Market Briefing November 2005 Tarun Gupta Fund Manager Australian

Market Briefing November 2005 Tarun Gupta Fund Manager Australian Prime Property Funds Fund Overview 5757 Institutional Institutional InvestorsInvestors Fund Constitutions Retail Commercial Industrial Combined (est. 1989) (est. 1994) (est. 1996) $3,446m $2,400m $816m $230m Eight Assets Nine Assets Sixteen Assets Combined Pool 33 Assets Erina Fair NSW (50%) 1 Farrer Place, NSW (25%) Silverwater Industrial Park, NSW Carindale, QLD (50%) 1 O’Connell St, NSW (50%) Bowden St, Alexandria, NSW Marion, SA (50%) 1 Spring St, VIC (50%) Belmore Rd, Riverwood, NSW Sunshine Plaza, QLD (50%) 44 Martin Place, NSW (100%) Bessemer St, Blacktown, NSW Macarthur Square, NSW 50% Brisbane Transit Centre, QLD (50%) Gardeners Rd, Mascot, NSW Greensborough Plaza, VIC (100%) Alan Woods Building, ACT (100%) Euston Rd, Alexandria, NSW Cairns Central, QLD (50%) 40 Creek Street, QLD (100%) Davis Rd, Wetherill Park, NSW Caneland Central, QLD (100%) 80 George St, NSW (100%), etc Ipswich Rd, Rocklea, QLD, etc 2 Growth in FUM and Investor Base 2005 $408M acquisition of Greensborough Pl, Sunshine Pl and $m 1 O’Connell St $m 2003 1,000 $212M Erina 4,000 Fair expansion 900 2003 completed. 3,500 Repositioning of ¾ 212% growth in FUM in last 5 800 APPF Comm and 2001 acq. Of 1 Farrer Pl 3,000 years (25.6% p.a. average 700 $497M acq. of and Marion 4 Suncorp ($595M) growth) 2,500 600 Retail assets – repositioning ¾ Conservative tactical use of of Retail Fund 500 2,000 gearing – equity based growth 400 1,500 300 ¾ More than twice the number of 1,000 institutional clients (22 in 1999 to 200 57 now) 500 100 0 0 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05* 2005/06 New Equity p.a. (LHS) Equity Redeemed p.a. (LHS) Fund Size (RHS) Debt (RHS) 3 Lend Lease Revenue from APPF $M 25.0 20.0 15.0 10.0 Total Fees Total 5.0 - 98/99 99/00 00/01 01/02 02/03 03/04 04/05 Base Fee Performance Fee ¾ Fees have grown from $8.2m in 1998/99 to $22.6m in 2004/05 (+18%pa) ¾ Scale business – strong margins on future growth ¾ Full performance fee earned in 2005 – outlook positive. 4 Performance (Year ended June 2005) APPF & MERCER INDICES - 5 YEARS (pre-fees) 200 180 ¾ All three Funds performing at or above 160 their targeted returns Index 140 120 ¾ APPF Retail #1 in Mercer Unlisted 100 Property Funds Index 1 3 04 /00 /0 3/02 /02 /03 /0 / 3/05 /05 /09 09 /03 /09 30 31/03 30/09/01 31/0 30/ 31 30/09 31/03 30/09/04 31/0 30 APPF Retail APPF Commercial APPF Industrial Mercer Unlisted Property Fund Index APPF & PCA 5 YEAR RETURNS (pre-fees and pre-acquisition costs) 20.0% 14.7% 15.0% 13.5% 12.2% 13.2% 10.0% 10.0% 8.3% Per Annum Per 5.0% 0.0% Retail Commercial Industrial Sector APPF PCA (Super & Major Regional Retail, Aust CBD Office & Aust Industrial) Macarthur Square 2005 5 Fund Highlights (last 3 years) ¾ Leading investment performance – APPF Retail ranked #1 in Mercer Unlisted Property Funds Index ¾ $1.2b in transactions completed – Interest in 3 Retail assets acquired - $562.8m – Interest in 3 Office assets acquired - $465.5m 1 Farrer Place &1 O’Connell Street, Sydney – 4 Industrial assets acquired - $47.2m – 3 assets divested - $108m ¾ Significant developments completed - $212m Erina Fair Expansion ¾ Active capital management – $1.3b in new equity raised – S&P A- Corporate Rating for APPF Retail Sunshine Plaza, Maroochydore 6 Enhanced Returns from Active Management Centre Completion Total Cost Year 1 Project Date 100% Yield IRR $m % % Sunshine Plaza 2001 50.7 7.8 10.6 Caneland Central 2002 2.4 9.5 16.0 Greensborough Plaza 2003 14.5 8.4 11.9 Erina Fair 2003 212.3 8.0 14.2 Macarthur Square 2005 / 06 218.0 8.0 13.5* Macarthur Square 2005 TOTAL $497.9m * Projected ¾ Strong accretive yields compared to 6.7% average portfolio cap rate ¾ Fully integrated property skills ¾ Masterplan staged expansions – bolt on low risk Erina Fair 2003 developments ¾ Strong track record 7 Outlook and Strategy ¾ Funds positioned strongly – strong portfolio outlook, strong balance sheets ¾ APPF Retail – pipeline of $430m in return enhancing developments ¾ APPF Commercial - $1b Fund target, pipeline of $100m in return enhancing developments ¾ APPF Industrial - $500m Fund target ¾ All 3 Funds positioned to meet / exceed targeted returns 8.

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