LENDLEASE GROUP — Capital/Financing Update 2008

Sep 9, 2008

ASX Announcement

Lend Lease selected for landmark redevelopment in Sydney CBD

10 September 2008

Lend Lease Corporation Limited (“Lend Lease”) today announced it has been awarded the A$560 million Darling Walk regeneration project by Sydney Harbour Foreshore Authority. Lend Lease Development has entered into an agreement with Sydney Harbour Foreshore Authority to redevelop the 1.5 hectare site in Sydney’s Central Business District (CBD) Darling Harbour precinct.

The 65,000 square metre development will comprise 58,000 square metres of low rise, campus style office space, a Youth Theatre, a rejuvenated retail precinct, a water play park and associated car parking.

Demolition will start immediately, with construction of the new precinct commencing following final planning approval of the project application, which is anticipated in early 2009. Bovis Lend Lease will undertake the project management, design management and construction. Completion is planned for late 2011.

Australian Prime Property Fund (APPF) Commercial, one of Lend Lease Investment Management’s wholesale property funds, will finance and acquire the project in joint venture with one of its existing offshore institutional investment partners. Lend Lease Investment Management will act as Investment Manager for both owners.

Underpinning the quality of the development, Commonwealth Bank of Australia has signed an agreement with APPF Commercial and its partner to lease the entire 58,000 square metre commercial tenancy for an average of 13 years. The building will provide high quality office accommodation for 4,500 staff. The development comprises two ninestorey buildings, separated to maximise views and enhance connectivity with the CBD and adjoining park.

International best practice sustainability outcomes will be delivered through a commitment to a 6 Star Green Star design rating and 5 Star NABERS (National Australian Built Environment Rating System) Energy rating. Achievement of these targets will include: a high performance façade; chilled beam and fresh air systems; carbon emission reduction; waste water treatment and rainwater harvesting generating an 80% reduction in potable water usage; and onsite waste recycling during construction.

Mr David Hutton, Director of Lend Lease Development said the Darling Walk project is a prime example of a State Government initiated private sector partnership, delivering on Government’s vision of Darling Harbour as a world class waterfront, mixed use precinct complementing the city centre. The pre-commitment of the Commonwealth Bank emphasises the importance of this development.

“Building on Lend Lease’s experience from developing Darling Park and Cockle Bay Wharf, we are excited about the opportunity to again work with Sydney Harbour Foreshore Authority in transforming Darling Walk into a quality home for the Commonwealth Bank of Australia and a successful, interactive destination for city workers, residents and visitors. The end result will reinvigorate this part of Darling Harbour by enhancing the link with the CBD, upgrading the public realm and dramatically improving the quality of experience for all users of the area. The building is being designed by Richard Francis-Jones, partner in architectural firm FJMT, and DTZ acted as leasing agents,” Mr Hutton said.

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 21921 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia

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Carmel Hourigan, CEO, APPF said, “We are pleased to be able to offer our institutional investors exposure to this new generation office building in the Sydney CBD. This agreement positions our investors well to benefit from this landmark commercial asset. On completion, the new asset will increase APPF Commercial’s scale to over A$2 billion and enhance the Fund’s weighted average lease expiry (WALE) to over seven and a half years.

“Darling Walk will deliver world class environmental initiatives and innovative and sustainable design that is sympathetic to the surroundings. The acquisition by APPF Commercial is in line with its core strategy to provide investors with a prime commercial office portfolio with industry leading sustainability outcomes, in accordance with Lend Lease Investment Management’s vision of making APPF Commercial the most environmentally sustainable office investment fund in Australia.

“We see the delivery and ownership of highly sustainable commercial office buildings as integral in underpinning investment value both today and over the long term,” added Ms Hourigan.

The public domain plays a central role in the Darling Walk upgrade, with key elements including an active water play area, a community green, a new and expanded children’s playground and the creation of a Youth Theatre. The Youth Theatre will be operated by the Jacobsen family’s Arena Management (operator of the Sydney Entertainment Centre and Capitol Theatre). The Theatre will focus on the development of local talent and family entertainment.

The development will also include a ground floor retail precinct to provide a quality offering of food and services to meet the needs of workers and visitors to the area. Underground car parking will also complement the development alongside the links to public transport.

Darling Walk will lead the rejuvenation of Darling Harbour's southern precinct and further activate and improve this important part of Sydney’s CBD.

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For more information contact:

Sally Cameron Lend Lease Corporation Tel: 02 9236 6464

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 21922 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia

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