ABACUS GROUP — Capital/Financing Update 2007

Dec 20, 2007

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ASX ANNOUNCEMENT

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Property acquisitions generate new funds

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Abacus Property Group has exchanged contracts on two properties valued at $75 million which will be packaged as special opportunity funds for release in 2008.

51 Allara Street, Canberra has been acquired for $52.6 million on a yield of 7.65%.

Occupying a prominent location on the intersection of Allara Street and Constitution Avenue in the Canberra CBD, this modern office building provides NLA of 11,760 square metres and is fully leased with a staggered tenant expiry profile to 2017. Tenants include Ernst & Young, the ATO and the Murray Darling Basin Commission. The property also provides basement parking for 169 vehicles.

Bayway Village, a manufactured homes park at Fern Bay - approximately 20 kilometres from Newcastle - has been acquired for $18.75 million on a yield of approximately 10%.

Located opposite Newcastle Golf Course, the 25.9 hectare site provides 453 homes with approval to build an additional 117 homes. Recreational facilities on site include a lawn bowling green, tennis courts and swimming pool. The surrounding area is currently a mix of developing residential, retirement village and rural use.

Director Funds Management, Tom Hardwick, said that both properties had been acquired for release as special opportunity funds to the clients of our financial planners in the first half of 2008. Allara St offers a high quality office building with a strong initial yield and prospects for further growth through repositioning of the tenancy profile and reversion to market rents.

Bayway Village will provide investors with a large hand holding on the central coast of NSW, with a strong initial yield and prospects for growth through development of the surplus land.

Ellis Varejes Company Secretary 612 9253 8600

21 December 2007