GOODMAN GROUP — Capital/Financing Update 2006

Aug 23, 2006

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS

ASX/Media Release

Macquarie Bank announces a sell down of MGQ holding

Date: 24 August 2006

24 August 2006 - Macquarie Bank Limited (Macquarie Bank) today announced it sold overnight its holding of approximately 7.7% (approximately 124 million securities) as principal in the Macquarie Goodman Group (MGQ), via a selldown to a range of institutional investors at a price of \$5.90 per security. Total proceeds of the sale are approximately \$733 million. The Macquarie Bank Group continues to have an interest in MGQ via its funds management businesses.

As a result of his participation in the selldown. Macquarie Goodman's Chief Executive Officer, Mr Greg Goodman, has increased the Goodman Family interest in MGQ from approximately 8% per cent to 9% per cent of MGQ's issued capital.

Macquarie Bank Chief Financial Officer, Mr Greg Ward, said: "The selldown does not change our view of MGQ's fundamentals or growth potential and we expect to continue a strong and cooperative relationship with Macquarie Goodman Group through our 50:50 funds management joint venture in Asia, Macquarie Goodman Asia (MGA). However, it is important for Macquarie Bank to focus its capital on initiatives where it has appropriate brand and management leverage. The selldown was strongly supported by investors."

The sale is in line with the Bank's stated aims of realising some of its significant investments and re-cycling that capital into other growth initiatives. Macquarie Bank intends to commit up to \$100 million from the proceeds of the sale to reinvestment into MGA-for both the warehousing of assets and as cornerstone investments in new fund management opportunities.

"The fragmented industrial real estate market in Asia presents MGA with a number of exciting opportunities" said Mr Ward.

Mr Ward went on to say "Macquarie Bank has been an MGQ security holder and strategic partner since 2000 - when the Macquarie Industrial Trust and Goodman Hardie Industrial Trust .
were merged. Since that time the successful partnership between Macquarie Bank and Macquarie Goodman has created the largest industrial property group on the ASX and the second largest industrial real estate player globally.

Macquarie Goodman Funds Management Limited ABN 48 067 796 641

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

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

Macquarie Goodman

Macquarie Goodman's Chief Executive Officer Greg Goodman said: "The strategic relationship formed with Macquarie Bank in 2000 was a significant stepping stone in the evolution of MGQ. This relationship is an example of a strong collaboration between like minded partners, with all securityholders benefiting through the performance of MGQ."

Mr Goodman added "In line with Macquarie Bank's decision, it is now appropriate for MGQ to adopt "one brand" for its global operations. The benefits of brand recognition by our customers and investors is a key component of our strategy. Given the importance of the brand and taking into account all stakeholders, the re-branding project could take up to 12 months.

Mr Goodman noted that MGA already has an impressive record of growth since its inception in 2004 and welcomed the further commitment from Macquarie to its Asian funds management platform. Since 2004, MGA has successfully established the Macquarie Goodman Hong Kong Wholesale Fund (MGHKWF), which has \$A850m of assets under management, with a number of other acquisition opportunities under review. Senior Macquarie Bank staff will continue to be involved with MGA in various capacities, including as members of MGA Executive Committee and MGHKWF Board

Mr David Clarke, Chairman of Macquarie Goodman and Chairman of Macquarie Bank, has announced his intention to remain on the Macquarie Goodman Board in a personal capacity and will seek re-election as a director in November. Mr Goodman stated "Mr Clarke's deep experience and broad commercial acumen has proved invaluable to Macquarie Goodman over the last 6 years. I am delighted that we will continue to be able to draw upon these skills".

Mr James Hodgkinson, an Executive Director of Macquarie Bank, will remain as a director at Macquarie Goodman whilst the company retains the "Macquarie" brand. Mr Hodgkinson will continue his relationship with Macquarie Goodman assisting on strategic initiatives and supporting management through this transition period. Mr Stephen Girdis, currently alternate director to both Mr Hodgkinson and Mr Clarke, will continue as alternate director to Mr Hodgkinson whilst the company retains the "Macquarie" brand.

Macquarie Securities (Australia) Limited acted as sole lead manager in the selldown.

Macquarie Goodman Funds Management Limited ABN 48 067 796 641

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

For further information please contact:

Macquarie Bank Contact

Matthew Russell, Public Relations Macquarie Bank	Tel: +612 8232 4102
Jenny Kovacs, Investor Relations Macquarie Bank	Tel: +612 8232 3250
Macquario Goodman Contact

Macquarie Goodman Contact

Tel: +612 9230 7400 Greg Goodman, Group Chief Executive Officer
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THIS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.