CROMWELL PROPERTY GROUP — Capital/Financing Update 2007

Dec 17, 2007

ASX/Media Announcement 18 December, 2007

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CROMWELL CONFIRMS CONSERVATIVE DEBT STRATEGY

Following recent events surrounding Centro and the US sub-prime issues, Cromwell would like to provide the market with an update on the Group’s current debt facilities and obligations.

Cromwell Group has a conservative approach to the structuring of its debt facilities and is confident current debt market conditions present no significant risks to the business.

Following a number of asset sales, Cromwell is currently geared (net debt: total assets) at 35 per cent, down from 44 per cent at 30 June, 2007.

The majority of the Group’s debt is held in a $429 million Commercial Mortgage Backed Securitisation (CMBS) facility, which does not expire until April 2009.

A total of $315 million of the CMBS debt (83% of net debt) is currently fixed for a weighted average term of 4.75 years. Cromwell also holds $113 million cash resulting from the recent asset sales. The combination of long term hedges (up to 10 years out) and the natural hedge from cash in the bank means Cromwell is well protected against short term debt market fluctuations.

Other debt facilities are limited to funding for the construction of the Synergy office building in Brisbane, a $27 million facility in relation to Cromwell’s investment in the TGA building in Canberra, and $13 million in Debentures. The Synergy facility is for a total of $93.5 million (currently $25 million drawn) and expires in May 2009. The TGA facility has been recently renegotiated, and expires in March 2008. The Debentures are issued at fixed interest rates, and are generally repayable over the next 2 years. None of these facilities are expected to be affected by the current debt market issues.

Cromwell Group Chairman Paul Weightman said Cromwell will continue to monitor market sentiment towards the listed and unlisted property trust sectors and provide further updates when appropriate.

“Cromwell prides itself on producing a predictable income stream for investors and for this reason it actively manages the interest rate risk associated with loans to minimise the portfolio’s exposure to adverse movements in debt markets.

“Cromwell has chosen to focus on quality, non-residential Australian assets and has no exposure to international property which, in the current market, is very pleasing”, he said.

ENDS: Media Enquiries to Paul Weightman on 0411 111 028.

Cromwell Corporation Limited ABN 44 001 056 980

Cromwell Property Securities Limited ABN 11 079 147 809 AFSL 238052 as responsible entity for Cromwell Diversified Property Trust ABN 30 074 537 051 ARSN 102 982 598

Level 19, 200 Mary Street, GPO Box 1093, Brisbane QLD 4001 Telephone 07 3225 7777 Facsimile 07 3225 7788 Email cromwell@cromwell.com.au Internet www.cromwell.com.au