ABACUS GROUP — Capital/Financing Update 2007

Jul 25, 2007

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ASX ANNOUNCEMENT

Abacus extends Gold Coast portfolio

Abacus Property Group today announced that it had entered into contracts to acquire two commercial office buildings with significant development potential from the Weinert Group of Companies in the Varsity Lakes business district for $23 million.

Varsity Lakes is emerging as the largest commercial precinct on the Gold Coast, attracting a number of major tenants supported by an expanding retail centre and generous parking.

AAPT Building at 169 Varsity Parade is a single level building providing 3,418 square metres of net lettable area on a site of 1.3 hectares. RP1 Building at 1 Bellvue Drive is a three level building providing 3,760 square metres of net lettable area on a site of 8,670 square metres. Both properties enjoy strong tenant profiles.

Both properties also have significant potential for redevelopment given their large sites and local planning guidelines, which allow an 8 level height limit and encourage mixed use development. The properties will be added to the Group’s portfolio of commercial office assets.

Abacus has been active in acquiring property in the Gold Coast region and South East Queensland generally. The Abacus Diversified Income Fund II, which launched a new retail offer today, includes commercial offices in Scarborough Street and Short Street in Southport and two industrial properties in Molendinar, as well as assets in Pinkenba, Eagle Farm and the Sunshine Coast.

26 July 2007

Ellis Varejes Company Secretary 612 9253 8600.

John Bush Associate Director – Developments 0418 789 407

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