DEXUS Property Group ASX Release

DEXUS Property Group ASX release

14 June 2012

DEXUS Property Group (ASX: DXS) Sydney industrial property tour

DEXUS Property Group is hosting a Sydney industrial property tour today for institutional investors and brokers and provides the attached tour booklet.

For further information contact:

Media Relations Investor Relations David Yates T: (02) 9017 1424 Emma Parry T: (02) 9017 1133 M: 0418 861 047 M: 0421 000 329 E: [email protected] E: [email protected]

About DEXUS DEXUS is one of Australia’s leading property groups specialising in world-class office, industrial and retail properties with total assets under management of $14bn. In Australia, DEXUS is the market leader in office and industrial and, on behalf of third party clients, a leading manager and developer of shopping centres. DEXUS is committed to being a market leader in Corporate Responsibility and Sustainability. www.dexus.com DEXUS Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for DEXUS Property Group (ASX: DXS)

2012 DEXUS Property Group SYDNEY INDUSTRIAL PROPERTY TOUR 14 june Tour agenda 1

INDUSTRIAL PORTFOLIO overview 2

TOUR speaker Profiles 4

Presentation slide handouts 6

DEXUS Sydney INDUSTRIAL portfolio 18

Silverwater Portfolio 20

1 Foundation PLACE, Greystanes 24

Quarry AT GREYSTANES, Reconciliation Road, Greystanes 26

94-106 Lenore Drive, Erskine Park 30

57-75 Templar Road, Erskine Park 31

Kings Park Industrial Estate, Marayong 32

DEXUS MELBOURNE INDUSTRIAL PORTFOLIO 34

dexus Industrial Estate, Laverton North 36

Notes 40

Cover: Quarry at Greystanes, Reconciliation Road, Greystanes, NSW This page: Solaris Paper, 8 Basalt Road, Greystanes, NSW 5Bellevue Greystanes Circuit, – 6 Bellevue Circuit, Greystanes Circuit, Bellevue 6 – Greystanes Road, 2-6– Basalt Greystanes Road, Basalt 5 – Greystanes Road, Basalt 8 – – oad, Erskine Park Erskine oad, R arayong M US Property US presentation Group X eet at level 9, 343 George Sydney 9, Street, level eet at ings Park Industrial Estate, Marayong Industrial Park ings M DE Depart city Estate, Silverwater CentrewestIndustrial Estate, Silverwater Industrial DEXUS DepartGreystanes for 1Foundation Greystanes Place, QuarryGreystanes at Lunch and site tour site and Lunch Park DepartErskine for Park Erskine Lenore Drive, 94-106 Templar 57-75 Depart for K CBD in back Arrive 9.45am for 10.00am start for 10.00am 9.45am 10.45am 11.45am 2.15pm 4.00pm 1.35pm

TOUR AGENDA INDUSTRIAL PORTFOLIO overview

DEXUS PROPERTY GROUP Industrial Portfolio – AU

Sector allocation1 Property type by book value 31 MARCH 2012 31 MARCH 2012

Office 67% Business park 33% Industrial AU 25% Industrial estate 32% $6.9 billion Industrial US 7% Distribution centre 25% Industrial EU 1% Land 10%

1 Excluding US central portfolio.

AustraLian Industrial Portfolio at a glance

31 March 2012 30 December 2011

Portfolio value $1.7bn $1.7bn Number of properties 40 40 Total GLA (‘000 m2) 1,117 1,117 Occupancy (area) 96.7% 96.1% Occupancy (income) 95.7% 95.1% % over rented 5.5% 6.0% Rolling 12 month tenant retention 79% 77% Weighted average lease expiry 4.6 years 4.3 years

Information in this book relates to properties in the DXS listed portfolio.

2 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Location by book value Tenant diversification by INCOME 31 MARCH 2012 31 MARCH 2012

Wholesale trade 25% Transport & storage 20% Sydney, Outer West 28% Manufacturing 18% Sydney, Inner West 10% Property & business 15% Sydney, North 10% Agriculture 6% Sydney, South 9% Communication 4% Melbourne 37% Government 3% Brisbane 4% Construction 2% Adelaide 2% Electricity, gas & water 2% Hospitality 1% Vacant 4%

Key industrial markets

SYDNEY

South An established precinct consisting of warehouse and strata unit developments serviced by the M5 and Eastern Distributor located in close proximity to Port Botany, the airport, intermodal terminals and the Sydney CBD. Inner West An established industrial precinct consisting of smaller warehouse and strata unit developments with the businesses servicing metropolitan Sydney. Accessible via Parramatta Road and the M4. Outer West A precinct with a large workforce and land supply serviced by the M7 and M4. South West A key interchange location with strong infrastructure network including M7, M5 and intermodal, dominated by large warehouses.

MELBOURNE

South East Dominated by warehouse and distribution facilities typically with a higher office component. Serviced by Monash Freeway (M1) and Eastlink (M3).

West A precinct dominated by warehouse and distribution facilities typically with a lower office component located within easy distance of the port and airports and serviced by Westgate Freeway (M1) and the Western Ring Road (M80).

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 3 tour speaker PROFILES

Darren Steinberg Chief Executive Officer and Executive Director Darren is CEO and an Executive Director of DEXUS Funds Management Limited (appointed 1 March 2012). Darren has more than 20 years’ experience in the property industry. Prior to joining DEXUS in March 2012, Darren was Managing Director Colonial First State Global Asset Management with responsibility for A$18 billion of listed property, unlisted property and asset management and development functions. Prior to that, Darren held a number of senior property roles with Stockland, Westfield, Lend Lease and Jones Lang Wooten. Darren has a Bachelor of Economics from the University of Western Australia. Darren is the current National President of the Property Council of Australia, a Fellow of the Royal Institution of Chartered Surveyors and the Australian Property Institute and a member of the Australian Institute of Company Directors.

Peter Studley General Manager, Research Peter is the General Manager, Research for DEXUS and is responsible for coordinating the Group’s view on property markets. Peter has worked in the real estate and financial services industry for 15 years in a research capacity, providing investment support, strategic advice and forecasting services. Prior to joining DEXUS in 2000, Peter held research positions with Westpac Property Finance and with real estate fund manager Paladin Australia. Peter holds a Masters of Applied Finance from Macquarie University, an Associate Diploma in Business (Valuation) from the Open Training and Education Network NSW, a Bachelor of Science (Agriculture) from the University of Sydney and a Diploma in Fine Arts. He is an associate of the Australian Property Institute and is involved in the education program of the Property Council of Australia.

Speculative development, DEXUS Industrial Estate, Laverton North, VIC

4 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Andrew Whiteside Group General Manager, Developments Andrew is Group General Manager, Developments for DEXUS, heading up the new combined development team managing office and industrial developments, as well as overseeing the US business. From 2008 to May 2012, Andrew was Head of Industrial at DEXUS and was responsible for all property and development activities of the Australian industrial business. Prior to joining DEXUS, Andrew spent a year at Stockland as General Manager – Development & Industrial for the Office & Industrial division. Andrew has also held various property and development positions at DEXUS Property Group, Westralia Airports Corporation Pty Ltd, Westfield and Lend Lease in Australia and the US. Andrew graduated from the University of Sydney with a Bachelor of Science (Architecture) and a Bachelor of Architecture. He is also a Graduate of Real Estate Portfolio Management from MIT/PREA Centre for Real Estate Development in Boston.

Mark Cuddy Regional General Manager, Industrial Mark is Regional General Manager, Industrial for DEXUS and is responsible for the management of the industrial portfolio in NSW and Queensland. Mark has worked in the property industry for the past 21 years primarily in asset and portfolio management. Prior to joining DEXUS in July 2010, Mark spent eight years at Stockland in roles including industrial asset and portfolio management and General Manager of Intermodal where he was responsible for the industrial divisions’ revenue and growth. Mark also worked in various roles with Knight Frank investment management specialising in Sydney CBD and North Shore commercial assets. Mark graduated from the University of Western Sydney, Hawkesbury with a Bachelor of Commerce (Land Economics).

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 5 Presentation slide handouts

SYDNEY INDUSTRIAL PROPERTY TOUR Objectives

Understand our view on the core industrial markets of Sydney and Melbourne

Understand our capabilities and the DEXUS industrial business model

Gain exposure to our industrial and development teams

Visit our key industrial properties, including

— Stabilised properties at Silverwater and Kings Park

— Development properties in Quarry at Greystanes

— A recently completed development at Erskine Park

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 1

SYDNEY INDUSTRIAL PROPERTY TOUR Australian industrial portfolio

Our industrial capability is an important part of DEXUS Australian industrial 1 DEXUS’s platform Funds under management

— Merged the industrial and office teams in May 2012 Third party $0.7bn — Recognised synergies in capabilities in terms of asset management, development, analysis and capital transactions $2.4bn Assets held on balance sheet and third party funds Balance Focused on building the portfolio through partnerships sheet with like-minded capital partners $1.7bn

We will continue to build presence in our core markets of Sydney, Melbourne and Brisbane

Further details regarding the portfolio mix, active components and target weightings will be announced as part of the strategic review in August 2012

1. As at 31 March 2012.

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 2

6 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR SYDNEY INDUSTRIAL PROPERTY TOUR Industrial, office and development reporting lines

Darren Steinberg CEO

EGM Office & Industrial

Andrew Mark Cuddy Scott Travers Amanda Kenny Richard Garing Whiteside Industrial Regional Melbourne Regional Office Regional Office Regional Group Head of General Manager General Manager General Manager General Manager Developments

EGM — Executive General Manager

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 3

AUSTRALIANTITLE SLIDE HEADER Sub title (Trebuchet 18 pt) INDUSTRIAL MARKETS

Presenter title

DXSDEXUS 2009 Property Annual Group Results Sydney — Slide Industrial 4 Property Tour June 2012 — Slide 4

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 7 presentation slide handouts

KEY INDUSTRIAL MARKETS 2012 property cycle

Industrial markets are in the early stages of the growth cycle

Perth Location South Brisbane

SE Melbourne West Melbourne

Inner West Sydney

Outer West Sydney, South Sydney

Stage CONTRACTION RECOVERY GROWTH POST-GROWTH

Activity LAND BANKING DEVELOPMENT

INVESTMENT

DIVESTMENT

Source: DEXUS Research

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 5

KEY INDUSTRIAL MARKETS Import volumes

Long term growth expected as import volumes forecast to rise 30% to 40% every five years

Imports by state of destination Forecast Past % 10 years 10 years of $m/qtr (constant prices) NSW VIC QLD % pa % pa National 40,000

NSW 6.1% 9.3% 35%

30,000 VIC 6.9% 6.1% 23%

20,000 QLD 8.5% 10.1% 14%

10,000 73%

0 Dec-91 Dec-96 Dec-01 Dec-06 Dec-11 Dec-16 Dec-21

Source: Access Economics March 2012

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 6

8 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR SYDNEY INDUSTRIAL DEMAND Container movements

Cyclical with longer term upward trend

Container and freight movements through Sydney’s ports

Sydney’s ports Sydney Airport

000’s TEUs/mth 000’s Tonnes 200 70

180 60

160 50 140

40 120

100 30 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Source: Sydney Ports, Trade Stats Bulletin March 2012; SACL, Sydney Airport Master Plan 2009 TEUs: Twenty-foot Equivalent Units represent the cargo capacity of a standard intermodal container

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 7

SYDNEY INDUSTRIAL DEMAND Destination of import containers from Port Botany

Shows the importance of inner west and outer west precincts

NORTH NORTH WEST

Kings Park

Huntingwood Erskine Park Greystanes

Flemington OUTER WEST INNER WEST

SOUTH SYDNEY

SOUTH WEST

Source: Transport for NSW

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 8

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 9 presentation slide handouts

SYDNEY INDUSTRIAL DEMAND Take up of Sydney industrial space

The outer west region is the engine room of Sydney industrial — Accounting for 50% of total take up — Majority of take up is from logistics and retailer groups Industrial take-up across Sydney

1,000

800

10 year average 600 ‘000sqm 400

200

0 CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q112 OW Syd SW Syd NW Syd IW Syd Sth Syd North

Source: Jones Lang LaSalle, DEXUS Research

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 9

SYDNEY INDUSTRIAL SUPPLY Selected markets have low supply levels

Supply levels are below the 10 year average — Smaller developers experiencing funding constraints — Construction tenders competitive Sydney industrial supply

1,000

800

10 year average 600 ‘000sqm 400

200

0 CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F

OW Syd IW Syd North NW Syd SW Syd Sth Syd Under construction

Source: Jones Lang LaSalle

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 10

10 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR SYDNEY INDUSTRIAL VACANCY Declining trend in available prime space

Sydney region Inner West Sydney 10% 10%

8% 8%

6% 6%

4% 4%

2% 2%

0% 0% H109 H209 H110 H210 H111 H211 H109 H209 H110 H210 H111 H211 Prime Secondary Prime Secondary

South Sydney Outer Western Sydney 10% 10%

8% 8%

6% 6%

4% 4%

2% 2%

0% 0% H109 H209 H110 H210 H111 H211 H109 H209 H110 H210 H111 H211 Prime Secondary Prime Secondary

Source: DEXUS Research, Savills Industrial Stock Survey H211

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 11

MELBOURNE INDUSTRIAL DEMAND Relative importance of the west and south east

The west and south east markets have accounted for 65% of take-up in metro Melbourne Majority of take-up from logistics and retailer groups

Industrial take-up across Melbourne

1,600

1,200

10 year average 800 ‘000sqm

400

0 CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q112

West South East City Fringe North

Source: Jones Lang LaSalle, DEXUS Research

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 12

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 11 presentation slide handouts

MELBOURNE INDUSTRIAL SUPPLY Selected markets have low supply levels

Supply levels in Melbourne markets below the 10 year average Users seeking core locations with efficient infrastructure and proximity to employment hubs Melbourne industrial supply

1,000

800

600 10 year average ‘000sqm

400

200

0 CY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F

West South East City Fringe North Under Construction

Source: Jones Lang LaSalle

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 13

MELBOURNE INDUSTRIAL VACANCY Declining trend in available prime space

City Fringe Melbourne Region 8% 6%

2% 2%

0% 0% H109 H209 H110 H210 H111 H211 H109 H209 H110 H210 H111 H211 Prime Secondary Prime Secondary

South East Melbourne West Melbourne 15% 6%

10% 4%

5% 2%

0% 0% H109 H209 H110 H210 H111 H211 H109 H209 H110 H210 H111 H211 Prime Secondary Prime Secondary

Source: DEXUS Research, Savills Industrial Stock Survey H211

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 14

12 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR KEY INDUSTRIAL MARKETS Rental growth

Prime market rents have stabilised since the GFC

Industrial rents — major markets

$140

$120

$100

$80

$60

$40 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

IW Syd OW Syd W Melb SE Melb Sth Bris

Source: Jones Lang LaSalle

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 15

KEY INDUSTRIAL MARKETS Prime asset yields

Room for further tightening in industrial prime asset yields Yield spreads over bond rates are at record highs

Industrial prime asset yield Yield spread to bond rate

10% 6%

5% 9% 4% 10 year average

8% 3%

2% 7% 1%

6% 0% Jun-02 Jun-04 Jun-06 Jun-08 Jun-10 Jun 12F Jun-02 Jun-04 Jun-06 Jun-08 Jun-10 Jun 12F Outer West Sydney West Melbourne OW Sydney spread over 10 yr bond W Melb spread over 10 yr bond

Source: Jones Lang LaSalle, DEXUS Research

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 16

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 13 presentation slide handouts

KEY INDUSTRIAL MARKETS Institutional investment demand

Institutional ownership of industrial assets has more than doubled in the past decade Industrial assets sought by institutions, including foreign pension funds

Industrial assets in A-REITs and wholesale funds

25,000

20,000

15,000

10,000

5,000

0 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

Source: UBS, Mercer Investment Consulting, DEXUS Research

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 17

DEXUSTITLE SLIDE INDUSTRIAL HEADER Sub title (Trebuchet 18 pt) PORTFOLIO

Presenter title

DXSDEXUS 2009 Property Annual Group Results Sydney — Slide Industrial 18 Property Tour June 2012 — Slide 18

14 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR INDUSTRIAL PORTFOLIO Stabilised and active portfolio

DXS industrial portfolio &

% ","$'(%"&+ % &,"&+') - % #

&! # # ","$'(%"&+*

1. As at 31 December 2011. 2. Includes developments underway and completed.

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 19

INDUSTRIAL PORTFOLIO Development pipeline

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 20

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 15 presentation slide handouts

INDUSTRIAL PORTFOLIO Key areas of focus

Stabilised portfolio — Active management of existing portfolio — Seek opportunities to add value by proactively managing leasing risk — Continue to monitor non-core properties for potential divestment — Continue to seek strategic acquisitions in key markets Developments — Develop out existing land banks to meet market needs — Replenish land banks in key markets to deliver future active earnings — Secure pipeline to create “stock” Active/trading business — Target developments with more opportunistic focus — Leverage platform to transact in multiple markets (levers to deliver sustainable profits) — Use local expertise to secure enhanced returns Focused on building the portfolio through partnerships with like-minded capital partners

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 21

INDUSTRIAL PORTFOLIO Australian business model

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 22

16 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR INDUSTRIAL PORTFOLIO Development capabilities

Local market knowledge and focus Key sites with proven market appeal

Expertise to identify strategic development, leasing and transaction opportunities

Diverse design and delivery partners with demonstrated expertise

Leading sustainable development

Quarry at Greystanes, 2-6 Basalt Road, Greystanes, NSW

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 23

INDUSTRIAL PORTFOLIO Asset management capabilities

Local market knowledge and focus Well located properties in key markets

Expertise, systems and scale to maintain and enhance tenant relationships and deliver consistent performance with a stable income profile

Key agency and tenant advocacy relationships DEXUS Industrial Estate, Egerton Street, Silverwater, NSW Integrated platform drives performance throughout the asset life cycle

Active recycling and strategic rebalancing

— Sold 8 non-core properties over the past three years valued at $83 million

DEXUS Property Group Sydney Industrial Property Tour June 2012 — Slide 24

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 17 DEXUS SYDNEY

F3 INDUSTRIAL PORTFOLIO Richmond Rd Riverstone

Mona Vale Rd

13 6

Windsor Rd

Forest Way Belrose Pennant Hills Kings Park Pacific Hwy 17 Glendenning Pennant Hills Rd 23 M7 M7 Richmond Rd Warringah Rd 18 M2

Blacktown Sunnyholt Rd Knox Rd 8

Great Western Hwy Brookvale Seven Hills Old Windsor Rd Pennant Hills Rd

M4 21 Reservoir Rd Lane Cove Rd Huntingwood Pacific Hwy Eastern 16 Erskine Prospect Hwy Creek 12 Park Victoria Rd Artarmon Reconciliation Rd 5 3 Ryde 7 9 4 24

Greystanes Rd Rosehill Burns Bay Rd Greystanes James Ruse Dr 1 Pacific Hwy Merrylands Rd Silverwater Rd 22 Silverwater Gladesville 1 436-484 Victoria Road, Gladesville 19 2 79-99 St Hilliers Road, Auburn Horsley Smithfield Park The Horsley Dr Victoria Rd 3 94-106 Lenore Drive, Erskine Park 2 M4 4 57-75 Templar Road, Erskine Park 5 1 Foundation Place, Greystanes M7 10 SYDNEY 6 1 Garigal Road, Belrose Yennora Parramatta Rd Regents 7 10-16 South Street, Rydalmere Woodville Rd Park Parramatta Rd 8 114-120 Old Pittwater Road, Brookvale Cumberland Hwy

Anzac Pde

9 12 Frederick Street, St Leonards Botany Rd M1 Liverpool Rd 10 145-151 Arthur Street, Flemington Rookwood Rd Liverpool Rd

11 154 O’Riordan Street, Mascot Roberts Rd Rosebery 15 20 12 2 Alspec Place, Eastern Creek Princes Hwy

13 2 Minna Close, Belrose 11 Gardeners Rd 14 2-4 Military Road, Matraville Liverpool Mascot Anzac Pde M7 Milperra 15 25-55 Rothschild Avenue, Rosebery M5 M5 16 27-29 Liberty Road, Huntingwood Prestons Botany Rd Kingsgrove Foreshore Rd 17 3 Brookhollow Avenue, Baulkham Hills Moorebank

18 30-32 Bessemer Street, Blacktown BotanyMatraville Rd King Georges Rd Port Botany 19 DEXUS Industrial Estate, Egerton Street, Silverwater Hume Hwy Expansion (under construction) 14 20 5-15 Rosebery Avenue, Rosebery 21 52 Holbeche Road, Arndell Park Botany Bay 22 Centrewest Industrial Estate, Silverwater Road, Silverwater Ingleburn 23 Kings Park Industrial Estate, Vardys Road, Marayong 24 Quarry at Greystanes, Reconciliation Road, Greystanes

Listed asset

Third party asset Minto 0 1 2 3 4 5 Kilometres Key industrial markets Princes Hwy Supporting industrial corridors Railway line (passenger and freight) F3 Richmond Rd Riverstone

Mona Vale Rd

13 6

Windsor Rd

Forest Way Belrose Pennant Hills Kings Park Pacific Hwy 17 Glendenning Pennant Hills Rd 23 M7 M7 Richmond Rd Warringah Rd 18 M2

Blacktown Sunnyholt Rd Knox Rd 8

Great Western Hwy Brookvale Seven Hills Old Windsor Rd Pennant Hills Rd

M4 21 Reservoir Rd Lane Cove Rd Huntingwood Pacific Hwy Eastern 16 Erskine Prospect Hwy Creek 12 Park Victoria Rd Artarmon Reconciliation Rd 5 3 Ryde 7 9 4 24

Anzac Pde

9 12 Frederick Street, St Leonards Botany Rd M1 Liverpool Rd 10 145-151 Arthur Street, Flemington Rookwood Rd Liverpool Rd

11 154 O’Riordan Street, Mascot Roberts Rd Rosebery 15 20 12 2 Alspec Place, Eastern Creek Princes Hwy

Listed asset

Third party asset Minto 0 1 2 3 4 5 Kilometres Key industrial markets Princes Hwy Supporting industrial corridors Railway line (passenger and freight) Silverwater portfolio

DEXUS’s Silverwater portfolio comprises A report was commissioned which indentified future key market users that the team could successfully target 15 properties that make up the Centrewest and secure long term tenants. Industrial Estate on Silverwater Road and the As a result, agency appointments were reviewed and new agency appointments made to strengthen the relationships with DEXUS Industrial Estate on Egerton Street key agents and focus leasing performance. At the same time, in Silverwater. new marketing initiatives were implemented including direct target marketing campaigns to users within identified growth Silverwater is a long established industrial precinct located in sectors such as the healthcare and infrastructure services. the geographical centre of metropolitan Sydney. Key achievements at DEXUS Industrial Estate The Silverwater precinct comprises 109 hectares located along Silverwater Road offering a diverse range of buildings and Key achievements as a consequence of this focused warehouses. Silverwater is located within the Auburn Local strategic approach included: Government Area which includes Auburn, Regents Park, Lidcombe, Homebush Bay and Newington. Operational nn Leasing 11,891 square metres across five deals, securing The original businesses located in the area were generally food three new tenants from our identified growth sectors and processing and more heavy industrial manufacturing based. retaining two existing tenants Today the focus is predominantly on light manufacturing, utilities and urban services users requiring strategic centrally nn Securing heads of agreement over the remaining expiries in located facilities to assist with their Sydney metropolitan the last quarter of FY12 distribution services. nn Advancing negotiations over a 10 year lease on the The DEXUS properties (Centrewest Industrial Estate and remaining vacancy DEXUS Industrial Estate) are ideally positioned close Asset metrics to transport links, located only four kilometres from the nn Increasing occupancy from 59.9% at 30 June 2011 Parramatta CBD and 16 kilometres from the Sydney CBD. to 86.5% at 31 March 2012 Both are easily accessible from the M4 and Parramatta and Silverwater Roads provide a direct conduit to the North. nn Securing income growth with over 85% of the tenancies subject to fixed and or CPI annual reviews averaging 3.6% The DEXUS property management team recently undertook nn Maintaining the weighted average lease expiry at 3.1 years a strategic property review with particular focus on secondary properties exposed to leasing risks and market challenges. from 30 June 2011 to 31 March 2012

20 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR CENTREWEST INDUSTRIAL ESTATE, SILVERWATER DEXUS Industrial Estate, Silverwater

The estate is located on Silverwater Road adjacent to DEXUS’s The estate is located on Egerton and Farliola Streets which are Egerton Street estate and comprises six buildings with 12 units. in close proximity to Silverwater Road. Silverwater is regarded as Six of the units front onto Silverwater Road with warehouse and one of the premier central west industrial regions in Sydney with parking access to the rear, another four units front Vore Street major arterials such as Victoria Road, the M4 and Parramatta at the rear. Road in close proximity.

Property details as at 31 Dec 2011 Property details as at 31 Dec 2011 Metro area Sydney, Inner West Metro area Sydney, Inner West Building type Industrial estate Building type Industrial estate Title Freehold Title Freehold Ownership (%) DXS 100 Ownership (%) DXS 100 Zoning General Industrial 4(a) Zoning General Industrial 4(a) Year built 1988 Year built 1980s Site area (ha) 2.4 Site area (ha) 8.8 Lettable area (‘000 m2) 17.8 4 Lettable area (‘000 m2) 29.33 Number of buildings 6 Number of buildings 9 Office content (%) 44 Office content (%) 29 Car parking spaces 270 Car parking spaces 290 Major tenant Christian City Church Major tenant Payless Shoes Pty Ltd Acquisition date May 2010 Acquisition date May 1997 Acquisition price plus additions (A$m) 25.9 Acquisition price plus additions (A$m) 41.6 Book value (A$m) 26.1 Book value (A$m) 42.0 Independent valuation (A$m) N/A Independent valuation date Dec 2009 Market cap rate (%) 9.00 Independent valuation (A$m) 39.5 Initial yield (%) 8.28 Market cap rate (%) 8.65 Discount rate (%) 9.50 Initial yield (%) 5.34 Leased by area (%) 87 Discount rate (%) 9.61 Weighted lease term by income (years) 3.2 Leased by area (%) 60 Available (%) 12 Weighted lease term by income (years) 4.5 2012 (%) 5 Available (%) 38 2013 (%) 13 2012 (%) 10 2014 (%) 30 2013 (%) 4 2015 (%) 5 2014 (%) 0 2016 (%) 22 2015 (%) 0 2017 (%) 0 2016 (%) 0 2018 (%) 0 2017 (%) 13 2019 (%) 0 2018 (%) 35 2020 (%) 0 2019 (%) 0 2021+ (%) 12 2020 (%) 0 2021+ (%) 0

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 21 SILVERWATER PORTFOLIO

Rosehill Heliport Airport

Silverwater Rd Millennium Parklands Holker St Giffard St 0 200 400 Wentworthville Metres Duck River Silverwater Planned

Carolyn St Vore St extension of Fariola St Reconciliation Rd 19 due for completion Derby St 22 Newington by mid 2011 Prospect Egerton St Reservoir Stubbs St Parramatta Rd Great Western Hwy

Carnarvon St Hill Rd

Beaconsfield St

Newington Bvd

Silverwater Rd Adderley St West Australia Ave 0 500 1000 Metres Parramatta Rd Kevin Coombs Ave M4 Sydney Olympic Bvd Olympic Hampstead Rd Kihilla Rd Haslams Creek Park M4 Motorway

Macquarie Rd St Hilliers Rd Station Rd

NOTES

22 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR DEXUS Industrial Estate, Egerton Street tenancy profile 3 .3 71.27 118.00 207.90 1 3 42.5 7 . 2 Line of Fence 7 4 6

4. . 2

0 4 0 ce ce fi 81 fi 83 85 Of Of e Payless Shoes Pty Ltd c Bingo Lease n e 49 Pty Ltd plan F .10 Office Awning 1 6 5 19.77A 6 . A . 7 1 f 2 3 o 1 .8 9 9 5 29.87 30.00 52.91 A 10 . A 36.7 2 1 CAAT Engineering 6 .78 6. 39 50 Street 0 Pty Ltd Egerton .5 81.76 4 5 1 . 4 9 5 .17 e . .1 0 9 A16 n 7 65 .0 i 3 6 L 1 A1 7 07 3 Office 1 . . 15 00 .2 A 79A 5 48 1 8 1 8 .4 .4 .7 O 0 0 5 ffi 2 Capital S.M.A.R.T. 2 2 ce x) ro p Pty Ltd 1 p 89 31 (a Office .9 6 3 4 9 48A 8 9 . .6 3 0 4 3 2 8 .3 0 Vacant 7 9 7 3 O g . f 4 4 2 . fic .9 in 9 6 e 4 n 4 2.90 L w i

A e 33 3 .9 . Office 1 7

4 o

f 1 6 t 7 . e C 2 2 9 a 7 .7 8 e . F r ro 60 6-8 8 46 t ly e S n n

Enersys Pty Ltd 5 3 . 42 V Transaction Solutions S 5 7 o tr 2 4 r e .7 . e 9 6 1 8 a Pty Ltd e 7 2 2 l 7 8 1 t .6 .0 . io 7 1 2 r S 6 a tr F ee Fidax Foundry t 9 .7 Pty Ltd 6 1 4 5 5 2 .2 . 4 .0 5 3 1 E

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 23 1 Foundation Place Greystanes

The property is situated in the Greystanes Key statistics as at 31 Dec 2011 business hub which is well located to major Metro area Greystanes Zoning Employment arterial routes being less than one kilometre Acquisition date Feb 2003 south of the M4 and six kilometres east of Acquisition price plus additions (A$m) 39.3 the M7. Book value (A$m) 43.2 Independent valuation date Jun 2010 Independent valuation (A$m) 41.5 The property comprises four industrial warehouses covering more than 30,000 square metres. The Greystanes business Market cap rate (%) 8.25 hub is located six kilometres west of Parramatta and 26 Initial yield (%) 9.13 kilometres west of the Sydney CBD. Discount rate (%) 9.50 Leased by area (%) 100 Weighted lease term by income (years) 2.7 Available (%) 0 Property details as at 31 Dec 2011 2012 (%) 0 Building type Industrial estate 2013 (%) 16 Title Freehold 2014 (%) 27 Site area (ha) 5.8 2015 (%) 42 Lettable area (‘000 m2) 30.76 2016 (%) 0 Number of buildings 4 2017 (%) 15 Car parking spaces 278 2018 (%) 0 Year built 2004 2019 (%) 0 Major tenant Hitachi Construction Machinery 2020 (%) 0 Ownership (%) DXS 100 2021+ (%) 0

24 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR M4 Great Western Hwy Reconciliation Rd Reservoir Rd Toongabbie Rd

Wentworthville 5 Pendle Way

Foundation Pl Great Western Hwy M4 Greystanes Old Prospect Rd Prospect Reservoir 24 Cumberland Rd

Centenary Rd

Greystanes Rd

Merrylands Rd

Gipps Rd Merrylands Rd

Windmere Rd

Cumberland Hwy

Sherwood Rd Merrylands 0 500 1000 Hassall St Fowler Rd Metres

Redfern St

NOTES

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 25 Quarry AT GREYSTANES Reconciliation Road, Greystanes

Quarry at Greystanes is DEXUS’s premier Key achievements industrial estate. Key achievements since acquiring this site have included: nn Obtaining a Part 3A Major Project approval from the For over 100 years this site was part of the Prospect Quarry Department of Planning & Infrastructure for the estate. and is now fully serviced, providing a platform for construction As a master plan approval, this provides us with “speed of up to 240,000 square metres of industrial space. The site to market” delivery avoiding lengthy DA processes can accommodate a variety of industrial uses including nn Retaining the Quarry walls to form a tribute to the site’s warehousing, manufacturing, logistics, storage, research previous use and developing a biodiversity swale at the base and development. of the Quarry walls that runs the entire length of the eastern The Quarry is conveniently located with direct access to the perimeter of the site capturing ground and storm water from M4 and is located strategically to the M7 interchange providing the estate. This is both a practical solution but also a easy access to Sydney’s orbital road network and key business pioneering green initiative in industrial estates with the areas such as Parramatta, Port Botany, Sydney Airport and recycled ground and storm water is used by the nearby Sydney CBD. Cumberland Country Golf Club for irrigation The development plan is designed over three precincts. Each nn Undertaking extensive civil works and infrastructure in precinct features premium quality office and warehouse design preparation for development, including the construction solutions incorporating Green Star principles, operational of roads and installation of power, communications, functionality, signage opportunities and exposure. water and sewerage nn Constructing four industrial properties totalling Capabilities 76,295 square metres costing $110.5 million This project demonstrates DEXUS’s capabilities in nn Attracting multi-national tenants to a site that can nn Identifying strategic development, leasing and transaction accommodate a variety of uses opportunities in a key market nn Demonstrating our ability to construct purpose built nn Designing developments to meet market demand and properties suiting tenant needs incorporating leading sustainable development and business nn Constructing an additional three developments covering practices more than 36,928 square metres, at an estimated cost of nn Securing quality multi-national tenants $55.5 million nn Selling a 47,500 square metre site to a long term international owner occupier that fits into the target tenant mix

26 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Environmentally Sustainable Design achievements We are leading the way in industrial sustainability through our commitment to environmentally sustainable development and business practices: nn Rain water harvesting/recycling nn Native plant landscaping nn Natural ventilation initiatives nn Natural light enhancement nn Storm water and ground water recycling nn Solar hot water nn Sensor lighting controls nn Use of recycled timber The remaining development area of 157,808 square metres caters to a broad range of users by offering the flexibility of building size, land area, tailored design and construction.

Quarry at Greystanes as at 31 March 2012

Land Under Land sold Remaining Total estate developed construction land

Land area (ha) 15.0 7.5 4.8 15.8 43.0

Building area (‘000 m2) 76.3 36.9 – 81.1 194.3

Site coverage 51% 49% – 51% –

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 27 Quarry AT GREYSTANES Reconciliation Road, Greystanes

Quarry AT GREYSTANES, Quarry AT GREYSTANES, Quarry AT GREYSTANES, 8 Basalt Road, Greystanes 5 Bellevue Circuit, Greystanes 6 Bellevue Circuit, Greystanes

The Solaris property was the first The Symbion property was the second The Fujitsu property was the third development at the Quarry. We secured development at the Quarry. It is a development at the Quarry. We purpose a pre-lease commitment with Solaris to purpose built 17,300 square metre built a 7,000 square metre data storage build a warehouse/office facility for distribution facility constructed for facility for Fujitsu which was completed storing, packaging and re-distribution Symbion Health. The development in September 2011. of their paper products. was completed in December 2010.

Property details as at 31 Dec 2011 Property details as at 31 Dec 2011 Property details as at 31 Dec 2011 Metro area Sydney, Outer West Metro area Sydney, Outer West Metro area Sydney, Outer West Building type Industrial estate Building type Industrial estate Building type Industrial estate Title Freehold Title Freehold Title Freehold Ownership (%) DXS 100 Ownership (%) DXS 100 Ownership (%) DXS 100 Zoning Employment Zoning Employment Zoning Employment Year built 2010 Year built 2010 Year built 2011 Site area (ha) 3.0 Site area (ha) 3.8 Site area (ha) 3.9 Lettable area (‘000 m2) 18.65 Lettable area (‘000 m2) 17. 3 0 Lettable area (‘000 m2) 17.0 0 Number of buildings 1 Number of buildings 1 Number of buildings 1 Office content (%) 3 Office content (%) 14 Office content (%) 6 Car parking spaces 84 Car parking spaces 243 Car parking spaces 115 Major tenant Solaris Paper Pty Ltd Major tenant Symbion Health Major tenant Fujitsu Acquisition date Dec 2007 Acquisition date Dec 2007 Acquisition date Dec 2007 Acquisition price plus 23.0 Acquisition price plus 29.6 Acquisition price plus 39.1 additions (A$m) additions (A$m) additions (A$m) Book value (A$m) 25.3 Book value (A$m) 30.5 Book value (A$m) 39.6 Independent valuation (A$m) 25.3 Independent valuation (A$m) N/A Independent valuation (A$m) N/A Independent valuation date Dec 2011 Independent valuation date N/A Independent valuation date N/A Market cap rate (%) 8.12 Market cap rate (%) 7.75 Market cap rate (%) 8.00 Initial yield (%) 8.01 Initial yield (%) 7.70 Initial yield (%) 8.03 Discount rate (%) 9.50 Discount rate (%) 9.50 Discount rate (%) 9.75 Leased by area (%) 100 Leased by area (%) 100 Leased by area (%) 100 Weighted lease term by 8.7 Weighted lease term by 14.2 Weighted lease term by 14.8 income (years) income (years) income (years) Available (%) 0 Available (%) 0 Available (%) 0 2012 (%) 0 2012 (%) 0 2012 (%) 0 2013 (%) 0 2013 (%) 0 2013 (%) 0 2014 (%) 0 2014 (%) 0 2014 (%) 0 2015 (%) 0 2015 (%) 0 2015 (%) 0 2016 (%) 0 2016 (%) 0 2016 (%) 0 2017 (%) 0 2017 (%) 0 2017 (%) 0 2018 (%) 0 2018 (%) 0 2018 (%) 0 2019 (%) 0 2019 (%) 0 2019 (%) 0 2020 (%) 100 2020 (%) 0 2020 (%) 0 2021+ (%) 0 2021+ (%) 100 2021+ (%) 100

28 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Quarry AT GREYSTANES, Quarry AT GREYSTANES, 2-6 Basalt Road, Greystanes 5 Basalt Road, Greystanes

This 23,340 square metre speculative This $9 million, 5,437 square metre warehouse was completed in May 2012, facility is pre-leased to UPS Australia on for a total cost of $30 million. The a seven year term. Construction is due to property is 46% leased to Glen Cameron complete in July 2012. Group and we are actively marketing the remaining space.

Property details as at 31 Mar 2012 Property details as at 31 Mar 2012 Metro area Sydney, Outer West Metro area Sydney, Outer West Building type Industrial estate Building type Industrial estate Title Freehold Title Freehold Site area (ha) 4.2 Site area (ha) 1.2 Lettable area (‘000 m2) 23.34 Lettable area (‘000 m2) 5.44 Car parking spaces 111 Car parking spaces 33 Year built 2012 Year built 2012 Tenant Glen Cameron Group Tenant UPS Australia

M4 Great Western Hwy Reconciliation Rd Reservoir Rd Toongabbie Rd

Wentworthville 5 Pendle Way

Foundation Pl Great Western Hwy M4 Greystanes Old Prospect Rd Prospect Reservoir 24 Cumberland Rd

Centenary Rd

Greystanes Rd

Merrylands Rd

Gipps Rd Merrylands Rd

Windmere Rd

Cumberland Hwy

Sherwood Rd Merrylands 0 500 1000 Hassall St Fowler Rd Metres

Redfern St

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 29 94-106 lenore drive Erskine park

In August 2010, DEXUS acquired a Key achievements 7.6 hectare industrial zoned site located The key timeframes and achievements since acquiring the site included: on Lenore Drive, Erskine Park. nn August 2010 – site acquired nn December 2010 – received planning approval The site, in one of Western Sydney’s most recognised industrial precincts, is 45 kilometres west of the Sydney CBD and just nn February 2011 – commenced construction of a 15 kilometres west of the Parramatta CBD. It has excellent 21,000 square metre industrial facility onsite combined with access to major transport routes, being only 2.7 kilometres a sales marketing campaign for the two smaller land parcels south of the M4 on-ramp and, upon completion of the Erskine –– Developed the facility using leading sustainability practices Park Link Road, will provide direct access from Lenore Drive including an underground rainwater tank for water recycling through to the M7 and Old Wallgrove Road. and irrigation use, using 10% translucent sheeting on the roof and rooftop solar panels to power the hot water system Capabilities nn July 2011 – sold the two smaller land parcels to Digital Realty, This project demonstrates DEXUS’s capabilities in an owner occupier, realising a trading profit of $1.4 million nn Identifying strategic development, leasing and transaction nn September 2011 – reached practical completion of the opportunities in a key market development ahead of schedule and under budget nn Designing a development to meet market demand and nn March 2012 – secured a seven year lease with global logistics incorporating leading sustainability features and resource and distribution company DB Schenker, in one of the largest consumption efficiencies industrial leasing deals in the Australian market for the 2012 financial year nn Securing an outstanding leasing outcome ahead of time and in line with budget Property details as at 31 Mar 2012 Investment objectives Metro area Erskine Park The investment objectives from acquisition, were to: Zoning Industrial Building type Industrial/Warehouse nn Subdivide the site into three individual lots Title Freehold nn Sell the two smaller land parcels of 1.8 hectares Site area (ha) 4.1 and 1.6 hectares by July 2011 Lettable area (‘000 m2) 21.0 nn Design, construct and lease a 21,000 square metre industrial Car parking spaces 164 facility on the remaining 4.2 hectares on a speculative basis Year built 2011 nn Sell the developed facility and generate revenue for DEXUS Tenant DB Schenker in the form of trading profits Forecast IRR 20%+

30 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 57-75 Templar Road Erskine park

Great Western Hwy

Bennett Rd Minchinbury

Mamre Rd M4 Wentworthville

Banks Dr Planned St Clair extension of Wallgrove Rd Reconciliation Rd due for completion by mid 2011 Prospect Reservoir Great Western Hwy

Mamre Rd Erskine Park Rd Eastern M7 Artist’s impression Creek

Link road (under construction) Luddenham Rd Erskine Old Wallgrove Rd Lenore Dr 0 500 1000 DEXUS has exchanged contracts to Park Metres 3 acquire land at 57-75 Templar Road, Lockwood Rd

Erskine Park, with settlement expected 0 500 1000 Templar Rd prior to 30 June 2012. 4 Metres

Approval has already been obtained to construct a new speculative development project. The site is situated approximately 300 metres south of the controlled intersection of Lenore Drive and Templar Road, and is approximately NOTES 2.7 kilometres south of the junction of Erskine Park Road and the M4 junction. The masterplan allows for the subdivision of smaller units across two buildings offering the flexibility to accommodate a variety of industrial uses and incorporates sustainable design and innovation. The target audience is smaller industrial businesses located in central west Sydney looking for cost effective functional facilities close to major transport distribution routes. On completion, the development will be one of the only available sites in the Erskine Park area offering smaller tenancy sizes through to large individual buildings more commonly seen in Erskine Park.

Property details Building type Industrial/Warehouse Title Freehold Net site area (ha) 5.6 Target lettable area (‘000 m2) (over two buildings) 30 Car parking spaces 240 Construction timeline Jul 12 – Feb 13 Target IRR 15%+

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 31 Kings Park Industrial Estate Marayong

Kings Park Industrial Estate comprises Key achievements nine office/warehouse buildings and a café In the financial year to date, the property management team has achieved the following leasing results: covering over 68,000 square metres. nn Secured all FY12 expiries nn Renewed four leases with existing tenants including The buildings range from 2,500-27,300 square metres. The Visy Pet (27,300 square metres) for a further five years property is located in Marayong (Kings Park) near the Marayong railway station and is in close proximity to Sunnyholt Road, the nn Increased the WALE (by income) from 2.4 years M7 and M2. The catchment is also linked to the Great Western at 30 June 2011 to 3.7 years at 31 March 2012 Highway and the M4. nn Secured a steady income growth profile for the estate with Upon acquisition of this property in 1990, the development all tenancies subject to fixed and or CPI annual reviews, strategy was to develop 1 Coronation Avenue and expand averaging 3.4% existing buildings where applicable to maximise the gross lettable area and total returns. Property details as at 31 Dec 2011 The staged value-add development included: Building type Industrial estate nn 1/1 Coronation Avenue development as a pre-commitment Title Freehold design and construct project for CSL Limited in 2004. Site area (ha) 13.7 2 nn 2/1 Coronation Avenue was a speculative development, Lettable area (‘000 m ) 68.86 completed in early 2006 and leased from May 2008. Number of buildings 10 Office content (%) 13 nn Building extensions have been undertaken to 2 Coronation Avenue (Geoff Penney Australia), 7 Coronation Avenue Car parking spaces 484 (Visy PET) and 6 Harvey Road (Regency Media – previously Year built 1991 Harper Collins). Major tenant Visy Pet Pty Ltd More recently the property strategy has been a core focus with an emphasis on lease renewals to maintain 100% occupancy and increase the weighted average lease expiry.

32 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Quakers Hill

M7 Bella Vista Sunnyholt Rd Glenwood

Quakers Rd Old Windsor Rd Kings Park M7 Norwest Bvd Vardys Rd

Richmond Rd 23

Davis Rd Woodcroft

Ashlar Vardys Rd

Golf Sunnyholt Rd Course

0 500 1000 Metres

Key statistics as at 31 Dec 2011 NOTES Metro area Marayong Zoning 4(a) General Industrial Acquisition date May 1990 Acquisition price plus additions (A$m) 81.2 Book value (A$m) 88.7 Independent valuation date Dec 2009 Independent valuation (A$m) 88.0 Market cap rate (%) 8.50 Initial yield (%) 9.35 Discount rate (%) 9.50 Leased by area (%) 100 Weighted lease term by income (years) 1.9 Available (%) 0 2012 (%) 44 2013 (%) 9 2014 (%) 0 2015 (%) 42 2016 (%) 0 2017 (%) 5 2018 (%) 0 2019 (%) 0 2020 (%) 0 2021+ (%) 0

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 33 DEXUS MELBOURNE INDUSTRIAL PORTFOLIO Somerton

M31

Hume Hwy Calder Fwy Hume Fwy Lalor

Melton Hwy Northern Ring Rd Western Fwy Tullamarine

1 Target Distribution Centre, Western Ring Rd Tarras Road, Altona North Western Fwy 2 114 Fairbank Road, Clayton

Citylink Twy 3 Pound Road West, Dandenong 4 Knoxfield Industrial Estate, Henderson Road, Knoxfield Western Hwy

5 250 Forest Road South, Lara Eastern Fwy Derrimut 6 DEXUS Industrial Estate, Boundary Road, Laverton North (including 440 Doherty’s Road) Princes Hwy MELBOURNE 6 & 7 7 12-18 Distribution Drive, Laverton North West Gate Fwy M1 8 Axxess Corporate Park, Cnr Ferntree Gully Ballan Rd Derrimut Rd Laverton 1 & Gilby Roads, Mount Waverley North Altona M3 M1 North Listed asset Third party asset M1 Princes Fwy Mt Waverley Key industrial markets Werribee Knoxfield Supporting industrial corridors 8 North Rd Ferntree Gully Rd 4

Clayton Monash Fwy South Rd Princes Hwy 2

Nepean Hwy

Port Phillip Springvale Rd M1

Boundary Rd M3

Lower Dandenong Rd Dandenong

Bacchus Marsh Rd Eastlink

M1 Princes Fwy Lara Old Melbourne Rd Patullos Rd 5 3

Forest Rd Lynbrook Frankston-Dandenong Rd

Western Port Hwy

0 1 2 3 4 5 Kilometres

Geelong Frankston 34 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Port Arlington Rd Somerton

M31

Hume Hwy Calder Fwy Hume Fwy Lalor

Melton Hwy Northern Ring Rd Western Fwy Tullamarine

1 Target Distribution Centre, Western Ring Rd Tarras Road, Altona North Western Fwy 2 114 Fairbank Road, Clayton

Citylink Twy 3 Pound Road West, Dandenong 4 Knoxfield Industrial Estate, Henderson Road, Knoxfield Western Hwy

Clayton Monash Fwy South Rd Princes Hwy 2

Nepean Hwy

Port Phillip Springvale Rd M1

Boundary Rd M3

Lower Dandenong Rd Dandenong

Bacchus Marsh Rd Eastlink

M1 Princes Fwy Lara Old Melbourne Rd Patullos Rd 5 3

Forest Rd Lynbrook Frankston-Dandenong Rd

Western Port Hwy

0 1 2 3 4 5 Kilometres

Geelong Frankston DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 35 Port Arlington Rd DEXUS Industrial Estate Laverton North

BOUNDARY ROAD

VISY INDUSTRIES

PROPOSED DEVELOPEMENT

2.4ha PROPOSED 2.7ha LavertonDEXUS Industrial Status Estate, Laverton North masterplan DEVELOPEMENT VISY INDUSTRIES

2012 STAGE 1 LOSCAM N COLES LIMITED

100m STAGE 2A COLES LIMITED

1.0ha STAGE 2B FASTLINE PROPOSED PROPOSED DEXUS SPEC DEXUS SPEC W/H 3 W/H 4 3.5ha

FOSTER’S GROUP SIGNAL-CONTROLLED INTERSECTION

DISTRIBUTION DRIVE 1.9ha WRIGHTSON SEEDS BEST BAR

FOSTERS GROUP 3.2ha TOLL LAVERTON CREEK BIO-RETENTION SYSTEM PALMERS ROAD

WRIGHTSON SEEDS STAGE 3

TTOLLOLL TRANSPORT TRANSPORT DEXUSDEXUS SPEC SPEC 2 2

21.5ha FOUNDATION ROAD 9.6ha

BEST BAR

FADEXUSSTLI SPECNE 1

BIO-RETENTION SYSTEM

LOSCAM

15.6ha

5.1ha

DOHERTYS ROAD

Matt Ellis Rod Speakman This document will not form the basis of or be part of any agreement. This information is of general nature only and prospective lessees & purchasers should seek further information from DEXUS Property Group and obtain State Development Manager Senior Project Manager appropriate expert advice. The areas are approximate and subject to formal survey. T 61 3 8611 2940 T 61 3 8611 2960 Disclaimer DEXUS Funds Management Limited advises that whilst all care has been taken in compiling the information contained in this document, DEXUS Funds Management Limited does not warrant that this information F 61 3 8611 2910 F 61 3 8611 2910 is accurate or complete and disclaims all liability from use of or reliance upon this information. This document should not be relied upon by lessee’s seeking to enter into lease transactions and this document will not form the E [email protected] E [email protected] basis of or be part of any agreement/s reached. This information is of a general nature only and prospective lessees should seek further information from DEXUS Funds Management Limited and obtain appropriate expert advice.

36 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR BOUNDARY ROAD

VISVISYY INDUSTRIESINDUSTRIES

PROPOSED DEVELOPEMENT

2.4ha PROPOSED 2.7ha Laverton Status DEVELOPEMENT VISY INDUSTRIES

2012 STAGE 1 LOSCAM N CCOLESOLES LIMITED LIMITED

100m STAGE 2A COLES LIMITED

1.0ha STAGE 2B FASTLINE PROPOSED PROPOSED DEXUS SPEC DEXUS SPEC W/H 3 W/H 4 3.5ha

FOFOSTER’SSTER’S GROUP GROUP SIGNAL-CONTROLLED INTERSECTION

DISTRIBUTION DRIVE 1.9ha WRIGHTSON SEEDS BEST BAR

FOSTERS GROUP 3.2ha TOLL LAVERTON CREEK BIO-RETENTION SYSTEM PALMERS ROAD

WRWRIGHTSONIGHTSON SEEDS SEEDS STAGE 3

TOLL TRANSPORT DEXUS SPEC 2

21.5ha FOUNDATION ROAD 9.6ha

BESTBEST BAR BAR

DEXUS SPEC 1

BIO-RETENTION SYSTEM

LOLOSCAMSCAM

15.6ha

5.1ha

DOHERTYS ROAD

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 37 DEXUS INDUSTRIAL ESTATE LAverton North

Key achievements

Stage 1 Stage 2 A & B Loscam facility Toll in 2 Store facility In March 2010 we entered into a 10 year pre-lease with pallet In September 2011 we entered into a seven year pre-lease manufacturer Loscam for a 6,534 square metre building on a with Toll in 2 Store for a 13,720 square metre building on 3.1 hectare site. Construction commenced in February 2011 a 2.5 hectare site. Practical completion of the $12.2 million and the lease commenced in August 2011. This property was development is expected by the end of June 2012 with a sold in September 2011 for $11.7 million, realising a trading forecast yield on cost of 8.15%. profit of $1.3 million. While the facility has a low site coverage to accommodate Loscam’s requirement for hardstand, the site was Speculative facility 2 future-proofed by designing the facility in such a way that the A 15,564 square metre speculative building has been building could be replicated on the hardstand at a future time. constructed adjacent to the Toll in 2 Store facility, utilising the same builder across both buildings to achieve economies of Fastline facility scale. This building is expected to reach practical completion In March 2011 construction commenced on Laverton’s first by end of June 2012 at a cost of $13.5 million. Heads of speculative development, a 17,347 square metre building agreement have been reached with a new tenant on this on a 3.7 hectare site. Practical completion was reached in building. September 2011 with a number of enquiries already under consideration. The building was subsequently leased to Fastline Development 3 Logistics with the lease commencing on 1 December 2011 on Development approval was obtained for a 26,000 square metre a five year term. facility on 5.7 hectares in the north-west corner of Stage 2A. Construction is expected to commence in the second half of Land sales 2012 at an estimated cost of $22.5 million. Two lots fronting Boundary Road totalling 3.3 hectares are currently under contract and are expected to settle in August Stage 2A road and infrastructure 2012. Settlement is subject the completion of the service road Practical completion was reached on the Stage 2A road and adjoining Boundary Road and the registration of the subdivision. infrastructure that provides access from Palmers Road, on the western side of the precinct, to Toll in 2 Store, Speculative facility 2 and Development 3. Stage 3 Subdivision, road and infrastructure Development approval was obtained for the Stage 3 subdivision, road and infrastructure, which will open up 51 hectares of developable land and join the estate from Boundary Road in the north to Doherty’s Road in the south.

DEXUS Industrial Estate, Laverton North as at 31 March 2012

Land Under Developed & Land sold Remaining Total estate developed construction sold land

Land area (ha) 39.6 5.8 3.1 3.3 71.5 123.5

Building area (‘000 m2) 146.0 29.3 6.5 – 174.0 355.7

Site coverage 37% 50% 21% – 24% ––

38 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR Sunshine Golf Club M8 Western Fwy

Western Ring Rd Somerville Rd Laverton

Mount Derrimut Rd Boundary Rd North 6 Fairbairn Rd

Little Boundary Rd

Foundation Rd

Princes Hwy

Fitzgerald Rd

Dohertys Rd M1 West Gate Fwy

Altona Princes Fwy 0 500 1000 1500 2000 Metres North M1

NOTES

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 39 NOTES

40 DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR NOTES

About dexus

DEXUS is one of Australia’s leading property groups specialising in world-class office, industrial and retail properties with total assets under management of $14 billion. In Australia, DEXUS is the market leader in office and industrial and, on behalf of third party clients, a leading manager and developer of shopping centres. DEXUS is committed to being a market leader in Corporate Responsibility and Sustainability. www.dexus.com

DEXUS property GROUP SYDNEY INDUSTRIAL PROPERTY TOUR 41 This tour book is issued by DEXUS Funds Management Limited (DXFM) in its capacity as responsible entity for DEXUS Property Group (ASX: DXS). It is not an offer of securities for subscription or sale and is not financial product advice. Information in this presentation including, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM, DEXUS Property Group and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward looking statements for a range of reasons outside the control of the relevant parties.

The information contained in this tour book should not be considered to be comprehensive or to comprise all the information which a DEXUS Property Group security holder or potential investor may require in order to determine whether to deal in DEXUS Property Group stapled securities. This tour book does not take into account the financial situation, investment objectives and particular needs of any particular person. The repayment and performance of an investment in DEXUS Property Group is not guaranteed by DXFM, any of its related bodies corporate or any other person or organisation. This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.