GPT GROUP — Capital/Financing Update 2005

May 2, 2005

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3 May 2005

ASX Announcement

Babcock & Brown signs joint venture agreement with GPT

Global investment and advisory firm, Babcock & Brown Limited (ASX: "BNB"), today announced it had signed an agreement with General Property Trust (ASX: "GPT") for the establishment of a \$1 billion Joint Venture Property Vehicle.

The terms of the joint venture agreement are consistent with details of the joint venture previously announced to the market on 17 February and 21 March 2005.

The Joint Venture Vehicle will pursue real estate investment, trading and development opportunities worldwide. It also intends to establish an Australian real estate funds management business managing both listed and wholesale products.

The agreement, and the establishment of the Joint Venture Vehicle, is subject to approval of the Management Internalisation proposal which will be put to a meeting of GPT Unitholders on 2 June 2005.

Ends.

Media Inquiries:

Phil Green, Babcock & Brown Phone: (02) 9229 1800

About Babcock & Brown

www.babcockbrown.com

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 more than 440 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate principal investment and funds management.