LENDLEASE GROUP — Major Shareholding Notification 2008

Jun 24, 2008

25 June 2008

The Manager Companies Section ASX Limited

The Manager Companies Section New Zealand Exchange Limited

Pages: Two (2) pages

Dear Sir

Stock Exchange Announcement

Notice of Initial Substantial Holder

We enclose Notice of Initial Substantial Holder in Babcock & Brown Communities Group.

Yours faithfully LEND LEASE CORPORATION LIMITED

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S J SHARPE

Company Secretary

Lend Lease Corporation Limited ABN 32 000 226 228 Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +612 9236 6111 Facsimile +612 9252 2192 www.lendlease.com

1

603 page 1/1 15 July 2001

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To Company Name/Scheme BABCOCK & BROWN COMMUNITIES GROUP ACN/ARSN

1. Details of substantial holder (1) Name

ACN/ARSN (if applicable)

Lend Lease Corporation Limited 000 226 228

The holder became a substantial holder on

23 June 2008

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities (4) Number of securities Persons' votes (5) Voting power (6) Ordinary Fully Paid 40,282,729 40,282,729 6.18% Stapled Securities

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

	Holder of relevant interestNature of relevant interest(7)	Holder of relevant interestNature of relevant interest(7)	Holder of relevant interestNature of relevant interest(7)	Class and number of securities	Class and number of securities
	Lend Lease Corporation LimitedBeneficial Holder			40,282,729 ordinary fully paid
				stapled securities
	sent registered holders
	red as holders of the securities referred to in paragraph 3 above are as		follows:
	Holder of relevant	Registered holder of	Person entitled to be		Class and number of securities
	interest	securities	registered asholder(8)
	Lend Lease	Lend Lease	Lend Lease		40,282,729 ordinary
	Corporation Limited	Corporation Limited	Corporation Limited		fully paid stapled
					securities

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

5. Consideration The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant Date of acquisition Consideration (9) Class and number interest Cash Non-cash of securities Lend Lease Corporation 23 June 2008 $0.4498 - 40,282,729 ordinary Limited fully paid stapled securities The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows: Name and ACN/ARSN (if applicable) Nature of association N/A Name Address Lend Lease Corporation Limited Level 4, 30 The Bond, 30 Hickson Road Millers Point NSW 2000 print name S J Sharpe capacity Company Secretary

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

7. Addresses

The addresses of persons named in this form are as follows:

Signature

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ASX\Babcock & Brown Communities Group Initial 250608.doc