ABACUS GROUP — Capital/Financing Update 2007

Oct 24, 2007

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ASX ANNOUNCEMENT
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Security Purchase Plan

The enclosed documents are being sent to all Abacus Property Group securityholders.

25 October 2007

Ellis Varejes Company Secretary 612 9253 8600

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23 October 2007

Dear Investor

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SECURITY PURCHASE PLAN

I am pleased to offer you the opportunity to acquire additional Abacus Property Group securities under a Security Purchase Plan ( SPP ). The SPP enables securityholders to acquire new APG securities up to a value of $5,000 free from brokerage and other transaction costs. Proceeds from the SPP will be used to partly fund identified property acquisition opportunities and to continue to grow our funds management business.

The new securities will be issued at a 2.5% discount to the volume weighted average price over the ten trading days up to and including 7 November 2007, which is the closing date for this offer. The amount you subscribe (up to $5,000) will be divided by the issue price in order to determine how many securities you will receive (see attached terms). Fractional entitlements will be rounded up.

The daily price of APG securities can be monitored through the Australian Stock Exchange website or the financial pages of major newspapers.

Securities issued under the SPP will qualify for the distribution payment for the quarter ending 31 December 2007. Further details on the SPP are provided in the attached terms.

Your participation in the SPP is optional. If you do not wish to purchase additional securities, there is no need to take any action. If you do want to participate, please send your completed application and payment so that our registry receives them before 5.00 pm (Sydney time) on 7 November 2007. A reply paid envelope is enclosed.

If you require further information, please contact your financial adviser or telephone Abacus on 1800 253 860 or email enquiries@abacusproperty.com.au.

Yours faithfully,

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John Thame Chairman

Abacus Property Group

SECURITY PURCHASE PLAN 2007

This document sets out the terms of the Security Purchase Plan (SPP) under which you may purchase a limited number of additional Abacus Property Group securities at the SPP issue price. Please read all of this information carefully and consult your financial adviser if you need advice on the appropriateness of participating in the SPP.

ELIGIBILITY TO PARTICIPATE	All holders of Abacus Property Group securities resident in Australia
	who were registered as at 5.00 pm on Friday 19 October 2007.
INVITATION TO APPLY	Eligible holders may apply for up to $5,000 worth of securities. The
	minimum application amount is $1000 and above that applications
	must be for multiples of $1000.
	The application period closes on 7 November 2007 unless extended
	by Abacus.
	If a trustee or nominee is expressly noted on the register as holding
	securities on account of another person (a beneficiary), the
	beneficiary is taken to be the registered holder of the securities for
	the purpose of this SPP and any application by the trustee or
	nominee is taken to be an application and certification by the
	beneficiary. Otherwise, trustees and nominees that are registered
	holders may apply only once.
	The SPP is non-renounceable, meaning that you cannot transfer
	your SPP entitlement to another person.
LIMITATION ON	Regulations limit the maximum amount that can be invested by one
PARTICIPATION	securityholder under a SPP to $5,000 in any 12 month period.
	This maximum applies if you have multiple holdings or if you hold
	securities in more than one capacity (eg. If you are both a sole and
	a joint holder of securities).
	Abacus reserves the right to reject an application where it believes
	the application may result in a person receiving more than $5,000
	worth of securities under the SPP.
ISSUE PRICE	Securities will be issued at a 2.5% discount to the volume weighted
	average price over the ten trading days up to and including
	7 November 2007. The amount subscribed will be divided by the
	issue price. Fractional entitlements will be rounded up.

If 10 dayVWAPto7 November is:	$1.86	$1.88	$1.90	$1.92
ThenSPP issue pricewould be:	$1.8135	$1.8330	$1.8525	$1.8720
Number of securities issued for $5,000 application would be:	2,758	2,728	2,700	2,671
THE ABOVE EXAMPLE IS FOR ILLUSTRATIVE PURPOSES ONLY You can monitor the price of Abacus Property Group securities through the ASX website or in the financial pages of major newspapers.

No brokerage or other transaction costs will apply to any purchases under the SPP.

These Security Purchase Plan terms are dated 23 October 2007.

ABACUS PROPERTY GROUP SECURITY PURCHASE PLAN 2007

INCOME ENTITLEMENTS Securities issued under the SPP will rank equally with existing securities from the date of issue. SPP securities will participate in the distribution for the quarter ending 30 December 2007. ALLOCATION POLICY Abacus reserves the right to scale back applications at its discretion. If applications are scaled back, this will done on a pro rata basis. Any refunds will be paid after the close of the offer. No interest will be paid on money refunded. Allocation of securities is anticipated to be completed on 9 November 2007. PAYMENT INSTRUCTIONS Payment of application money must be made by cheque. Detailed instructions are provided on the application form. SUBMITTING PAYMENTS Applications comprising the completed application form and the applicant’s cheque for the full amount must be received by the Abacus Property Group registry at the address set out on the application form no later than 7 November 2007. Applicants should allow sufficient time for receipt of applications forwarded by post.

A reply paid envelope is enclosed.

DECLARATION AND By forwarding a payment, the applicant acknowledges that they have ACKNOWLEDGMENTS read and understood the terms of the SPP and certifies that the total cost of all securities purchased by them in the SPP or any similar arrangement in the 12 months prior to this application (including through joint and beneficial holdings) does not exceed $5,000.

The applicant acknowledges than an application on these terms is unconditional and cannot be withdrawn. The applicant authorises Abacus (and its officers and agents) to correct any error or omission in their application by correcting the error or inserting the correct missing details. Abacus may determine that an application is valid even if it contains errors or omissions. AMENDMENTS TO THE Abacus reserves the right to change the timetable, including the OFFER closing date. RIGHT TO WITHDRAW OFFER Abacus may withdraw the SPP at any time prior to allotment. If the SPP is withdrawn, all application money will be refunded. No interest will be paid on any refunded application money. TIMETABLE Allocation of new securities under the SPP is expected to be undertaken on 9 November 2007, with quotation on the ASX on 13 November 2007. These dates are approximate and may be changed. QUERIES If you have any queries concerning the SPP, please contact the Abacus Property Group registry Computershare Investor Services on 1300 850 505 (within Australia) or 613 9415 400 (outside Australia). Alternatively, contact Abacus at enquiries@abacusproperty.com.au or telephone 1800 253 860 or contact your financial adviser.

These Security Purchase Plan terms are dated 23 October 2007.

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i 1234567890 I N D

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ABACUS GROUP HOLDINGS LIMITED ACN 080 604 619

ABACUS GROUP PROJECTS LIMITED ACN 104 066 104

000001000 1301011221012102012221332120133322113 SAM MR JOHN SAMPLE FLAT 123 SAMPLE STREET SAMPLE STREET SAMPLE STREET SAMPLETOWN VIC 3030

ABACUS FUNDS MANAGEMENT LIMITED ACN 007 415 590 AFSL 227819 responsible entity of ABACUS TRUST ARSN 096 572 128 ABACUS INCOME TRUST ARSN 104 934 287

Security Purchase Plan 2007 Application Form

Offer closes: 5.00 pm (Sydney time) Wednesday 7 November 2007

This is an offer to eligible securityholders to acquire additional Abacus Property Group securities under a Security Purchase Plan (SPP) in accordance with the accompanying terms and conditions dated 23 October 2007.

By completing this form and forwarding it with your payment, you agree that this is an irrevocable offer by you to subscribe for Abacus Property Group securities on the terms and conditions of the SPP. In addition, you certify that the aggregate of the application price for securities applied for by you under this SPP (including through joint and beneficial holdings) does not exceed $5,000.

To accept this offer, please complete this form and return it with your payment to reach the Abacus registry by 5.00 pm (Sydney time) on 7 November 2007. A reply paid envelope is enclosed.

Please direct all enquiries to the Abacus Property Group registry Computershare Investor Services (within Australia) 1300 850 505 or (outside Australia) 613 9415 4000 or web.queries@computershare.com.au

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019136 - V1
I/We wish to purchase Abacus Property Group Mr John Sample
securities with an aggregate subscription
price of (tick one box only) Entitlement Number:
$1,000 $2,000 $3000 $4,000 $5000
Payment details - Please make your cheque payable to ‘Abacus Trust’ and cross it ‘not negotiable’.
Drawer Cheque number BSB Account number Amount of cheque
A$
Please ensure the amount of your cheque corresponds to the box you ticked above.
Please provide a daytime telephone contact in case we have questions about your application.
Contact name (please print) Contact number (business hours)
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PAYMENT DETAILS

Your cheque should be:

• drawn on an Australian branch of an Australian registered bank;

• made payable to ‘Abacus Trust’; and

• marked ‘not negotiable’

Please ensure your cheque is for the same amount as the box you ticked and that there are sufficient cleared funds in your account. Cheques will be processed on the day of receipt.

Pin (do not staple) your cheque to this application form.

LODGEMENT DETAILS

Your completed application form and payment should be lodged with the Abacus Property Group registry by no later than 5.00 pm (Sydney time) on Wednesday 7 November 2007. A reply paid envelope is enclosed for securityholders in Australia. Please allow sufficient time for collection and delivery by postal services as the postal acceptance rule does not apply.

Your form cannot be faxed because your payment must be attached.

Return your application form with cheque attached to:

Mailing address

Hand delivery address

Abacus Property Group Abacus Property Group Computershare Investor Services Pty Limited Computershare Investor Services Pty Limited GPO Box 253 Level 3 Sydney NSW 2001 60 Carrington Street Australia Sydney NSW 2000 Australia

PRIVACY STATEMENT

Personal information is collected on this form by Computershare Investor Services Pty Limited (“CIS”), as registrar for securities issuers (“the issuer”), for the purpose of maintaining registers of securityholders, facilitating distribution payments and other corporate actions and communications. Your personal information may be disclosed to our related bodies corporate, to external service companies such as print or mail service providers, or as otherwise required or permitted by law. If you would like details of your personal information held by CIS, or you would like to correct information that is inaccurate, incorrect or out of date, please contact CIS. In accordance with the Corporations Act 2001, you may be sent material (including marketing material) approved by the issuer in addition to general corporate communications. You may elect not to receive marketing material by contacting CIS. You can contact CIS using the details provided on the front of this form or E-mail privacy@computershare.com.au

If you have any enquiries regarding this form, please contact Computershare Investor Services on 1300 850 505.

019136 - V1