LENDLEASE GROUP — Capital/Financing Update 2007

Nov 20, 2007

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ASX Release

21 November 2007

REACHES FINANCIAL CLOSE ON ROYAL CHILDREN’S HOSPITAL

International investment and specialised fund and asset manager Babcock & Brown (ASX: BNB) today announced that, together with its consortium partners, Bovis Lend Lease and Spotless Services, it has entered into a project agreement on the Royal Children’s Hospital (RCH) project in Melbourne, Australia (the Project). Babcock & Brown is the sponsor of the consortium and will underwrite the equity required for the funding of the $1 billion project. It is expected the equity component will be sold down to Babcock & Brown’s specialised funds and asset management platform at a later stage.

The Project has a number of components:

(a) design and construction;

(b) financing;

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(c) provision of facilities management services; and

(d) complimentary commercial development for the site.

The Project will be delivered under the Victorian Government’s Partnerships Victoria (“PV”) policy and is the largest hospital project to be undertaken by the State. The project is expected to commence immediately.

Phil Green CEO of Babcock & Brown said “We are pleased to be leading the consortium chosen to construct and manage this significant Melbourne infrastructure project. We believe our selection in part reflects the strong track record of our team in the PPP area both in Australia and internationally. We look forward to working with the Victorian Government and the Royal Children’s Hospital as well as our consortium partners to ensure the project is delivered and the provision of ongoing services meets the highest possible standards.”

For further information please contact:

Kelly Hibbins Babcock & Brown +61 2 9229 1800

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About Babcock & Brown

Babcock & Brown is a global investment and specialised funds and asset manager whose activities are based around an integrated asset origination, asset management, co-investment and long terms funds management model. Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange.

Babcock & Brown operates from 29 offices across Australia, North America, Europe, Asia, United Arab Emirates and Africa and has in excess of 1,250 employees worldwide. Babcock & Brown has four operating divisions including real estate, infrastructure, operating leasing, corporate and structured finance. The company has established a funds management platform across the operating divisions that has resulted in the creation of a number of focused investment vehicles in areas including real estate, renewable energy and infrastructure.