ABACUS GROUP — Investor Presentation 2008

Feb 5, 2008

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_____________________________________________ ASX ANNOUNCEMENT

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Abacus Update

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Following is the February 2008 edition of the Abacus newsletter which will be sent to all Abacus Property Group securityholders this week.

Ellis Varejes Company Secretary 612 9253 8600

5 February 2007

abacus update february 2008

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Liquidity event for Crows Nest investors

Abacus distribution up 8%

Abacus Property Group’s quarterly distribution increased from 3.25 cps to 3.5 cps, effective from 1 January 2008. This brings the FY2008 distribution to 13.5 cps, representing an 8% increase over the FY2007 distribution.

Consistent with historic performance, distributions will continue to be fully funded from normalised earnings.

Stockmarket volatility

After many years of strong returns, the listed property trust sector has suffered significant repricing in the past two months, triggered by the news that Centro Property Group was experiencing difficulties refinancing a number of short-term debt facilities.

Key issues that the market is focusing on for LPTs at the moment include:

• debt facility maturities;

• offshore exposure;

• cashflow; and

• valuation multiples for funds management businesses.

While the Abacus security price has been adversely affected by this market activity, our underlying business model remains sound. With low gearing, we are well-placed to take advantage of opportunities that may emerge to buy distressed assets. A full update on Abacus’s financial position will be available with the release of our half-year results on 14 February 2008.

Investors in the Abacus Crows Nest Property Trust recently voted to sell their interests in the property to an Abacus joint venture which will convert it into an exclusive retirement village. On settlement, investors will receive $1.59 for every $1.00 invested after having received an average annual distribution of 7.7% over the life of the Trust.

Strong track record continues

Five Abacus investments have successfully completed over the past 12 months with excellent returns for our investors.

	Investment	Term	Annualised Return
	Abacus Crows Nest Property Trust	7 years	14.2%
	Abacus Mariners Cove Equity TrustAbacus Portfolio Service –Burnie Hospital	7 years11 years	19.5%15.5%
	Blue on Blue Pre Sales Agreement	20-24 mths	28%1
	Royal Domain Pre Sales Agreement	24-30 mths	28%1

1 Assumes 5.5% pa bank interest paid on deposit.

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www.abacusproperty.com.au

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open for investment

Macquarie and BT Wraps

Both ADIFII and the Hospitality Fund are now available for investment through the Macquarie and BT Wraps.

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Abacus Diversified Income Fund II

Offers investors exposure to a diversified portfolio of investment properties and other property-based assets.

Abacus Hospitality Fund

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Offers investors the opportunity to invest in a portfolio of hotels and resorts located in Australia and New Zealand.

More information on the funds is available through our website.

*Applications for securities may only be made on the application form that is part of the offer document, available from Abacus or your financial adviser. Abacus Funds Management Limited is the issuer of units in ADIFII. Abacus Funds Management Limited and Abacus Hospitality Limited are the issuers of securities in the Abacus Hospitality Fund.

Upcoming investment opportunities

Abacus has recently acquired two properties that will be released as special opportunity funds in coming months.

51 Allara Street is a high quality office building in the Canberra CBD. The net lettable area of 11,760 m[2] is fully leased to Ernst & Young, the Australian Taxation Office and the Murray Darling Basin Commission.

Bayway Village at Fern Bay is a relocatable homes park close to Newcastle, the beach and a golf course. The 26 hectare site provides 453 home sites with capacity to add a further 151 home sites over time.

Register through our website to be advised when new investment opportunities become available.

cairns double offer

The Abacus Hospitality Fund has two special offers for Abacus investors available until 30 June 2008.

Stay 4, pay for 3 at Rydges Tradewinds Four night package for $507 for two people includes your room, breakfast and 20% discount on dinner. Mention ‘Abacus deal’ when you book on 1800 079 010 or email reservations_tradewinds@rydges.com.

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Dinner, bed and breakfast at Rydges Esplanade

$108 per person twin share includes your room, breakfast and dinner at the Fire & Ice Buffet. Single rate $162.50. Mention ‘Abacus deal’ when you book on 1800 079 105 or email reservations_esplanadecairns@rydges.com.

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