CROMWELL PROPERTY GROUP — Capital/Financing Update 2007

Aug 23, 2007

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ASX Announcement August 24, 2007

CROMWELL PORTFOLIO UP $110 MILLION ON REVALUATIONS AND ASSET SALES

Property and funds manager Cromwell Group (ASX: CMW) has completed independent revaluations of eleven assets held by the Group, with a total gain on book value across the portfolio of approximately $88 million at 30 June, 2007.

The valuations represent a weighted average increase in book value of 35% for the revalued assets, equating to 13 cents per Cromwell Group stapled security.

In addition, Cromwell will book a further $5 million increase in value for the 59 Goulburn Street, Sydney, property and a $17 million increase in value for the Bundall Corporate Centre in line with the expected sale proceeds of each asset.

Cromwell has previously announced the 59 Goulburn Street property was subject to an unconditional contract for sale at balance date, which has since settled. The Bundall Corporate Centre was the subject of a put and call option arrangement at 30 June, 2007, which is now expected to result in a sale of the property in October 2007.

The sale of these two properties will not be realised until FY08, however accounting standards require the statement of these properties at fair value at 30 June, 2007. The Bundall Corporate Centre revaluation does not include the adjoining land, which is also expected to be settled in October 2007, recognising a development profit of approximately $13 million for the Group in FY08.

Cromwell Group Executive Chairman Paul Weightman said the revaluations primarily reflected the strength of the Perth and Brisbane office markets with increases up to 84% in Perth and 73% in Brisbane.

“Strong local economies and increasing demand for quality office space, combined with a shortfall in supply for new space has driven up rents and valuations, particularly in the last six months,” Mr Weightman said.

“The increased valuations are also a testament to Cromwell’s strict adherence to a defined acquisition strategy which provides investors with exposure to assets which deliver stable, secure income and have potential for capital growth.”

Subject to final audit, the revaluations are expected to be adopted for inclusion in Cromwell Group’s statutory accounts as at 30 June 2007, together with any revaluation movements arising from properties held through investments in associates and from Cromwell Group consolidation adjustments, including the December 2006 merger and stapling transaction.

ENDS: Media Enquiries to Paul Weightman on (07) 3225 7777 or 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

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A summary of the independent property revaluations is shown below.

	Property	Ownership%	UnauditedMkt. Value30-Jun-07$m	PreValuationBook Value30-June-07$m	PreValuationBook Value30-June-07$m	ValuationGain$m	ValuationGain%	New CapRate%	Prior CapRate%	Prior CapRate%
	8 St George’s Terrace,	100%	$21600		$11713	$9887	84%	710%	875%
	Perth WA		,		.	,		.	.
	78 Mallard Way,Cannington WA	100%	$12,500		$7,808	$4,692	60%	7.25%	9.50%
	Lot 102 Grand Trunkway,Gill SA	100%	$15,800		$13,030	$2,770	21%	7.50%	8.75%
	man
	101 Grenfell Street
	,Adelaide SA	100%	$35,000	$30,583		$4,417	14%	7.88%
	Lot 1 Old Geelong Road,Hoppers Crossing VIC	100%	$47,000	$47,000		$0,000	0%	7.00%	7.75%
	51-73 Lambeck Drive,Tullamarine VIC	100%	$11,900	$10,696		$1,204	11%	7.50%	8.25%
	200 Mary Street,Brisbane QLD	100%	$100,000	$57,842		$42,158	73%	6.75%	7.50%
	527 Gregory Terrace,Bowen Hills QLD	100%	$36,000	$21,638		$14,362	66%	7.00%	8.00%
	243 Northbourne Avenue,Lyneham ACT	100%	$33,200	$28,797		$4,403	15%	8.40%	9.25%
	4 Marcus Clarke Street,Canberra ACT	100%	$9,750	$8,588		$1,162	14%	7.75%	8.50%
	4 Dunlop Court,Bruce ACT	100%	$14,725	$11,791		$2,934	25%	8.00%	9.50%
	Total		$337,475	$249,486		$87,989	35%	7.28%	8.35%

Details of the Goulburn Street and Bundall Corporate Centre revaluations are shown below.

Property	Ownership%	Expected netproceeds$m	Pre ValuationBook Value30-June-07$m	Gain$m	Gain%
Slatyer Avenue,Bundall, QLD	100%	64.400	47.316	17.084	36%
59 Goulburn Street,Sydney, NSW	100%	92.052	86.929	5.123	6%
Total		156.452	134.245	22.207	17%

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