GOODMAN GROUP — Capital/Financing Update 2005

Oct 11, 2005

ASX Release - Macquarie Goodman Group ("Macquarie Goodman")

Macquarie Goodman exploring establishment of wholesale fund

Date: 12 October 2005 Release: Immediate

As foreshadowed in its annual results release, Macquarie Goodman has commenced discussions with potential cornerstone investors to assess demand for a new wholesale property trust, the Macquarie Goodman Wholesale Fund ("MGWF"). MGWF will offer institutional investors a unique opportunity to invest alongside Macquarie Goodman in a portfolio of prime industrial real estate in Australia with a potential value on completion in excess of \$1 billion.

The establishment of MGWF is tailored to meet the increasing demand from investors for direct property investment exposure. MGWF complements Macquarie Goodman's strategy to partner with dedicated regional equity associates such as Macquarie Goodman Property Trust in New Zealand and Ascendas Real Estate Investment Trust in Singapore and further develop its third party funds management platform. MGWF will be Macquarie Goodman's primary Australian investment partner going forward with Macquarie Goodman's investment exposure achieved via co-investment in MGWF.

Wholesale investors, via investment in MGWF, will have exclusive access to tightly held institutional grade industrial assets and the resources of the Macquarie Goodman management team, development expertise, customer relationships and regional footprint.

The Fund will aim to provide long-term stable, core property returns targeting total returns of 10% per annum. The initial portfolio is proposed to be formed from 32 existing Macquarie Goodman stabilised and pre-committed development assets, generating a projected annualised distribution yield for FY06 of 8.0% with a weighted average lease $\sim 10^{12}$ and $\sim$ $\mathcal{L}^{\text{max}}{\text{max}}$ . The contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the co expiry of 8.5 years. $\mathcal{A}{\text{max}}$ , $\mathcal{A}{\text{max}}$ , $\mathcal{A}{\text{max}}$

Macquarie Goodman will hold a minimum co-investment of 30% in the fund.

Further information on the fund will be released to the market when discussions with potential cornerstone investors are complete. $\sim 100$

$\mathbb{E}{\mathcal{P}}\left(\mathcal{P}{\mathcal{P}}\right)$ to the expression of $\mathcal{P}_{\mathcal{P}}$

$\sim$ $\sim 10$

For further information, please contact Macquarie Goodman:

Gregory Goodman Chief Executive Officer Tel: +61 2 9230 7400

Macquarie Goodman Group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641: AFSL Number 223621

$\mathcal{L}^{\mathcal{L}}{\mathcal{L}}$ and $\mathcal{L}^{\mathcal{L}}{\mathcal{L}}$ . So the set of $\mathcal{L}^{\mathcal{L}}$

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

Telephone +61 2 9230 7400 +61 2 9230 7444 Facsimile info@macquariegoodman.com.au www.macquariegoodman.com