GOODMAN GROUP — Capital/Financing Update 2008

Dec 23, 2008

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Goodman Group (“Goodman” or “Group”) successfully completes $1.2 billion of new Funds Management Initiatives

Date 24 December 2008 Release Immediate

Summary:

• • Goodman UK fund completes $764 million equity raising
• • Goodman Australian fund successfully refinances $450 million of debt

Goodman, Australia’s largest listed industrial property group, today announced over $1.2 billion of new Funds Management Initiatives.

Goodman’s UK Fund, Arlington Business Park Partnership (“ABPP”) has successfully completed a package of capital management initiatives. These include $764 million of equity raised from existing investors and the change of the long term debt covenant from 60% to 65%. The Group has also successfully refinanced $450 million of debt for Goodman Australia Industrial Fund (“GAIF”), Australia’s largest unlisted industrial fund. These initiatives are in line with the Group’s recently announced plan.

Goodman Group Chief Executive Officer, Greg Goodman, said today that “our Group’s funds management platform is well capitalised with a total of $130 million of debt maturing across all funds in calendar year 2009.”

“What this and our other capital management initiatives through the year demonstrate is, that well structured businesses with quality assets continue to receive good support from both local and offshore banks. This is a good example of the benefit Goodman brings to its Funds through the strength of its global banking relationships and capital partners.”

UK equity raising

In July 2008 Goodman Group and Legal & General, as joint General Partner, began consulting with ABPP’s global investor base and the Fund’s debt providers to consider options to strengthen the Fund’s long-term position. This has culminated in the injection of equity in the form of property assets from existing investors (GBP305 million) and some cash and cash equivalents (GBP35 million) to bring the total package to GBP340 million ($764 million).

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621

In addition to the capital management initiatives detailed above, a range of fund modernisation measures have been agreed which bring ABPP into line with other Goodman Group Fund Management products.

Goodman’s European CEO, Michael O’Sullivan, said “any option had to address the best interests of ABPP’s entire investor base. As a result, the capital raising is predominantly an asset-for-equity swap.”

Legal & General Property’s Managing Director, Bill Hughes, said “the initiatives, agreed through consultation with our investors, will position the Fund to maintain good levels of liquidity through the ongoing market downturn and enhance its appeal to new investors when markets stabilise.”

“Our investors’ active participation in, and their support for the transaction has been encouraging and we look forward to the next phase of ABPP’s evolution.”

Goodman’s Michael O’Sullivan added that “the Groups investment in, and asset management of ABPP are core to Goodman’s business in the UK and a key part of its business space platform globally.”

“In spite of the unprecedented challenges in credit markets, we have received the positive support of our financiers which demonstrates the high quality of the GBP 1.5 billion of assets in the fund and ABPP’s status as the UK’s leading specialised business park fund”.

“This transaction is consistent with similar initiatives undertaken by the Goodman Group over 2008 to strengthen the funds. The Group has conducted transactions of this nature in Australia and more recently with the EUR90 million ($180 million) swap into the Goodman European Logistics Fund (“GELF”).”

Goodman Australia Industrial Fund $450 million debt refinancing

The maturing debt formed the first tranche of GAIF’s $1.6 billion bank syndication facility which was launched in March 2008. The refinance was well supported by the Group’s existing banking relationships. The new debt has maturities over two and three years, with pricing in line with current markets. The refinance increases the Fund’s average debt duration from 1.6 years to 2.2 years with the next maturity not due until March 2010.

GAIF comprises 100 properties across Australia valued at over $4.8 billion. Goodman is the cornerstone investor in GAIF, in partnership with a number of Australia’s leading superannuation funds, offshore pension funds and sovereign wealth funds.

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621

About Goodman : Goodman owns, develops and manages industrial property and business space globally. It is the largest industrial property group listed on the Australian Stock Exchange and the second largest in the world, with offices across Asia Pacific, UK and Europe. At the core of the group’s remarkable success is its unique customer service model, which reflects the organisations’ commitment to creating long-term customer relationships.

For further information, please contact Goodman: Greg Goodman Group Chief Executive Officer Tel +61 2 9230 7400

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621