GPT GROUP — Capital/Financing Update 2005

Oct 23, 2005

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24th October, 2005

ASX Announcement

International investment and advisory firm Babcock & Brown today announced that its alobal real estate joint venture with the GPT Group has secured additional acquisitions with a net value of A\$1.2 billion. Following settlement of these acquisitions, which include both European and US assets, the total assets currently owned by the Joint Venture will total A\$2.38 billion.

Michael Maxwell, Global Head of Real Estate for Babcock and Brown said "We are very pleased with the working relationship that has been established with our joint venture partner. GPT Group and the progress we have made towards identifying and executing on investments for the fund. We remain confident that the fund will be fully invested by the end of 2006."

For further information we attach a copy of the ASX release made by the GPT Group today.

For further information please contact:

Kelly Hibbins Babcock & Brown +61 2 92291800

About Babcock & Brown

Babcock & Brown is a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments. Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange.

Babcock & Brown operates from 18 offices across Australia, the United States, Europe, Asia and Africa and has in excess of 600 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance. The company has established a funds management platform across the operating divisions that has resulted in the establishment of a number of focused investment vehicles in areas including real estate and infrastructure.

For further information please see our website: www.babcockbrown.com

GPT

The GPT Group ASX Announcement & Media Release

GPT ANNOUNCES INCREASE IN JOINT VENTURE PORTFOLIO TO A\$2.38 BILLION 24 October 2005

The GPT Group today announced that the Group's Joint Venture with Babcock & Brown has secured additional acquisitions with a net value of A\$1.2 billion. The acquisitions, which include both European and US assets, will increase the total assets owned by the Joint Venture to A\$2.38 billion and demonstrate the ability of the Joint Venture to identify and acquire assets which meet the entity's investment criteria.

Nic Lyons, GPT's CEO, said that the Joint Venture continued to focus on opportunities in a range of markets and remained confident of being fully invested by the end of 2006, with the Joint Venture invested in a diverse portfolio with a value of A\$2.38 billion following settlement of these acquisitions.

"We are very pleased with the latest acquisitions. Consistent with the original Joint Venture assets, these are quality assets with secure cashflows which will deliver solid returns for GPT's investors," Mr Lvons said.

The transactions include the acquisition of a range of retail assets in Germany and Poland. interests in a portfolio of US retail assets and industrial assets located across Europe, consistent with the return requirements and investment strategy of the Joint Venture.

US RETAIL

• A 90% interest in a portfolio of six retail assets located in the southeast US, is being acquired for A\$440 million from Colonial Property Trust (Colonial). Colonial will retain a 10% interest in the assets and undertake property management. The assets are being acquired on a 2006 forecast yield of 7.9% and represent the Joint Venture's first investment in the US.

EUROPEAN LIGHT INDUSTRIAL

• A portfolio of light industrial assets located in the European markets of the Netherlands, Germany and France. The assets, at a cost of A\$328 million, have been secured on a 2006 forecast yield of 7.4%. The Joint Venture is pursuing a strategy to acquire a large scale portfolio of these assets, partnering with Halverton, a specialist European light industrial operator.

GERMAN RETAIL

• German retail assets with a value of A\$460 million, at a 2006 forecast yield of 7.1%. The assets include a range of retail formats, characterised by long leases and strong tenant covenants.

CENTRAL AND EASTERN EUROPEAN RETAIL

• An initial investment in Poland, with the acquisition of Galerie Pomorska shopping centre for A\$89 million, on a 2006 forecast yield of 7.3%. This asset, located in Bydgoszcz, is the dominant shopping centre in its market.

GERMAN RESIDENTIAL

The Joint Venture has undertaken its first trading activity, remixing the German residential $\bullet$ portfolio with the sale of a portion of the existing portfolio (consisting of portions of the Salzgitter and AMB Generali portfolios) and the realisation of an A\$8 million profit to the Joint Venture from the sale of 5,830 apartments for A\$246 million. Additional residential assets in Berlin and western Germany, at a cost of A\$141 million are being acquired. The remixing has resulted in a more diversified portfolio, with a weighting of no more than 42% to any one geographic area.

Neil Tobin, General Manager, Joint Venture for GPT said that the recent transactions were a good fit with the Joint Venture investment strategy and provided further diversity across the portfolio.

"We have made solid progress over the past four months, the portfolio is beginning to take shape and we have established good acquisitions momentum over a number of portfolios in Europe and the US. This tranche of investments clearly demonstrates the ability of the Joint Venture to deliver on its strategy."

OUTLOOK

The Joint Venture is well on track towards meeting one of its key short-term objectives of being fully invested by December 2006. Further, the original assets acquired on 30 June 2005 are performing in line with expectations. Although only established in June of this year, the Joint Venture has now secured assets with a value of A\$2.38 billion and has made significant progress in aggregating portfolios of significant scale, with retail portfolios in Europe and the US, a portfolio of European light industrial assets and the German residential portfolio forming a solid base for further growth.

In line with the Notice of Meeting and Explanatory Memorandum dated 2 May 2005, the acquisitions are being funded with a mix of equity and non recourse debt.

The European denominated equity is being funded through GPT's existing 600 million Euro facility (currently Euro 300 million drawn). Consistent with the policy to hedge capital exposures through borrowing denominated in the currency in which assets are located, GPT will fund the investment in the Colonial portfolio via US denominated debt.

"We continue to see a strong pipeline of opportunities for the Joint Venture and remain confident of delivering on the investment targets underlying GPT's current distribution forecasts," Mr Lyons said.

NOTE: Acquisition values and yields are after transaction costs and before acquisition fees. Assumed US exchange rate of 0.75:1 and Euro exchange rate of 0.60:1.

Further information on each of the transactions is contained in the attached Presentation.

ENDS

Enquiries

For further information please contact:

Neil Tobin General Manager, JOINT VENTURE Phone: 02 8239 355