Announcement

24 May 2006

VALAD INVESTMENTS HIT $300 MILLION WITH $10 MILLION MILTON PURCHASE • Acquired off-market • Blue-chip tenants • Significant value-add potential • Located in office growth area • Increases Valad Group’s QLD investments to $300 million

Valad Property Group (ASX: VPG) has acquired a 2,687 sq m commercial office building at 189 Coronation Drive in Milton, Queensland, for $10 million. The property is located approximately 2km from the GPO.

Blue chip tenant covenants include Placer Dome Asia Pacific, and Toyota Tsusho South Pacific Holdings, amongst other tenants.

‘The Brisbane commercial office market is presently experiencing unprecedented demand from all sectors,’ says Martyn McCarthy, CEO Real Estate Investment at Valad. ‘Over the course of the past 12 months, availability of stock for purchase has been extremely limited and is likely to continue in the foreseeable future.’

‘Opportunities like this are limited, especially given the blue chip tenant covenants, and the corner location of the property,’ adds McCarthy. ‘We are actively seeking more investment and repositioning opportunities across Australia in the office, industrial and retail sectors.’

The Milton location and Coronation Drive access to Toowong provides immediate access to one of Brisbane’s most popular commercial office precincts. Scarcity of available development sites in the precinct further supports strong office demand in the Milton area.

Valad has acquired the property off-market. Valad will apply its value-adding expertise to reposition the building back to market level rents, expand tenancy, and refurbish areas of the building.

Valad manages a range of property development, opportunity and value-adding investment funds. These funds are able to acquire assets that have significant improvement potential through refurbishment, better management through Valad’s Tenant is King program, and repositioning within their respective sectors. Valad has developed market leading expertise in the area or value- adding investment.

189 Coronation Drive was built in 1988, with a net lettable area of 2,687 sqm over 4 levels. The building comprises 2 ground floor tenancies, 3 levels of quality office space, with typical floor plates of 820 sqm and 2 levels of secure basement parking for 57 cars.

The property is prominently located on the corner of Coronation Drive and Cribb Street in Milton. The building enjoys uninterrupted views of the across Coronation Drive, and to the mountain ranges west of Brisbane, and the Brisbane CBD towards the east.

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David Fowler of Knight Frank acted for the vendor, Sebastian Turnbull of Jones Lang LaSalle acting for Valad.

About Valad in QLD With the new Milton acquisition, Valad and its various funds have invested $300 million in Queensland, with three bulky goods retail centres at Kawana, Toowoomba and Oxley; an industrial warehouse complex in Richlands; preferred equity investments in Noosa North and Noosa South residential and retirement developments, Redland Bay lifestyle development, and a residential community development at Paradise Point on the Gold Coast; five Millers self storage centres; and a bulky goods subdivision at Coomera.

Contact Investors / Analysts Media Martyn McCarthy Rebecca Thompson Andrew Johnstone CEO Real Estate Investor Relations / Corporate Affairs Investment Corporate Development Valad Property Group Valad Property Group Valad Property Group Tel: 61 2 8257 6609 Tel: 61 2 8257 6666 Tel: 61 2 8257 6717 Mob: 0413 772 454 Mob: 0417 246 611 Mob: 0416 079 329

About Valad Valad Property Group (ASX Code: VPG) is a stapled security combining a listed property trust and a funds management company, with total assets under management in excess of $2bn, and market capitalisation of around $750m. The listed property trust, Valad Property Trust, invests in stable income generating property assets. The funds management company, Valad Funds Management, offers property investments across a range of risk/return profiles from investment property portfolios to specialist and value-adding investment opportunities, and is Australia’s leading manager of value-adding property funds. www.valad.com.au

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