x China Hong Kong Hopewell Centre x China Hong Kong China Resources Building x China Hong Kong Harbour City x China Hong Kong International Commerce Centre x China Hong Kong International Commerce Centre - xxF x China Hong Kong Miramar Tsim Sha Tsui x China Hong Kong Times Square x China Hong Kong The Lee Gardens x China Hong Kong Grand Century Place - Mong Kok x China Hong Kong Berkshire House Quarry Bay x China Hong Kong Millennium City x x China Hong Kong E-Trade Plaza - Chai Wan x

Source: Company website

Singapore locations

Country City Location Offices Country City Location Offices Singapore Singapore Asia Square x Singapore Singapore Geylang East Public Library x Singapore Singapore xxx Market Street x (Regus Express) Singapore Singapore Bharat Building x Singapore Singapore Toa Payoh Public Library x Singapore Singapore Tanjong Pagar x (Regus Express) Singapore Singapore Samsung Hub x Singapore Singapore Paya Lebar Square x Singapore Singapore MBFC Tower x x Singapore Singapore Galaxis-One North x Singapore Singapore Collyer Quay x Singapore Singapore Tampines Junction x Singapore Singapore x Raffles Place - Tower x x Singapore Singapore JTC Summit x Singapore Singapore One Raffles Place x Singapore Singapore Jurong Regional Library x Singapore Singapore UOB Plaza x Centre x (Regus Express) Singapore Singapore Royal Group Building x Singapore Singapore The Signature x Singapore Singapore AXA Tower x Singapore Singapore The Haven Changi Airport x Singapore Singapore One Fullerton x Express (opening soon) Singapore Singapore Sultan Link x Singapore Singapore Centennial Tower x Singapore Singapore Suntec Tower x x Singapore Singapore OrchardGateway@Emerald. x Singapore Singapore Wisma Atria x Singapore Singapore HarbourFront Tower One x Singapore Singapore United Square x

Source: Company website

Foundation year: xxxx Products offered: executive suites, serviced offices virtual offices, meeting rooms Headquarters: Sydney, Australia Number of employees Number of locations

xxx +x.x% xxx xxx +x.x% xxx xxxx xxxx xxxx xxxx Global Revenue (GBPm) £ Number of offices

xxx.x +xx.x% xxx.x x,xxx +xx.x% x,xxx xxxx xxxx xxxx xxxx

Note: Exchange rate: xxxx - USDx=GBPx.xxxx xxxx – USDx=GBPx.xxxx

Source: Annual report

Asia

Southeast Asia and Pacific Asia total revenue (GBPm) £ revenue (GBPm) £ xx.x +x.x% xxx.x xx.x x.x% xx.x xxxx xxxx xxxx xxxx

Locations North Asia* revenue (GBPm) £ x Hong Kong

xx.x +x.x% xx.x x Singapore xxxx xxxx

*Includes among others China and Japan. Excludes Middle East

Source: Annual report

Hong Kong and Singapore locations

Country City Location Offices China Hong Kong Central area, Level xx, Two x International Finance Center China Hong Kong Central area, Level x, the Hong x Kong Club Building China Hong Kong Kowloon area, Level xx, One x Peking Road Singapore Singapore Penthouse Level & Level xx, x Suntec Tower Three Singapore Singapore Level xx, Six Battery Road x Singapore Singapore Level xx, Marina Bay Financial x Center Singapore Singapore Level xx, PSA Building x Singapore Singapore Level x, The Metropolis Tower x x

Source: Company website

Founded: xxxx Products offered: Serviced offices, virtual offices, conference centres Other information: Plans to double the number of centres in the xxxx-xxxx period, company backed by CVC Capital Partners Headquarters: Hong Kong

Centres Revenue (GBPm) £ xx Global xx.x xxxx xxxx

Workstations Tot. office space ~x,xxx ~x.xm sq ft xxxx xxxx

Source: Company website

Occupancy rate in Locations Hong Kong x Hong Kong

x Singapore xx.x%

Country City Details N. of Number of offices Other centers China Hong Kong Level x, x and x, Two Exchange Square x xx (x-xx people) - China Hong Kong Level xx and xx, Nexxus Building x xx (x-xx) x meeting room China Hong Kong Level xx, Wheelock House x xx (x-xx people) Max capacity xxx workstations China Hong Kong Level xx and xx, The Hong Kong Club Building x xx (x-xx people) - China Hong Kong Level x, Three Pacific Place x xx (x-xx people) - China Hong Kong Level x and x, xx Hennessy Road x xx (x-xx people) - China Hong Kong Level x, Cambridge House x xx (x-xx people) - China Hong Kong Level xx, One Island East x xx (x-xx people) Equipped for conferences and trainings China Hong Kong Level xx, One Island East x >xx offices (x-x people) Max capacity xxx workstations Singapore Singapore Level xx and xx, Ocean Financial Centre x - - Singapore Singapore Level xx, One Raffles Quay North Tower x xx (x-xx people) Max capacity xxx workstations Singapore Singapore Level xx, Six Battery Road x xx (x-xx people) Max capacity xxx workstations Singapore Singapore Level xx, Marina Bay Financial Centre Tower x x xx (x-xx people) Max capacity xxx workstations

Source: Company website

First centre opened: xxxx Products offered: Serviced offices, virtual offices, conference centres. Other information: One of the largest and fastest growing serviced offices providers in Hong Kong

Centers Locations >xx xx Hong Kong xxxx x Singapore

Workstations >x,xxx xxxx

Source: Company website

Hong Kong and Singapore locations

Country City Location Offices Country City Location Offices Hong Kong Hong Kong China Building x Hong Kong Hong Kong Admiralty Centre x Hong Kong Hong Kong Central Building x Hong Kong Hong Kong xx Gloucester Road x Hong Kong Hong Kong Citibank Plaza x Hong Kong Hong Kong Tesbury Centre x Hong Kong Hong Kong Cheung Kong Centre x Hong Kong Hong Kong xx Yee Wo Street x Hong Kong Hong Kong Man Yee Building x Hong Kong Hong Kong The Lee Gardens x Hong Kong Hong Kong Silver Fortune Plaza x Hong Kong Hong Kong AIA Tower x Hong Kong Hong Kong The Centre x Hong Kong Hong Kong China Minmetals Tower x Hong Kong Hong Kong World Wide House x Hong Kong Hong Kong Silvercord x Hong Kong Hong Kong xxx Des Voeux Road Central x Hong Kong Hong Kong Langham Place x Hong Kong Hong Kong Infinitus Plaza x Singapore Singapore Prudential Tower x Hong Kong Hong Kong Nan Fung Tower x Singapore Singapore Singapore Land Tower x Hong Kong Hong Kong Yardley Commercial Building x

Source: Company website

Shanghai has the most serviced offices in China with over xx centres, Prominent players in China representing about xx% of China’s market share. These centres are mainly located in central business districts (CBD) such as West Regus The Executive Centre (TEC) Nanjing Road, Middle Huaihai Road and Lujiazui. Cities Number of centers Cities Number of centers • Shanghai is expected to increase by xx centres every year. Shanghai xx Shanghai x • In China, Beijing has the most expensive average workstation Beijing xx monthly rent of serviced offices. Below are some examples: Hong Kong x Hong Kong xx . Phase One of China World Towers: USDx,xxx ~ USDx,xxx Beijing x Foshan xx . Oriental Plaza: USDx,xxx.x ~ USDx,xxx Tianjin x Guangzhou x . Beijing Yintai Centre: USDx,xxx.x ~ USDx,xxx.x Shenzhen x Shenzhen x . China Central Place: USDxxx ~USDx,xxx.x Chengdu x Guangzhou x Chongqing x Chengdu x Total China xxx Total China xx

Compass Servcorp Cities Number of Cities Number of centers centers Hong Kong xx Shanghai x Guangzhou x Hong Kong x Shanghai x Beijing x Total China xx Chengdu x Guangzhou x Hangzhou x Total China xx

Note: Exchange rate: CNYx=USDx.xxxx Source: Web search

Trends in serviced office space sector Grade A office market • The total number of serviced offices in Hong Kong is close to xxx, The market is dominated by domestic players, with a xx.x% share of mainly located in Central District, Wan Chai, Admiralty and the office space market as of xxxx. Mainland corporations and Causeway Bay institutions (including banks and insurance companies) are mainly • Major brand operators include Regus, TEC, Servcorp and interested in the CBD, Wan Chai/Causeway Bay and Kowloon East Compass areas • Brand operators tend to gather in the same building, which indicates that the market is mature, however new centres are xxx buildings xx landlords steadily increasing • An emerging trend is co-working spaces, attractive to start-ups and small companies, the trend emerged in xxxx/xx xx mn sq ft xx% domestic-owned Hong Kong serviced offices sub-market spread xxxx CBD Number of centres x.x% vacancy rate xx% developed-owned Central District xx Wan Chai x Trends in the office space sector Tsim Sha Tsui x • The office vacancy rate is expected to reach x% in xxxx, up from Causeway Bay x x% in xxxx Admiralty x • According to Knight Frank LLP, in xxxx prime office space is Quarry Bay x valued at GBPxxxx/sq ft Kowloon x • Cost-sensitive tenants are looking for opportunities in less central locations, such as Island East and Kowloon East. Additionally, Kwun Tong x Tsim Sha Tsui, Kowloon East and Island East have lesser rental Sheung Wan x volatility

Sources: Industry reports, web search

Pipeline supply The Kowloon area • Pipeline supply through end of xxxx was set to be split xx/xx • The government is investing in alternative office hotspots. Thanks between Kowloon and Hong Kong Island. to this, the amount of top-tier office space in Kowloon East has • In the Kowloon East submarket, a major source of new supply is doubled to x.x million sq ft in xxxx-xxxx and a number of shipping the redevelopment of industrial buildings into grade A office and insurance companies have moved here. buildings. • The low interest rate environment has resulted in more office • The vast number of projects identified do not fulfil the criteria of occupiers acquiring their own premises. Some of the benefits larger, multinational occupiers, who prefer not to be spread out incurred include operational efficiencies, potential rental savings over multiple floors and prefer floorplates of more than xx,xxx sq ft. and certainty of future occupancy. Large, multinational companies • Larger companies prefer to be located in a single landlord building, have been acquiring offices in the Central District, Sheung Wan, due to ease of management and negotiation. Tsim Sha Tsui and Kowloon East areas. For example, Manulife • Smaller occupiers, such as small and medium firms, accounted for acquired the west tower of One Bay East for HKx.xbn in xxxx. xx% of letting activity in floorplates of more than xx,xxx sq ft, while • Kowloon East has the highest share of strata-title offices, at xx.x% xx% corresponded to large firms. of the market share • CBRE identified projects totalling x.x million sq ft of new office • As a rapidly-maturing sub-market, Kowloon East has attracted space in the xxxx-xxxx period, with Kowloon accounting for xx%. many end-users; in xxxx corporate occupiers owned x.x% of the office space Districts Supply (total floor area, Investor /Owner-occupied ration (over x,xxx sq ft net, sq ft xxxx-xxxx) gross) Kowloon East x,xxx,xxx Central District xxx,xxx 140 120 Wong Chuk Hang x,xx,xxx 100 x 80 Cheung Sha Wan xxx,xxx 60 x x 40 x Causeway Bay xxx,xxx 20 x x Kwai Fong and Tsuen Wan xxx,xxx 0 Hunghom xxx,xxx 2012 2013 2014 San Po Kong xxx,xxx Owner occupied Investor Wan Chai xx,xxx SourcesTotal: Industry reports, web search x,xxx,xxx

Trends in the serviced office space sector Trends in the office space sector • Serviced offices are generally popular with new-to-market • Net demand for office space in xxxx was x.xx million sq ft, companies from the oil and gas, recruitment, and legal industries. compared to x.xx million sq ft in xxxx. • Rent for serviced offices can be as high as USDx,xxx/month, as • The growth of employment in the office-occupying sectors was opposed to USDx,xxx/month for a rented space. In response to anticipated to translate into new demand for space; an overall the increased demand for short-term and flexible business space prime Grade A rent rise of xx.x% in xxxx, and a projected increase from aspiring entrepreneurs and some foreign companies, of x-x% in xxxx and x-x% in xxxx, especially in Marina Bay and Servcorp expanded its office space to xx office suites in Singapore Raffles Place. (xxxx). • Tenants might look for lower-cost options, such as suburbs and business parks. The rare differential is as much as xx-xx%. Grade A office market • According to the Singapore Urban Redevelopment Authority, • Due to external shocks, the average monthly gross rents for (URA), Downtown Core occupancy is at xx.x%, followed by Rest of Premium Grade office space in the Raffles Place/New Downtown Central Area with xx.x% and Central Area with xx.x%. micro-market will continue to increase by xx-xx% in xxxx. • Companies are transitioning to a more efficient ‘open office’ • Occupancy rates of Premium Grade and Grade A office space concept. Grade A offices could prove an attractive alternative to declined island-wide at end-xxxx, but the market is expected to Grade B Core CBD, given their more modern specifications. experience a gradual rebound this year. • URA has implemented a master plan whose aim is to encourage • Grade A office space in the Downtown Core has been increasing, decentralized regional centres that allow the residents to ‘live, work currently standing at x.x% of the office space market; this and play’ outside of the city centre. The opening of the JEM and submarket has a vacancy rate of x.x%. Westgate office towers was the first step. • According to Knight Frank LLP, in xxxxprime office space is valued at GBPxxxx/sq ft

Sources: Industry reports, web search

• Singapore is a popular destination for the Asian headquarters of many multi-national technology companies: Microsoft, Google, Facebook, Amazon, Vodafone, eBay, Yahoo!, LinkedIn and Expedia are headquartered in Singapore. • According to Cushman & Wakefield, the traditional office space occupier –the finance industry– has shrunk its market share from xx% in xxxx to xx% in xxxx, whereas tech companies increased their share from x% in xxxx to xx% in xxxx.

Pipeline supply of office space by location Office space Office space • The limited pipeline of new office space until xxxx will favour occupancy by type occupancy by type landlords, who are expected to gain more bargaining power. xxxx This, in turn, could support growth in rental rates, especially xxxx for Premium and Grade A office space in the CBD.

Pipeline Supply of Real-estate Office Space 1500 x x 1000 x x Finance Finance 500 Energy Tech x Tech Pharmaceutical 0 Consumer goods Government 2Q-4Q 2016 2017 2018 2019 Diversified Real estate 2015 Pharmaceutical Energy Other Office Space (2015-2019, sq ft) Legal Chemicals Professional services

Source: Web search

Company Properties Coverage Services Jumpstart Business Wheelock House (Hong Kong), Times Square (Hong Kong), China, Hong Virtual offices, serviced Centre Silvercord (Hong Kong), Millennium City x (Hong Kong), Kong, Taiwan, offices, meeting rooms, Langham Place (Hong Kong), Crawford House (Hong Kong), Yen Singapore and business registration Sheng Centre (Hong Kong), Wheelock Square (Shanghai), South Korea services L’Avenue (Shanghai), Central Plaza (Shanghai), Nanking East Rd (Taipei), The Octagon (Singapore), Dongsung Building (South Korea) Bridges Executive Central and Admiralty locations Hong Kong Serviced offices, virtual Centre offices, professional and secretarial offices Conson Langham Place (Hong Kong), Nam Fung Center (Hong Kong), China, Hong Serviced offices, virtual Wan Chai (Hong Kong), Kwun Tong Futura Plaza (Hong Kong), Kong, South offices, company Lippo Sun Plaza (Hong Kong), World Trade Center (Guangzhou, Korea, Taiwan formation services China), Korea Seoul Business Centre (South Korea), Globaltown International Business Centre (Taipei) Sky Business Centre Tsim Sha Tsui and Causeway Bay locations Hong Kong Serviced offices, virtual offices Startup Business Lippo Centre (Hong Kong), Kimberley Plaza (Hong Kong), China, Hong Serviced offices, virtual Centre Millennium City II (Kong Kong), xx Plaza (Hong Kong), Queen’s Kong, Taiwan offices, traditional Centre (Hong Kong), Sun Place Building (Beijing), Xintiandi offices, conference (Shanghai), Nanjing East Road (Taipei), Finance & IT Tower rooms, business centres (Macau)

Source: Web search

Company Properties Coverage Services

CEO Suite Athenee Tower (Bangkok), LG Twin Tower (Beijing), AXA Tower Singapore, Thailand, Virtual offices, (Jakarta ), One Pacific Place (Jakarta), Sahid Sudiman Centre Indonesia, Malaysia, serviced offices, (Jakarta), Indonesia Stock Exchange (Jakarta), Wisma GKBI South Korea, China, instant offices, (Jakarta), Axiata Tower (Kuala Lumpur ), Maxis xxth (Kuala Philippines professional services Lumpur ), LKG Tower (Manila), Kyobo Building (Seoul), Pudong for companies (Shanghai), World Financial Centre (Shanghai), Puxi (Shanghai), Land Tower (Singapore), Maxis xx (Kuala Lumpur)

Signature Space The Octagon Building (Singapore), Ubl TechPark (Singapore), Singapore, Vietnam. Serviced offices, Thanh Dung Tower (Ho Chi Minh City), L’Avenue (Shanghai) China virtual offices, conference and meeting rooms WANGZ Business xxx,xxx sq ft space with xx suites (Suntec Tower One, Marina Singapore Serviced offices Centre Bay) OfficeWise Representative broker for Propnex Realty Pte Ltd, a network of Singapore Factories, land, x,xxx commercial buildings offices, warehouses, shops, takeovers of existing businesses, furniture, etc. JustOffice Asia Square, AXA Tower, PWC Building, Samsung Hub, Singapore Serviced offices, Westgate Tower virtual offices, meeting rooms

Source: Web search

The information contained in this report has been obtained from sources believed to be reliable. Efforts have been made to validate the information from multiple sources, but the accuracy cannot be guaranteed. The author and InsightBee disclaim all warranties as to the accuracy, completeness or adequacy of such information. InsightBee shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof.