DEXUS — Capital/Financing Update 2006

Nov 28, 2006

DB RREEF

Managed in partnership with Deutsche Bank $\boxdot$

DB RREEF Funds Management Limited ABN 24 060 920 783 Australian Financial Services Licence Holder

Level 9 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange NSW 1225

Telephone 61 2 9017 1100 Direct 61 2 9017 1266 Facsimile 61 2 9017 1132

Email: ben.lehmann@dbrreef.com

29 November 2006

The Manager Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

DB RREEF Trust (ASX: DRT) - Portfolio Update

DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), wishes to provide the following update on the DRT property portfolio.

For further information, please contact

• DRT Fund Manager:	Ben Lehmann	$(02)$ 9017 1266
• Investor Relations:	Karol O'Reilly	$(03)$ 8611 2930

Yours sincerely

Tanya Cox Company Secretary

29 November 2006

DB RREEF Funds Management Limited (DRFM), as responsible entity of DB RREEF Trust (DRT), provides the following portfolio update as at 31 October 2006.

Leasing update

The overall occupancy level of DRT has remained steady at 96.1 percent. The weighted average lease term to expiry by income is 5.1 years (5.3 years in June 2006).

Details of leasing activity finalised since 30 June 2006 from each of the sectors is summarised below:

Office portfolio

• Occupancy is 97.7 percent by area including heads of agreement (98.2 percent as at June 2006).
• Weighted average lease term to expiry is 6.0 years by income (6.3 years as at June 2006). 翮

Major leases signed since 30 June 2006 include:

Property	Tenant	Area	Term	Commences
		(sam)	(yrs)
201 Elizabeth Street, Sydney NSW	NSW Government	4.306	ь	May-07
44 Market Street, Sydney NSW	Members Equity	1,889	5	Sep-06
14 Moore Street, Canberra ACT	Cap Gemini	1.093	э	$Oct-06$

Industrial portfolio - Australia

Occupancy is 97.4 percent by area (99.2 percent as at 30 June 2006).

Weighted average lease term to expiry is 4.7 years by income (4.8 years as at 30 June 2006). 翻

Major new leases or renewals signed include:

Property	Tenant	Area (sqm)	Term (yrs)	Commences
120 Old Pittwater Road, Brookvale NSW	Avon Products Pty Ltd	13,392	10	Feb-07
1-55 Rothschild Avenue, Rosebery NSW	Damilock Pty Ltd/ Casual Living	9,328	7	Aug-06
10-16 South Street, Rydalmere NSW	Altech Computers Pty Ltd	5,294	2	Oct-06
11 Talavera Road, Macquarie Park NSW	Alleasing Finance Aus. Pty Ltd	2,567	10	Nov-06
706 Mowbray Road, Lane Cove NSW	Direct Finishing	1,541	5	Dec-06
10-16 South Street, Rydalmere NSW	Tom Stoddart Pty Ltd	935	5	Oct-06
706 Mowbray Road, Lane Cove NSW	Minorplanet Asia Pacific Pty Ltd	801	3	Aug-06

Retail portfolio

$\overline{\phantom{a}}$ . . . . . . . . . . . . . . . . . . .

• Occupancy has remained steady at 99 percent by area. 强
• Weighted average lease term to expiry is 5.0 years by income (5.1 years as at 30 June 2006). ¥

Major leases signed and the movement in sales across the portfolio is reflected in the table below:

\$1,558,961	10.8%	Total / average
\$138,827	9.0%	Westfield North Lakes	Nil	Nil	no deals done in quarter
\$55,350	11.5%	Westfield Plenty Valley	4	291	4 renewals
\$377,535	2.1%	Westfield Hurstville	12	598	5 new merchants, 7 renewals
\$388,266	11.2%	Westfield Whitford	15	1.202	10 new merchants, 5 renewals
\$309,947	16.4%	Westfield Mt Druitt	18	1.804	11 new merchants, 7 renewals
\$289,036	9.3%	Westfield West Lakes	13	2.136	7 new merchants, 6 renewals
30 Sep 2006 \$'000 pa	Growth %	Property	Deals	Area (sqm)	Other commentary
MAI tO

Industrial portfolio - USA

Occupancy is 93.7 percent by area (92.5 percent as at 30 June 2006). 硼

Weighted average lease term to expiry continues to be 3.3 years by income. 翻

Major leases signed include:

Metro	Property	Tenant	Area (sf)	Term (vrs)	Commences
Minneapolis	6105 Trenton Lane	Select Direct Corp	122,032	-8	Nov-07
Orlando	2901 Titan Row	Roma Foods	81.924	10	Aug-06
Charlotte	3520 Westinghouse Boulevard	Snider, Inc.	69.152	10.3	Oct-06
Los Angeles	3550 Tyburn Street	A & A Amalgamated Printing	58,328	10	Dec-06

Industrial portfolio - France

Occupancy remains at 100 percent (by area) and there has been no change to the tenancy situation. 齒

Acquisition and disposal update

Acquisitions

144 Wicks Road, North Ryde NSW

DRT, jointly with DB RREEF Wholesale Property Fund (DWPF), acquired the 5.8 hectare former Peter Board High School site in North Ryde for \$51.75 million plus acquisition costs. Development options are being considered to transform the site into a state of the art office park over a number of stages. Our early analysis indicates that the site has the potential to accommodate more than 80,000 square metres of gross lettable area, including 1,700 car spaces. We anticipate that a development application will be lodged in early 2007.

The acquisition will take advantage of a lift in the investment potential of North Ryde and forms part of DB RREEF's strategy to capitalise on this growing North Shore market while further enhancing our investment pipeline.

Doherty's Road, Laverton North Vic

Settlement of the \$32 million land parcel adjacent to DB RREEF Industrial Estate, Laverton North occurred on 1 November 2006.

Disposals

• Oak Park Business Centre, Minneapolis US, a non-core property acquired as part of a portfolio and sold in August 2006 for US\$3.02 million. This price was slightly above the original acquisition price and transactions costs.
• The sale of 121 Evans Rd, Salisbury, Queensland was settled in August 2006. The property sold for $\overline{\omega}$ \$24 million to a fund managed by DRFM.

Development update

Office sector - Australia

Developments

The domestic office portfolio currently has over 104,500 square metres of development activity underway across four projects.

Bent Street, Sydney NSW

The Stage 1 DA was approved in March 2006 for the construction of an office tower with NLA of approximately 37,500 square metres. A design excellence competition to select an architect based on submitted designs has been completed. The project team is working with the relevant authorities and refining the design in readiness for lodgement of our stage 2 DA.

105 Phillip Street, Parramatta NSW

Development approval for a tower of 20,000 square metres has been achieved and marketing for precommitments is currently underway. Construction of the tower will commence once a major tenant pre-commitment is secured.

Charlotte Street, Brisbane Qld

Architectural and planning options are being prepared for a proposed office tower to be constructed over the existing car park on the corner of Charlotte and Albert Streets, Brisbane. Marketing for pre-commitments is currently in progress. A DA application is expected to be lodged with Council in the first half of 2007.

Victoria Cross, North Sydney NSW

Early design work on a proposed extension of the existing lower five levels, to provide additional area of approximately 5,000 square metres is in progress. A DA application will be lodged with Council shortly.

Industrial sector - Australia

The domestic industrial portfolio currently has around 105,000 square metres of development activity recently completed or underway with an estimated total project cost of \$136 million and a forecast vield on completion of approximately 8 percent.

DB RREEF Industrial Estate, Laverton North VIC

• Wrightson Seeds Australia Pty Limited: A 7,850 square metre warehouse and distribution facility was pre-leased to Wrightson Seeds for 10 years. Practical completion was achieved on 31 October 2006 for this \$6.1 million project.
• Coles Group Limited: Construction of a 43,705 square metre chilled distribution centre pre-leased to Coles Group Limited is currently underway. This \$99 million project is on schedule for completion in the first quarter of 2007.
• Fosters Limited: A 53,000 square metre distribution centre (including external canopy areas) costing an estimated \$31 million and pre-leased to Fosters Limited for 10 years is under construction. The project is scheduled for completion in July 2007.

Industrial sector - USA

Turnpike Distribution Centre, Medley, Florida

This US\$17.1 million development of 268,119 square feet is due for completion in January 2007. Three leases have been signed and terms agreed on the last available area. Net rents achieved are 12 percent above the initial feasibility representing a yield on total cost of 9 percent.

The success of the Turnpike Distribution Centre demonstrates the capability of RREEF, our global strategic partner to source and manage development projects on our behalf with highly successful outcomes.

Atlantic Corporate Park, Sterling, Virginia

The development of Atlantic Corporate Park (previously known as Dulles Town Crossing) comprising approximately 220,000 square feet of office accommodation commenced in August 2006 and is due for completion in the first half of 2008. Total cost of the development is forecast at approximately US\$47.6 million.

Whirlpool Acquisition Program

Orlando, Florida, USA is the first property being constructed as part of the program. This distribution centre of 500,000 square feet, costing approximately US\$28 million has been completed, and Whirlpool has commenced their fit out. It is anticipated that the Orlando facility will be acquired by DRT in the first quarter of 2007.

A further site for the program has been secured in Toronto, Canada. The specific site selection of the remaining distribution centres is well advanced and we expect construction to commence on a number of these facilities within 12 months.

Retail sector - Australia

North Lakes, Queensland

The previously announced expansion of North Lakes Shopping Centre which comprises an additional 26,600 square metres of lettable area commenced in November 2006 with practical completion anticipated by December 2007. The expected total cost, including infrastructure works to benefit future expansion stages, is \$74 million. The expansion will introduce Woolworths, Big W, four mini majors, over 100 specialty stores and additional car parking for over 1,600 cars to the existing centre.

Plenty Valley, Victoria

A development adding approximately 40,000 square metres of lettable area to Plenty Valley is expected to commence in January 2007 with completion mid 2008. New majors will include Target, Kmart, Safeway and Aldi, in addition to approximately 90 specialty retailers.

Third party funds under management

DB RREEF Wholesale Property Fund

Deutsche Wholesale Property Fund unit holders at their annual general meeting endorsed a change of ownership of the Responsible Entity of DWPF from Deutsche Bank to DB RREEF, effective 31 October 2006.

In conjunction with the change of ownership, the Fund's name was changed to DB RREEF Wholesale Property Fund.

Acquisitions

On behalf of third party funds and mandates, DB RREEF has secured over \$300 million of properties which have either settled or are in exclusive due diligence during the last six months.

Management

With the increasing focus on international markets, Tony Dixon has assumed the role of Co-Head of Capital Transactions on a full-time basis, relinguishing his previous responsibilities the DRT Fund Manager. Ben Lehmann, previously Head of Portfolio Services, has been appointed the new Fund Manager. As a result of these changes, the Commercial, Retail and Industrial Sector Heads, responsible for asset and development management services, will assume dual reporting lines to Ben Lehmann as the Fund Manager of DRT and to Mark Turner as Head of Unlisted Funds.

For further information, please contact

Media Enquiries:	Victor Hoog Antink	$(02)$ 9017 1130
DRT Fund Manager:	Ben Lehmann	$(02)$ 9017 1266
Investor Relations:	Karol O'Reilly	$(03)$ 8611 2930

DB RREEF is one of Australia's largest property fund managers, with total funds under management as at 31 October 2006 of \$12.2 billion. The listed property portfolio comprises approximately \$8.1 billion of direct property assets, in Australia, New Zealand, the United States and France and the unlisted property portfolio comprises approximately \$4.1 billion of domestic assets.