Australia and New Zealand Banking Group Ltd. — Capital/Financing Update 2007

Dec 17, 2007

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ASX Release

19 December 2007

Babcock & Brown Communities completes re-financing

• BBC signs revolving multi-option, multi-currency facility with ANZ, CBA and nabcapital with a facility limit of $600m

• Corporate style facility on a negative pledge basis

• Two tranches, 3 and 5 years

• Hedged component of debt to increase from 23% to 60%

Babcock & Brown Communities Group (ASX code: BBC ), the largest integrated owner, operator and developer of senior living communities listed on the ASX, today announced it has completed a major refinancing with funds to flow today.

The facility is a multi-option, multi-currency facility with ANZ, CBA and nabcapital with a limit of $600m. It is a corporate style facility on a negative pledge basis and the covenants reflect the quality of the consolidated BBC business and provides the flexibility for its future growth.

The facility has more than enough capacity for the refinancing of $50m of BBCGA convertible notes in February 2008.

Initially, hedging will be put in place to take the fixed and hedged component of the drawn debt from the current 23% to 60%.

ENDS

Further Information: Gregor Dixon Investor Relations Babcock & Brown Communities +61 3 8699 3300

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About Babcock & Brown Communities

Babcock & Brown Communities Group (BBC) is an integrated owner, operator and developer of senior living communities listed on ASX. BBC owns and manages a portfolio of 56 retirement villages and 29 aged care facilities across Australia and New Zealand comprising approximately 10,000 retirement units and 2,200 residential aged care beds. Within the retirement portfolio, BBC has full exposure to the deferred management fees of approximately 6,800 units and receives management fees in relation to the remaining units.

BBC’s growth is supported by its development pipeline of approximately 2,200 retirement units and 344 aged care beds which is expected to be delivered over the next 6 years. BBC will also pursue accretive acquisitions in the highly fragmented senior living market.

For further information please see our website: www.bbcommunities.com