GPT GROUP — Capital/Financing Update 2010

Dec 13, 2010

14 December 2010

$216 million selldown of wholesale fund investment and debt cost reduction GPT: working its capital hard

The GPT Group (GPT) today announced that it has completed a $216 million selldown of its investments in the GPT Wholesale Office Fund (GWOF) and the GPT Wholesale Shopping Centre Fund (GWSCF). The selldown is part of a set of strategic initiatives announced by GPT in August 2010.

The proceeds from the sale will be used to reduce borrowings and to terminate and restructure a number of the Group’s expensive interest rate hedges. This will reduce GPT’s total drawn debt and lower its average cost of debt by approximately 50 basis points in 2011.

Details of the selldown are as follows:

• In GWSCF, GPT has sold $208.5 million of its investment at Current Unit Value (CUV), which reduces its holding in the fund from 33.4% to 21.9%.

• In GWOF, GPT has sold $7.9 million of its investment at CUV, which reduces its holding in the fund from 33.6% to 33.3%.

• Participants in the selldown included a mix of existing and new investors.

GPT will continue to move towards reducing its holding in GWOF to 20% over time.

The GPT Group’s CEO and Managing Director, Michael Cameron said the selldown was part of the Group’s strategy to reduce its investment in the GPT managed wholesale funds to 20% over time.

“This selldown demonstrates our strategic focus on optimising the business and closing the gap between GPT’s security price and the value of our net tangible assets. The move to reduce our holding in the funds, reduce our debt and reposition our interest rate hedges will improve GPT’s earnings and enhance returns to our securityholders,” Mr Cameron said.

“Both of these initiatives demonstrate further progress on GPT’s strategy to work our capital hard,” Mr Cameron said.

Nicholas Harris, GPT’s Head of Wholesale said: “We are very pleased with the level of demand, particularly for GWSCF where we have raised in excess of $200 million. The selldown follows the successful $578 million capital raising in GWOF completed earlier this year. It confirms there is appetite for quality core product in Australia and that there is significant depth and liquidity in this market.”

“The wholesale platform continues to be an important element of The GPT Group’s business model and strategy, providing GPT with access to additional sources of capital, stable earnings through its co-investment in high quality assets and an enhanced return on capital via management fees,” said Mr Cameron.

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For further information please contact:

The GPT Group

Michael O’Brien

Wendy Jenkins

Samantha Taranto

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