GPT GROUP — Capital/Financing Update 2008

Jun 15, 2008

Joint Venture Update 16 June 2008

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The GPT Group (GPT) confirms that the review event with respect to Babcock and Brown (B&B) which occurred on Thursday 12 June 2008 has no impact upon the debt positions with either the Joint Venture Fund (JV Fund) or GPT.

All JV Fund debt is non recourse to GPT and B&B, there are no cross default provisions and no conditions relating to the financial position of B&B.

As previously disclosed in GPT’s March quarter update, the JV Fund comprises a portfolio valued at $6.9 billion as at 31 March 2008, (approximate AUD equivalent). The JV Fund’s bank debt was $4.8 billion at 31 March, with a weighted average term to maturity of 5.8 years and 93% interestrate hedged. The Loan to Value Ratio (LVR) of the JV Fund was 69.8%.

JV Fund debt maturities over the next 12 months represent less than 3% of total JV debt. The JV debt has no LVR or other covenant breach (with a single exception with respect to one asset, Galerie Butovice shopping centre in Prague, previously disclosed to the market). Only 50% of the JV Fund debt is subject to an LVR covenant.

Currently, the JV Fund has a remaining term of 4 years, with a realisation period thereafter and with annual preferred capital redemptions of $163m commencing in January 2009.

As announced in February, GPT is in discussions with B&B with the objective of accelerating the return of capital from the JV Fund, as assets are realised in the ordinary course of the JV Fund’s operation. Our discussions are proceeding and we will update the market as soon as we are in a position to do so.

As there is long term debt in place and the income yield from the JV Fund assets exceeds the cost of debt, the JV Fund is not under pressure to sell assets and will pursue the realisation of assets only when it makes sense to do so (ie in the ordinary course of its operation).

GPT’s investment in the JV Fund represents 15% of GPT’s asset base.

ENDS

For further information, please contact GPT:

Michael O’Brien

Chief Operating Officer (02) 8239 3544 0417 691 428

Neil Tobin

General Manager, Joint Venture (02) 8239 3552 0408 630 357

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