ABACUS GROUP — Capital/Financing Update 2011

Jul 12, 2011

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ASX ANNOUNCEMENT

Abacus acquires Sydney CBD office building

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Abacus Property Group is pleased to announce the acquisition of 309 George Street, a 15 level retail and commercial building in the Sydney CBD, from a private investor. The total consideration for the acquisition is $68.75 million, excluding transactions costs, which represents an initial yield of 8.5% pa.

309 George Street comprises a 15 storey retail and commercial building with net lettable area of 9,357m[2] . It is located in the prime core precinct of the Sydney CBD and is in the heart of one of Sydney’s busiest retail strips, being adjacent to Wynyard railway station. The property provides prime ground floor retail as well as office accommodation. It is currently fully occupied.

Settlement is expected to occur by mid October 2011 and Abacus anticipates that it will partner with third party capital.

Dr Frank Wolf, Managing Director, Abacus Property Group, said: “We believe that this is a standout core plus opportunity. The building has outstanding retail with a 30m wide frontage to George Street and almost 50% of the net income is derived from retail tenants. The commercial office component presents an opportunity to upgrade and capture rental reversion by re-leasing into a strengthening leasing market. The building is located in a part of the CBD which is anticipated to undergo significant regeneration in the short to medium term.”

13 July 2011

Ellis Varejes Company Secretary

Neil Summerfield Head of Investor Relations Abacus Property Group (02) 9253 8600