GPT GROUP — Capital/Financing Update 2004

Jul 6, 2004

General Property Trust ASX Announcement and Media Release

GPT EXPANDS HOTEL/TOURISM PORTFOLIO WITH THE ACQUISTION OF P&O AUSTRALIAN RESORTS

7 July 2004

GPT Management Limited (GPTML), as Responsible Entity for General Property Trust (GPT), today announced that it, in conjunction with Voyages Hotels & Resorts Pty Limited (Voyages), has exchanged contracts for the purchase of P&O Australian Resorts (POAR), the largest owner-operator of nature-based resorts in Australia.

The portfolio of assets owned and managed by POAR represents a collection of eight resorts (571 rooms) located in some of the most attractive and pristine tourist locations throughout Australia.

The portfolio includes Silky Oaks Lodge and the Dunk, Bedarra, Brampton, Lizard, Heron and Wilson Island resorts, all located in Queensland as well as Cradle Mountain Lodge in Tasmania. In addition Wrotham Park, a luxury outback resort is currently under construction in North Queensland. The portfolio represents an established and successful group of predominantly "luxury" nature based resorts, which has consistently delivered profit growth despite the impacts of a subdued tourism market in recent years.

GPT and Voyages investment in POAR, including acquisition and project completion costs (in respect of Dunk Island and Wrotham Park), is estimated to be \$225 - \$227 million. The acquisition, which will be debt funded, is anticipated to deliver GPT unitholders an initial yield of approximately 9%. The transaction is expected to be completed in late July.

Nic Lyons, CEO of GPT said: "This is an exceptional opportunity to acquire a high quality group of assets which represent a perfect fit with GPT's strategy in the hotel/tourism sector and deliver immediate scale and increased diversity to GPT's existing Hotel/Tourism Portfolio."

"The POAR Portfolio has been built carefully by P&O over more than a decade and is a well managed and leading group of Australian tourism assets - the opportunity to acquire such a well developed and strongly performing group of assets is rare."

"The acquisition is positive for GPT's investors, as it provides an opportunity to expand the Trust's Hotel/Tourism Portfolio in line with its strategy of acquiring unique, high quality resorts which leverage off the international presence of Ayers Rock Resort and the marketing and distribution capacity of Voyages. This strategy not only targets the high yielding inbound market but also the expanding eco-tourism market which is expected to provide strong growth," Mr Lyons said.

The acquisition also represents an opportunity for future incremental growth through the potential to expand a number of the resorts and the ability to capitalise on synergies created by combining GPT/Voyages portfolio and POAR. The Dunk, Bedarra and Brampton Island Resorts all have expansion potential, providing an opportunity to further develop the portfolio over time.

Bruce Morris, GPT's Hotel/Tourism Portfolio Manager said that the P&O resorts represented some of the best quality luxury and eco-tourism experiences in Australia. Marketed as "Australia's Natural Treasures" the resorts are a perfect fit with GPT's strategy in the resort sector.

"This acquisition provides us with an opportunity to leverage the established and successful model we have built with Avers Rock Resort, which has been supplemented over the last 7 years with Alice Springs (NT), Kings Canyon (NT) and Cape Tribulation (North Qld) resorts. We believe this acquisition will increase our ability to drive greater business to both Ayers Rock Resort and the POAR resorts."

Voyages, the lessee of Ayers Rock Resort, has the capacity to expand the use of its distribution system and infrastructure and to capitalise on the strong marketing presence of Ayers Rock in offshore markets. The POAR portfolio is highly complementary to GPT's existing assets and with strong marketing capabilities across both organisations, the performance of the overall portfolio will be enhanced.

"The acquisition of POAR provides GPT with a portfolio of assets which are absolutely unrivalled in showcasing the beauty, diversity and uniqueness of what Australia has to offer. It is an extremely important acquisition for GPT as it lifts the hotel operation to a clear leadership position in the eco-tourism sector."

"Improved purchasing power and the scale benefits available in operational areas as well as increased scale and diversity are major benefits for GPT's Hotel/Tourism Portfolio," Mr Morris said.

The POAR portfolio has a guest mix which is 64% domestic and 36% international, compared to Ayers Rock Resort's guest mix which represents approximately 34% domestic travellers. An increase in the domestic market mix and a broader range of tourism products will provide greater diversity and assist to reduce the earnings volatility in GPT's Hotel/Tourism Portfolio.

On completion of the acquisition, GPT's Hotel/Tourism Portfolio will have a value in excess of \$750 million and will represent approximately 9% of GPT's total property assets.

For more information on the P&O resorts, visit www.poresorts.com.au

ENDS

Enguiries

GPT Management Ltd Nic Lyons, CEO Ph: 02 9236 6235

Bruce Morris, Hotel/Tourism Portfolio Manager Ph: 02 9237 5641

Attachments: P&O Australian Resorts Summary Presentation

GPT

P&O Australian Resorts www.poresorts.com

Fit with Licks Arougs has traited w

✓

✓

✓

• Barriers to entry
• $\rightarrow$ Economic and environmental barriers
• Geographic diversification
• $\rightarrow$ Domestic visitors represent 64%
• Aligned management interests
• $\rightarrow$ Voyages
• Major cities / tourist locations
• $\rightarrow$ Unique nature based locations

Portolo Sumnery

• Provides scale in luxury eco-tourism sector
• $\rightarrow$ "Australia's Natural Treasures" (9 assets, >400 rooms)
• High quality, well-capitalised assets ٠
• Established trading history ٠
• Future expansion potential ٠

Asset	Total Rooms
Dunk Island 30	144
Brampton Island	106
Lizard Island	40
Bedarra Island	16
Silky Oaks	50
Cradle Mountain	90
Wrotham Park (2)	10
Heron & Wilson Island/s	115
	571

(1) 16 deluxe rooms under construction (Completion due October 2004)

(2) Under construction (Completion due September 2004)

Portfolio Sylminery

Market Mix POAR 2003

Y/E Dec	2001	2002	2003	2004*
	Actual	Actual	Actual	Budget
Rooms	572	561	561	561
Occupancy	65%	68%	75%	74%
Ave. Rate	\$223	\$241	\$243	\$258
Total Rev. (\$000)	\$71,401	\$79,323	\$86,757	\$92,785
EBITDA \$	\$11,225	\$16,272	\$18,941	\$21,368
EBITA%	15.7	20.5	21.8	23.0

* Represents P&O Budget

GPT

Summary of Acculsiton

• Investment* $$225 - $227m$ ٠
• Yield Year 1 9.0% ٠ Year₂ 10.0%
• Year 1 $$3.0m$ Capex ٠ Year₂ $$5.0m$
• Surplus land value circa \$9m Land $\bullet$
• * Includes stamp duty/transaction costs, working capital and project completion costs (\$4.3m)

Bedara Isand

'A romantic rainforest retreat where a fortunate few can savour the finer things in life!'

GPT

Badara Gand

• Title Freehold
• Rooms 16 villas and pavilions
• Located 4 km off Mission Beach, Old Access by launch
• Capex 2001 Main complex upgrade $\overline{a}$
• 2002 Pavilions added
• 2003 Point Villa added
• Market

Luxury

• Position Couples seeking relaxed pampering in $\overline{a}$ an exclusive environment (no children under 16 years)
• Private hideaway in the tropics $\overline{\phantom{a}}$
• Expansion opportunities exist on the Opportunity balance of the island, notably a second resort site (the Bedarra Hideaway) exists on the opposite side of the island
• Awards UK Condé Nast Traveller (2003) (4th) $\blacksquare$
• USA Elite Traveller South Pacific Most $\overline{a}$ Decadent Resort (2002) (1st)
• UK Condé Nast Traveller (2002) (2nd) $\blacksquare$

Y/E Dec	2002 Actual	2003 Actual
Average Room Rate	\$649	\$773
Occupancy	61%	65%

Brandorous and

'Almost entirely National Park, Brampton has seven glorious beaches and its own coral reef'

GP1

Brampton Island

• Title Perpetual Leasehold
• Rooms 106 guest rooms
• Located 32 km north-east of Mackay, Qld Access by launch and light plane
• Market Mid market
• Position Couples, groups of couples and honeymooners Whitsunday's best value hideaway
• Opportunity The Resort has future expansion potential on surplus land

Y/E Dec	2002	2003
	Actual	Actual
Average Room Rate	\$116	\$123
Occupancy	68%	83%

Cradie Mountain Lodge

'A superb escape featuring cosy cabins, fine food and wine and many activities'

Cradle Mountain Lodge

Title	Freehold
Rooms	90 cabins and suites
Located	142 km inland from Launceston. Tasmania
Market	Mid market
Position	- Couples and families - Mountain wilderness experience in the heart of Tasmania
Awards	- Top 100 Tasmanian Conference Venue $(2003)$ $(3rd)$

UK Condé Nast Traveller (2003) (7th) $\blacksquare$

Y/E Dec	2002 Actual	2003 Actual
Average Room Rate	\$143	\$140
Occupancy	ጸበ%	69%

GPT

Dunk Island

'Australia's most beautiful tropical rainforest island'

GPT

DUNK Séno

Title Freehold

Rooms 144 rooms and suites (160 rooms when expansion complete)

Located 4km off Mission Beach, Qld Access by launch and light plane

• Capex 2000 Main complex upgrade
• 2001 + 2002 staff accommodation
• 2002 18-hole resort golf course
• 2003 Suites upgrade $\blacksquare$
• 2004 16 new deluxe rooms and restaurant (construction cost \$4.3m -GPT to fund \$3.4m)
• Market Mid market
• Position Families and couples
• The island of peace and plenty
• Opportunity Large parcel of freehold land (including golf course) available for future expansion

	2002	2003
Y/E Decl	Actual	Actual
Average Room Rate	\$208	\$213
Occupancy	70%	73%

Hatonistatol

'A true coral cay right on the Great Barrier Reef'

Heron Island

Title Perpetual Leasehold

Rooms 109 rooms and suites

Located 72 km off the coast of Gladstone, Qld Access by launch and helicopter

Capex 2000 Complete refurbishment

• 2003 Suite upgrade
• 2003 Spa added

Market Mid market

• Position Families and couples
• The coral island anyone wanting to $\blacksquare$ experience the Great Barrier Reef first hand
• A wonderful nature experience for all ages $\blacksquare$

Y/E Decl	2002	2003
	Actual	Actual
Average Room Rate	\$189	\$201
Occupancy	76%	83%

Lizard Island

'Right on the Great Barrier Reef - a private paradise with 24 powdery beaches'

Lizard Island

Title 29 year leasehold

Rooms 40 suites

• Located 240 kilometres north of Cairns Access by plane
• Capex 2000 Complete refurbishment $\overline{a}$
• 2003 Additional luxury suite $\overline{a}$

Market Luxury

• Position Couples in search of isolation and reef $\blacksquare$ based activity in an exclusive environment
• $\overline{\phantom{a}}$ A remote private paradise with 24 sandy white beaches and luxury accommodation
• Boutique style resort located on the Great $\overline{\phantom{a}}$ Barrier Reef, with Coral Gardens directly offshore
• Awards
• USA Forbes Global Travellers 2003 (1st) $\blacksquare$
• USA Travel & Leisure "World's Best $\blacksquare$ Australasian Resort" - 2003 (1st)
• USA Travel & Leisure Top 15 Small $\blacksquare$ Hotels of the World - 2003 (3rd)

Y/E Dec	2002	2003
	Actual	Actual
Average Room Rate	\$918	\$964
Occupancy	67%	62%

РЛ

STAY OSKS LOCOS

'The Daintree's ultimate resort where this rare wilderness can be enjoyed in elegance and ease'

Silky Oaks Lodge

Title

Freehold

• Rooms 50 tree & river houses
• Located 83 km north of Cairns, Qld
• Capex - 2001 Complete refurbishment 2003 Spa added

Market Luxury

Position

• Couples, no children

• The Daintree's ultimate resort

• Awards - UK Condé Nast Traveller - 2002 (14th)
• Top 10 Platinum List of International $\overline{\phantom{a}}$ Spas 2003 (1st)

Y/E Dec.	2002 Actual	2003 Actual
Average Room Rate	\$252	\$269
Occupancy	69%	68%

HPI

WISONISIand

Pristine reef and beach environments including rare turtle and bird breeding grounds'

Title	15 year leasehold
Rooms	6 premium tents
Located	8 nautical miles off Heron Island, Qld Access by launch
Market	Luxury
Position $\sim$	Couples A private Great Barrier Reef island nature experience

• USA Travel & Leisure 2003 "World Top Awards 15 - Hot for 2004" List
• Room Rate Rate included in Heron Island
• Price is approx. \$660 per night (all $\overline{\phantom{a}}$ inclusive)

API

Wrotham Park Station (under construction)

'The 'Homestead' and guest 'Quarters' are located on a spectacular site high above the banks of the Mitchell River'

• Title 13 year license to occupy on pastoral lease (plus option if pastoral lease renewed)
• Rooms 10 Quarters (Completion due September $2004)$
• Located 400 km west of Cairns Access by road and plane
• Construction cost \$4.3 million Capex
• Approx \$0.9 million to be funded by GPT
• Market Luxury
• Position High end international tourists seeking an Australian outback experience
• Australian outback cattle station experience

Wrap Up

• Excellent strategic fit ٠
• Scale and quality benefits $\bullet$
• Leverages Voyages brand as a dominant player $\bullet$
• Hotels now 9.0% of GPT Portfolio $\bullet$
• Hotel acquisition strategy remains selective ٠

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GPT

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