PEET LIMITED — Capital/Financing Update 2005

May 3, 2005

ASX/MEDIA RELEASE May 2005

Peet closes $17 million syndicate capital raising early and over-subscribed

The capital raising for the latest Melbourne residential land syndication project offered by Peet & Company Ltd (ASX: PPC) has closed early and over-subscribed.

Peet Tarneit Rise Syndicate Limited issued a prospectus to raise a maximum of $16.8 million for the development of a 65ha land parcel, already zoned for residential use, at Tarneit, about 26km west of Melbourne's CBD. The emerging suburb of Tarneit is a fast-growing area close to the existing Werribee commercial and retail centre.

"There was a rush of interest in our latest investment opportunity," said Warwick Hemsley, managing director of Peet & Company Ltd.

"There is strong acceptance of our developments which are aimed at the more stable sector of the market – owner-occupiers rather than investors or speculators.

"We are one of Australia's largest broadacre property developers/syndicators and the success of this latest capital raising brings to $158 million equity funds raised in recent years for land acquisitions in our syndicates.

"Many of the investors in the latest Tarneit land project are existing investors in other Peet syndicated residential land projects. The company enjoys strong support from repeat investors in its investment opportunities," Mr Hemsley said.

"We are very enthusiastic about the prospects for this project as it is within a growth corridor of Melbourne and is already zoned residential," Mr Hemsley said.

The Tarneit Rise land parcel adjoins an existing Peet & Company Limited syndicated residential development, Tarneit Gardens that has begun development. Early homesites at this estate have proved popular. A major display village featuring leading Melbourne builders will open in Tarneit Gardens in early 2006.

Peet & Co Ltd has been involved in residential land development for over 110 years and is involved in land developments in WA, VIC, QLD and NSW.

The company acts as project manager and marketing agent for more than 40 land development projects in Western Australia, Victoria, New South Wales and Queensland. The combined total number of lots still to be produced and sold in these various estates represents approximately 25,000 residential lots. The sales of subdivided lots in these estates in today's prices would realise in excess of $3.4 billion.

Peet & Company Ltd projects offer minimal holding costs and overheads for investors as it receives management fees only when block sales are settled which means that major development progress and income is actually received from sales before the syndicate incurs these costs.

"Our unique structure, where we act as an umbrella project manager and marketing agency for a large number of individual land syndicates, ensures that syndicates are not burdened with high start-up costs associated with paying for their own individual project management in the lead-up to development. This is a vital ingredient in the successful outcome of our projects even if delays are encountered."

Mr Hemsley said that Peet is now actively expanding into a wider range of funds management investment products in addition to its successful land syndication products.

The first scheme to be registered is the Peet Income Property Fund, which will provide regular income distributions, and a share in capital growth produced by investment properties. Five new office park properties in the Brisbane Technology Park have been purchased for the fund for $19 million.

This new fund is expected to be launched in May/June.

Ends.

(Further information from: Warwick Hemsley, managing director of Peet & Company Ltd Tel 08 9420 1111 or/Anthony Lennon, director of Peet & Company Ltd (03) 9868 5900/ or Louise Dumas, Impact Media 0411 201496)