ABACUS GROUP — Capital/Financing Update 2007

Aug 15, 2007

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ASX ANNOUNCEMENT

Abacus update

The following update has been sent to all holders of Abacus Property Group securities.

16 August 2007

Enquiries should be directed to:

Ellis Varejes Company Secretary 61 2 9253 8600

Abacus Group Holdings Limited ACN 080 604 619 Abacus Group Projects Limited ACN 104 066 104

Abacus Funds Management Limited ACN 007 415 590 Abacus Property Services Pty Limited ACN 050 739 001

ABACus replenishes purChAsing CApACity

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new diversified fund now open for investment

Abacus Diversified Income Fund II offers investors exposure to a diversified portfolio of investment properties and other propertybased assets.

Commercial investment properties valued at less than $25 million are the core focus of the Fund. Returns from the property portfolio will be supplemented by income from other property asset classes including investments in listed and unlisted wholesale and retail property funds. The initial $190 million portfolio of assets includes:

• $142 million invested in 19 properties diversified across sectors and locations;

• $25 million invested in 6 managed funds; and

• $22 million invested in a portfolio of listed property securities.

Targeting a total return of 10% pa, the Fund pays quarterly distributions – 7 cpu pa – of which more than 95% is tax-deferred. If you are interested in more information, please check our website or contact your financial adviser or Abacus.*

• Applications for ADIFII units may only be made on the application form that is part of the PDS, available from Abacus or your financial adviser. Abacus Funds Management Limited is the issuer of units in the Fund.

$100 million raised through an institutional placement in late July will be used to fund the settlement of $200 million in property acquisitions, including those made on behalf of Abacus-managed funds. The capital raising also replenishes the Group’s capacity for further acquisitions by reducing gearing to approximately 30%.

The placement was strongly supported by a range of existing and new investors from Australia and overseas. It increases the Group’s market capitalisation to approximately $1.2 billion.

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www.abacusproperty.com.au

abacus Hospitality Fund securityholders are entitled to discounted accommodation at any of the hotels owned by the Fund or operated by our hotel partners.

From time to time, special deals will be offered to all abacus investors.

eg. Chateau on the Park in Christchurch is offering abacus investors a special room rate of nZ$100 per night (plus gst) including a full cooked breakfast.

abacus full year results

Abacus Property Group 2007 results will be released at the end of August. An investor roadshow to be held at different venues in October will provide an in-depth update on the Group’s activities and give you the opportunity to ask any questions. Details to be provided soon.

greener and more efficient annual reporting

Annual reports for Abacus Property Group and all our funds will now be delivered via the Abacus website unless you specifically ask to be sent a printed copy.

If you wish, you can choose to receive all your securityholder communications online. This will both reduce our costs and benefit the environment. Please use the enclosed form to provide your email address.

If you take no action, we will continue to mail you all securityholder communications and will advise you when your annual report has been posted to the website.

abacus miller street fund

After successfully leasing the office space at 50 Miller Street, North Sydney to the NAB for 10 years, Abacus launched this special opportunity fund to provide our wholesale clients* with the opportunity to co-invest in this property with Abacus, which retains an interest of approximately 30%.

The $13 million required was raised in three weeks before the end of June. Investors are forecast to receive an initial yield of 6.5% with 100% tax-deferral. The intention is to sell the property in 5-7 years time.

• Wholesale clients are defined in the Corporations Act and include those who invest more than $500,000, have net assets of at least $2.5 million or a gross annual income of over $250,000. If you meet these criteria and would like us to inform you of future special opportunities, please email enquiries@abacusproperty.com.au

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www.abacusproperty.com.au