GROWTHPOINT PROPERTIES AUSTRALIA — Capital/Financing Update 2007

Sep 9, 2007

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ASX ANNOUNCEMENT ORCHARD INDUSTRIAL PROPERTY FUND (“OIF”)

10 September 2007

Settlement and Expansion of Star Track Express Property, 40 Annandale Road, Tullamarine, Victoria

Settlement of the purchase of 40 Annandale Road, Tullamarine occurred today.

The Fund is also please to announce that the distribution centre, leased to Star Track Express, will be expanded by 11,394 square metres to a lettable area to 33,473 sqaure metres under a Development Agreement between the Fund and joint developers, Australand and Commercial and Industrial Property Pty Ltd. To facilitate the expansion, additional land will be leased from Melbourne Airport, taking the total site to an area of 61,892 square metres. Under the new ground lease arrangements with Melbourne Airport, there will be further expansion available to Star Track Express totalling 10,930 square metres of building area.

Upon completion of the works, which is scheduled for December 2007, the existing lease over the whole of the property will be extended to a term of 10 years. Net income from the property will rise $0.81 million per annum to approximately $2.33 million per annum, with minimum annual fixed 3.75% rent reviews. The cost of the expansion is $12.25 million, which will be funded by bank debt. The property has been independently revalued, assuming completion of the expansion, at $34.75 million at a passing yield of 6.71%.

Tim Collyer, Head of Listed Property said “It is pleasing to announce the expansion of 40 Annandale Road, Tullamarine, which will consolidate a larger site for tenant Star Track Express and provide the Fund with a new 10 year lease for the property. The Fund’s portfolio has been structured to provide tenants with expansion options as their businesses grow.”

Further Information

Tim Collyer Head of Listed Property Orchard Funds Management Telephone: +61 3 9093 9166

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Orchard Industrial Property Fund

Orchard Industrial Property Fund is a publicly traded ASX listed property trust that specialises in the investment of industrial property. It currently owns interests in a diversified portfolio of 28 industrial properties throughout Australia, with a total value of $815 million.

Orchard Funds Management

Orchard’s core business is funds management. With approximately $3.7 billion in funds under management, the organisation’s primary objective is to build and manage products which achieve investors’ objectives of strong, stable and tax effective returns. Orchard’s growth has been exceptional and consistent, doubling both staff numbers and funds under management in the past three years. With a range of diversified and sector specific funds Orchard offers investors and their advisers products that play a clear, identifiable role within individual investment strategies. Orchard’s strategy couples innovation with reasoned and measured management.

Orchard has a team of more that 140 people located in Melbourne, Sydney, Brisbane, Perth, Singapore and the USA.

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40 Annandale Road Tullamarine VIC

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This modern, single level warehouse and office complex is being expanded.

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Address 40 Annandale Road, Tullamarine, Victoria
Fund Orchard Industrial Property Fund (ASX Code: OIF)
Property type Industrial
Interest Leasehold expiring in 2047
The property is located within Melbourne Airport Business Park with arterial routes
Location
providing access to central Melbourne, rail and ports
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Key information

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Purchase price $22.49 million
Purchase date 10 September 2007
Current valuation $22.49 million
Valuation date 31 March 2007
Initial yield 6.70% [1]
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1 Based on 30 March independent valuation

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Physical aspects (existing)
2002 with 2003 and 2005
Year of construction
expansions
Gross building area 22,079m [2]
Land area 52,705m [2]
Number of floors 1
Use Distribution warehouse
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Tenant	Tenant
The property is leased to Star Track Express, a transport and logistics provider who uses the property for warehousing and distribution. Star Track Exrpess is a joint venture between Qantas and Australia Post.			Number of tenants	1
			Weighted average lease expiry	8.0 years1
			Occupancy rate	100%
		1 As at 1 September 2007

Expansion summary

The property will be expanded 11,394m[2] to 33,473m[2 ] gross building area, with forecast completion in December 2007. Land area will increase from 52,702m[2 ] to 61,892m[2] . A new 10 year lease will commence at practical completion, with minimum 3.75% annual rent increases. Net income at completion is forecasted at $2.33 million per annum. Savills have valued the property, assuming completion of the expansion, at $34.75 million, reflecting an initial yield of 6.71%, a 10 year IRR of 8.23% per annum and a value per square metre of building area of $1,038. This is the third time Star Track Express has requested an expansion since the original office and warehouse was constructed in 2002.

Location map

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Location of 40 Annandale Road, Tullamarine, VIC

Important Notice

Orchard Property Limited ABN 90 006 387 435 AFSL 233191 (Orchard) has prepared this fact sheet for general information only. It does not take into account your current or future financial circumstances. You should consider these matters and read the product disclosure statement before making an investment decision on holding or acquiring any financial products. The information is current at date of publication. Orchard assumes no obligation to update the information, and makes no guarantee that projections will occur.

All information as at 30 June 2007 unless otherwise stated.