ABACUS GROUP — Capital/Financing Update 2009

May 7, 2009

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ASX ANNOUNCEMENT

Abacus Update

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Following is the March 2009 edition of the Abacus newsletter that will be sent to all Abacus Property Group securityholders today.

8 May 2009

Ellis Varejes Company Secretary Abacus Property Group (02) 9253 8600

Vivienne Bower Investor Relations Abacus Property Group (02) 9253 8600 0431 487 025

abacus update may 2009

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Successful completion of $187 million capital raising

Abacus Property Group successfully completed its $187 million renounceable rights issue on 3 April, with the issue of approximately 748 million new securities at 25c per stapled security. Approximately 75% of the rights were subscribed with the remainder taken up by the sub-underwriters, which was a very pleasing outcome.

Together with the placement of $24.4 million of new stapled securities to Kirsh Group in January, Abacus has raised $211.4 million in new equity this year.

With this new equity, Abacus now has the balance sheet strength to withstand the challenges of the current environment and is well placed to pursue new opportunities as market conditions improve.

Abacus is grateful for the continued support of its existing securityholders and welcomes a number of new securityholders to the group.

Kirsh Group’s holding in Abacus following the completion of the rights issue is 27.4%.

Further information about the rights issue is available from the ASX announcements page on our website www.abacusproperty.com.au

ABP distributions

Securityholders that held securities in Abacus Property Group as at 31 March 2009 will receive a distribution of 1.75 cents per security on or about 8 May 2009. The new securities issued through the rights issue will participate in distributions declared after 1 April 2009.

From 1 July 2009, distributions will be paid half-yearly. All distributions are paid by direct credit.

We would like to remind all securityholders to update any changes to your banking details with Registries Limited (see over).

Approval to expand Ashfield Mall

On 31 March 2009, Abacus Property Group received a development approval from the NSW Land and Environment Court to expand its Ashfield Mall property, a sub-regional shopping centre located 10 km from the Sydney CBD in the inner south-western suburb of Ashfield. The approval provides for:

• the expansion of the current shopping centre with the addition of 2800 sqm of new retail space, 860 sqm of commercial office space, 16 serviced apartments and a childcare centre;

• a new entrance to be created from Liverpool Rd; and

• three residental apartment blocks comprising 116 new apartments and townhouses.

Abacus purchased Ashfield Mall in 1997 and since that time has actively managed and improved the mall, which accommodates anchor tenants Woolworths, Coles, K-Mart and Franklins. Upon completion of the approved development, the NLA of the centre will increase by nearly 15% from approximately 25,000 sqm today to approximately 28,650 sqm.

www.abacusproperty.com.au

Fund Update

Abacus Storage Fund is open to new investment and a copy of the Offer Document is available from our website.

Abacus Fern Bay Fund has enjoyed significant earnings growth over the past year, with the property’s net income increasing by approximately 10% through rental growth, the letting up of new sites and cost management. With mo re than 470 tenancies, we believe the fund offers a stable 8% yield with significant underlying land value. A copy of the Offer Document is available from our website.

We have recently issued Fund updates for investors in Abacus Hospitality Fund and Abacus Diversified Income Fund II. Copies are on our website. We will provide updates on all other funds in the coming months.

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----- Start of picture text ----- Abacus Storage Fund Abacus Fern Bay FundProspectus and Product Disclosure Statement Replacement Prospectus and Product Disclosure StatementAn Abacus Special Opportunity FundIssued by Abacus Storage Funds Management Limited ACN 109 324 834 AFSL 277357 and Abacus Storage Operations Limited ACN 112 457 075 Issued by Abacus Funds Management Limited ABN 66 007 415 590 AFSL 227819 and Abacus Villages Limited ACN 128 690 264----- End of picture text -----

Change of registry

Abacus is pleased to announce that after a detailed tender process, we have completed a transition of our fund registry to Registries Limited. Registries Limited now provide registry services (including processing and recording investment transactions, undertaking accounting functions and providing customer care services to you) for the following Abacus funds:

• Abacus Diversified Income Fund II

• Abacus Fern Bay Fund

• Abacus Hospitality Fund

• Abacus Storage Fund

• Abacus Hobart Growth Trust

• Abacus Wodonga Mortgage Fund and Abacus Wodonga Land Fund.

We are in the process of transitioning Abacus Miller Street Fund and Abacus Jigsaw Trust to Registries Limited and will also be transitioning Abacus Property Group in the next few months so it will be a one stop shop for all of your Abacus investments. Registries Limited are a leading service provider for the Australian investment industry and it aims to provide friendly services and internet solutions to help you manage your investments effectively.

What does the change mean for you?

All investor related queries should be directed to:

T 1300 139 440

E abacus@registries.com.au

Registries Limited also offers an online access system (AdviserServe and InvestorServe) which enable you and your adviser to view holding balances, transaction histories and distribution payments, manage communication preferences, submit and update email addresses and download forms to assist in the management of your holdings. If you would like to use this online access system, please contact the registry through the above email or phone.

What do you need to do?

You do not need to take any action in regard to the transition.

You may notice that the holder number which is shown on your statements as well as the layout of statements from the funds has changed. Please use this holder number when making any enquiries on your account.

Abacus Property Group Level 34 Australia Square Sydney NSW 2000 T 612 9253 8600 F 612 9253 8616 E enquiries@abacusproperty.com.au