ABACUS GROUP — Capital/Financing Update 2007

Oct 7, 2007

==> picture [140 x 40] intentionally omitted <==

ASX ANNOUNCEMENT

Abacus Property Update - $275 million of acquisitions since 1 July 2007

Abacus Property Group is pleased to announce that, in the period since 1 July 2007, it has acquired or contracted to acquire over $275 million of property assets for its principal book and funds management business.

The following acquisitions have settled for our principal book since 1 July:

• two properties in Varsity Lakes, Queensland for $23 million, comprising 7,180sqm of office accommodation across two buildings on 2 ha of land. The properties offer significant potential for rental reversion and future development;

• Airways Christchurch for $18.85 million, comprising a 1.7 ha site with two office buildings providing net lettable area of 7,352 m[2 ] that is leased to Airways Corporation of New Zealand until 2019;

• An industrial facility at Lisarow on the NSW central coast for $9.8 million, comprising 9,930 m[2] of industrial and office accommodation on 6.5 ha of land, with a long term lease to Lighting Corporation Ltd until 2017; and

• A large industrial property in Alderley Queensland for $20.1 million, comprising two warehouses with 21,160 m[2] of NLA on a 4.67 ha site located five kilometres from the Brisbane CBD. This site also offers development potential in the near term.

Abacus has recently contracted to acquire the following properties:

• An industrial complex in Campbellfield, Victoria for $17.55 million: this 6.6 ha property with 26,000 m[2 ] of NLA is located on the Hume Highway and is adjacent to a 2.1 ha property already owned by Abacus;

• A number of smaller property assets valued at approximately $35 million have been acquired for ADIFII and the Abacus Small Properties Fund; and

• $35 million of storage assets, comprising a portfolio of storage facilities in one of Australia’s most dynamic regional centres and a facility in New Zealand. In addition, Abacus has also offered to acquire all the shares in U Stow It Holdings Limited, an unlisted public company that owns and operates a number of self-storage assets and other commercial properties in Canberra and Queanbeyan. Abacus’ offer is by way of a recommended off-market bid under the Corporations Act and values U Stow It at approximately $40 million. The offer is conditional on a minimum acceptance of 30%. As at the date of the offer, Abacus owns 11.44% of U Stow It’s shares and has obtained prebid acceptance commitments in respect of a further 8.5% of U Stow It’s shares. The offer opens on Tuesday 9 October and closes on Monday 12 November 2007.

These storage assets are being acquired and warehoused by Abacus ahead of the potential launch of a second storage fund.

Level 34 Australia Square, 264-278 George Street, Sydney NSW 2000 T: 02 9253 8600 F: 02 9253 8616 W: www.abacusproperty.com.au

==> picture [118 x 35] intentionally omitted <==

ABACUS PROPERTY UPDATE - $275 MILLION OF ACQUISITIONS SINCE 1 JULY 2007

Abacus has also settled the following acquisitions for the Abacus Hospitality Fund, bringing gross assets for this fund up to $300 million:

• Swissôtel Sydney for $85 million: a five star hotel offering 359 rooms, conference facilities, restaurant and spa in central Sydney;

• Rydges Southbank Townsville for $18.8 million: a four star hotel offering 98 rooms and conference facilities in central Townsville; and

• Diplomat Hotel for $13.3 million: a 67 room boutique hotel in Canberra leased back to the vendor for a period of six years.

In addition to these property acquisitions, Abacus has sold its Noble Park industrial facility for $27.9 million and entered into contracts on behalf of the Abacus Mariners Cove Equity Trust (one of Abacus’ managed funds) to sell its Mariners Cove property for $49 million.

8 October 2007

Ellis Varejes Company Secretary 612 9253 8600

Level 34 Australia Square, 264-278 George Street, Sydney NSW 2000 T: 02 9253 8600 F: 02 9253 8616 W: www.abacusproperty.com.au