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31 October 2007

Moorebank Property Trust Unitholders vote overwhelmingly in favour of asset divestment and termination of Trust

Westpac Funds Management Limited ("WFML"), the Responsible Entity of the Moorebank Property Trust ("MPT" or the "Trust") is pleased to advise that MPT Unitholders have today voted overwhelmingly in favour (96.34% of votes cast) of a proposal to divest the Trust's interest in its sole property, the Department of Defence National Storage and Distribution Centre located at Moorebank NSW, to a subsidiary of Stockland for an amount of $301 million.

Stockland, who also held 24.9% of units in the Trust, exercised their first right of refusal over the property after the Trust received an unsolicited conditional offer for the property from a third party. The Offer Price of $301 million is a 33% premium to the current book value.

The Trust purchased the property in a sale and leaseback tender from the Commonwealth of Australia in March 2003 for $190.1 million. The lease of the entire property to the Commonwealth expires in just over 5½ years although the Commonwealth has options for two further five year terms.

WFML's Head of Property Funds Management, Mr Keith Grayson said: "This is a very strong price which recognises not only the quality of the existing cashflow but also the future development potential of the site. The outcome has given our Unitholders a significant share of this future upside without exposure to the increased risk inherent in realising it".

The Final Distribution to Unitholders is forecast to be approximately $1.79 for each $1.00 unit invested which would result in a total return to Unitholders of approximately 19% p.a. over the life of the Trust. WFML intends to terminate the Trust and pay the Final Distribution in two instalments, the first in late December 2007, and the second in the middle of January 2008.