GOODMAN GROUP — Capital/Financing Update 2010

Oct 17, 2010

==> picture [83 x 73] intentionally omitted <==

==> picture [180 x 34] intentionally omitted <==

Goodman commits to J-REP business in response to customer and investor demand

Date 18 October 2010 Release Immediate

Macquarie Goodman Japan Pte Ltd (MGJ), a 50/50 joint venture between Goodman Group (Goodman) and Macquarie Group (Macquarie), lodged a proposal with Japanese regulatory authorities on Friday to strengthen its Japanese logistics offering, conducted via J-REP Co., Limited (J-REP).

Transaction overview:

• A tender offer bid made to all shareholders and option holders, providing liquidity to those shareholders and potentially increasing Macquarie and Goodman’s interest in J-REP;

• Provision of development funding to J-REP and granting of share acquisition rights in J-REP;

• Establishment of the Japan Logistics Development Vehicle (JLDV), seeded with a pre-committed development to leading Japanese third party logistics operator, Nippon Express; and

• An intention to rebrand J-REP to Goodman.

Tender offer

In 2007, MGJ purchased a controlling interest in J-REP and as at the date of this announcement holds 51.7% of the total outstanding securities.

The tender offer, lodged with Japanese regulatory authorities provides an opportunity for shareholders to obtain liquidity in respect of their investment in J-REP, with MGJ’s intention to make J-REP a wholly owned subsidiary of MGJ.

The tender offer price of ¥35,000 per share compares to J-REP’s closing price on 15 October 2010 of ¥24,650. The capital commitment for the outstanding shares in J-REP, which MGJ does not own at the date of the offer, is ¥2.5 billion ($A31.1 million).

The tender offer will open on 18 October 2010 and will be available for acceptance by shareholders until 1 December 2010.

J-REP’s board of directors (excluding Goodman and Macquarie related directors) have voted unanimously to recommend that J-REP’s shareholders accept the tender offer.

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 as responsible entity of Goodman Industrial Trust ARSN 091 213 839

Funding

MGJ will provide J-REP with a new ¥3.5 billion ($A43.5 million) two year revolving loan facility, primarily to be used by J-REP to co-invest in development projects alongside Goodman, Macquarie and, potentially, other third party investors who will invest via JLDV as outlined below.

As part of the loan facility, J-REP will grant 100,000 share acquisition rights with an exercise price of ¥35,000 to other Goodman and Macquarie entities. In the event of exercise, the combined holding by MGJ, Goodman and Macquarie would increase to 71.3%.

Japan Logistics Development Vehicle (JLDV)

Additionally, a new Japanese focused development vehicle will be established with an initial equity commitment totalling ¥4 billion (A$49.7 million) provided equally from Goodman and Macquarie. Furthermore, J-REP may co-invest up to 20% in the assets to be acquired pursuant to these arrangements, and be responsible for the sourcing of new development opportunities and the provision of development management and asset management services.

The JLDV will undertake its development activities primarily on a pre-committed basis with a focus on the Tokyo and Osaka markets. The initial seed development sourced by J-REP for the vehicle is a 33,000 sqm warehouse facility for Nippon Express in Tokyo. The estimated date of practical completion of the development is December 2011. Nippon Express has entered into an agreement for lease for a fixed term of 10 years.

Rebranding

At the appropriate time, it is proposed to rebrand J-REP to Goodman Japan.

Goodman Group’s CEO, Greg Goodman commented that “the above initiatives provide a catalyst for Goodman to fully expand its global network into Japan and provides us with the platform to capitalise on the opportunities that exist for the Japanese market as a result of the burgeoning growth in China and reduced competition locally.

“Today’s announcement delivers a clear operating strategy for the business to move forward with, and provides our customers and investors with a truly integrated property solution in Asia Pacific”.

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

Note: Currency conversions are calculated at the rate of JPY/AUD 80.48.

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 Securities Exchange and one of the largest in the world, with offices across Asia Pacific, UK and Europe. At the core of the Group’s success is its integrated customer service model, which reflects the organisation’s commitment to creating long-term customer relationships.

About J-REP: Listed on the Tokyo Stock Exchange, J-REP is a Japanese logistics property specialist. J-REP provides a range of brokerage, asset management, funds management, property management and construction management services in relation to logistics property. As of the end of August 2010, JREP employs 47 people (excluding officers) and has assets under management of ¥103.3 billion (A$1.3 billion).

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