Lend Lease Investment Management Australia

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1 Lend Lease Investment Management Australia Tarun Gupta CEO Australia Lend Lease Investment Management Appropriate photo Market Update May 2007

2 Australian Business Overview: Funds Under Management (FUM) A$4.8b FUM as at 31 March 2007 Launch of Lend Lease Communities Fund 1 12 July 2006 Lend Lease Core Plus Fund 30 June % growth in FUM for APPF Funds in last 12 months, 20% pa average growth in FUM for past five years A$700m in new equity raised for existing and new Funds 61 institutional investors APPF Industrial 12% Communities Fund 1 4% Core Plus 6% APPF Commercial 20% Funds Under Management March 2007 REP 1 & 2 2% APPF Retail 56%

3 APPF Retail Overview 11 assets with FUM of A$2.7b seven super and major regionals, two sub regionals, one neighbourhood and one CBD centre Interests acquired in three assets Caroline Springs, Melbourne, VIC Pakenham Place, Melbourne, VIC Mid City Centre, Sydney, NSW One year return (pre fees) 19.5%, three year return (pre fees) 17.2% Strong fund attributes Occupancy 99.7% Gearing 5.6% Year-on-year rental growth 5.1% Sunshine Plaza, Maroochydore QLD Circa A$700m in forecast masterplan capital expenditure (APPF share)

4 APPF Commercial Overview 10 assets with FUM of A$942m Interests acquired in 2 assets 825 Bourke Street, Melbourne, VIC 420 George Street, Sydney, NSW One year return (pre fees) 21.5%, 3 year return (pre fees) 14.5% Strong Fund attributes Occupancy 99.8% WALE 5.4 years Gearing 6.9% Year-on-year rental growth +6.8% Circa A$270m in forecast development capital expenditure 1 Farrer Place, Sydney NSW

5 Mid City Centre/420 George St Redevelopment, Sydney NSW Off market acquisition utilising Lend Lease s integrated capabilities APPF Funds acquired 25% interest in the Retail and Commercial components, Joint Venture partner retains 75% interest Property and development management by Lend Lease Retail Design & construction services being provided by Bovis Lend Lease On redevelopment, expected to commence late 2007, the site will encompass 37,874 m 2 of office over 29 levels 420 George Street 9,163 m 2 of prime retail over 4 levels between Pitt and George Streets Mid City Centre, Sydney, NSW

6 APPF Industrial Overview 25 assets with FUM of A$563m Significant repositioning of Fund in 2006, with 10 assets acquired for A$336m including 3 Woolworths Distribution Centres 5 Costa Distribution Centres One year return (pre fees) 10.8%, 3 year return (pre fees) 11.7% Strong Fund attributes Occupancy 98% WALE 8.4 years Gearing 21.9% Circa A$100m in forecast development capital expenditure A$232m in new equity raised to support repositioning of the Fund Woolworths Distribution Centre, Minchinbury, NSW

7 Lend Lease Core Plus Fund Overview Circa A$200m initial equity raised from 11 investors Australia and New Zealand investment mandate Stapled structure, targeting traditional and nontraditional property sectors Nine assets with FUM of A$281m One Mixed use Three Retail One Car Park Three Retirement Villages One Hotel Four assets already sourced from Lend Lease pipeline A further four assets under due diligence currently from Lend Lease pipeline CS Square, Melbourne VIC Targeting strong ongoing growth in FUM

8 Lend Lease Communities Fund 1 Overview Lend Lease Communities Fund 1 launched in July 2006 A$120m in equity (including circa 21% Lend Lease co-investment) Investment in three master planned community developments managed by Delfin Lend Lease valued at approximately A$200m Lakeside at Pakenham, Melbourne, VIC Woodlands, Brisbane, QLD Ropes Crossing St Marys, Sydney, NSW Opportunity for investors to partner and leverage Delfin Lend Lease s leading brand and track record, while improving overall capital efficiency for the Group Lakeside at Pakenham, Melbourne VIC This is the first in a planned series of Communities Funds

9 Lend Lease Real Estate Partners Funds 1 & 2 Overview REP is a series of Funds established to invest in value add/opportunistic property REP 1 launched in 1999 Final asset sold in 2006 Delivered IRR of 18.4% exceeding target of 15% REP 2 launched in % equity committed Acquisition of Sundowner portfolio Targeting REP 3 launch in the next financial year Targeting larger fund size Leverage Lend Lease product creation skills 154 Sussex Street, Sydney NSW

10 Strategic Direction Continue strong focus on superior investor outcomes Total Target Return Well positioned portfolios with strong performance outlook: Opportunistic (18%+) A$1.6b in development capital expenditure Value-add (15% 18%) LLCF 1 Value add property Ability to invest across most property sectors and across the risk/return spectrum Strong alignment and synergies with Lend Lease s property creating platform Targeting launch of REP 3 in next financial year Continue to leverage Lend Lease s integrated property model Enhanced (13% 15%) Core plus (10% 12%) Core investment (8% 10%) Australia APPF Funds LLCPF REP 2 Property requiring activity management to realise value Mixture of assets with stable, secure cash flows and some assets with a tactical element i.e. core offshore assets or emerging asset classes4 Un-geared to moderately geared Institutional property Risk