LENDLEASE GROUP — Capital/Financing Update 2008

May 11, 2008

Stock Exchange Announcement

Lend Lease extends retirement village portfolio

12 May 2008

• Lend Lease subsidiary Retirement by Design acquires Lutanda Manor retirement village in Sydney

• Total investment of $16 million to expand retirement village portfolio

• Acquisition supports Lend Lease’s strategy to be a leading developer and manager in the senior living sector

Lend Lease Corporation Limited (“Lend Lease”) today announced that its subsidiary, Retirement by Design Pty Ltd (“Retirement by Design”), has acquired Lutanda Manor retirement village at Pennant Hills in Sydney’s north-west for A$16 million. The village is currently managed by Lend Lease as part of the existing Retirement by Design portfolio.

The acquisition is consistent with Lend Lease’s broader strategy to expand the company’s presence within the growing senior living sector in key major urban growth markets.

“With 15 current villages, five of which are still under development, we are well positioned for further growth,” said David Hutton, CEO of Lend Lease Retail & Communities.

Mr Hutton said Lend Lease is aiming to become a leader in the development of new and innovative housing options for the senior living market.

The retirement sector in Australia has evolved into a significant asset class which has experienced major industry consolidation over the past few years.

Over the next 20 years, the population aged over 65 is forecast to be the fastest growing market segment in Australia increasing to 5.1 million people by 2026.

“Our focus on the retirement sector provides a great opportunity for Lend Lease to showcase its integrated skills and achieve growth by accessing acquisition opportunities through leveraging other core Lend Lease businesses such as masterplanned communities, apartments, retail, development, investment management and construction,” said Mr Hutton.

In western Sydney, Lend Lease recently commenced construction of Rochford Place, a new retirement village at Delfin Lend Lease Pty Limited’s (“Delfin Lend Lease”) Ropes Crossing community with completion of the first stage due in January 2009. The village will aim to address affordability issues in western Sydney for retirees.

Nelsons Grove, located at Delfin Lend Lease’s Nelsons Ridge community at Pemulwuy in Sydney’s western suburbs was opened on 30 June last by the Minister for Ageing, Kristina Keneally. The village features a clubhouse and 25 apartments, with a further stage soon to commence.

Retirement by Design is a wholly owned subsidiary of Lend Lease and is a leading owner, developer and manager of retirement villages in Australia. Its portfolio of 15 retirement communities is located throughout New South Wales, Victoria, South Australia and Queensland.

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 2192 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia

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For further information please contact: Investor enquiries Media enquiries Sally Cameron David Hutton Lend Lease Corporation Lend Lease Retail & Communities Tel: 02 9236 6464 Tel: 02 9236 6777

Retirement by Design

Retirement by Design Pty Ltd is one of Australia’s (sixth) largest owner, developer and managers of resident funded retirement villages in Australia. The company has been operating for more than 25 years.

Retirement by Design Pty Ltd is owned by publicly listed company, Lend Lease Corporation Limited. The company purchasing Lutanda Manor Retirement Villages is the current manager, Lutanda Manor Retirement Villages Pty Ltd. This company is a subsidiary of Retirement By Design Pty Ltd.

Retirement by Design presently owns and/or manages 15 villages (seven in Victoria, five in New South Wales, two in Queensland and one in South Australia), with over 2,000 accommodation homes and apartments.

In addition Retirement by Design’s growth strategy involves a focus on the development of masterplanned communities in conjunction with Delfin Lend Lease.

The company is at the leading edge in the development of new and innovative housing options for the retirement market. Retirement by Design benefits significantly from being part of Lend Lease, which is able to provide Retirement by Design with access to sites, town planning, community development and design expertise, with significant focus upon sustainability and safety.

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 2192 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia

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