GOODMAN GROUP — Interim / Quarterly Report 2006

Nov 7, 2006

ASX Release - Macquarie Goodman Group ("MGQ")

MGQ's NZ fund to raise NZ\$96.2 million

	8 November 2006 Date: Release: Immediate
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Macquarie Goodman Group's listed property trust in New Zealand, Macquarie Goodman Property Trust ("MGP"), has announced its results for the half year ended 30 September 2006 and its intention to raise NZ\$96.2 million via a private institutional placement.

The highlights for the half year include:

• -> a 68% increase in after tax profit over the comparative six months which equates to normalised earnings per unit growth of 5.7%;
• → a strong portfolio performance enhanced by recent transactions; and
• → a number of acquisitions and disposals.

MGP is today also undertaking a private institutional placement to raise approximately NZ\$96.2 million to partially fund acquisitions of a number of properties for NZ\$107.2 million. On completion of this transaction and recently announced disposals, MGP will have gross assets of NZ\$1.1 billion and be ranked 21st on the New Zealand Exchange. MGQ has committed to subscribe for its pro-rata share in the placement at the issue price of NZ\$1.25 representing a total investment of NZ\$28.2 million, but may receive a smaller allocation as a consequence of investor demand.

The acquisitions comprise the remaining 50% of three precommitted developments jointly owned by MGP and MGQ for NZ\$10.2 million, the second stage of Highbrook Business Park comprising four assets for NZ\$25.9 million (MGP to acquire a 75% interest), together with the third party acquisition of brownfield development sites at Christchurch and Auckland totalling NZ\$71.1 million.

Commenting on the MGP announcement, Greg Goodman, Chief Executive Officer of MGQ was pleased with the performance of the New Zealand fund. "We are delighted with the progress of our operations in New Zealand and with MGP's pleasing results. Following the equity raising and the acquisitions, MGP is well placed to continue to deliver strong returns to investors and maintain significant capacity for further acquisitions. We look forward to continuing to deliver opportunities to MGP via our extensive commitment to the NZ market."

The announcement does not materially alter the financial forecasts for MGQ for fiscal 2007 but reinforces a strong position in that market and provides scope for ongoing growth in the value of MGQ's investment in MGP and the services business.

For further details, please refer to the attached NZX release for MGP.

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

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

David van Aanholt Chief Executive Officer, Australia Macquarie Goodman Group Tel: +61 2 9230 7400

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

+61 2 9230 7400 Telephone +61 2 9230 7444 Facsimile info@macquariegoodman.com.au www.macquariegoodman.com

Macquarie Goodman

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

NZX Release - Macquarie Goodman Property Trust

Strong Interim Results and Acquisitions Provide Platform For the Future Interim results to 30 September 2006

Date:	8 November 2006 Release: Immediate
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Macquarie Goodman Property Trust ("MGP") is pleased to announce:

• $\rightarrow$ an after tax profit of \$23.2 million for the six months ended 30 September 2006;
• $\rightarrow$ the acquisition of 11 industrial assets with a total value of \$107.2 million; and
• $\rightarrow$ a private placement of 76.9 million new units at \$1.25 to partly fund the \$107.2 million of acquisitions.

Interim Result

MGP has delivered an after tax profit of \$23.2 million for the six months ended 30 September 2006. The record result represents a 68% increase on the \$13.8 million profit for the previous corresponding period.

Weighted earnings before tax, on a normalised basis, increased 5.7% to 5.04 cents per unit and gross distributions increased 3.4% to 5.10 cents per unit.

The record date for the second quarter distribution is 1 December 2006 with payment to be made on 15 December 2006. Unitholders will receive a gross distribution of 2.55 cents per unit, comprising 2.35 cents per unit in cash and 0.20 cents per unit in imputation credits.

Other highlights include:

• $\rightarrow$ Total return to MGP unitholders of 8.9% for the six months
• $\rightarrow$ The completion of 91,500 sqm of development projects and the commencement of a further 17,300 sqm of pre-committed industrial facilities
• $\rightarrow$ Average annual rental growth of 4.8% across the 19 rent reviews completed during the period
• $\rightarrow$ Lease commencements encompassing 98,200 sqm of rentable area
• $\rightarrow$ Occupancy rate and weighted average lease expiry maintained at 98% and 5.6 years respectively

John Dakin, Chief Executive Officer of MGP's manager Macquarie Goodman (NZ) Limited ("MGNZ"), said the half-year result was consistent with projections made in March 2006 and was the result of an expanded and improved portfolio. "Success in the acquisition

rel ease Macquarie Goodman

(NZ) Limited

Level 3, Q & V Building 203 Queen Street Auckland Central PO Box 90940 Auckland Mail Centre

Telephone (09) 375 6060 Facsimile (09) 375 6061 info@macquariegoodman.co.nz www.macquariegoodman.co.nz

and development programme along with the active management of the underlying property portfolio has all contributed to this impressive result."

Over the half year MGP made property acquisitions of \$57.9 million and divestments of \$28.9 million. Following its interim balance date of 30 September 2006 MGP announced the sale of the HSBC Centre for \$24.4 million and the partial sale of the Fletcher Head Office facility for \$28.8 million.

Mr Dakin commented that the transactions undertaken since March 2006 conclude what has been a very active period for MGP. "We have continued our objective to recycle noncore stand alone office assets by reinvesting sale proceeds into industrial and business park investments."

Mr Dakin added, "We have also remained focused on maximising returns from the underlying portfolio. A prime example of this active management has been the restructuring of the Fletchers property, announced earlier this week. This transaction is particularly pleasing as it shows the strength of our customer service model, delivering an ideal outcome for both MGP unitholders and Fletcher Building."

New Acquisitions

The package of new acquisitions comprises 11 high quality industrial assets for \$107.2 million ("Acquisitions"). The Acquisitions comprise \$36.1 million in Development Precommitments and an additional \$71.1 million in Redevelopment Opportunities, as described below:

Development Pre-commitments

• $\rightarrow$ The remaining 50% of three assets currently owned jointly by MGP and Macquarie Goodman Group ("MGQ") at Westney Industry Park and Savill Link for \$10.2 million.
• $\rightarrow$ The second stage of Highbrook Business Park comprising four assets for \$25.9 million (MGP to acquire a 75% interest).

The Development Pre-commitments provide an initial yield of 8.1% and a weighted average lease term of 9.7 years. The location, quality and design of these facilities ensure they are well positioned for future rental growth.

Redevelopment Opportunities

• $\rightarrow$ Plunket Ave, Auckland Two brownfield development sites adjoining Auckland Distribution Centre have been secured for \$47.5 million. Totaling 14.6 hectares the purchase will create an expanded industrial estate (to be known as M20 Business Park) of 24.9 hectares offering significant redevelopment opportunities for MGP.
• $\rightarrow$ Glassworks Industry Park, Christchurch MGP has secured two adjoining sites totaling \$23.6 million over a total site area of 15.2 hectares. This investment provides MGP the ability to develop space to service customer requirements in the Christchurch market.

At 7.3% of gross assets, development land is now within the stated target range of 5-10%, and MGP's development capacity is significantly increased. With a risk managed approach to development and projected yields on cost of 8.5% these redevelopment opportunities are expected to deliver enhanced returns to unitholders over time.

A portion of the Redevelopment Opportunities are currently income producing.

On the Acquisitions, Mr Dakin said, "The package is an exciting opportunity for MGP. Firstly, the Development Pre-commitments represent an attractive investment opportunity of 100% pre-committed high grade industrial facilities. Secondly, the Redevelopment Opportunities enable the potential for MGP unitholders to access superior returns through the redevelopment of these brownfield opportunities in the key industrial markets of Auckland and Christchurch."

The blended yield across the Development Pre-commitments and stabilised component of the Redevelopment Opportunities is 8.4%.

Settlement of certain acquisitions is subject to OIO approval as detailed in the attached acquisition summary.

Equity Raising

MGP is today undertaking a private placement to raise \$96,168,601 via the issue of 76,934,881 new units at \$1.25 to partially fund the Acquisitions. The private placement is restricted to institutional and habitual investors, and a copy of the placement presentation will be provided to the New Zealand Exchange Limited later this morning. The new units will rank pari passu with existing units from allotment (i.e. will qualify for the September 2006 distribution payable in December 2006) with the issue price representing a 3.8% discount to the 5 day VWAP.

The private placement is underwritten as to 50% each by Macquarie Securities (New Zealand) Limited and UBS New Zealand Limited. The underwriting agreement is subject to standard conditions and termination rights.

MGQ has committed to subscribe for its pro-rata share in the placement at the issue price of \$1.25 representing a total investment of \$28.2 million but may receive a smaller allocation as a consequence of investor demand.

Impact on MGP

The Acquisitions together with the impact of the post balance date divestments provide the following benefits to MGP:

• Increased weighting of industrial and business park assets to over 50% of gross assets
• Increased development capacity with 7.3% of gross assets in development land
• Weighted average lease expiry increasing from 5.6 to 5.9 years

Macquarie Goodman

• Enhanced customer diversity with the top 10 customers representing 33% of portfolio net rental, down from 36%
• Reduced gearing provides the platform for future growth

MGNZ considers that the previously announced acquisitions and divestments, together with the Acquisitions and associated equity raising, will be neutral to FY07 gross DPU and the projected FY07 distribution will be maintained at 10.2 cpu. The transactions are expected to be accretive in FY08 underpinning MGP's 3.5%+ DPU growth target.

Importantly the gearing of MGP will be 34.3% following the placement, assuming all announced acquisitions, divestments and developments are completed. This provides MGP with an approximate debt capacity of \$105 million for additional development and acquisition opportunities.

The transactions increase MGP's proforma NTA by 1.2% to \$1.14.

A trading halt in relation to MGP's units is in place on the New Zealand Stock Exchange and will continue for two business days unless terminated earlier.

John Dakin Chief Executive Officer Macquarie Goodman (NZ) Limited Tel: (09) 375 6063 Mobile: (021) 321 541

Attachments: Appendix 1 - Preliminary half year results Appendix 7 – Notice of event affecting securities

Appendix A

, regissionistas George Scott	na mara ya mshindi wa 1999. Waliofaliwa wa mshindi wa 2002	MANAMARI SENEGA KELELARAN MENGENAHAN SENEGA KELELARAN KELELARAN ANA KELELARAN KELELARAN KELELARAN KELELARAN KE MEMERINTAN SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARA SENEGARAN			888888888
Big Chill	Highbrook	٠	15.4	4.3 7	21 Nov 061
BMW	Highbrook	٠	10.6	6.07	21 Nov 061
Cottonsoft	Highbrook	٠	12.5	6.37	21 Nov 06
Exel Stage 36	Highbrook	٠	6.7	9.34	29 Jun 072
Highbrook developments (industrial pre-commitments)		7.94	10.4	25.9
Daniel Silva	Westney Industry Park	ä,	8.4	2.6	14 Nov 06
SCS	Westney Industry Park	٠	10.4	2.4	14 Nov 06
Toll Stage 2	Savill Link	٠	6.3	5.2	14 Nov 06
Co-owned properties (balance of 50:50 developments acquired)		8.40	7.8	10.2
100 Plunket Ave	Manukau	٠		21.45	14 Dec 061
70 Plunket Ave	Manukau	٠	٠	26.15	30 Nov 061
Glassworks Industry Park	Christchurch			23.66	14 Dec 06
Redevelopment opportunities				71.1
TOTAL		8.42 3	$6.2^{s}$	107.2
1 Subject to OIO approval	4 Subject to independent valuation on completion.		7 Highbrook Development Limited ('HDL'') to complete

² Following practical completion

subdivision within 2 years (subject to a maximum 1 year extension)
of settlement. If not completed, HDL must reacquire properties at the then market value plus transaction costs

³ A portion of the redevelopment assets are ^it Subject to receipt of original signed documentation
income producing

IMPORTANT NOTICE

This notice does not constitute an offer of securities for sale in the United States. The units in the placement have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.

^<sup>5 Includes acquisition and/or refurbishment costs