GPT GROUP — Capital/Financing Update 2005

Jun 2, 2005

.
Sydney Melboarne Brisbane San Prancisco San Diego Las Vegas New York Greenwich London Munich Dublin Madrid Paris Milan Johannesburg Hong Kong Tokyo Kuala Lumpur Shanghai

3.lune 2005

ASX Announcement

Babcock & Brown and GPT Joint Venture to proceed

Global investment and advisory firm, Babcock & Brown (ASX: "BNB"), has welcomed the results of the General Property Trust (ASX: "GPT") unitholder meeting which yesterday approved the establishment of an international property joint venture.

Phil Green, Managing Director of Babcock & Brown, said he was very pleased with the outcome of the meeting which endorsed the proposed joint venture and provided a clear and independent future for an internally managed GPT.

"This is a significant milestone in GPT's history and we congratulate both Peter Joseph and the independent directors, and Nic Lyons and his management team for all their work and dedication over recent months." Mr Green said.

"I would also like to commend the members of the Babcock & Brown global property team for assembling the initial portfolio and generating the pipeline of assets which will be offered to the joint venture.

"We believe the joint venture provides GPT with a clear future with enhanced distributions, a stronger growth profile and unit price.

"Since the announcement of the proposal, a great deal of focus has been given to the benefits flowing to Babcock & Brown if the joint venture were to proceed. We believe this attention was misplaced, and distracted from the fundamental fact that the proposal provided GPT with the growth engine it needed for a clear, independent and internally managed future.

"Babcock & Brown has consistently delivered above-target returns to its joint venture partners and investors and is committed to doing that for GPT.

"We look forward to working with the GPT team to implement all the steps required to consummate our relationship and start the process of creating value for the benefit of GPT unitholders and Babcock & Brown shareholders."

Ends.

Media Inquiries: Phil Green, Babcock & Brown Phone: +61 2 9229 1800

Richard Leather, Cosway Australia Phone: +61 2 9929 8344 Mobile: +61 (0) 412 471 971

About Babcock & Brown

http://www.babcockbrown.com

Babcock & Brown is a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments. Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange.

Babcock & Brown operates from 18 offices across Australia, the United States, Europe, Asia and Africa and has more than 440 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate principal investment and funds management.