GPT GROUP — Capital/Financing Update 2005

Jan 23, 2005

General Property Trust Stock Exchange Announcement & Media Release

GPT ANNOUNCES SIGNIFICANT INCREASE IN NTA

24 January 2005

As previously announced, GPT's Independent Directors commissioned independent valuations for certain assets within GPT's retail portfolio at the end of last year. This decision was made in light of the fact that the weighted average age of the current valuations for GPT's retail portfolio would have been over 20 months at December 2004 and there was evidence of recent strong increases in the values of retail shopping centres.

The Board of GPT is pleased to announce that it has now received updated independent valuations for the majority of GPT's retail shopping centre assets and this has contributed to a substantial increase in GPT's net tangible assets per unit (NTA). The movement in retail valuations is outlined in Schedule A attached.

Largely as a result of these valuations, it is anticipated that GPT's NTA at 31 December 2004 will be \$3.02 per GPT unit, up 10.2% from GPT's NTA per unit at 30 June 2004 of \$2.74 when GPT's audited financial statements are released on 11 February 2005. The impact of all independent valuations undertaken in the six months to 31 December 2004 represent an increase of \$583.7 million¹ in the book value of GPT's property portfolio.

An additional benefit of the increased valuations is that GPT's gearing level will be approximately 2% lower than it would otherwise have been.

The recent valuations highlight the significantly greater investment asset quality of GPT's portfolio to that of Stockland, particularly with respect to retail assets. The weighted average capitalisation rate of GPT's shopping centre assets now stands at 6.5% compared with Stockland's 7.8%. A lower capitalisation rate implies higher quality.

As a result of the revaluations GPT has lodged a Supplementary Target's Statement with the ASX, which is being mailed to GPT Unitholders today.

Peter Joseph, Chairman of GPT Independent Directors said: "These revaluations confirm the view that the Stockland Offer undervalues GPT's suite of premium assets, which in addition to the Trust's shopping centres, includes office, industrial and tourism investments."

The value of Stockland's Offer continues to be less than the ASX trading price of GPT securities.

$^1$ A small component relates to valuations during the 6 month period to December 2004 in respect of nonretail assets. 384148-1

The GPT Independent Directors continue to recommend that GPT Unitholders do not accept the Stockland Offer as it:

• represents an insufficient premium to NTA of 21% when the weighted average premium observed in listed property trust mergers in 2004 was 34%;
• results in a 13% dilution of NTA for GPT investors; and
• if successful, would dilute the overall quality of the investment asset portfolio owned by GPT Unitholders.

The Independent Directors continue to believe that Stockland's 100% scrip offer provides GPT Unitholders with inadequate compensation for significantly increased risks.

ENDS

Enquiries

For further information please contact: Nic Lyons Chief Executive Officer General Property Trust (02) 9237 5816

Martin Debelle /Graham Canning Cannings (02) 9252 0622

Schedule A

The following schedule outlines the details of the individual shopping centre revaluations:

Contra	Interest	Provibile Valuation SM	Previous Valuation Dale	Previous Cap Rafe -26	Ubdaret i Valuation 81.I	Urbered Valuation Date	Umator Cap Rate %
Carlingford Court	100%	133.0	31-Mar-02	8.75	158.0	31-Dec-04	7.25
Casuarina Square	100%	264.0	30-Sep-02	8.25	330.0	$31$ -Dec-04	6.5
Charlestown Square (1)	100%	325.0	30-Sep-03	6.75	385.0	31-Dec-04	6.0
Chirnside Park	100%	132.0	31-Mar-03	8.25	166.0	31-Dec-04	6.75
Erina Fair (2)	50%	323.7	30-Sep-03	6.75	387.7	31-Dec-04	6.0
Forestway	100%	39.0	30-Sep-01	9.75	64.0	30-Sep-04	7.5
Macarthur Square	50%	165.0	$30-Sep-03$	6.75	233.9	31-Dec-04	5.75
Melbourne Central Retail (3)	100%	183.0	30-Sep-01	10.13	412.2	$30-Sep-04$	7.0
Parkmore	100%	127.0	31-Mar-04	8.0	145.0	31-Dec-04	7.0
Penrith Plaza (4)	100%	505.0	30-Sep-03	6.75	672.8	$31$ -Dec-04	5.75
Sunshine Plaza (5)	50%	JVIA	30-Sep-03	6.75	281.7	31-Dec-04	6.0
Woden Plaza (6)	100%	386.0	31-Mar-03	7.5	484.0	$31$ -Dec-04	6.25
Wollongong Central (7)	100%	157.0	30-Sep-03	8.25	195.0	$31 - Dec-04$	7.0

Notes:

(1) Charlestown Square excludes Convenience Centre and other properties.

(2) Erina Fair includes former Telstra land.

(3) Melbourne Central Retail value includes 50% of the carpark. Capitalisation rates relate to retail component only.

(4) Penrith Plaza excludes Borec House, Riley Square and other properties.

(5) Sunshine Plaza includes Plaza Parade, Horton Parade & Maroochydore Superstore.

Previous valuation related to value of JVIA termination right.

(6) Woden Plaza value includes Bonner House. Capitalisation rates are for Woden Plaza only.

(7) Does not include land.

Dandenong and Floreal were not re-valued in the period as internal reviews did not indicate the likelihood of a material movement against the most recently reported book value.

Macarthur Square and Penrith Plaza are currently under development. The valuer has recognised some development profit in the current valuations. Further value uplift as a result of the developments is expected for each asset as delivery risk reduces over time.