Joint ASX Release dated 9 June 2004

Joint ASX Release dated 9 June 2004

MGI and MGM Macquarie Goodman’s stake in $1 billion business park

Macquarie Goodman today announced its intention to acquire a major shareholding in Highbrook Development Limited (“Highbrook”), which owns 153 hectares of land on Auckland’s Waiouru Peninsula in East Tamaki. This property is known as Highbrook Business Park and will be developed into a $1 billion world-class business park.

MGI will acquire a 37.5% interest in Highbrook for NZ$34.2 million (A$29.8 million), to be paid in three installments over two years. MGM will also acquire a 37.5% for NZ$34.2 million (A$29.8 million), on the same terms and conditions as MGI. The remaining 25.0% balance will be retained by trusts associated with the Estate of Sir Woolf Fisher and Noel Robinson, Chairman of Highbrook.

Greg Goodman, Chief Executive Officer of MGM, said “MGM’s stake in Highbrook Business Park supports and ensures the strategic availability of prime industrial land in New Zealand for our listed property trusts over the next decade.”

Mr Goodman added “The investment involves one of the largest and most strategic business land holdings in New Zealand. Our development pipeline within the Auckland market is set to support our customers over the long term with major developments at The Gate Industry Park, Penrose, Savill Link, Otahuhu and now Highbrook Business Park.”

John Dakin, Chief Executive Officer of Macquarie Goodman (NZ) Limited (“MGNZ”), said “The board of MGNZ, the manager of Macquarie Goodman Property Trust, has decided not to take an initial stake in Highbrook as it would increase our development weighting to an undesirable level at this time. However, we foresee involvement in the medium term to support and enhance our portfolio as it grows.”

As project and development manager, MGM has access to a “ready to go” development opportunity with resource consents in place and significant intellectual capital built around the project over the past 15 years. Work on the first stage is scheduled to commence this summer.

Commenting on the transaction, Noel Robinson, Chairman of Highbrook, said “Macquarie Goodman’s involvement will enable Highbrook to complete its vision of creating one of the leading business parks in the Australasian region.”

He added, “Highbrook is a long-term, billion dollar project and we needed additional capital and the support of a high calibre company to make it happen. Macquarie Goodman was selected from a number of potential partners as they share our objective of creating a premium business township of international standing. They will work with our project team to ensure this happens.

“Macquarie Goodman will bring significant added value to the project through its international connections. They have very strong business customers in New Zealand, Australia and Singapore which, coupled with the international quality of Highbrook Business Park, will be important in attracting precommitments for the development.”

To date, Highbrook has invested approximately $15 million on detailed urban and landscape planning and design and the necessary consents to enable work to commence on Highbrook Business Park. (An indicative master plan is attached).

Highbrook has also established a Charitable Trust with Manukau City Council to own and administer 60 hectares of land at the southern end of the peninsula, which it has vested with council as a public reserve.

World renowned American designer Peter Walker worked for two years on the design and concepts for Highbrook Business Park, which in 2003 won the American Society of Landscape Architects award for design and planning.

Highbrook Business Park is planned to be developed in 10 stages, with approximately 107 hectares of land being utilised for business accommodation and the balance largely being public open space including access to around 12 kilometres of adjoining coastline.

It has the capacity to have approximately 550,000 sqm of commercial and light industrial buildings and, on completion, is estimated to be the workplace for between 9,000 and 12,000 people.

Mr Goodman concluded “The supply of vacant commercial and industrial land in Auckland, particularly single large holdings such as Highbrook Business Park, is diminishing. The overall scale of Highbrook, the flexibility of lot sizes and land uses which can be offered is expected to create its own market momentum. The rate of land take-up is forecast to accelerate as these features support an increasing market trend for both owner occupiers and customers who demand larger premises.”

David Bayley of Bayleys Real Estate and John Cameron of Jones Lang LaSalle assisted in the co-ordination of transaction. Mr Bayley, said “With a land value of just under $100 million, this is the largest single commercial land transaction in New Zealand’s history. This reflects the outstanding effort and design that has been undertaken on this project to date.” MGI and MGM will fund the transaction through available cash and debt facilities. The transaction is subject to consent by the Overseas Investment Commission and the satisfaction of any other statutory requirements.

ENDS

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