SCENTRE GROUP TRUST 1 — Capital/Financing Update 2003

Nov 23, 2003

PRESS RELEASE

24 November 2003

Centro Builds Syndication Pipeline

Centro Properties Group ("Centro") today announced the acquisition of Arndale Shopping Centre in Adelaide, South Australia from Westfield Trust (50%) and Commonwealth Property Fund (50%) for $117 million.

Announcing the transaction today, Mr Brian Healey, Chairman of Centro said "We are pleased to have secured the Arndale Centre as it represents a building of the asset pipeline for our Centro MCS syndication business, and continues to support that businesses growth. Our strategy is to syndicate half of the sub-regional Arndale shopping centre and about $90 million of interests in other current Centro assets, potentially including an interest in a regional shopping centre, together with about $50 million of recently acquired convenience shopping centre assets to launch our next syndicate by June next year. We therefore expect our next syndicate, Centro MCS 33, to be a well balanced and diversified Australian retail property syndicate with total assets of about $200 million."

Arndale Shopping Centre is situated 8 kilometres north west of Adelaide's CBD and comprises a substantial single level fully enclosed air-conditioned shopping centre with a GLA of approximately 40,166 m2 with five anchors, Harris Scarfe, $\overrightarrow{Big}$ W, Woolworths and Bi-lo Supermarkets and Greater Union Cinema Complex (8 screens), together with 88 speciality stores. The total site area is 11.6 hectares and provides open and undercover parking for 2.280 cars. The moving annual sales turnover of the centre to 30 September 2003 was $149.1 m $($3,880/m^2)$ with forecast specialty occupancy cost of 13.1% (GST incl), in line with the relevant South Australian benchmark average.

Mr Andrew Scott, Chief Executive Officer of Centro said, "We believe that the Arndale Centre confirms Centro's ability to access quality assets. 50% of the Arndale Centre will be for the next Centro MCS syndicate and the other 50% will be retained by Centro in its own property portfolio The Arndale Centre will provide the Centro managed asset portfolio of over $6 billion with a more balanced exposure to the South Australian retail property market and has been acquired on an attractive yield of 8%.

Mr Scott added "We see the Arndale Centre as a large sub-regional centre with a solid performance record and significantly improving demographics. Several opportunities exist to further enhance the asset through the expansion of key retailers to satisfying new retailer demand, introducing a food court to take advantage of the strong existing cinema operation and maximising the use of adjoining surplus land. The recent introduction of Sunday trading in October should allow the improving consumer base in the centre's catchment to grow sales and underpin future rental improvements."

Centro also confirmed that the property had been independently valued by CB Richard Ellis as at 30 November 2003 for $120 million ($2,978/m2) based on a capitalisation rate of 7.75% and internal rate of return of 10% p.a. The purchase includes $2 million for 14,000 $m2$ of surplus land.

PRESS RELEASE

Mr Scott also commented that "Centro will fund the purchase by utilising existing funding facilities which will be repaid in the second half from both Centro MCS 32 and 33 syndicates. As a result, Centro's gearing will temporarily increase by approximately 2% to approximately 37% until later in this financial year. From a distribution perspective, we expect an increase in Centro distributions by 0.1 cents from FY05 onwards."

For further information, please contact Andrew Scott, Centro's Chief Executive Officer on 03 8847 0033 or 0419 548 068 or visit our web site www.centro.com.au