GOODMAN GROUP — Capital/Financing Update 2005

Feb 28, 2005

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

Macquarie Goodman enters the Hong Kong property market

Date: 1 March 2005 Release: Immediate

Macquarie Goodman has secured a well-known industrial property in Hong Kong being the lower portion of Global Gateway, Tsuen Wan for HK\$750 million (A\$122 million) excluding acquisition costs. The current owner is Winsor Air Cargo Centre Limited.

Chief Executive Officer, Greg Goodman, said, "We entered into a joint venture with Macquarie Bank in October 2004, subject to the successful creation of Macquarie Goodman Group. The parties have now commenced the expansion of Macquarie Goodman's funds management business in Asia by sourcing high quality acquisitions in the region. This will seed our Asian funds management business which, over time, is expected to attract local and international investors to our managed funds.

"These initiatives will build on Macquarie Goodman's successful joint venture with Ascendas Land Pte Limited in listing Ascendas Real Estate Investment Trust on the Singapore Exchange in November 2002."

Global Gateway is located in one of Hong Kong's major industrial precincts. It links to all main transport hubs, providing efficient logistics/air cargo services due to its easy access to the airport and the Kwai Chung Container Terminals. Tsuen Wan accesses all main transport hubs including the Western Harbour Tunnel, North West Railway, Route 3, Tsing Yi and Lantau Fixed Crossing, Airport Railway, North Lantau and West Kowloon Expressway.

The lower portion of the property comprises 53,880 sqm over 12 floors (excluding two units) and is serviced by 12.85 metre high vehicular ramps with approximately 30,000 truck movements per month utilising the ramps for loading and unloading cargo.

The property will deliver a yield of 6.5% and is fully occupied with the majority of customers being leading logistics companies such as DHL International, FedEx, and TNT Express Worldwide which are all existing customers of Macquarie Goodman.

Stephen Hawkins, Chief Executive Officer - Asia, said, "Investing in Hong Kong is very timely given the recent improvement in the property market mainly due to growth in general economic conditions. Industrial property, in particular, has achieved rental and capital increases of 5% per quarter over the past six months with strong demand stemming from short supply of quality warehouse and logistics space."

Settlement is deferred until no later than 31 August 2005 with the vendor having a right to call for settlement with 30 days' notice in writing. The transaction structure has a deposit of 10%. A further 10% has been paid, which entitles Macquarie Goodman to 10% of the property income. The acquisition will be funded via fully hedged, localised debt facilities.

Mr Goodman concluded, "Our Customer Service Model will be transported to Asia with the objective of targeting quality properties in established industrial and business space property markets and sourcing opportunities to provide solutions for existing and prospective customers."

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 (62) 9230 7460 Eacsimile (62) 9230 7444 info@macquariegoodman.com.au www.macquariegoodman.com.au

Macquarie Goodman

For further information, please contact Macquarie Goodman:

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

Ms Jayne Gerrie Corporate Communications Manager Tel: +61 2 9230 7400

Mr Stephen Hawkins Chief Executive Officer - Asia Tel: +852 6407 9879

All values are expressed in Australian currency unless otherwise stated.

Appendix attached providing further details on Global Gateway, Tsuen Wan, Hong Kong.

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

(02) 9230 7400 Telephone (02) 9230 7444 Facsimile info@macquariegoodman.com.au www.macquariegoodman.com.au

Macquarie Goodman

Appendix

Lower portion of Global Gateway, Tsuen Wan, Hong Kong

Address:	No 68 Yeung UK Road and No 98 Wang Lung Street Tsuen Wan, Hong Kong
Current owner:	Winsor Air Cargo Centre Limited, a wholly owned subsidiary of Winsor Properties Limited
Asset class:	Warehouse/distribution centre
Lettable area:	53,880 sqm
Occupancy:	100%
Annual net rent:	\$7.9 million
Leasehold expiry:	2047
General market commentary:	Industrial areas in Hong Kong are scattered throughout the region with the majority being located in East Kowloon and New Territories. The industrial market comprises flatted factories, warehouses (also known as "godowns"), industrial/office buildings and specialised factories.
	Hong Kong is currently experiencing a shortage of premium industrial assets with new developments unlikely in the foreseeable future, which creates strong demand for existing space.
	Global Gateway is one of the few properties with warehouse ramp style access and is considered to be a premium asset in the industrial market.
Global Gateway:

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

(02) 9230 7400 Telephone Facsimile (02) 9230 7444 info@macquariegoodman.com.au www.macquariegoodman.com.au