GPT GROUP — Capital/Financing Update 2003

Oct 30, 2003

Lend l CORPORATION

31 October 2003

The Manager Companies Section Australian Stock Exchange Limited (Sydney)

By electronic lodgement

Pages: Four (4) pages

Companies Section New Zealand Exchange Limited

The Manager

By email: announce@nzx.com

Lend Lease Corporation Limited ABN 32 000 226 228

Level 46 Tower Building Australia Square Sydney NSW 2000 Australia

Telephone 61 2 9236 6111

Facsimile 61.2.9252.2192

DX 10230 SSE

www.lendlease.com

Dear Sir

STOCK EXCHANGE ANNOUNCEMENT

LEND LEASE AND GENERAL PROPERTY TRUST JOIN FORCES TO REDEVELOP TWIN WATERS RESORT ON QUEENSLAND'S SUNSHINE COAST

Lend Lease Corporation Limited ("Lend Lease") today announced that it has formed a joint venture with General Property Trust to implement a staged redevelopment on the site of Twin Waters Resort, in Mudjimba, on Queensland's Sunshine Coast.

Settlement of the Twin Waters purchase from the Victorian Government's Tricontinental Corporation Limited is expected to take place on 31 October 2003.

Further details are contained in the attached media release.

Yours faithfully LEND LEASE CORPORATION LIMITED

S J SHARPE Company Secretary

MEDIA RELEASE

31 OCTOBER 2003

LEND LEASE AND GENERAL PROPERTY TRUST JOIN FORCES TO REDEVELOP TWIN WATERS RESORT ON QUEENSLAND'S SUNSHINE COAST

Lend Lease Corporation Limited ("Lend Lease") today announced that it has formed a joint venture with General Property Trust ("GPT") to implement a staged redevelopment on the site of Twin Waters Resort, in Mudjimba, on Queensland's Sunshine Coast.

Settlement of the Twin Waters purchase from the Victorian Government's Tricontinental Corporation Limited is expected to take place on 31 October 2003.

Under the arrangements for the development of the Twin Waters masterplanned urban community, Lend Lease will have a 51% interest in the joint venture, with GPT holding a 49% interest.

Lend Lease and GPT plan a staged redevelopment of the 366 room resort hotel and central facilities that will include premium residential precincts to be offered for public sale.

The Resort will remain fully operational in its existing configuration for at least 12 months while the redevelopment masterplan and authority approvals are finalised.

Ross Taylor, CEO - Lend Lease Asia Pacific, said this is the second residential development Lend Lease will undertake with GPT, the first being the A\$1 billion Rouse Hill Regional Centre, and it demonstrates the strength of the pipeline of opportunities which can be converted by the alliance between Lend Lease and GPT.

"Lend Lease and GPT are stable development partners with aligned interests. They each bring risk diversification, the ability to address multi-faceted components, superior development skills and sound commercial foundations to the project." Mr Taylor said.

Lend Lease has already had outstanding sales success with the Twin Waters and North Shore residential developments on adjacent landholdings.

"Lend Lease has been a long term contributor to development on the Sunshine Coast, starting with Sunshine Plaza in the early 1990s, and we are proud of our achievements in this region." Mr Taylor said.

The joint venture expects to commence the staged redevelopment, subject to achieving authority approvals and pre-sales on the first stage, by mid 2004 with an expected completion in 2010.

ENDS

ADDITIONAL INFORMATION

Overview

Twin Waters Resort will be acquired and redeveloped by a joint venture company ("JVC") established under the terms of the alliance between Lend Lease and GPT. Settlement for the purchase is due to be complete on 31 October 2003.

Located on the popular Sunshine Coast, the Twin Waters Resort redevelopment will benefit from the strong demand being experienced and forecast to continue on the Sunshine Coast, with population forecast to grow at more than 3% per annum through to This strong population growth and demand for new housing has resulted in 2021. significant appreciation in housing prices over past vears.

The site is located within close proximity to the beach, the Maroochy River, leisure facilities and is adjacent to the Maroochy River Conservation Park. The site is therefore considered to have attributes that will appeal to potential purchasers.

Current Investment

The Twin Waters Resort currently includes:

• the Novotel Twin Waters Resort
• an 18 hole championship golf course $\bullet$
• an undeveloped 9 hole chip and putt golf course $\bullet$
• leisure facilities.

The Twin Waters Resort is currently managed by Accor Hotels and Resorts, who will continue to operate the resort and provide an income stream to the JVC whilst the masterplan and authority approvals are finalised.

Planned Redevelopment

Following the acquisition of the land, the JVC will redevelop the Novotel Twin Waters Resort into approximately 370 dwellings/lots over a seven year period. The development will follow on from Lend Lease's successful North Shore development, and includes a range of beach homes, villas and luxury apartments.

The development will predominantly be built form. Prices are expected to range from the low \$400,000s to in excess of \$1 million for premium beachside houses.

The ownership of the central facilities, 18 hole golf course and resort management rights will be on-sold at a later date to specialist operators.

It is expected that the first stage of the residential component will be complete in mid 2005. The remainder of the dwellings will be developed in stages over a seven year period.

Lend Lease anticipates its share of the peak capital commitment to be no more than \$30 million, with an average capital commitment of \$20 million over the life of the project.

Joint Venture

GPT has entered this project, and the masterplanned communities sector, in partnership with Lend Lease's integrated development business. This business caters to a range of dwelling types and maximises the range of potential product within a masterplanned community project, providing a high level of experience and expertise in all aspects of masterplanned urban community development.

Under the arrangements for the development of the Twin Waters masterplanned urban community, Lend Lease will have a 51% interest in the JVC, with GPT holding a 49% interest in the JVC established to undertake the development.

The joint venture includes provisions dealing with a change of control of both parties. Under these provisions, a change of control of Lend Lease Corporation gives GPT a call option to acquire Lend Lease's interest in the project. Lend Lease has a call option to acquire GPT's interest in the event of a change in control of either GPT or GPT Management Limited (including a non Lend Lease company becoming responsible entity). In each case the consideration payable will be determined by reference to an expert determined market value.

GPT/Lend Lease Alliance

Together, Lend Lease and GPT are reviewing a number of opportunities for future joint projects that meet an agreed investment template of:

• Masterplanned urban communities $\bullet$
• Focus on the owner-occupier market
• Located in growth markets
• Large, long term projects. $\bullet$

ENDS

Contact: Nikki Genders Lend Lease Corporation Tel: 02 9236 6180