ASPEN GROUP — Annual Report 2007

Aug 26, 2007

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Aspen Group 2007 Annual Results

“Creating wealth through intelligent property investment”

“Creating wealth through intelligent property investing”

Annual Results 2007

1

Contents

1. Corporate Structure

1. Highlights

2. Financial Summary

3. Property Portfolio

4. Funds Management

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1. Summary

2. Appendix 1 – Property Portfolio

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1. Corporate Structure Overview

		Investment Property	Funds Management	Equity Investments
	% Revenue	56%	44%	Included in funds management
	Description	�Portfolio of diversified property assets �Characterised by strong income security through high quality tenants and long term leases	�Driving DPU and EPU Growth �Efficient use of capital �Leverages Aspen’s core property expertise	�Co-invests in funds –Strategic stakes –Enhance investor confidence –Accretive returns to APZ �Ongoing funding activities to support growth
	Assets Managed	$336 million	7 funds $883 million GAUM	Aspen Diversified $16.0m Aspen Parks $11.2m Aspen Living $22.0m Aspen Villages $13.3m ADF No1 $46.4m

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Contents

1. Corporate Structure

1. Highlights

2. Financial Summary

3. Property Portfolio

4. Funds Management

APZ S&P 200 Prop Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07

1. Summary

2. Appendix 1 – Property Portfolio

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2. Highlights

Year in Review

• 18% growth in property portfolio on $46.1m of revaluations

• Underlying EPS increased 22%

• DPS increased 28%

• Underlying EPS 23% above DPS

• Acquisition and successful syndication of three residential land estates

• Significant growth in existing funds management vehicles

• Acquisition of Caversham Property creates Aspen Development Fund No 1

• Balance sheet strengthened through significantly lower gearing of 31%

• Continued growth in investment portfolio

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2. Highlights Financial Performance

	FY	FY	%
	2007	2006	Change
Net Profit After Tax	73.82	34.49	�114%
Underlying Net Profit* ($’m)	33.49	18.47	�81%
Underlying EPS* (cents)	15.62	12.81	� 22%
DPS (cents)	12.75	10.00	� 28%
Underlying Earnings above Distribution (cents)	2.87	2.81	� 2%

• Underlying net profit after tax represents net profit after tax excluding non cash items namely movements in fair value of investment properties, equity and hedge instruments.

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2. Highlights Financial Position

	FY	FY	%
	2007	2006	Change
Gross Assets Under Management ($’m)	1,224	620	�97%
Investment Property (Revaluations) ($’m)	336	284	�18%
Gearing	31%	47%	�16%
NTA (cents)	132	101	�31%

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2. Highlights

Security Price Performance

Aspen continues to outperform ASX/S&P 200 Property Index

Total Returns

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APZ S&P 200 Prop
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Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07

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2. Highlights

Acquisitions in FY07

12 acquisitions for $463.9 million

				$m
�Aspen Living		�	Fern Bay, NSW – 882 lots (on completion value of $260m)	$76.6
		�	West Swan, WA - 1152 lots (on completion value of $364m)	$36.0
		�	Whitsunday Shores, QLD – 669 lots (on completion value of $198m)	$36.6
�Aspen Developments		�	18 multi-sector development projects, including:	$234.0
			- Adelaide CBD Block – 7 office towers; 3 redevelopments
			- 5 healthcare & retirement developments
			- 5 land subdivisions (potential on completion value in excess of $300m)
�Aspen Parks		�	Great Aussie, NSW	$3.0
		�	Port Augusta, SA	$6.2
		�	Ashley Gardens, VIC	$10.6
		�	Ningaloo Reef Resort, WA	$15.0
		�	Kununurra Country Club, WA	$14.0
�Aspen Diversified		�	Mulgrave, VIC	$20.0
Property Fund
�Aspen Villages		�	Port Macquarie, NSW	$5.9
		�	Mornington Peninsula, VIC_(settlement post year end)_	$6.0

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2. Highlights

Aspen Group – Track Record

Aspen continues to drive earnings and distribution growth

	FY04 (¢)		FY05 (¢)		FY06 (¢)		FY07 (¢)	3YR CAGR
EPS*	8.4	+4.2%	8.75	+46.4%	12.81	+21.9%	15.62	23.0%
DPS	7.25	+15.2%	8.35	+19.8%	10	+27.5%	12.75	20.7%
NTA	70	+15.7%	81	+25.2%	101.4	+30.2%	132	23.5%

*** Underlying**

DPS to increase from 3.5 cents to 3.875 cents (15.5 cents annualised) for FY08

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Contents

1. Corporate Structure

2. Highlights

3. Financial Summary

4. Property Portfolio

5. Funds Management

6. Summary

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EPS/ DPS Growth Profile
16 15.6 15.5
4 Year EPS
CAGR 20.5%
14
12.8 12.8
12 4 Year DPS
CAGR 22.8%
10.0
10
8.8
8.4 8.4
8 7.4
7.3
6 5.6
4
FY03 FY04 FY05 FY06 FY07 FY08
forecast
DPS EPS
C en ts P er S ecu rity
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1. Appendix 1 – Property Portfolio

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3. Financial Summary Financial Performance

3. Financial Summary Financial Performance
	FY07 ($M) FY06 ($M) Change %
Income Rental income Funds management - Establishment Funds management - Recurring Property revaluations Total Income Expenses Direct property expenses Administrative expenses Other expenses Total Expenses Financial Income Financial Expenses Share of profit of associates Profit Before Tax Income Tax Expense Profit after Tax	31.63 20.41 14.57 9.49 9.83 6.08 46.10 24.99 102.13 58.48 75% � 8.73 4.74 11.66 6.98 1.01 1.80 21.40 13.52 58% � 6.86 5.09 (9.54) (7.77) 3.14 (1.05) 81.38 41.22 97% � 7.56 6.73 73.82 34.49 114% �

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3. Financial Summary Financial Performance

Reconciliation of Net Profit After Tax to Underlying Earnings

	FY07 ($M) FY06 ($M) Change %
Profit per Accounts Less Swap revaluations Property revaluations (net of tax) Plus Share option expense Underlying Earnings Underlying EPS Distribution	73.82 34.49 (2.04) (2.48) (39.95) (14.25) 1.07 0.71 33.50 18.47 81%* � 15.62 cents 12.81 cents 12.75 cents 10.00 cents

• Tax expense on Septimus Roe revaluation $6.73 million

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3. Financial Summary Financial Position

		30 Jun 07	30 Jun 06	Change %	Change %
Assets
Current	Loans to Fund Mgt Vehicles	56.5 m	29.8 m	90%	�
	Other current assets	30.7 m	10.6 m	189%	�
Non Current	Investment Properties	335.8 m	284.3 m	18%	�
	Equity Investments	93.3 m	24.0 m	288%	�
	Inventories	12.8 m	2.3 m	456%	�
	Other non-current assets	7.6 m	1.4 m	442%	�
Total Assets		536.7 m	352.4 m	52%	�
Liabilities
	Borrowings	166.5 m	167.6 m	1%	�
	Other Liabilities	38.4 m	16.7 m	130%	�
Total Liabilities		204.9 m	184.3 m	11%	�
Net Assets		331.8 m	168.1 m	97%	�
NTA		$1.32	$1.01	31%	�
Gearing		31%	47%	16%	�

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3. Financial Summary Capital and Debt

Capital Structure	30 Jun 07
Stapled Securities on Issue	247.1 million
Unlisted Options on Issue	0.2 million
Market Cap (at $2.56 closing price, 29 June 2007)	$632 million
Total Securityholders	_Circa_3,600
Institutional	66%
Retail	34%
Debt Profile (30 June 2007)	Total	Fixed		Floating
Borrowings	$166.5 m	$129.6 m		$36.9 m
Average Cost of Debt	6.70%	6.56%		7.16%
Average Maturity Profile		2.6	yrs	30 days
Gearing	31%*
Unused Facility Limit	$69.1m*

*** On repayment of fund loans of $34.5m, gearing will reduce to 25% and unused facility limit will increase to $103.6m**

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Contents

1. Corporate Structure

2. Highlights

3. Financial Summary

4. Property Portfolio

5. Funds Management

6. Summary

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1. Appendix 1 – Property Portfolio

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4.

Property Portfolio Overview

• Strong revaluation performance in FY07 – 18% increase

• Secure lease expiry profile of 4.65 years

• St Kilda Rd. tenant risk (Hewlett Packard) eliminated with 10 yr L’Oreal lease

• Occupancy rate 96% across portfolio

• Sound sector and geographic diversification

• Portfolio reflects Aspen’s acquisition strategy

• Typically $30 – $80 million

• Attractive running yield

• Income security leveraged to value add opportunities

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4. Property Portfolio Summary

	Location	Sector	Book Value A$ millions	Occupancy
Septimus Roe Square	Perth, WA	Office	76.6	100%
Alcoa Office Complex	Booragoon, WA	Office	22.9	100%
564 St. Kilda Road	Melbourne, VIC	Office	27.6	100%
33 York Street	Sydney, NSW	Office	3.2	100%
Elders Woolstores	Spearwood, WA	Industrial	57.5	100%
Noble Park	Melbourne, VIC	Industrial	25.0	96%
Rocklea	Brisbane, QLD	Industrial	11.0	100%
Garden Town	Toowoomba, QLD	Retail	35.0	86%
55 Currie Street	Adelaide, SA	Office	77.0	87%
Total			335.8

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4. Property Portfolio Leasing Profile

Lease expiry profile by financial year

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30%
25%
20%
15%
10%
5%
0%
2008 2010 2012 2014 2016 2018 2020
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Key Tenants	Lease Expiry	% of Income
Elders	2012	16%
DIMIA	2015	7%
Alcoa	2014	6%
L’Oreal	2018	5%
Centrelink	2011	5%
Total		39%

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4. Property Portfolio Diversification

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Contents

1. Corporate Structure

2. Highlights

3. Financial Summary

4. Property Portfolio

5. Funds Management

6. Summary

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1. Appendix 1 – Property Portfolio

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5. Funds Management

Overview

• Leverages Aspen’s core property management expertise

• Provides investment opportunities not really available to investors

• Important source of EPS/DPS growth with efficient use of Aspen’s capital

• Unlisted open ended Funds provide a natural growth driver

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5. Funds Management

Contribution to Income and Asset Growth

Funds Management Income Funds Management Asset Size

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30
1000
24.4
25 882.9
20 750
15.6
15
500
333.2
10
250
5 4.0
81.6
0
0
2005 2006 2007
2005 2006 2007
Financial Year
Financial Year
$m
$m
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5. Funds Management Divisions

Branding	Aspen Parks	Aspen Diversified	Aspen Living	Aspen Developments	Aspen Villages	Aspen Communities
Sector	Resort Park	Core Income	Syndicated Land	Development Fund Series	Affordable Living/Retirement	Retirement Aged Care
Asset value	$163 million	$163 million	$258 million	$265 million	$13 million*	$20 million*
Commenced	Apr 04	Apr 05	Nov 05	Feb 07	Jun 05	Sept 07
Target assets	$250 million	$250 million	$1 billion	$500 million	$250 million	$250 million
No of assets	18	9	4	18	3	1
Fund structure	Unlisted Stapled	Unlisted Trust	Unlisted Coy	Unlisted Coy	Unlisted Stapled	Unlisted Stapled
Investors	Retail	Retail	Wholesale/Retail	Wholesale	Retail/Wholesale	Retail/Wholesale

*Post settlement of contracted properties

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5. Funds Management Distribution Channels

Funds raised by Aspen Managed Funds Cumulative

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220
200
180
160
Retail
140 Wholesale
120
$'M
100
80
60
40
20
-
Jun-05 Jun-06 Jun-07
2 WA/SA
# of BDM’s 1 WA 1 WA
2 NSW/Qld
1 NSW
1 VIC/Tas
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• Head of Distribution appointed November 2006

• BDM’s increased to 5

• Direct and in-house sales

• Proven capacity in retail and wholesale

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5. Funds Management

New Initiatives

Wholesale versions of Aspen Parks and Aspen Diversified

• Designed to be platform friendly

• Targeting personal superannuation investors and model portfolios

• Growing popularity of Aspen Parks with financial planners as a portfolio diversifier

• Expand current platform availability – BT, Netwealth Wrap, Netwealth Super, MLC Masterkey

Property Securities Fund

• Appointment of Anton Lawrence as Chief Investment Officer

• Former Director of MIA research house

• Development of Aspen Select Property Fund offering diversified property sector exposure

• Leverage Aspen’s property and distribution capabilities

Aspen Villages Fund

• Three properties secured to seed new Fund

Aspen Communities

• Expansion into retirement and aged care living

• Recruitment of Bill Marshall as CEO

• Seed assets acquired and under review

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5. Funds Management Aspen Parks Property Fund

Strategy

• Strategic land holds - Parks generally in excellent locations with potential for capital appreciation

• Potential to develop excess land and generate capital upside

• Fragmented industry providing asset growth potential

• Services multiple growing market segments: “grey nomads”; permanent living; mining sector

• Diverse income streams

Highlights

• Target GAUM ($150 million) achieved in only 3 years

• Provided original investors with total return of 19.5% pa since inception

• Circa 1,300 investors

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5.

Funds Management

Aspen Parks Property Fund

Coral Bay

Coogee

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Monkey Mia

Wallamba River

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5. Funds Management Aspen Parks Property Fund

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5. Funds Management Aspen Parks Property Fund

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5. Funds Management

Aspen Diversified Property Fund

Strategy

• Leverages Aspen’s core commercial property expertise

• Target properties in the $5 – $30 million range (too large for individual investors but too small for LPTs, institutional investors)

• Competitive distribution yield of 8% paid monthly

• Objective to grow GAUM to $250 million over 5 years

Highlights

• Total return for FY07 18.28%

• Acquisition of Mulgrave industrial property

• New tenants during FY07 – TAB Ltd, HRL Ltd, Optus

• Strong key tenants - Pacific Brands (Holeproof), Coles, Cardno BSD, Trailcraft, ANZ

• Weighted average lease expiry increased to 4.2 years

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• Disposal of Midland Cinema Complex

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5. Funds Management Aspen Diversified Property Fund

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Property	Location	Use	Acquisition Date	Book Value
Springvale Road	Mulgrave, VIC	Industrial	Jun 2007	$20.0m
Homemaker City	Castle Hill NSW	Retail	Feb 2006	$28.0m
Holeproof Complex	Nunawading VIC	Industrial	Dec 2005	$28.0m
Mount St Building	North Sydney NSW	Office	Dec 2005	$33.5m
Trailcraft Industrial Complex	Henderson WA	Industrial	Aug 2005	$9.1m
Abernethy Park	Kewdale WA	Industrial	Jun 2005	$11.6m
Champion Drv Retail Centre	Armadale WA	Retail	Jul 2005	$9.3m
Riseley Corporate Centre	Booragoon WA	Office	Jun 2005	$7.7m
Cardno BSD Centre	Subiaco WA	Office	Jun 2005	$5.6m
Total				$152.8m

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5. Funds Management Aspen Diversified Property Fund

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5. Funds Management Aspen Living

Aspen Dunsborough Lakes Aspen Whitsunday Shores West Swan Estate Fern Bay Seaside Village Total	Aspen Dunsborough Lakes Aspen Whitsunday Shores West Swan Estate Fern Bay Seaside Village Total
Number of Lots Remaining 1,190 669 960	882 3,701
Gross Realisable Value($’m) 422 198 302	268 1,190
Location Dunsborough WA Bowen QLD Perth WA	Stockton NSW
Development Timeframe (Years) 11 11 8.75	8.5

Aspen Living is also Project Manager for “Aspen Developments” residential estates, namely Byford by the Scarp and Chittering Estate which comprises 1,200 lots.

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5. Funds Management Aspen Living

Strategy

• Leverages Aspen’s expertise in residential subdivision to provide attractive returns to investors and long term recurring funds management income for Aspen.

• Aim to acquire advanced developments which are revenue generating at purchase. This results in a short lead time to positive cashflows for investors.

• In-house expertise used to reposition underperforming developments and increase market awareness.

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Highlights

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• Land bank

3,701 lots

• On-completion value $1.20 billion

• Development period

• 0-11 years

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5. Funds Management Aspen Living

Aspen Dunsborough Lakes

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5. Funds Management Aspen Living

Fern Bay Seaside Village

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Whitsunday Shores

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5. Funds Management Aspen Developments

Aspen Development Fund No1

Background

• Acquisition of the Caversham Property Group (property division of Futuris)

• Settled May 2007

• Off market transaction

• First in series of proposed development funds

Key Elements of Futuris Transaction

• Acquisition price of $233.7m

• 18 projects across 3 states

• Multi-sector: construction, residential development, health/ retirement

• Caversham employees transferred to Aspen

Structure

• 8 year closed end wholesale fund

• $90 million equity (Aspen, Futuris, Victor Smorgon Group: 25% each)

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• IRR 20% plus

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5. Funds Management Aspen Developments

Aspen Development Fund No.1

Portfolio Breakdown	Estimated	Key	Location
	Value	Projects
Residential Subdivisions	$64.4million	-Byford By The Scarp	WA
		-Chittering Valley	WA
		-Geraldton	WA
Commercial Construction	$71.5million	-City Central Project
		Adelaide CBD	SA
		8 Buildings
Hospital and Retirement	$97.8million	-Cambelltown Retirement	NSW
Construction		-Cambelltown Commercial	NSW
		-Currambine Retirement	WA
		-Norwest Hospital	NSW

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5. Funds Management

Aspen Developments

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Annual Results 2007
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5. Funds Management Aspen Developments

Campbelltown Private Hospital

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5. Funds Management Aspen Developments

Campbelltown Retirement Village

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5. Funds Management Aspen Villages

Strategy

• Management of the development of residential accommodation villages

• Acquisition of sites through development land controlled by Aspen (eg. Aspen Parks and Aspen Living) but will also acquire sites from third parties

• Baby boomers who retire early, mining industry and annuals (tourists) – requirement for low cost residential accommodation

• Capital will be raised via syndicates through series of closed end funds (2Q FY08)

Status

• Portfolio of properties has recently increased to 3 sites (currently warehoused for new fund launch)

• Locations in Port Macquarie and Tuncurry (NSW), and Mornington Peninsula (VIC)

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5. Funds Management Aspen Communities

Strategy

• Launched August 2007 to manage the development of retirement and aged care facilities

• 200-300 home villages on 7-12ha land

• Utilise development expertise of Aspen Developments (formerly Caversham Property)

• Capitalise on strong and growing demand for over 65’s living

• Capital will be raised via syndicates through series of closed end funds (2Q FY08)

Status

• William Marshall recently joined Aspen to head Aspen Communities

• Previously CEO of SwanCare Group where he managed a business comprising 300 high and low care beds and 700 independent living units.

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• Three sites presently under review, one under contract

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Contents

1. Corporate Structure

2. Highlights

3. Financial Summary

4. Property Portfolio

5. Funds Management

6. Summary

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1. Appendix 1 – Property Portfolio

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6. Summary

Personnel

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BOARD OF DIRECTORS

Terry Budge Non-executive Director Seng Fai Chan Non-executive Director Matthew McCann Non-executive Director (appointed Aug 07)

Reg Gillard Non-executive Chairman Angelo Del Borrello Managing Director Gavin Hawkins Executive Director Finance

ASPEN GROUP		Asset		Funds	Financial
		Management	Corporate	Management	Control	Compliance	Totals
Divisional	Head	S Price	R Morrison	R Botha	D Cardoso	D Mortimer
No. Staff:	WA	2	3	5	10	2	22
	Other States	2	-	3	-	-	5
		4	3	8	10	2	27

FUNDS	Aspen	Aspen	Aspen	Aspen	Aspen	Aspen	Property
MANAGEMENT	Parks	Diversified	Living	Developments	Villages	Communities	Securities	Totals
Divisional Head	L Brolese	S Price	B Acott	P Hall	M Rance	W Marshall	A Lawrence
No. Staff: WA	11	2	6	9	2	1	-	31
Other States	2	2	1	8	-	-	1	14
	13	4	7	17	2	1	1	45

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6. Summary

DPS and EPS Track Record

EPS/ DPS Growth Profile

Earnings and distribution growth has been driven by:

• Growth in the funds management business

• Expansion of syndicated land estates

• Aspen’s active property management style

• Organic growth in rents

• Revaluation of properties

Distribution increase for Sept quarter to 3.875 cps (15.5cps annualised)

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16 15.6 15.5
4 Year EPS
CAGR 20.5%
14
12.8 12.8
12 4 Year DPS
CAGR 22.8%
10.0
10
8.8
8.4 8.4
8 7.4
7.3
5.6
6
4
FY03 FY04 FY05 FY06 FY07 FY08
forecast
DPS EPS
C en ts Per Secu rity
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6. Summary

Strong Asset Growth

• Assets Under Management ($m)

• 1,400

• � Strong pipeline of acquisitions for funds 1,200

• � Extensive networks to source deal 1,000

• flow 800

• � Proven ability to develop unique funds

• � Strong team of professionals 600

• � Proven capital raising track record in 400

• wholesale and retail 200 0 03 04 05 06 07

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6. Summary Outlook

• Strong balance sheet will enable further asset acquisition opportunities for investment portfolio

• Growth from new and existing funds management initiatives

• Focus on earnings growth through astute investment selection (not just growth for growth's sake)

• Continuing expansion of retail and wholesale distribution channels

• Launch of Aspen Villages and Aspen Communities funds

• Wholesale Parks and Diversified and Aspen Select Fund to facilitate distribution growth

• Large pipeline of potential opportunities being reviewed

• Distribution increased to 15.5 cents annualised commencing September quarter

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Disclaimer

This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Prospective investors should make their own independent evaluation of an investment in Aspen . Nothing in this presentation constitutes investment, legal, tax or other advice. The information in this presentation does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all of the information that a potential investor may require in making an investment decision.

Aspen has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Aspen , its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

All references to dollar amounts are in Australian currency unless otherwise stated.

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Appendix 1 Property Portfolio Office

St. Kilda Rd, Melbourne

Building Area 8,470 sqm plus 173 car parking bays Tenants L’Oreal Occupancy 100% Book Value $27.6 million

Alcoa Office Building, Perth

Building Area 7888 sqm plus 230 car bays Tenants Alcoa of Australia Limited Occupancy 100% Book Value $22.9 million

55 Currie Street, Adelaide

Building Area 25,655 sqm plus 95 car parking bays Tenants Department of Immigration and Multicultural Affairs, Centrelink

Occupancy 87% Book Value $77.0 million

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Septimus Roe Square, Perth

Building Area 16,883 sqm plus 126 car bays Tenants 38 tenants including BankWest, Subway, Dome Cafe, Sun, State Police Connel Wagner, Commonwealth Gvt. Occupancy 100% Book Value $76.6 million

33 York Street, Sydney

Building Area 539 sqm plus 3 car bays Tenants Aspen Group Occupancy 100% Book Value $3.2 million

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Appendix 1 Property Portfolio Office Update

Currie Street

• Re-valued by $10m to $77m as a result of yield compression in the Adelaide commercial market and increased leasing activity in the building

• Take up of vacant area by existing tenants

Septimus Roe Square

• Strong Perth CBD office market and aggressive leasing has lifted occupancy to 100%

• Forecourt re-development completed. New tenants include a Dome Café, Australia Post and Subway, significantly adding to building’s appeal

St Kilda Road

• L’Oreal 10 year lease over 50% of building to commence March 2008

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Appendix 1 Property Portfolio Industrial

Elders Woolstores, Fremantle

Building Area 100,800 sqm Tenant Elders Limited (subsidiary of Futuris Limited) Occupancy 100% Book Value $57.5 million

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Noble Park. Melbourne

Building Area 42,747 sqm plus 400 parking bays Tenants AEP Industries and Palazzo Distribution Services, UR1 International Occupancy 96% Book Value $25.0 million

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Rocklea, Brisbane

Building Area 14,555 sqm plus 150 car bays Tenants Acme Fine Furniture Occupancy 100% Book Value $11.0 million

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Appendix 1 Property Portfolio Industrial Update

Elders Woolstores

• Revaluation by $12.5 m to $57.5m due to:

• Yield compression in WA industrial property market due to supply shortage

• Substantial increase in surrounding land values and redevelopment activity of both light industrial and residential enhances appeal as a redevelopment site

Noble Park

• Noble Park/Mulgrave industrial market remains firm

Rocklea

• Recent rezoning of neighbouring land to mixed use raises the possibility of alternative future redevelopment potential

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Appendix 1 Property Portfolio Retail

Garden Town, Toowoomba

Building Area 12.434sqm plus 750 car bays Tenants Super IGA Supermarket, two sub-major and multiple speciality tenancies

Occupancy 86% Book Value $35.0 million

� Tenant re-mix opportunities to be pursued

� Food court redevelopment planned

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