GPT GROUP — Capital/Financing Update 2009

Dec 17, 2009

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GPT Announces Revised Capital Management Policies & Proposed Security Consolidation

18 December 2009

Further to the Group’s strategy announcement in August 2009, GPT is pleased to announce the finalisation of its capital management policy review. As a result of the review, the Group will implement revised distribution payout and gearing policies from 2010 onwards. This will more effectively align GPT’s capital management framework with its refined business strategy, reflect a more sustainable distribution level, and ensure a prudent approach to managing the Group’s gearing through cycles.

Distribution payout and gearing policies

Under the revised distribution payout policy, GPT will distribute the greater of:

i) 70-80% of realised operating income (excluding development profits), and; ii) taxable income.

This policy will operate from the March quarter distribution of 2010. For the Group's financial year ending December 2010, GPT will distribute an estimated 80% of realised operating income, assuming no material change in market conditions.

GPT will manage gearing within a range of 25% to 35% (based on debt to total tangible assets). The policy includes flexibility to increase gearing beyond 30% if required, provided a reduction to 30% or below is achieved within a reasonable timeframe. Whilst credit markets remain challenging and borrowing costs remain relatively high, GPT is comfortable maintaining gearing at or below the lower end of this range.

Michael Cameron, Chief Executive Officer of GPT, said: “The revised distribution payout policy provides a sensible balance between funding ongoing operating capital expenditure, and maintaining a sustainable level of distributions to investors. The revised gearing policy combines a conservative approach to gearing, consistent with GPT’s business strategy, with financial flexibility. This will ensure access to funding sources is maintained through market cycles.”

Consolidation of issued Group securities

In addition, GPT intends to undertake a consolidation of the number of Group stapled securities currently on issue in 2010. As a result of two significant capital raisings over the past 14 months, the number of GPT securities on issue has increased to the current level of over nine billion (pre exchangeable security conversion). GPT will propose a 1 for 5 consolidation of the Group’s securities on issue to investors at the Annual General Meeting in 2010. Full details of the proposed consolidation will be provided to investors well in advance of the Meeting.

“GPT’s scorecard in relation to delivering on our strategic objectives announced in August includes almost $1 billion of asset sales, exiting the Group’s remaining exposure to European markets, strengthening of the Group's balance sheet and a refreshed Board and management team,” said Mr Cameron.

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“We are pleased with the significant progress the team has made on a number of strategic initiatives this year. The revised capital management policies and proposed security consolidation substantially complete this process."

The Group is well positioned for 2010. GPT commences the year a simpler, streamlined business focused on the ownership of high quality Australian assets, and the delivery of stable returns to Securityholders.

ENDS

Contact:

Michael O’Brien Chief Financial Officer 02 8239 3544

Donna Byrne Head of Investor Relations & Corporate Affairs 02 8239 3515 0401 711 542

Samantha Taranto Group Media Manager 02 8239 3515 0432 384 696

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