Macquarie Group Limited — Capital/Financing Update 2007

Nov 20, 2007

FKP PROPERTY GROUP comprising FKP LIMITED ABN 28 010 729 950 and FKP PROPERTY TRUST ARSN 099 648 754 the responsible entity of which is FKP FUNDS MANAGEMENT LIMITED ABN 17 089 800 082, AFS Licence number 222273

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ASX ANNOUNCEMENT

FKP PROPERTY GROUP ANNOUNCES PURCHASE OF RETIREMENT VILLAGE PORTFOLIO IN UNITED STATES

FKP Property Group (FKP) today announced the joint purchase of a portfolio of senior living facilities in the South East of the United States for a consideration of approximately $US113m (including transaction costs). The purchase has been made on a 50/50 basis with Macquarie Group Limited (MQG).

The assets were purchased from syndicates of investors. The portfolio of eight villages comprises 522 beds in attractive retirement locations in Florida (4), Tennessee (2), Georgia (1) and South Carolina (1).

Managing Director and CEO of FKP, Mr Peter Brown, said today “This purchase strengthens the strategic relationship in the senior living / retirement sector that FKP enjoys with Macquarie, with the two parties having recently announced the successful establishment of the Retirement Villages Group (RVG) wholesale fund with a mandate to invest in quality senior living / retirement village assets in Australia and New Zealand.”

Mr Brown added “The purchase reflects FKP’s strategy of growing its recurring income streams, and is a logical extension of FKP’s activities, given its industry leadership position over a long period in the Australian senior living / retirement village sector.”

The US portfolio includes a mix of assisted living and independent living units, similar to serviced apartments and independent living units operated by FKP and RVG in Australia. The facilities operate under a rental model, which is the most common form of arrangement in the US. With new units currently being let following recent expansion at three of the villages, occupancy levels are expected to stabilise at above 90% by mid-2008.

The transaction has been project-financed in the US, and each of FKP and MQG have contributed about $US23.5m of equity.

The Principal Senior Living Group (PSLG), which has successfully operated the villages on behalf of the previous owners, will continue to provide management services.

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The Portfolio

The portfolio is predominantly Assisted Living (AL) together with a mix of Memory Care (MC) and Independent Living (IL).

N o	Village Name	Location	Built	AL	MC	IL	Total
1	Southern Pines Village, Gardens & Inn	Thomasville, GA	1996	65	19	31	115
2	Benton House	Fort Walton Beach, FL	2000	46	12	-	58
3	Beacon Pointe	Tampa, FL	1996	-	32	-	32
4	Benton House	Sun City Center, FL	1998	28	14	-	42
5	Benton Village	Panama City Beach, FL	2005	47	-	14	61
6	Benton House & Beacon Pointe	Franklin, TN	1999	42	39	-	81
7	Benton Village	Hermitage, TN	2006	47	-	24	71
8	Benton Village	Seneca, SC	2006	35	12	15	62
Total				310	128	84	522
Percentage of Portfolio				59%	25%	16%	100%

Explanation of Unit Types

IL - Seniors who are independent and active

AL - residents who need help with daily living (eg dressing, bathing, and medication management). For seniors who can no longer live on their own but don’t need 24-hour medical care

MC - suited for those who are in the early to mid stages of Alzheimer’s disease or other forms of dementia

For further information please contact:

Darryl Guihot Chief Financial Officer FKP Ph 07 3223 3891

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Shalome Mielewska Investor Relations Manager FKP M 0404 811 847

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