Colonial First State Property Trust Transactions

Colonial First State Property Trust Transactions Unconditional

Auckland (Thursday, December 18) – Colonial First State Property (NZ) Limited (CFSP), manager of the Colonial First State Property Trust (the Trust) announced today that conditions relating to arrangements for the Trust to have a new cornerstone unitholder and manager have been met.

CFSP said today that the institutional book build process in relation to Sovereign's (and other related companies) sale of up to 48,220,900 (33%) units in the Trust was successfully completed last evening, with the bid book significantly oversubscribed.

Of the total units available 43,870,900 were placed with institutions and other habitual investors at a price of NZ$0.94 per unit. Pursuant to a right it had in the underwriting agreement, Sovereign elected to retain 4,350,000 units (3%) in the Trust.

The remaining key conditions have also been satisfied. The Overseas Investment Commission (OIC) has approved the transfer of the management company for the Trust to Macquarie Goodman Management Limited (MGM). Consents from the Trust’s financiers have also been received. The conditions in relation to the sale of Sovereign’s 20% holding to MGM have therefore also been met.

Settlement of all aspects of the transaction, including the placement, are scheduled to occur on Tuesday, 23 December 2003.

Geoff McWilliam, Chairman of CFSP and Executive General Manager of Colonial First State Property Group, said that the successful placement indicated a good level of support for the move.

As previously noted, the transaction achieves a number of goals for the Trust and its investors including increasing liquidity, greater diversity of assets going forward and continuing management by a leading property fund management organisation.

Further Information:

John Dakin Colonial First State Property Tel: 09 357 9327 Mobile: 021 321 541 Email: john.dakin@colonialfirststate.co.nz

About Colonial First State Property Trust

The Colonial First State Property Trust is a unit trust listed on the New Zealand Exchange. The Trust listed on the NZX on June 3, 1999. The Trust’s investment strategy has been to invest in a portfolio of good quality, well-tenanted properties with a bias toward suburban office accommodation. As of September 30 2003 the Trust had 13 properties with a total portfolio value of $216 million.

About Colonial First State Property

Colonial First State Property Group is an integrated property services business combining specialist operations in property funds management and corporate real estate.

Part of the Colonial First State Group, a wholly owned subsidiary of the Commonwealth Bank of Australia, Colonial First State Property Group has operations in both Australia and New Zealand.

With combined assets under management in excess of A$15 billion, Colonial First State Property Group combines the talents and expertise of in excess of 200 people, creating one of the largest and most innovative teams of property and funds management professionals in Australasia.

About Macquarie Goodman Management Ltd.

Macquarie Goodman Management is an integrated property company listed on the Australian Stock Exchange. When it assumes management of the Trust, it will have $4.3 billion in funds under management. It specialises in the delivery and management of approximately 140 warehouse/distribution centres, industrial estates, business parks and office parks, located throughout Australasia. Its managed funds include the Ascendas Real Estate Investment Trust , which is listed on the Singapore Exchange (S$694 million) and Macquarie Goodman Industrial Trust , which is listed on the Australian Stock Exchange (A$3.5 billion).

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