GPT GROUP — Regulatory Filings 2003

Oct 2, 2003

General Property Trust ASX Announcement and Media Release

GPT/LEND LEASE JOINT VENTURE CONFIRMED AS DEVELOPER OF ROUSE HILL REGIONAL CENTRE

3 October 2003

The joint venture between GPT and Lend Lease has today been confirmed as the selected developer for a partnering agreement to create a regional centre valued at over \$1 billion at Rouse Hill in Sydney's north-west. The signing of the Project Delivery Agreement between GPT/Lend Lease and the Department of Infrastructure Planning and Natural Resources (DIPNR) and Landcom represents a major milestone for GPT's first project in the master planned communities sector.

Nic Lyons, Chief Executive of GPT said the announcement cleared the way for the next stage of planning.

"This project, which includes over 1,500 residential lots, a mixed use Town Centre and supporting infrastructure will be undertaken jointly by GPT and Lend Lease's integrated development business, in partnership with DIPNR and Landcom, under a land management model," Mr Lyons said.

Stage 1 of the development will include a vibrant Town Centre, consisting of a retail market place, bulky goods retail, commercial and learning space. Health and community facilities, over 150 residential lots and supporting infrastructure will also be completed as part of the initial stage of the development.

GPT will develop and own the Town Centre, which is anticipated to open in late 2006. The Town Centre, which is one of the last major greenfield regional retail opportunities within the Sydney metropolitan area, further enhances GPT's significant development pipeline and will contribute to growth in GPT's \$3.5 billion retail portfolio. The balance of the regional centre will be developed jointly with Lend Lease's integrated development business over a 10-year period.

"We have made significant progress since achieving preferred tenderer status in February 2003, as we have worked closely with DIPNR and Landcom to progress the plans for this large-scale project.

"We aim to submit a development application for the Town Centre in the coming months. Providing the relevant approvals are obtained and conditions precedent are satisfied, construction should commence in the second half of 2004, with the opening of the first stage of the Town Centre targeted for 2006." Mr Lyons said.

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This is the first project to be announced under an Alliance between GPT and Lend Lease's integrated development business, through which the two parties will jointly pursue masterplanned urban community developments. The potential to access a new sector with a highly skilled and experienced partner gives GPT the ability to enhance the Trust's growth profile and to further expand the investment opportunities available to GPT's unitholders.

"We have now finalised joint venture arrangements with Lend Lease for this project and are continuing to look at additional opportunities like Rouse Hill, which will provide us with the opportunity to enhance earnings for investors without materially increasing the Trust's risk profile.

"With the significant pipeline available to GPT through the joint venture with Lend Lease we have identified a number of potential projects that may create exciting future opportunities for GPT," Mr Lyons said.

For further information please call:

Nic Lyons Chief Executive 02 9237 5816 0401 719 899

Michael O'Brien Fund Manager 02 9236 6235 0417 691 028

ENDS

ADDITIONAL INFORMATION

Project Overview

Located in the strongly growing north-west corridor, the Rouse Hill Development Area has been identified by the NSW Government as a major corridor for Sydney's expansion. In line with this strategy, the Department of Infrastructure, Planning and Natural Resources (DIPNR) and Baulkham Hills Shire Council have planned for a major regional centre that will offer community, retail, commercial, educational and recreational activities to residents and visitors

The Rouse Hill Regional Centre consists of approximately 100 hectares of land located along Windsor Road at Rouse Hill in the Baulkham Hills Local Government Area. It is approximately 8 kilometres north-west of the Castle Hill CBD and 10 kilometres northeast of the Blacktown CBD, bounded by Windsor Road on the western boundary. south of Commercial Road.

The Blacktown and Baulkham Hills municipalities, which comprise the major proportion of the north-west corridor, currently account for 15% of Sydney's population growth and include some of Sydney's fastest growing suburbs. Population is forecast to grow at 4% pa for the region and 7% pa in the primary retail trade area through to 2011.

Masterplan

When complete, the Rouse Hill Regional Centre will have a value in excess of \$1 billion, and will incorporate the major retail, commercial and community facilities for the area, as well as providing a range of housing options, with 1,500 residential lots/dwellings to be developed over the course of the development.

Key features of the proposed Rouse Hill Regional Centre include:

• a mixed-use Town Centre incorporating retail marketplace, bulky goods retail and commercial uses
• several learning providers
• community facilities, including a library, child care centre, formal and informal recreation areas
• a range of housing options
• improved transport infrastructure, including road upgrades and a bus transit way network.

A Joint Venture Company established between GPT and Lend Lease will be responsible for obtaining conditions precedent (including planning approval and agreements for lease with major tenants) for the overall development. Once these conditions are satisfied, GPT will develop and acquire the Town Centre. GPT will participate in the remainder of the development through the Joint Venture.

Works are currently planned to commence by late 2004, with the Town Centre and the first stage of the residential component scheduled to be complete in 2006.

Town Centre Development

The Rouse Hill Town Centre will create a major community, retail and commercial precinct for the region and will be part of Stage 1 of the development. The Town Centre will be developed and owned by GPT, following approval of the development application and the satisfaction of conditions precedent. Based on the current timetable it is anticipated that construction will commence in late 2004 and be complete in 2006.

The overall plan for the Town Centre incorporates approximately 85,000 som of retail. commercial and learning space, as shown below.

Marketplace Retail	Supermarkets Discount Department Stores Mini Majors Specialty Retailing Cinemas and Entertainment	Approx. 50,000 sqm
Bulky Goods	Large format and specialty homemaker retailers	Approx. 24,000 sqm
Commercial	Professional uses, including University and other learning initiatives	Approx. 11,000 sqm
Total		Approx 85,000 sqm

Expected development costs for the Town Centre are approximately \$300 million with the initial vield on cost forecast to be $8\%$ + with an IRR of $12\%$ +.

Residential and Community Facilities

GPT and Lend Lease will, through a Joint Venture Company, develop the remainder of the site, including the residential component and a range of community facilities. including transport infrastructure.

The project will deliver significant transport infrastructure, including a bus transit way interchange that will provide bus links to surrounding areas and will incorporate a range of community facilities, including:

• A range of recreational facilities, such as a fitness centre and an abundance of green, open spaces
• A community centre
• Childcare facilities
• Youth facilities and programs
• A community bus service
• Community intranet.

The residential component of the development will provide over 1,500 dwellings. incorporating a mixture of housing options, including:

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• Stand-alone homes
• Townhouses & Terraces
• Warehouses
• Studio apartments
• Student accommodation.

Delivery of these housing choices will include built form (approx. 70%) and land only (approx, 30%). Prices are expected to range from mid \$200,000s (for land only) to low \$500,000s (for completed housing). 3% of residential lots are required to be allocated as affordable housing, across a range of housing types.

The first stage of residential development will comprise over 150 residential lots/dwellings, with sales expected to commence in late 2005. The balance will be developed progressively over the life of the project.

GPT anticipates its share of the average capital investment through the Joint Venture to be approximately \$30 million over the life of the project with no more than \$40 million in capital being invested at any time.

Joint Venture

GPT has entered this project, and the master planned communities sector, in partnership with Lend Lease's integrated development business. The project will utilise the services of Bovis Lend Lease and Lend Lease's integrated development business, including Delfin Lend Lease, Combined, the business caters to a range of dwelling types and maximises the range of potential product within a masterplanned community project, providing a high level of experience and expertise in all aspects of masterplanned urban community development.

The joint venture arrangements for the development of the Rouse Hill Regional Centre give GPT a 49% interest in the project, which will be undertaken through a Joint Venture Company.

The joint venture includes provisions dealing with a change of control of both parties. Under these provisions, a change of control of Lend Lease Corporation gives GPT a call option to acquire Lend Lease's interest in the project. Lend Lease has a call option to acquire GPT's interest in the event of a change in control of either GPT or GPT Management Limited (including a non Lend Lease company becoming responsible entity). In each case the consideration payable will be determined by reference to an expert determined market value.

GPT/Lend Lease Alliance

Together Lend Lease and GPT are reviewing a number of opportunities for future joint projects which meet an agreed investment template, of:

• Master planned urban communities
• Focus on the owner-occupier market
• Located in growth markets
• Large, long term projects.