Goodman European Logistics Fund Announces Acquisition of pan-European Property Assets from Kuehne + Nagel

Goodman’s European Logistics Fund (‘GELF’) and Kuehne + Nagel, a leading global logistics provider have entered into a sale and lease-back agreement for 22 warehouse locations. The total transaction value amounts to approximately € 220 million with an average lease-back period of five years. The mutually beneficial agreement allows GELF to enlarge its portfolio with assets at locations that are complementary to its existing stock, while Kuehne + Nagel is able to streamline its freehold portfolio in line with its global corporate real estate strategy.

Together with the 22 properties, GELF has also acquired 18.8 ha of undeveloped land reserves. The combined portfolio is spread over five European countries with ten assets in Germany, nine in France, and one in Spain, Belgium and Austria, respectively. The assets cover approximately 430,000 sqm of warehouse space.

"This transaction is part of a portfolio asset management process which includes a continuous optimisation and restructuring," said Martin Holub, Senior Vice President Real Estate, Kuehne + Nagel Management AG. "In regard to developing a successful and sustainable business partnership with Goodman, this sale and lease-back portfolio project is an important step, not the least for our growing contract logistics business."

For Goodman, the acquisition represents the second largest transaction in the Fund's history and a significant increase in assets under management, now standing at € 1.4 billion. The Fund now comprises circa 2 million sqm of warehouse space and covers ten countries.

The acquisition fits Goodman's integrated own-develop-manage business model and the strategy it has for the Fund. Peter Davies, Director Logistics Funds for Goodman in Europe said: "This transaction provides us with a large number of assets in good locations such as the greater Berlin area as well as the Lyon, Ile de France and Madrid hubs. In addition, the excess land and some of the older properties will provide the Fund with enhanced returns as they are developed or refurbished. The completion of this acquisition means that the Fund's size since its launch in December 2006 has more than quadrupled."

CBRE acted as the advisor for this transaction, which is subject to various conditions precedent. The transaction is expected to be closed in the second quarter of 2008.

About Goodman Group (ASX: GMG)

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe and the United Kingdom. Goodman Group, comprised of the stapled entities Goodman International Limited and Goodman Industrial Trust, has a market capitalisation of approximately € 5.1 billion (approximately A$ 8.4 billion – as at 31 December 2007), making it the largest industrial property group listed on Australian Stock Exchange and the second largest listed specialist fund manager of industrial and business park assets globally.Goodman’s integrated own-develop-manage customer service philosophy ensures its customers receive an end-to-end solution to their property requirements. With more than 1,300 staff and 35 offices in 21 countries, Goodman has the global reach to meet customers’ needs as their businesses expand or evolve. In Europe, Goodman has offices in the UK, Germany, the Netherlands, Belgium, Luxembourg, France, Spain, Italy, Poland, Czech Republic, Hungary and Turkey. Please visit: www.goodman.com