LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 01

IN THIS ISSUE:

1 / MANAGING DIRECTOR'S MESSAGE

2 / PARRAMATTA SQUARE APPROVAL

3 / KINGS SQUARE SOD TURNING

4 / ECLIPSE TOWER AWARD WINS

5 / ASHMORE TERRACES RELEASED

6 / MOONEE PONDS PURCHASE

7 / HAMILTON HARBOUR SUCCESS

MANAGING DIRECTOR'S MESSAGE

ISSUE 33 / NOVEMBER 2013

Artists impression.of 177 Pacific Highway, North Sydney

As 2013 draws to a close, I would like to reflect on what has been one of Leighton Properties’ most successful years of operation since our establishment in 1972.

Over the past two quarters, Leighton Properties has reached some significant milestones. We turned the first sods at our $1 billion Kings Square project in Perth and our $462 million 567 Collins St project in Melbourne. Our ICON Tower project in Ipswich opens this month; our Eclipse Tower project in Parramatta won three prestigious awards including Best Commercial Development at the Urban Taskforce Development Excellence Awards; we won the development rights for the first stage of Parramatta Square and we have announced North Sydney’s first new development in over 6 years, 177 Pacific Highway.

177 Pacific Highway will consolidate over 11 premises occupied by Leighton Group Operating Companies across Sydney into one 40,000 square metre A-grade building. The $400 million project represents the future of the Leighton Group and will embody our capacity as a developer that can provide an integrated ‘total property solution’.

It is also pleasing to announce that our Residential/Mixed-Use business has jointly acquired a 1.34 hectare development site in Moonee Ponds Victoria, with private equity firm Qualitas. With potential for over 800 apartments, public open space and convenience retail, the site will be an exciting opportunity to showcase Leighton Properties’ competency in developing large transport orientated, inner urban precincts.

With a growing pipeline of over 3,000 apartments, the business unit is now a major national player in medium-high density residential development.

In closing, the Leighton Group has been under the scrutiny of unbalanced media reporting in recent weeks. At Leighton Properties, our values (innovation, discipline, integrity, safety and success) remain at the centre of everything we do. Our stringent Code of Conduct guides our everyday ethical decision making and we stand as a unified team, dedicated to excellence in property development, delivering real value through our projects that improve the lives of those who work, live and recreate in the environments we create and the infrastructure we build.

I would like to thank all of our clients and stakeholders for their continuing support. In addition I’d like to particularly compliment the dedicated staff of Leighton Properties for their extraordinary effort over 2013.

As the festive season rapidly approaches I wish you compliments of the season and I look forward to another successful year ahead.

Mark Gray, Managing Director

LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 02

Leighton Properties won the development rights for the site in July 2013. The Lord Mayor of Parramatta, Cr John Chedid, said now that the project has been approved by the JRPP, the independent regional planning authority, construction could commence with the project targeting completion by late 2015.

“What an exciting time to be leading Parramatta. Approval of Stage One marks the birth of Parramatta Square and the realisation of a vision Council set out to achieve almost a decade ago,” Cr Chedid said.

“Parramatta Square is a $1.6 to $2 billion development, on three hectares of prime real estate at the centre of our rapidly expanding CBD."

“This development will provide the foundation for growth in this City and create a future city based on good urban design that is sustainable, has vast, vibrant, beautiful public spaces and an effective integrated public transport system. Once completed, Parramatta Square in its entirety will accommodate up to 13,000 workers."

“Stage One will offer 14 storeys and 25,000 square metres of office space that can accommodate about 2,000 workers,” Cr Chedid said.

Mark Gray, Managing Director of Leighton Properties, said “We are very pleased that this has been approved. It will be our fourth commercial building in Parramatta and on completion we believe it will set new benchmarks for the Parramatta CBD in terms of its architecture and sustainability initiatives."

“We are currently in the process of pre-leasing the office space and are experiencing very strong interest due to the building's high profile location, proximity to Parramatta Rail Interchange and its large floor plates. The design features a side core and central atrium which delivers on the key elements that businesses are now seeking in modern workplaces: efficiency, flexibility, connectivity and abundant natural light.”

“We have always had a strong belief in the evolution of the Parramatta CBD as both a desirable and growing commercial location. We see an ongoing need for quality, sustainable, A-grade office space for companies who are strategically choosing to base their operations in locations which are closer to their staff and provide more convenient transport options. The approval to progress this development is timely for these tenants given Parramatta’s already low vacancy and the current forecast that A-grade vacancy will reduce further to be at historically low levels” said Mr Gray.

FIRST PARRAMATTA SQUARE PROJECT GETS APPROVALTHE FIRST STAGE OF PARRAMATTA SQUARE, AT 169 MACQUARIE STREET, HAS BEEN GIVEN THE GREEN LIGHT AFTER THE JOINT REGIONAL PLANNING PANEL (JRPP) GRANTED APPROVAL FOR THE PROJECT’S DEVELOPMENT APPLICATION.

Artists impression.

LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 03

The KS4 tower is being developed as a joint venture between Leighton Properties and Seven Entertainment (a subsidiary of Seven Group Holdings) and will be built by Broad Construction Services (a 100 per cent subsidiary of Leighton Contractors). It is a continuation of the roll out of Seven Group Holdings’ master plan for Kings Square, a site which was once the home of the Perth Entertainment Centre and which Seven has owned or been a part of for nearly four decades.

Offering approximately 13,000 square metres of commercial office space over 10 levels, the $97.8 million tower will be the new home for Western Australia’s largest health insurer, HBF.

It is the only project in Perth’s CBD to have four towers under construction at the same time. Expected to be completed in early 2015, these towers will accommodate over 4,000 workers and create an exciting, modern and vibrant new link between the city and Northbridge.

Andrew Borger, National Head of Commercial at Leighton Properties, said the breaking of ground on the fourth tower at Kings Square signals another exciting stage in the development.

“The Kings Square masterplan is quickly coming together with the start of KS4,” he said.

“To have four towers under construction at once is truly ground breaking for Perth CBD and this achievement is testament to the outstanding calibre of the project. Many organisations are now looking at both productivity and efficiency gains to give their business a key competitive advantage and Kings Square delivers this – not only to one but a variety of users, from the technology to service sectors.”

“The project also demonstrates the Leighton Group’s collaborative approach and shows our capabilities in planning and delivering key projects in WA.”

“We are playing a vital role in the revitalisation of the Perth city centre and creating many new jobs for West Australians," Mr Borger said.

KINGS SQUARE SOD TURNINGPerth’s landmark Kings Square development reaches another milestone with a sod turning ceremony on 10 September 2013 officiated by the Hon. John Day, WA Minister for Planning, to mark the start of work on the fourth tower – KS4.

Peter Moore, Broad Construction Services General Manager - Building WA, said “Broad is proud to be delivering two of the buildings within this prime Perth CBD location for Leighton Properties. We look forward to enhancing our relationships with all involved in the project, delivering to high standards of safety and quality, and building on our reputation as a key contractor in West Australia.”

Rob Bransby, HBF Managing Director, said “The sod turning for KS4 takes us one step closer to being part of this exciting new precinct in the city of Perth. We’re looking forward to having a home that really helps us to serve our members as their health partner.”

Don Voelte, Seven Group Holdings Managing Director and Chief Executive Officer, said “Seven has a long commitment to this precinct. For more than four decades, Seven has been linked to what is now Kings Square, and we are delighted to be involved in a development that will not only change the Perth skyline but play a key role in the city’s future.”

Kings Square is part of the $5.2 billion Perth City Link project initiated by the State Government.

Construction on towers KS1, KS2 and KS3 commenced in June 2013 and will house major tenants including Shell and John Holland upon completion.

PICTURED FROM LEFT TO RIGHT: PETER MOORE (GM BUILDING – WA, BROAD); ROB BRANSBY (CEO, HBF); THE HON. JOHN DAY (WA MINISTER FOR PLANNING); ANDREW BORGER (NATIONAL HEAD OF COMMERCIAL, LPPL); STEVE WISE (DIRECTOR, PREMIER CAPITAL DEVELOPMENTS – FOR SEVEN GROUP HOLDINGS)

LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 04

ECLIPSE TOWER: TRIPLE AWARD WINNER

Eclipse Tower has quickly become a standout Parramatta CBD landmark.

The A-grade building features 19 levels of office space; boasts a 5 Star Green Star v2 rating from the Green Building Council of Australia; and is on target to achieve a 5 Star rating from the National Australian Built Environment Rating System.

Eclipse Tower features a total of 25,660 square metres worth of net lettable area, including 550 square metres of high amenity retail on the ground floor and 145 car spaces.

Major anchor tenants such as Deloitte Australia, QBE Insurance and Landcom have been attracted to the building due to its large versatile floor plates of 1,320 square metres that promote modern, open plan workplace design.

ECLIPSE TOWER IN PARRAMATTA HAS WON THREE PRESTIGIOUS AWARDS FROM THE URBAN TASKFORCE, THE UDIA AND THE MASTER BUILDERS ASSOCIATION. COMPLETED BY JOHN HOLLAND, THE ICONIC TOWER WAS SOLD FOR $167.5 MILLION IN LATE 2012.

High quality end-of-trip facilities including 193 bicycle racks and a location next to a major transport node encourages easy and environmentally friendly travel to work.

Since its completion in July 2012, Eclipse Tower has achieved three prestigious awards from prominent industry bodies.

Earlier this year at the 2013 Urban Taskforce Development Excellence Awards, Eclipse Tower was awarded Best Commercial Development, as well as receiving a High Commendation in the Commercial and Retail category at the 2013 UDIA NSW Awards for Excellence.

More recently Eclipse Tower achieved its 3rd prestigious award winning the 'Best Commercial Building - $50,000,001' at the 2013 MBA Excellence in Construction Awards held at the Sydney Convention Centre.

ECLIPSE TOWER UDIA JUDGES' COMMENTS

"Eclipse Tower has lifted the architectural bar in Parramatta.

From the lobby designed around destination lifts to the curved facade maximising views - this building exhibits the quality design required under new Parramatta Council codes.

It was positive to see key tenants had input into the building's final construction, proving this type of collaborative approach can lead to a highly desirable end product."

LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 05

Situated just minutes from Erskineville village, the three storey Ashmore Terraces will be built on the northern boundary of the 1.6 ha Erko development.

While paying homage to the area’s traditional architecture, a trio of award-winning architectural firms have designed a contemporary fine-grained terrace row offering expansive living and luxurious appointments. With an expressive street presence, the 185sqm homes have three large bedrooms, a flexible rumpus room, leafy district views, northerly aspect and off street parking – all in the heart of Erskineville village.

Mark Gray, Managing Director of Leighton Properties, said Ashmore Terraces are a distinctive offering. Priced from $1.575 million, they are a rare opportunity to secure a new terrace in Erskineville.

“We engaged SJB, Prineas and TRIBE Studio to take the finest features of a Victorian terrace, modernise them, and then integrate principles of thoughtful, sustainable design,” said Mr Gray. “Erskineville is synonymous with terrace living and we’re sure our 16 will be well received, particularly by owner occupiers.”

Each terrace will capitalise on the site’s northerly aspect with natural cross-flow ventilation, reducing the need for artificial heating and cooling, and saving on energy costs.

Leighton Properties and LaSalle Investment Management have released for sale the next stage of their $230 million residential development in Erskineville - 16 north facing Torrens Title terrace houses with off-street parking.ASH

MORE TERRACES

RELEASED AT ERKO

Hannah Tribe of TRIBE Studio said it was rare to be able to enhance a streetscape from scratch. “Most of the time we are working within the confines of an existing building, however this was an opportunity to design a classic architectural style with modern living in mind.”

SJB Interiors designed the internal living space, balancing luxury and practicality. Premium fixtures by Miele, marble ensuites with freestanding baths and large stone benchtops in kitchens are complemented by generous storage, low maintenance finishes and the ease of open plan living.

Tim Rees from selling agent CBRE describes the Ashmore Terraces as “a modern take on a much loved architectural style.”

“The beauty of these terraces is that they are brand new. You are not buying a property in need of repair nor suffering from maintenance issues which is practically unheard of in a suburb so close to the city, especially one like Erskineville which is in such high demand,” Mr Rees said.

“A brand new terrace with off street parking, 300m from Erskineville village and less than 5kms from the CBD – it doesn’t get much better than this.”

Vertical green wall is for display purposes only and not included as part of the development.

LEIGHTON PROPERTIES, IN JOINT VENTURE WITH REAL ESTATE PRIVATE EQUITY FIRM QUALITAS, HAS PURCHASED A 1.34 HA SITE IN MOONEE PONDS TOWN CENTRE FROM READING INTERNATIONAL FOR $23 MILLION. THE SITE WILL BE TRANSFORMED INTO A LANDMARK, MASTER PLANNED COMMUNITY, WHICH HAS THE POTENTIAL TO PROVIDE OVER 800 APARTMENTS AND 2,000SQM OF ANCILLARY RETAIL, WITH AN END VALUE OF AROUND $450 MILLION.

Mark Gray, Managing Director of Leighton Properties, said “The future development of this unique site with six street frontages in the heart of Moonee Ponds established and thriving town centre will be the first master planned development in the area and is set to become a landmark precinct”.

“The purchase of this site is consistent with Leighton Properties' strategy to focus on inner ring urban renewal sites which are in prime locations, close to transport links, retail and places of work. The Moonee Ponds site is a great example of a transport orientated development, being immediately adjacent to rail, tram and bus links, coupled with a strong retail precinct built around the Moonee Ponds Central Shopping Centre and the prestigious Puckle Street, which retains a strong village atmosphere and thriving patronage.

“We expect a strong underlying demand from locals as there has been a significant undersupply of quality apartments in master planned developments within the Moonee Ponds area. Leighton Properties is committed to providing quality, integrated, mixed use communities and we believe this development will help satisfy some of this pent-up demand without impacting on Moonee Ponds village feel” said Mr Gray.

“Coming off the success of our WRAP project in Southbank, we are pleased to again be partnering with Qualitas. The project will offer a strong point of difference from those in surrounding suburbs with stunning, open north facing district views and south eastern views back to the CBD. The site has already been identified by Moonee Valley Council for high density residential development and we hope to submit a Planning Application in 2014” said Mr Gray.

LEIGHTON PROPERTIES NEWS NOVEMBER 2013 / PAGE 06

The penthouses – totalling more than $5 million – were sold at Riverside Hamilton, the third residential tower delivered by Leighton Properties and Devine in the $500 million mixed-use development.

The three bedroom penthouse and three two-bedroom penthouses, all with city and river views, were purchased by South East Queensland based residents looking to make the popular precinct their new home.

According to John Campbell, Senior Development Manager at Leighton Properties, the majority of recent sales have been to owner occupiers from the local area, Brisbane’s outer suburbs or greater South East Queensland.

“Many are leaving homes for the first time and looking to capitalise on the prestigious lifestyle that Hamilton has on offer."

“The precinct’s surrounding amenity has been a big draw card, with the Brisbane River, public transport and a wide selection of restaurants and cafes within a short walk," said Mr Campbell.

Hamilton Harbour’s retail and dining precinct – at the base of the residential towers – opened in May 2013 and offers fresh food, restaurant cuisine and lifestyle retailers.

“Also on their way are Brisbane’s second Enjoy Inn Chinese restaurant and a medical practice, providing additional amenity to residents and the local community," said Mr Campbell.

Riverside Hamilton is the third residential tower in the Hamilton Harbour mixed-used development.

HAMILTON HARBOUR SUCCESSFour of Brisbane's most prestigious apartments have sold in just eight weeks at the award-winning Hamilton Harbour.

NEW RESIDENTIAL PROJECT IN VICTORIA