GOODMAN GROUP — Capital/Financing Update 2008

Oct 16, 2008

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Macquarie Goodman Hong Kong Logistics Fund completes HK$2.7 billion capital raising

Date	17 October 2008
Release	Immediate

Goodman Group (“Goodman”) is pleased to announce the successful completion of a HK$2.7 billion (approx. A$520 million) equity and debt capital raising for the Macquarie Goodman Hong Kong Logistics Fund (the “Fund”).

The capital raising will enable the Fund to acquire a 50% interest in the strategic Interlink and Seaview development projects jointly from Goodman and Macquarie at a cost of HK$0.9 billion (“the Transaction”), and to fund its share of development costs associated with both projects. The two development projects will provide a combined 340,000 sqm of warehouse and distribution space, with a forecast value in excess of HK$7 billion (approx A$1.3 billion) (100% interest).

The completion of this Transaction will in turn allow the Fund to pursue a core plus investment strategy, which includes a measured component of enhanced return investment opportunities, including developments.

The HK$2.7 billion of capital raised was structured on the following basis:

• • HK$1.6 billion (approx A$310 million) of capital was raised from investors, including Macquarie Group and Goodman. 50% of the capital raised will be drawn-down initially, with the remaining 50% to be drawn over the life of the two developments – anticipated to be over three years.

Following the initial drawdown, Goodman’s cornerstone investment in the Fund will increase from 20.0 to 20.3%.

• • HK$1.1 billion (approx A$210 million) of senior debt was arranged through a new five year facility from existing and new lenders, providing the Fund with additional liquidity and flexibility to enhance the existing portfolio and pursue strategic growth opportunities.

In addition, a further HK$1.1 billion (approx A$210 million) of senior debt due to expire in March 2009 was refinanced until September 2011. These initiatives have increased the Fund’s weighted average debt expiry from 1.8 to 3.2 years.

The Transaction will initially reduce the Fund’s senior debt gearing level to around 33% from 34% currently, with an average forecast gearing level of 34% over the three year development period.

Goodman Group CEO, Gregory Goodman said: “We are pleased with the success of this capital raising in our Macquarie Goodman Hong Kong Logistics Fund and with the overall level of interest that it attracted. This is a great result given the current market conditions and

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

demonstrates the confidence that investors have in the Fund, our funds management platform, and in the quality of our people and assets.

Furthermore, we believe the Fund’s participation in the Interlink and Seaview development projects positions it well to achieve its aim of delivering enhanced long-term returns to investors. The Fund has performed strongly since inception, consistently outperforming its benchmark and returning 18.6% to investors on an annualised total return basis.”

Mr Goodman added: “The Macquarie Goodman Hong Kong Logistics Fund has become the largest warehouse and distribution property owner in Hong Kong and the initiatives being announced today confirm our commitment and confidence in the longer-term growth potential of the Hong Kong market.”

For further information, please contact Goodman: Gregory Goodman Nick Vrondas Group Chief Executive Officer Executive – Group Corporate Finance Tel +61 2 9230 7400 Tel +61 2 9230 7400

About Macquarie Goodman Hong Kong Logistics Fund

The Macquarie Goodman Hong Kong Logistics Fund ("Fund") was launched in April 2006 and is focused on the Hong Kong industrial property sector. Since the Fund's launch, its portfolio has grown from seven properties to now comprise 18 properties (before completion of the Seaview and Interlink development transaction) and is the largest owner of warehouse and distribution properties in Hong Kong. It is an open ended industrial sector specialist fund that benefits from Goodman Group's and Macquarie Group's in house development capabilities, asset management expertise and global fund management platform.

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