GOODMAN GROUP — Capital/Financing Update 2005

Oct 11, 2005

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

Macquarie Goodman to develop \$50 million of Exel facilities

Date: 12 October 2005 Release: Immediate

Macquarie Goodman Group ("Macquarie Goodman") is pleased to announce that it has partnered with Exel, the world's leading and fastest growing 3rd party logistics operator within the Asia Pacific region, to jointly develop and manage properties in Asia and Australia.

Under the arrangement, Macquarie Goodman and Exel have signed agreements for lease with Exel to develop facilities within DAKS Industrial Park, Shanghai and Edinburgh Parks, Adelaide.

DAKS Industrial Park, Pudong, Shanghai, Peoples Republic of China

Macquarie Goodman and Exel will develop a 55,875 sqm warehouse/distribution centre in Shanghai for a total cost of \$31.8 million. The facility is to be built over two stages with the first stage scheduled for completion by November 2006 and the second by July 2007. Exel has committed to a seven year lease with a level of rental commensurate with market rates and annual fixed reviews.

The development will be located within the DAKS Industrial Park in the Kanggiao Industrial Zone of the Nanhui District of Shanghai. The industrial park is surrounded by major roadways providing easy access to the sea and air ports including Pudong International Airport, Honggiao International Airport and Waigaogiao Port (the major terminal port in Shanghai).

Macquarie Goodman's Chief Executive Officer - Asia, Stephen Hawkins, said, "Shanghai presents significant opportunities for Macquarie Goodman. It is the commercial hub of China and hosts a concentration of manufacturing activities. The city's port currently ranks largest in China and third largest in the world in terms of cargo handled. The city is also one of the best served in China in terms of considerable government infrastructure investment in recent $\mathcal{L}(\mathcal{A})=\mathcal{L}(\mathcal{A})$ $\sim 10^{10}$ e $^{20}$ vears." is a gr $\sim 10^{-1}$

Edinburgh Parks, Adelaide, South Australia

Macquarie Goodman has also acquired 57,910 sqm of development land at Edinburgh Parks, South Australia for \$2.57 million. Exel and Macquarie Goodman will jointly develop a 28,815 sqm warehouse facility for a total cost of \$18.3 million. Exel will occupy the entire facility for an initial term of five years with annual reviews at the greater of CPI or 3%.

Macquarie Goodman is currently developing facilities for other major customers in this area including, a 64,725 sqm regional distribution center for Coles Myer and a 13,494 sqm distribution centre for Johnson Controls.

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

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

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

Macquarie Goodman

Chief Executive Officer, Gregory Goodman said, "Exel is a major customer of Macquarie Goodman. The development with Exel is the first step into China partnering with a key customer in a well established industrial area of Shanghai. The arrangement strengthens our relationship with Exel and will promote opportunities to participate in future developments in the Asia-Pacific region,"

Exel's Chief Financial Officer, Asia Pacific, Steve Ferraby said, "we are excited about this strategic relationship with Macquarie Goodman given their track record of providing quality industrial and business space solutions for our operations in Australia and New Zealand. This enables us to continue providing extensive quality warehouse space to our customers, coupled with a broad range of cost effective and world class integrated supply chain solutions."

For further information, please contact Macquarie Goodman:

Gregory Goodman Chief Executive Officer +61 2 9230 7400

Stephen Hawkins Chief Executive Officer - Asia +852 2249 3100

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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

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