Media Release

LANDMARK WHITE INVEST RELEASES DIVERSIFIED
PROPERTY FUND

Fund targets opportunities opening up in Australian commercial
property markets

8 October, 2008

LandMark White Invest today released details of its new investment offering –
The LMWI Diversified Property Fund.

LMW Invest is part of the LandMark White group, which is one of Australia’s
largest and most highly skilled independent valuation and property consultancy
groups.
LMW Invest Executive Director, Funds Management, Michael Este, said the
Fund would seek to capitalise on the opportunities currently opening up in
commercial property investment markets. “We are in a strong position to take full
advantage of current market opportunities.” he said. “While it is true that no-one
rings a bell at the bottom of the market, it is certainly at a low point. As a result,
we believe the pricing of securities in the unlisted property market will soon
present some attractive investment opportunities.”

Mr Este said through a selected portfolio of property investments, the Fund aims
to generate traditional property returns, of income plus capital growth. “Through
the appointment of select underlying fund managers, the Fund aims to build a
solidly performing diversified property securities portfolio,” he said.

“The Fund carries a target investment mix of Australian listed property (30 per
cent), International listed property (25 per cent), Australian unlisted property (40
per cent) and cash (5 per cent). The investment mix allows access to a range of
domestic and international assets that may not be available to many individual
investors. “

The LMW Invest Fund is run by an internal management team and investment
committee with extensive and proven backgrounds in funds management and
property. “The LandMark White group offers the Fund a foundation of excellence
in research and a sound understanding of the property markets, coupled with
experienced funds management professionals.” Mr Este said

The Fund can be accessed directly through LMW Invest, financial advisors and
will soon also be available through platforms. Initial minimum investment is
$1,000. A savings plan from as little as $100 per month is also available.

LMW Sydney CBD Office Forecast predicts 10% vacancies by 2012
LandMark White also today released its annual Sydney CBD Office Market
Forecast. The Sydney office market is in many ways a signifier for the state of – not
just property investment markets – but the Australian economy as a whole. The
Forecast provides investors with a comprehensive evaluation of the state of the market.

LMW Group National Research Director, Vanessa Rader said uncertainty
surrounding financial markets and the economy has been further exacerbated by
the one per cent interest rate cut. “Yesterday’s rate cut sees forecasts for the
state of the economy and employment quickly become out of date. However,
looking at the NAB Business Confidence Index, we can see that confidence is
down and this is a good indicator on the way ahead.”

“Over the past two years, the Sydney CBD has been performing well, with falling
vacancies resulting in growing rents,” she said. “This growth in demand has
come in a time of reducing supply. The total stock level of the CBD has been
reducing and increases in demand have resulted in vacancies falling rapidly to
the current level of 4.3 per cent, from a low of 3.7 per cent in January 2008. “
“Looking forward, while there is little supply due to enter the market over the next
two years, demand is limited. This will ensure vacancies remain static, averaging
around 4.4 per cent,” Ms Rader said. “Beyond this period, vacancy levels are
expected to increase rapidly as supply re-enters the market and new projects
come out of the ground in a time when employment related demand is expected
to weaken. Our forecast shows vacancy levels are expected to reach 10 per
cent by July 2012.”

The Forecast stated that net face rental growth has peaked in 2008 at 8.8 per
cent. LMW expects face rents to remain strong for the remainder of 2008 and
into 2009, averaging 5.63 per cent per annum. This growth to some extent will
come from mandatory escalations of around five per cent in leases entered into
in the 2007 period.

“However, if employment demand wanes, greater supply and sub-lease space
will become a feature in this market. This will result in rental growth lessening
and net effective rents falling as greater levels of incentives will return. There is
a likely to be a lag in this affecting the market, so the impact should not be felt
until after 2010,” Ms Rader said.

“On the investment side, there has been very little turnover in the past two years.
We have been in a market with limited supply of investment grade stock and
many purchasers, which has pushed yields down,” Ms Rader said. “Few
transactions have occurred over the last year as the ability to secure finance has
fallen. This is causing high levels of uncertainty, resulting in yields moving
upward by approximately 50 basis points.”

“Looking ahead over the next two years, we believe yields have at least another
50 basis points to increase as more property enters the market and the pool of
purchasers diminishes. Savvy, cash-rich investors are in no hurry to purchase,
resulting in a drawn out process of slowly upward moving yields.”

Ms Rader said the forecast conditions reinforced the need for property investors
to focus on sound fundamentals. “Properties that are prime in nature, location
and tenant profile will weather the storm the best, with limited upward yield
movement. Secondary product or those properties without a good tenancy
profile, that are not well located, will be hardest hit. As the yield range widens,
those properties will remain on the market for a long period as investors are
unlikely to move with any urgency.”

ENDS

FOR FURTHER INFORMATION PLEASE CONTACT CHRISTINE HARRIS, FINANCIAL
MEDIA CONNECTIONS 0414 621163.