The document discusses opportunities for real estate investment in the Philippines. It notes that the Philippine economy has seen strong growth rates in recent years, with the middle class expected to grow substantially by 2020. Real estate in the Philippines offers high rental yields and capital appreciation, with properties in cities like Makati expected to increase in value in the coming years. The CDC Millennium Ortigas development is presented as a prime investment opportunity, located in a business district with projected returns of 8-10% annually.

1. Opportunities for Real Estate Investment in the Philippines
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2. Property Development
Property Management
Sales and Marketing
Hospitality and Serviced Residences
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3. 3 Latest Report on Philippine Economy

4. 4 More transportation and infrastructure developments are ongoing.
Government Spending on
Infrastructure Development

5. Foreign Remittance comprises 8.5% of GDP 5

6. The country remains one of the top 2 BPO destinations in the world.
Revenue from outsourcing industry
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7. Philippines to become one of the fast-growing economies
S&P : May 2013 – S&P raised the Philippines’ debt rating from BB+ to investment grade (BBB-), the highest level since 2003.
Moody’s Investors Service : 2013 - upgraded the Philippines’ credit rating to investment grade
Morgan Stanley : included Philippines in the “overweight group” together with China, Russia, Brazil and South Africa in their Global Emerging Markets list. Philippines could become a “breakout nation”.
BofA : expects Philippines’ outsourcing industry to generate as much as $25 billion in revenue by 2016, providing employment opportunities to as many as 1.3 million individuals.
Deutsche Bank : touted the Philippines as the strongest performing economy in Asia today. Its 6.4% growth in 1Q12 made it the best performing in the region next to China.
CNBC : considers the Philippines as the top country for long term growth prospects due to th rapid population growth.
PricewaterhouseCoopers : Rates Metro Manila among top four property market in Asia.
Business Optimism 7

8. Philippines - An Overview
By 2020, the middle-class sector in the country is seen to grow to 29 million, accounting for roughly 25 percent of the total population, adding additional “workforce” to business process outsourcing industry.
More than 11.5 million Overseas Filipinos earning foreign currencies for over 20 years and still growing bringing in $14.5B from Jan. to Aug. of 2013 or 8.5% of GDP.
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Demographic Outlook
In 2013, the population of the Philippines is 96.7M, growing an average of 2.12% from 1990 to 2010.

9. Philippine Real Estate Market – Steady Appreciation
Historical Land Values have increased
Makati and Fort Bonifacio is projected to increase 7.8% and 9.9% respectively and Ortigas at 6.1% next year.
Land values are still below their values during 1997 Asian Economic Crisis which suggest there is still room to grow.
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10. Philippine Real Estate Market - High rental yields
Compared to other Asian countries, the Philippines has higher rental yields at 7.06% due to relatively cheaper property according to global property research.
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11. Philippine Real Estate Market – High Capital Appreciation Value
Residential Properties
Capital Values at premium residential condominiums are expected to increase by 6% to 8% next year. 11

12. Philippine Real Estate Market – High rental yields
Residential Properties
Increasing rental rates.
Solid residential rental yields average 5% to 8%.
Residential
Rental Rates per SQM
Rental % Growth (QoQ)
Capital Value per SQM
Yield
Makati
$11.36
-
$20.45
7.2%
$2,954.55
4.62%
-
8.31%
Rockwell
$13.64
-
$20.45
4.4%
$2,840.91
5.76%
-
8.64%
Bonifacio
$12.73
-
$18.18
6.0%
$2,727.27
5.60%
-
8.00% 12

13. Philippine Real Estate Market
– Hotel & Leisure
 2013 tourist arrival grew to 11.4% to 3.5Million.
 Average occupancy rate is 66 to 70% with an average stay of
2.42 nights.
 Average rates are the table below:
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15. 5 Tips on How to Invest in Real Estate
Location, location, location – near CBD, flood free, near areas of mass transit, near hospitals.
Concept and Development.
Look for properties that will give you a yield of at least 7% rental
e.g. Somerset Millennium Suites and Millennium Makati
Professional property management that will bring the best value for your property.
Hassle – free service and credible developers.
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16. CDC Millennium Ortigas
Be part of the
Vibrant Global Living
in the Heart of Ortigas
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17. Concept
a.Brand – CDC Holdings, together with The ASCOTT Limited who is a member of Capital Land, ensures all aspects of the property will meet world – class standards.
b.Concept – A mixed development consist of commercial, serviced residences and residential units.
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18. 18
CDC Holdings Inc. Executives with The Ascott Limited CEO Ling Ming Yan

19. Accessible to top commercial leisure, and business establishments.
Bring the highlights of the city right at your doorstep.
Location Map
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20. Green Healthy & Luxurious Living
Indoor Environmental Quality
Water Efficiency
Energy Efficiency
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21. Understanding the Differences
Rental Apartment
Hotel
Serviced Residences
Lease Terms
Long-term
Short-term
Variable
Occupancy Trends
Dependent on market condition
Dictated by the tourism industry
Stable
Occupancy
Services
Minimal or none
Full range
Essential
Services
Profitability
Good
Reasonable
High
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22. Prime Investment
Period Lease Rent Return on Investment Lease amount
Yr 2003 Php 19,405,501 4% 202.65
Yr 2004 Php 23,061,800 5% 240.83
Yr 2005 Php 28,784,657 6% 300.60
Yr 2006 Php 42,365,257 9% 442.42
Yr 2007 Php 52,773,334 11% 551.11
Yr 2008 Php 60,843,716 12% 635.39
Yr 2009 Php 57,504,839 12% 600.52
Yr 2010 Php 54,945,269 11% 573.79
Yr 2011 Php 58,917,117 12% 615.27
Yr 2012 Php 62,734,961 13% 680.60
Yr 2013 Php 58,445,807 12% 631.44
The gross return has been an average of 12 to 13% per annum especially in the last 5 years.
Somerset Millennium Suites – Return On Investment (Track Record)
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23. Disclaimer: No warranties, however, of any kind, whether express or implied, are given with respect to any projections disclosed in this document (including, without limitation, the projected return on investment) or the accuracy, completeness or correctness thereof. For presentation purposes only and may not form/part of contract.
Return of Investment Projection for CDC Millennium Ortigas
* With 5 free nights per year subject to availability
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Scenario: Individual Investment for CMO
room type
studio
1 bedroom
2 bedroom
room size
35
48
60
average daily rate (ADR)
3,700
4,200
5,300
occupancy rate
78%
78%
78%
room nights (less 5 nights)
355
355
355
room revenue per year
1,024,530
1,162,980
1,467,570
net share (40%) for unit owners
409,812
465,192
587,028
annual net return
409,812
465,192
587,028
monthly income for unit owner
34,151
38,766
48,919
CDC - mgt fee (1%)
342
388
489
monthly net income
33,809
38,378
48,430
initial investment (with ff&E)
4,200,000
5,760,000
7,200,000
annual gross return per unit
10%
8%
8%
payback period (yrs)
10.25
12.38
12.27
Notes:
1. ADR is based on the average rate by Ascott for a 5 year period
2. Occupancy rate is the average rate by Ascott for a 5 year period
3. Room nights is less than the 5 night we gave as free nights to unit owners
4. Room revenue per year is computed as ADR x occupancy x room nights
5. Net share for unit owners is computed as 40% of net revenue
6. MGT fee is 1% to CDC holdings from the monthly gross income of owner
7. Annual return is the net revenue less the management fee
8. Annual investment is TCP price of Php 120,000 without ff&e cost

24. Framework of Success
Generous use of space and carefully well designed units along with The ASCOTT Limited management
Branded building to be operated by international chain The ASCOTT Limited
Separate sets of amenities, providing guest and unit owners the best service and utmost privacy
The best of life in the city. It offers the convenience of living where everything is within reach
Assure of stability and continuous revenues.
Capital Appreciation Value
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25. Sample Floor Plan
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26. Sample Floor Plan
86.04 sq.m.
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27. Residential Apartment Amenities
CDC Millennium Ortigas promises a space that is tailored to the resident’s preference – offering the privacy of an apartment with the convenience of a hotel.
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28. Serviced Residence Amenities
Modern comforts, business connectivity, customised services – so you can relax, recharge, and function at peak performance. Serviced residence amenities include a fully-equipped gym, meeting room, business center, and launderette.
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29. Construction Updates
View from Sapphire Road
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View from Ortigas Avenue

30. Construction Updates
As of August 2014, the building is now on its 21st floor. Installation of Rebar, Rough ins and Sleeve at the higher floors are currently on-going at the site.
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31. Typical
Floor Plan
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32. Floor Plan 25th – 26th 32

33. Typical
Floor Plan
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