GPT GROUP — Regulatory Filings 2002

Nov 19, 2002

General Property Trust Stock Exchange Announcement and Media Release

GPT COMMENCES MAJOR REDEVELOPMENT

AT MELBOURNE CENTRAL

20 November 2002

Construction on the major redevelopment of the 58,000 som retail centre at GPT's Melbourne Central will commence later this month and is scheduled for completion at the end of 2004.

The commencement of construction follows GPT management's success in achieving several conditions precedent, including authority approvals, agreement on the commercial terms of the acquisition of land on the railway concourse and heads of agreement with a number of key retailers.

Mr Nic Lyons, CEO of GPT said that he was pleased to announce all major conditions precedent had been met within such a short timeframe and that the development would now proceed as planned.

"This is a very exciting development for GPT and represents another great opportunity to enhance earnings growth for our unitholders through the extensive development pipeline that exists in GPT's \$3.1 billion Retail Portfolio.

"GPT management is always conscious of the need to balance the risks in any development and had therefore set a number of key conditions precedent for the development before commencing construction. These conditions have now been met.

"Over the last six months we have also further enhanced the retail plan, making final changes to the scope of the project and the retail offer," Mr Lyons said.

Following an agreed lease termination with Toys R Us, the lower ground mall will be extended through the existing Toys R Us space to link the railway concourse with Lonsdale Street. This will allow the creation of additional specialty space on the lower ground level.

In addition, the enhanced plan includes a 12-screen cinema complex, making the Melbourne Central cinema offer the dominant offer in the Melbourne CBD. Hovts will lease the new 'state of the art' cinema complex.

"While the increased scope has increased the total cost to \$226.5 million, the projected year 1 yield remains at the previously stated forecast of 8.5%," Mr Lyons said.

Mark Fookes, General Manager Retail Investment said, "We have put significant effort into achieving an innovative design which will meet the Melbourne market and have been extremely pleased with the response from retailers. Although we are yet to start construction or a formal leasing campaign, the plan has elicited strong interest from retailers and we already have 27% of the total retail space committed."

"The proposed design is unique, and incorporates the findings of extensive research into the retail, recreational and community needs of Melbourne. The end product will be a retail and lifestyle concept that transforms an inward facing shopping centre into an outward retail experience and incorporates some of the distinctive characteristics of Melbourne.

"The changes to the centre are designed to further enhance Melbourne Central's appeal and performance, and ensure that we continue to maximise returns to GPT's investors from this landmark asset." Mr Fookes said.

GPT is in advanced discussions with large format music, electrical and book retailers. Catalyst fashion retailers such as Kookai, Max & Co., De Cjuba, Mooks and Calibre have committed to the development and will provide an excellent platform for future leasing of the remaining specialty space.

Substantial interest has also been shown in the entertainment. leisure and gourmet aspects of the development. Upon completion, "King Pin", a bowling and entertainment venue will complement the cinema complex on Level 3. This level will also include "Fez Bar" (a Moroccan Lounge) and "Sushi Samba" a Japanese sake martini bar.

ENDS Enquiries: GPT Management Ltd Nic Lvons, Chief Executive Ph: 02 9237 5664

Michael O'Brien, Fund Manager Ph: 02 9236 6235

Mark Fookes, General Manager, Retail Investment Ph: 02 9237 5664

Attachments: • Additional Information

Additional Information: Melbourne Central Shopping Centre

Overview:

• Major repositioning will secure market opportunities and long-term investment returns.
• The repositioning will appeal to growth markets and effectively leverage the benefits of linkages to the railway station and Myer.
• The proposal maximises the site's potential for mixed-use development.
• The retail plan has been further developed to incorporate new retail concepts as well as enhanced leisure and entertainment.

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Retail Plan

• The entire retail complex will be enhanced by:
• Replacing the Daimaru department store with additional mini-majors and specialties $\bullet$
• Increasing the number of specialties
• Introducing a new leisure and entertainment precinct on the upper levels
• Improving the connections through to Myer, via the addition of retail space to 'activate' the $\bullet$ bridgelinks through the addition of retail space
• Introducing a new lower ground level, which maximises the benefit of links to the railway station.

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Lettable Area:

TENANT TYPE*	GLA (SQM)
Majors, Mini-majors	24,733
Large Specialties	5.637
Small Specialties	26,263
Non Retail	1.377
TOTAL	58.010
	* Definitions: Majors/Mini-Majors - represent tenancies exceeding 1,000 $m2$ Lorge Specialise — represent tenancies $A00m^2$ to 1,000 $m^2$

Large Specialties – represent tenancies 400m² to 1,000m² Non Retail - represent non sales reporting retailers, office, travel and tattslotto

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Number of Tenancies:

TENANT TYPE	NUMBER
Majors, Mini-majors	18
Large Specialties	9
Small Specialties	239
Non Retail	29
TOTAL	295

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Leasing Progress

Significant leasing success has been achieved to date; with 27% of total retail GLA already committed. The Level 3 entertainment precinct has progressed well, and 40% of this space is now committed.

The leasing program does not formally commence until 2003, however heads of agreement have been reached with a number of key tenants including:

• Coles Express, which will operate the supermarket anchoring the lower concourse level.
• Hoyts Cinemas will create a new 'state of the art' 12 screen cinema complex on the upper levels.
• Several 'catalyst' fashion operators, which will anchor the fashion offer, including:
• $\circ$ Mooks a unisex urban-wear fashion retailer
• $\circ$ Kookai young women's fashion
• $\circ$ De Cjuba unisex designer clothing
• $\circ$ Calibre designer menswear
• $\circ$ Max & Co - designer women's clothing from the Max Mara Group.
• Several Café/restaurant and entertainment operators, including:
• $\circ$ King Pin a bowling and entertainment venue
• o Fez Bar a Moroccan Lounge
• o Sushi Samba Japanese sake martini bar
• o Two restaurants and a three-level bar to be operated by Nick Zampelis (of Café Greco and The Waterfront at Crown Casino).

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Project Commerce

Assumptions

The works, which will be part of a staged program, will commence in November 2002 and be complete at the end of 2004.

Key Indicators

	Original proposal	Current plan
Incremental Development Cost	\$195.0m	\$226.5m
Incremental Net Income*	\$16.5m	\$19.3m
Initial Yield (Year 1)**	8.5%	8.5%
Centre IRR (post completion)	$11% +$	$11% +$

*Includes \$2 million (original) and \$2.3 million (current) residual from Daimaru surrender payment **Year 1 is calendar year to December 2005