STOCKLAND — Capital/Financing Update 2011

May 22, 2011

133 Castlereagh Street T 02 9035 2552 Sydney NSW 2000 F 02 8988 2552

www.stockland.com.au

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23 May 2011 ASX/Media Release

SDOT1 SELLS 50% STAKE IN WATERFRONT PLACE, BRISBANE

Stockland Capital Partners Limited, the responsible entity for the Stockland Direct Office Trust No. 1 (SDOT1), has sold its 50 per cent interest in the entity that owns Waterfront Place in Brisbane to the Future Fund for $216.4 million.

In addition, Stockland has entered into an agreement to sell 50 per cent of the entity that owns the adjacent Eagle Street Pier to the Future Fund for $16 million on the basis of a completed refurbishment.

The transaction follows a vote by SDOT1 unit holders in December 2009 to wind up the fund via the sale of its share in Waterfront Place.

The remaining 50 per cent of Waterfront Place and Eagle Street Pier will continue to be owned by Stockland. Property management of Waterfront Place will transition to an external property manager.

Waterfront Place is a 36-level premium grade office building fronting the Brisbane River. The building is currently undergoing a major upgrade to the foyer and a rolling refurbishment of the office floors.

This transaction signals the start of the wind up process for SDOT1, with general investors expected to receive a total return (IRR) of approximately 14[1] per cent per annum and geared investors expected to receive a total return (IRR) of approximately 20[1 ] per cent per annum over the life of the Trust.

A condition of the sale requires SDOT1 to retain $21 million in a retention fund until 15 June 2012 to support warranties provided by SDOT1.

Stockland CEO Commercial Property, John Schroder said: “This is a great outcome for SDOT1 unit holders, who have benefited from strong distributions over the life of the trust, in addition to the capital growth on the sale of Waterfront Place.”

An interim distribution comprising the sale proceeds net of sale costs and the warranty retention fund will be paid to investors in June 2011. The final distribution to investors will be paid once the requirement for holding the warranty retention fund has lapsed after 15 June 2012.

Eagle Street Pier is a low-rise retail complex of 6,300m[2] , including an exclusive waterfront alfresco dining precinct. The site is currently being refurbished and is nearing completion. The sale price implies a 7% yield.

Stockland will retain the property management and retail leasing rights for the Eagle Street Pier complex for a period of at least three years.

1 Assumes the warranty retention fund remains undrawn.

Mr Schroder said: “We are very pleased to welcome the Future Fund as our coinvestment partner at both Waterfront Place and Eagle Street Pier. Together, these adjacent assets form one of Brisbane’s best-known commercial complexes.”

Waterfront Place is almost fully leased and the rent from the outgoing tenant Ernst & Young is secured for the next 3 years under its lease obligations.

CorVal Partners are the investment manager for the Future Fund in connection with this investment.

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Sally-ann Parker	Brett Zarb	Linda Assatoury
Senior Manager, Communications	Acting Media Manager	Senior Manager Investor Relations
Stockland	Stockland	Stockland
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Stockland Corporation Ltd ACN 000 181 733 Stockland Trust Management Ltd ACN 001 900 741 AFSL 241190 As Responsible Entity for Stockland Trust ARSN 092 897 348.