LENDLEASE GROUP — Annual Report 2012

Aug 29, 2012

ASX Announcement

Full Year Financial Report – Lend Lease Trust

30 August 2012

Attached is the Full Year Financial Report for the year ended 30 June 2012 for the Lend Lease Trust.

For further information, please contact:

Investor Relations: Corporate Affairs: Sally Cameron Iwona Polski Tel:02 9236 6464 Tel: 02 9237 5034

Group Executive - Investor Relations Media & External Communications Manager

Lend Lease Corporation Limited ABN 32 000 226 228 and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Millers Point NSW 2000 www.lendlease.com Australia

Level 4, 30 The Bond Telephone +61 2 9236 6111 30 Hickson Road Facsimile +61 2 9252 2192 1

Lend Lease Trust

ARSN 128 052 595

Table of Contents
Directors' Report	1
Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001	4
Financial Statements
Statement of Comprehensive Income	5
Statement of Financial Position	5
Statement of Changes in Equity	6
Statement of Cash Flows	6
Notes to the Financial Statements
1. Significant Accounting Policies	7
2. Distributions	9
3. Earnings per Unit	9
4. Issued Capital	9
5. Financial Instruments	9
6. Notes to the Statement of Cash Flows	10
7. Related Party Disclosures	11
8. Contingent Liabilities	11
9. Events Subsequent to Balance Date	11
Directors' Declaration	12

Directors' Report

The Directors of Lend Lease Responsible Entity Limited (ABN: 72 122 883 185), the Responsible Entity of Lend Lease Trust ('the Trust'), present their Report together with the Annual Financial Report of the Trust, for the year ended 30 June 2012 and the Auditor's Report thereon.

The Responsible Entity is a wholly owned subsidiary of Lend Lease Corporation Limited ('the Company') and forms part of the consolidated Lend Lease Group ('the Group'). The registered office and principal place of business of the Responsible Entity is Level 4, 30 The Bond, 30 Hickson Road, Millers Point NSW 2000.

1. Governance

a. Board/Directors

The name of each person who has been a Director of the Responsible Entity between 1 July 2011 and the date of this Report are:

S B McCann Group Chief Executive Officer & Managing Director since 2009	D A Crawford, AO	Chairman and Director since 2009
	P M Colebatch	Director since 2009
G G Edington Director since 2009
P C Goldmark Director since 2009
J A Hill Director since 2009
D J Ryan, AO Director since 2009
J S Hemstritch Appointed 1 September 2011
M J Ullmer Appointed 1 December 2011
C B Carter AM Appointed 2 April 2012

b. Company Secretary

W Hara

The qualifications and experience of each person holding the position of Director and Company Secretary of the Responsible Entity at the date of this Report is detailed in the 2012 Lend Lease Group Annual Report.

c. Interest in Capital

The interest of each of the Directors (in office at the date of this report) in the issued stapled securities of the Group at 30 August 2012 is set out below.

Director	Securities Held Directly 2012	Securities Held Beneficially/ Indirectly 20121	Total 2012	Securities Held Directly 2011	Securities Held Beneficially/ Indirectly 20111	Total 2011
D A Crawford	741	73,769	74,510		73,723	73,723
S B McCann	224,153	154,443	378,596	83,269	61,367	144,636
P M Colebatch	5,023	13,300	18,323	5,023	13,300	18,323
G G Edington	21,165	18,903	40,068	19,643	20,425	40,068
P C Goldmark	4,765	20,029	24,794	3,000	21,794	24,794
J A Hill	2,000	12,324	14,324	2,000	12,324	14,324
D J Ryan		31,273	31,273		31,273	31,273
J S Hemstritch		20,000	20,000
M J Ullmer		25,000	25,000
C B Carter		15,000	15,000

1 Includes shares beneficially held by Non Executive Directors in the Retirement Plan.

Directors' Report continued

2. Operations

a. Principal Activities

The principal purpose of the Trust is direct and indirect property investment. For the year ended 30 June 2012 the Trust did not engage in any property investment activities.

b. Review of Results of Operations

For the year ended 30 June 2012 the Trust reported a loss after tax of A\$81,429 (June 2011: loss of A\$75,960).

c. Distributions

No distributions were paid or declared during the year to June 2012 or up to the date of this Report.

d. Significant Changes in State of Affairs

There have been no significant changes in the state of affairs of the Trust.

e. Events Subsequent to Balance Date

On 7 July 2012, the Trust subscribed for units in a newly created property trust, Lend Lease Wharf Towers Sydney Trust ("LLWTST"). LLWTST was established to own the commercial assets of the Barangaroo South development in Sydney NSW, Australia. A total commitment of A\$500 million has been made to LLWTST by the Trust which represents a 25% interest in the initial capital of LLWTST. It is expected that this will be called upon progressively during the development period of the commercial assets.

f. Likely Developments

Details of likely developments in the operations of the Trust in subsequent financial years are contained in the reports from the Chairman and Managing Director in the Lend Lease Group Annual Report. In the opinion of the Directors, disclosure of any further information would be likely to result in unreasonable prejudice to the Trust.

g. Environmental Regulation

The Group is subject to various state and federal environmental regulations in Australia.

The Directors are not aware of any material non compliance with environmental regulations pertaining to the operations or activities during the period covered by this Report. In addition, the Group is registered and publicly reports the annual performance of its Australian operations under the requirements of the National Greenhouse and Energy Reporting (NGER) Act 2007 and Energy Efficiency Opportunities (EEO) Act 2006.

All Lend Lease businesses continue to operate an integrated Environment, Health and Safety Management System ensuring that non-compliance risks and opportunities for environmental improvement are identified, managed and reported accordingly.

3. Other

a. Security Options

No security options were issued during the year by the Group or any of its controlled entities, and there are no such options on issue.

Directors' Report continued

3. Other continued

b. Indemnification and Insurance of Directors and Officers

Rule 12 of the Trust's Constitution provides for indemnification in favour of each of the Directors named on page 1 of this Report; the Company Secretary, Mr W Hara; and officers of the Responsible Entity or of wholly owned subsidiaries or related entities of the Responsible Entity ('Officers') to the extent permitted by the Corporations Act 2001. Rule 12 does not indemnify a Director, Company Secretary or Officer for any liability involving a lack of good faith.

Each of the Directors is also a Director of the Company and has entered into a Deed of Indemnity, Insurance and Access with the Company. That indemnity extends to indemnify each of the Directors in respect of their roles as officers of the Responsible Entity. The Responsible Entity has not entered into separate deeds of indemnity with the Directors.

No indemnity has been granted to an auditor of the Responsible Entity in their capacity as auditor of the Responsible Entity.

In accordance with the Corporations Act 2001, Rule 12 of the Constitution also permits the Responsible Entity to purchase and maintain insurance or pay or agree to pay a premium for insurance for Officers against any liability incurred as an officer of the Company or of a related body corporate. Due to confidentiality obligations and undertakings for the policy, no further details in respect of the premium or policy can be disclosed.

c. Special rules for Registered Schemes

A\$98,713 in fees and other expenses were paid or are payable to the Responsible Entity and its associates out of the assets of the Trust for the financial year ended 30 June 2012 (June 2011: A\$105,500).

No units in the Trust were held by the Responsible Entity at the end of the financial year. Associates of the Responsible Entity held 39,576,540 units as at the end of the financial year.

Details of the units issued in the Trust during the financial year are set out in the Statement of Changes in Equity.

Details of the value of the Trust assets as at the end of the financial year and the basis of the valuation are set out in the Statement of Financial Position and Note 1 to the Financial Statements.

Details of the number of Units in the Trust as at the end of the financial year are set out in the Statement of Changes in Equity.

d. Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

The Lead Auditor's Independence Declaration is set out on page 4 and forms part of the Directors' Report for the year ended 30 June 2012.

D A Crawford, AO S B McCann

Sydney, 30 August 2012

Chairman Group Chief Executive Officer & Managing Director

Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of Lend Lease Responsible Entity Limited, the Responsible Entity for Lend Lease Trust

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2012 there have been:

• $(i)$ no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
• $(ii)$ no contraventions of any applicable code of professional conduct in relation to the audit.

$K/MG$

KPMG

S J Marshall Partner

Sydney

30 August 2012

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Financial Statements

Statement of Comprehensive Income

Year ended 30 June 2012

Note	June 2012 A\$	June 2011 A\$
Revenue
Finance revenue – external party	19,485	15,636
Finance revenue – related party		15,724
Other revenue – related party	626	556
Total revenue	20,111	31,916
Expenses
Responsible entity cost recharges	98,713	105,500
Other expenses	2,827	2,376
Total expenses	101,540	107,876
(Loss) before tax	(81,429)	(75,960)
Income tax expense
(Loss) after tax	(81,429)	(75,960)
Other comprehensive income net of tax
Total comprehensive income after tax	(81,429)	(75,960)
3 Basic/diluted earnings per unit (cents)	–	–

Statement of Financial Position

As at 30 June 2012

Note	June 2012 A\$	June 2011 A\$
Current Assets
Cash and cash equivalents 6b	412,397	487,221
Loans and receivables – related parties	626	5,357
Total current assets	413,023	492,578
Current Liabilities
Trade and other payables
Total current liabilities	–	–
Net assets	413,023	492,578
Equity
Issued capital 4	572,790	570,916
Accumulated losses	(159,767)	(78,338)
Total equity attributable to unitholders	413,023	492,578

Financial Statements continued

Statement of Changes in Equity

Year ended 30 June 2012

	Note	June 2012 A\$	June 2011 A\$
Issued Capital
Opening balance at beginning of financial year		570,916	565,559
Dividend Reinvestment Plan (DRP)		1,874	5,357
Closing balance at end of financial year	4	572,790	570,916
Accumulated Losses
Opening balance at the beginning of financial year		(78,338)	(2,378)
Loss after tax		(81,429)	(75,960)
Closing balance at end of financial year		(159,767)	(78,338)
Statement of Cash Flows Year ended 30 June 2012		June 2012	June 2011
		A\$	A\$
Cash Flows from Operating Activities
Cash receipts in the course of operations			941
Cash payments in the course of operations		(101,540)	(133,726)
Interest received		19,485	54,447
Net cash used in operating activities	6a	(82,055)	(78,338)
Cash Flows from Financing Activities
Net proceeds from equity issue		7,231	565,559
Net cash provided by financing activities		7,231	565,559
Net (decrease)/increase in cash and cash equivalents		(74,824)	487,221
Cash and cash equivalents at beginning of financial year		487,221	–
Cash and cash equivalents at end of financial year	6b	412,397	487,221

Notes to the Financial Statements

1. Significant Accounting Policies

Lend Lease Trust ('the Trust') is domiciled in Australia. The principal accounting policies adopted in the preparation of the financial report are set out below.

The financial report was authorised for issue by the Directors on 30 August 2012.

1.1 Statement of Compliance

The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board and the Corporations Act 2001. The financial report also complies with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board.

1.2 Basis of Preparation

The financial report is presented in Australian dollars and is prepared under the historical cost basis.

The preparation of a financial report that complies with AASBs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The accounting policies set out below have been consistently applied to all financial years.

1.3 Impact of New/Revised Accounting Standards

New and Revised Accounting Standards

A number of new amendments to standards and interpretations became operative for the financial year ended 30 June 2012, and have been applied in preparing these financial statements. None of these have materially impacted the Trust and its policies.

New Accounting Standards and Interpretations Not Yet Adopted

Certain new accounting standards and interpretations have been published that are not mandatory for the financial year ended 30 June 2012 but are available for early adoption and have not been applied in preparing this report. None of these are expected to have a significant effect on the Trust and its policies, other than the following standards where the potential effect is yet to be determined:

• AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). These standards address the classification, measurement and derecognition of financial assets and financial liabilities.
• AASB 10 Consolidated Financial Statements introduces a new definition of control and addresses whether an entity should be included within the consolidated financial statements of the parent company.
• AASB 11 Joint Arrangements establishes principles for financial reporting by parties to a joint arrangement.
• AASB 12 Disclosure of Interests in Other Entities relates to disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities.
• AASB 13 Fair Value Measurements and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 introduce new guidance on fair value measurement and disclosure requirements when fair value is permitted by accounting standards.
• The amendments to AASB 119 Employee Benefits (June 2011) and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) introduce changes to the accounting for and presentation of pensions and other post-employment benefits.

The standards above become mandatory for the June 2014 financial year. With the exception of AASB 13 that applies prospectively, the standards are to be applied retrospectively.

1.4 Revenue

Revenue is measured at the fair value of the consideration received or receivable and is recognised when the amount can be reliably measured and future economic benefits will flow to the Trust.

Interest Income

Interest Income is recognised on a time proportion basis using the effective interest method.

1. Significant Accounting Policies continued

1.5 Income Tax

Under current Australian income tax legislation the Trust is not liable for income tax, provided that each year the taxable income and any taxable capital gain derived from the sale of an asset are fully distributed to unitholders.

1.6 Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, bank overdrafts and other short term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Bank overdrafts (if applicable) are shown as a current liability on the balance sheet and are shown as a reduction to the cash balance in the statement of cash flows.

1.7 Loans and Receivables

Receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Cash flows relating to short term receivables are not discounted if the effect of discounting is immaterial.

A provision for impairment of receivables is established when there is objective evidence that the Trust will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and fair value, which is estimated as the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the statement of comprehensive income.

1.8 Trade and Other Payables

Trade and other payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Trust. Trade and other payables are stated at amortised cost or at cost when the impact of discounting would be immaterial.

1.9 Issued Capital

Ordinary units are classified as equity. When issued capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a change in equity.

Distributions are recognised as a liability in the financial year in which they are declared.

1.10 Earnings Per Unit

Basic earnings per unit (EPU) is determined by dividing profit/(loss) after tax attributable to the unitholders of the Trust, excluding any costs of servicing equity other than ordinary units, by the weighted average number of ordinary units outstanding during the financial year, adjusted for bonus elements in ordinary units issued during the financial year.

Diluted EPU is determined by adjusting the profit/(loss) after tax attributable to the unitholders of the Trust and the weighted average number of ordinary units outstanding for the effects of all dilutive potential ordinary units.

1.11 Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

2. Distributions

No distributions were paid or declared during the year to 30 June 2012 (30 June 2011: A\$Nil) or up to the date of this report.

			June 2012	June 2011
3. Earnings per Unit
Basic/Diluted Earnings Per Unit (EPU)
(Loss) after tax		A\$	(81,429)	(75,960)
Weighted average number of units			571,828,552	566,879,637
Basic/diluted EPU (cents)			–	–
	June 2012 No of units	June 2012 A\$	June 2011 No of units	June 2011 A\$
4. Issued Capital
Issued Capital
Issued capital at beginning of financial year	570,915,669	570,916	565,558,754	565,559
Dividend Reinvestment Plan (DRP)	1,874,158	1,874	5,356,915	5,357
Issued capital at end of financial year	572,789,827	572,790	570,915,669	570,916

Security Accumulation Plans

The Group's Distribution Reinvestment Plan ('DRP') was reactivated in February 2011. The last date for receipt of an election notice for participation in the DRP is 11 September 2012. The issue price is the arithmetic average of the daily volume weighted average price of Lend Lease stapled securities traded (on the Australian Securities Exchange) for the period of five consecutive business days immediately following the record date for determining entitlements to distribution. If that price is less than 50 cents, the issue price will be 50 cents. Stapled securities issued under the DRP rank equally with all other stapled securities on issue.

5. Financial Instruments

a. Credit Risk

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets recognised in the Statement of Financial Position equals the carrying amount. No provision for doubtful debts has been raised as no impairment has been identified.

b. Liquidity Risk

Liquidity Risk is the risk of having insufficient availability of funds to settle financial liabilities as and when they fall due. The Trust had no financial liabilities at 30 June 2012 (30 June 2011: A\$Nil).

c. Currency Risk

The Trust does not have an exposure to currency risk.

5. Financial Instruments continued

d. Interest Rate Risk

Interest rate risk is the risk that the value of a financial instrument of cash flow associated with the instrument will fluctuate due to change in the market interest rates.

Sensitivity Analysis

At 30 June 2012 it is estimated that an increase of one percentage point in interest rates would have decreased the Trust's loss before tax by approximately A\$385 (June 2011: A\$1,643). A one percentage decrease would have an equal and opposite effect on equity and profit or loss. The increase or decrease in interest income/expense is proportional to the increase or decrease in interest rates.

The Trust's exposure to interest rate risk on financial instruments is set out below, the Trust has no fixed rate instruments.

	Carrying Amount
	June 2012	June 2011
	A\$	A\$
Variable Rate Instruments
Financial Assets	412,397	487,221

e. Net Fair Values of Financial Assets and Liabilities

The Company's financial assets and liabilities included in current assets and liabilities in the balance sheet approximate fair value.

	June 2012 A\$	June 2011 A\$
6. Notes to the Statement of Cash Flows
a. Reconciliation of Loss After Tax to Net Cash Provided by Operating Activities
Loss after tax	(81,429)	(75,960)
Changes in assets and liabilities (Increase)/decrease in loans and receivables (Decrease)/increase in payables	(626)	23,472 (25,850)
Net cash used in operating activities	(82,055)	(78,338)
b. Cash and Cash Equivalents
Disclosed in the Statement of Financial Position as follows: Cash and cash equivalents	412,397	487,221
Total cash and cash equivalents	412,397	487,221

7. Related Party Disclosures

Key Management Personnel Disclosures

The Trust does not employ personnel in its own right. However it is required to have an incorporated Responsible Entity to manage its activities. The Responsible Entity is considered to be the Key Management Personnel of the Trust.

Responsible Entity's Remuneration

In accordance with the Trust's Constitution, the Responsible Entity is entitled to receive costs incurred in performance of its duties and expense reimbursements where expenses have been incurred on behalf of the Trust.

As at 30 June 2012, A\$98,713 (June 2011: A\$105,500) was charged to the Trust, the amount owed to the Responsible Entity was A\$Nil (June 2011: A\$Nil).

8. Contingent Liabilities

The Trust does not have any contingent liabilities at 30 June 2012.

9. Events Subsequent to Balance Date

On 7 July 2012, the Trust subscribed for units in a newly created property trust, Lend Lease Wharf Towers Sydney Trust ("LLWTST"). LLWTST was established to own the commercial assets of the Barangaroo South development in Sydney NSW, Australia. A total commitment of A\$500 million has been made to LLWTST by the Trust which represents a 25% interest in the initial capital of LLWTST. It is expected that this will be called upon progressively during the development period of the commercial assets.

Directors' Declaration

In the opinion of the Directors of Lend Lease Responsible Entity Limited, the Responsible Entity of Lend Lease Trust ('the Trust'):

• 1. The financial statements and notes are in accordance with the Corporations Act 2001, including:
• a. Giving a true and fair view of the financial position of the Trust as at 30 June 2012 and of its performance for the financial year ended on that date; and
• b. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
• 1. The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 1.1.
• 1. There are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable.
• 1. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2012.

Signed in accordance with a resolution of the Directors:

D A Crawford, AOS B McCann

Sydney, 30 August 2012

Chairman Group Chief Executive Officer & Managing Director

Independent auditor's report to the members of Lend Lease Trust

Report on the financial report

We have audited the accompanying financial report of Lend Lease Trust (the Trust), which comprises the statement of financial position as at 30 June 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes 1 to 9 comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

Directors' responsibility for the financial report

The directors of the Lend Lease Responsible Entity Limited (the Responsible Entity of the Trust) are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In note 1, the directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

Auditor's responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the Trust's financial position and of its performance.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor's opinion

In our opinion:

(a) the financial report of Lend Lease Trust is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Trust's financial position as at 30 June 2012 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

(b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1.

$KPMG$

KPMG

$\sqrt{\frac{2}{l}}$

S J Marshall Partner

Sydney 30 August 2012