Investment Memo for Land Plot in HCMC D2 on Dong Van Cong street near An Phu and Thu Thiem. 11,497 sqm site cleared and ready.

1. Mixed-Use Development
Mixed-Use Development:
Residential, Commercial
Data Sheet
Dong Van Cong Street, District 2,
Thanh My Loi Ward, Ho Chi Minh City, Vietnam
March 2014
PREPARED BY:
Peter Dinning General Director
KyNam Doan Investment Manager
Colliers International
Ho Chi Minh City
CBD (6.5km, 10 mins)
An Phu (2km, 5 mins)
Thu Thiem (3km, 5 mins)
Land Plot

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Table of Contents
1 Executive Summary.........................................................................................2
2 Property Details...............................................................................................3
2.1 Location.....................................................................................................3
2.1.1 Site Area .........................................................................................4
2.1.2 Accessibility/Transportation...........................................................4
2.1.3 Recreation, Amenities and Services ...............................................4
2.2 Details .......................................................................................................4
3 Financials.........................................................................................................5
3.1 Valuation Framework ...............................................................................5
3.2 Construction Schedule..............................................................................5
3.3 Feasibility and Valuation...........................................................................6
3.3.1 Findings...........................................................................................6
3.3.2 Assumptions...................................................................................6
4 Contact ............................................................................................................6

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1 Executive Summary
This land plot is a 11,497 m2 mixed-use development site located off the East-West highway
in District 2, Ho Chi Minh City.
This site is strategically located 10 minutes drive, or 6.5 km, east of the CBD where the
future development of HCMC is planned. It is located less than 3km east of Thu Thiem new
urban area and 2km south of An Phu urban area.
The lease is currently long-term, but would be converted to a 50-year lease term.
Offer: 100% sale at US$826/sqm. At 11,497 sqm, the total sale price is US$9,500,000.
An Phu (2km, 5 mins)
Thu Thiem (3km, 5mins)
CBD, Dist 1 (6.5km, 10mins)
Dist 7

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2 Property Details
2.1 Location
The site is located on Dong Van Cong street, 50m Southeast of the East-West highway
(Mai Chi Tho), which is the main thoroughfare into District 1 via the Saigon tunnel. It is
also located 6.5km east of the CBD of Ho Chi Minh City, 3 km east of Thu Thiem, and
2km south of An Phu.
It takes approximately 10-12 minutes to drive to District 1 and the CBD from site
location and 5 minutes to An Phu area where the highly touted Cantavil, Estella, and
Vista apartments and shopping centers are located.
The Thu Thiem New Urban Area has begun development last year after years of site
clearance of the nearly 7 square km area between the CBD and the project site. The
road construction project, scheduled for completion in 2016, will completely connect all
eight functional zones and include a six-lane primary avenue, a two-lane road that runs
along the Saigon River, and a four-lane river-side road. In addition, Vingroup gained
approval in July to develop the finance center in Thu Thiem that will cover 250,000 sqm.
Development in the Thu Thiem New Urban Area and further development of the An Phu
Urban Area will position this project site as a prime location just off the 6km span of
East-West Highway that connects the two major urban areas.
Other residential projects within 2km include Diamond Island (>$1,500/sqm), Cantavil
Premier ($1,600/sqm), Vista ($1,500/sqm), Imperia An Phu ($1,400/sqm), and Lexington
Residences ($1,100/sqm, 2016).
CBD (6.5km, 10 mins)
AN PHU (2km, 5 mins)
Thu Thiem (3km, 5 mins)

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2.1.1 Site Area
The project consists of 2 land parcels with an area of lot 1 – 367.3 sqm and lot 2
– 11,129.7 sqm. The land parcels are separated by Dong Van Cong Street. The
development is proposed in lot 2. Trapezoidal in shape, the terrain is undulating
and 1.0m below the existing approach road.
Lot 1 Area is not considered for Development as the Plot size is small and
irregular.
Current land boundaries:
South West – Dong Van Cong Street
North West – Small canal (about 10-15 m wide)
North East – Existing residential dwellings
South East – Existing residential dwellings
2.1.2 Accessibility/Transportation
There are two primary routes connecting the property with the CBD in HCMC.
The first is the Mai Chi Tho road, located 0.5km to the northwest. This road leads
directly into District 1 via the Saigon Tunnel.
The second is the Hanoi Highway, located 2km north of the property. This is a
main entry access to HCMC via the Binh Thanh District.
2.1.3 Recreation, Amenities and Services
Modern retail areas within 2.5km include The Cantavil Premier Mall and Vista
Walk where you can find Parkson, Big C, Metro, Lotte Cinemas, and a variety of
F&B options.
The property is located near two international schools - 0.5km south of ACG
International School Vietnam and 3km south of International School Ho Chi Minh
City (ISHCMC). There are also four middle schools within 2km of the property.
There is one hospital in District 2, and it is located 1km east of the property.
2.2 Details
Site Info
Total Site Area 11,497 sqm
Tenure Long Term
Approved Planning
Type Mixed-use residential and commercial
FAR 7.0 (5.5- for residential, 1.5+ for commercial)
Permitted GFA 81,896 (77,907 for lot 2) sqm
Site Coverage 30%-40%
Floor Limit 18-24
Height Limit 85.08 m

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3 Financials
3.1 Valuation Framework
We have valued the property using the Discounted Cash Flow Approach of each of the
business verticals separately – retail, office, and apartments for sale.
Discounted Cash Flow (DCF) Approach. The explicit DCF approach is used to estimate
the Market Value of projects where cash flows can reasonably be projected, and to
compare the performance of alternative investments by evaluating their Internal Rate of
Return. Guidance Note 7 of the RICS Global Valuation Standards sets out the principles
in detail.
3.2 Construction Schedule
Year 1 2 3 4
Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Infrastructure
Build-up Area of Parking/Basement
Retail
Office
Residential
Service Area/Swimming Pool

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3.3 Feasibility and Valuation
3.3.1 Findings
Given our assumptions and forecasts on inflation, escalation, lending rate, risk-
free yield, market positioning, future supply and demand, and other pertinent
variables, we have arrived at an IRR of 30.47% based on our determination of
best use of land given the present investment certificate issued on 11/11/2008
and a land price of US$ 826/sqm.
Land Cost: $9,500,000 (826 * 11,497)
Construction Cost:S $45,719,966
*All values in US$
To determine feasibility, we calculate three primary indicators: Internal Rate of
Return (IRR), Return on Equity (ROE), and Return on Capital (ROC). These
feasibility indicators will vary to an extent, depending on variables such as
investor access to and cost of capital, degree of leverage, and product
positioning in the marketplace.
3.3.2 Assumptions
Discount Rate 12% (10-year note: 9%)
VND Lending Rate 9%
Gearing 50%
Residential Sales $1,200/sqm
Commercial Rent $15/sqm
4 Contact
Please refer enquiries pertaining to this document or property to:
Peter Dinning
General Director
Mob: (+84) 903 322 344
Email: peter.dinning@colliers.com
KyNam Doan
Investment Manager
Mob: (+84) 122 312 8032
Email: kynam.doan@colliers.com
IRR: 30.47%
ROE: 43%
ROC: 20%

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