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Annual Report 2011

Investing in property to grow your super

1

Investing in property to grow your super

ISPT has created one of Australia’s largest unlisted property funds through prudent management and investment strategies. With our investment track record, ISPT is considered one of Australia’s leading property fund managers.

Originally founded in 1994 as an unlisted property trust by four leading industry superannuation funds, ISPT has grown to be owned by 23 superannuation funds creating true alignment of investor and manager interests.

ISPT invests the retirement savings of more than 40% of Australian workers in property and is unique by returning all profits to those workers through our industry fund owners.

Our Returns

Total return FY2010/11 a!er fees

%

Three year total return

a!er fees p.a. %

Since inception total return

a!er fees p.a. %4

Total assets at 30 June 2011

$million

ISPT Core Fund 9.1 (0.3) 9.11 5,898.3

ISPT 50 Lonsdale Street Property Trust 14.9 6.1 15.11 395.3

ISPT Development and Opportunities Fund No.1 n/a n/a 16.32 170.3

ISPT Development and Opportunities Fund No.2 n/a n/a 8.12 294.1

ISPT Grosvenor International Property Trust 2.6 (17.1)3 (6.3)3 276.2

TOTAL ASSETS UNDER MANAGEMENT !",#$%.& million

1. Includes development profits.2. The return quoted is Internal Rate of Return since inception p.a. (net of fees and before tax)3. Returns are currency unhedged for the period from the Fund inception to 31 May 2007. The Fund has been currency hedged

from 1 June 2007.4. Core Fund inception 31 August 1994; 50 Lonsdale Street inception 31 March 2006; DOF 1 inception 26 October 2006;

DOF 2 inception 19 December 2008; IGIPT inception 30 November 2004.Note: Unless otherwise indicated, all monetary amounts referred to in this Annual Report are stated in Australian Dollars.

Contents

Chairman’s Report 2

Chief Executive O"cer’s Report 4

Audit and Compliance Report 8

Corporate Governance 10

Our Directors and CEO 12

Our Sta# 14

Our Property Managers 18

Responsible Investing 21

Connecting With Our Community 24

Our Property Funds 26

ISPT Core Fund 27

ISPT 50 Lonsdale Street Property Trust 59

ISPT Development and Opportunities Fund No.1 65

ISPT Development and Opportunities Fund No.2 73

ISPT Grosvenor International Property Trust 81

Property Index 93

Our investors

2 ISPT Annual Report 2011 3

Chairman’s Report

Few commentators have failed to notice the extent of downside risks facing the global economy and by extension Australian economic conditions. Sovereign debt concerns in Europe, patchy employment and housing data in the United States, growing inflation concerns in China are all, justifiably, big concerns not just to policy makers but also investment managers. In Australia the run-off of government stimulus and continuing reliance on high commodity prices must be balanced against the pressures of high asset prices and a high Australian dollar, and the pressures each impose on our retail and manufacturing sectors.

In property, while there is evidence of some declining valuations and volatility, the last year has seen a continuation of a relatively stable, low growth trajectory for asset values at the quality end of the market.

ISPT’s fund performance over the year has been strong. The quality of the assets as well as prudent, disciplined fund and asset management resulted in positive returns on a risk adjusted basis.

The flagship ISPT Core Fund net return was 9.1%, slightly below the Mercer/IPD APPF Index of 9.8% after substantial outperformance in the prior year.

This result is in line with the Core Fund three year strategic plan which commenced May 2010 and is comparable with our CPI + 6% benchmark of 9.6%. A cornerstone of the plan was seeking to raise $500 million from existing investors through a combination of new equity commitments and the Distribution Reinvestment Plan (DRP). I am pleased to report the capital raising was exceptionally well supported with total subscriptions of $298 million (49% oversubscription) over the nominated $200 million new capital sought. DRP has also been well supported with the reinvestment of $295 million (91% of distributable income) over the year.

This level of support from our investors has allowed the fund to maintain its conservative gearing and also to fund our extensive capital and development expenditure program. The redevelopment of Wintergarden, Brisbane, 2 and 4 National Circuit, Canberra and refurbishment of Casselden Place, Melbourne are major components of the Core Fund's

$145 million development work in progress. We are also delighted with the Core Fund acquisition of 25% of Westfield Doncaster Shopping Centre, our first Super Regional Shopping Centre.

The ISPT 50 Lonsdale Street Property Trust was ranked first in the Mercer/IPD APPF Index for the second consecutive year achieving a net total return of 14.9%.

The ISPT Development and Opportunities Funds - DOF 1 and DOF 2 have again recorded strong performance. The DOF funds continue to follow our disciplined investment process in the face of challenging market conditions. During the year, 11 of the 13 development projects in the funds delivered, or are forecast to deliver, above the 15% IRR target. Residential development acquisitions during the year included joint ventures at Metro Residences, Chatswood and NorthOne, Subiaco and residential rezoning was achieved at Truganina after a protracted planning process.

The progressive exit from our international property exposure through ISPT Grosvenor International Property Trust continued. The fund assets will continue to be gradually sold over the next 12 to 24 months with equity returned to investors. Over the year the fund's net return was 2.6% with $25 million of hedging capital returned to investors.

ISPT's relevance to its investors must continue to develop and grow. The Board is continuing to apply a strategic focus on fund performance and further product development to widen and diversify the appeal of our property investment vehicles as our investors needs become greater and potentially more specialised.

ISPT BoardThere have been a number of changes to the ISPT Board during the year. Most notably Ms Elana Rubin, our Deputy Chair resigned after 13 years on the ISPT Board. Elana's contribution to ISPT over a period of massive growth in our funds and continuing evolution in our business has been enormous. On behalf of the Board and the management team at ISPT, I would like to thank Elana for her service to ISPT and its investors.

Mr Brian Daley has been elected by the Board as replacement Deputy Chair to replace Ms Rubin. Mr Daley's term as a Group Member Director expired on 30 June 2011 and he was subsequently nominated by AustralianSuper to occupy the vacant investor appointed Board position.

The term of Independent Director Mr Brian Baker expired at 30 June 2011. Brian was first appointed to the Board of ISPT as an Independent Director in 2002. Brian's deep commercial and property knowledge and understanding of the markets in which we operate has been invaluable to the Board and the evolution of ISPT as a market leading property fund manager and I thank him on behalf of the Board for his contribution over a long period.

I am pleased to welcome Ms Rosemary Hartnett who has joined the Board as an Independent Director commencing July 2011.

The Board committees, Audit and Compliance, Environmental Sustainability, Remuneration and Nominations again played an important role in the governance of the business.

The Audit and Compliance Committee, under the leadership of Mr Michael Barker, has continued the oversight of ISPT’s financial accounts, processes and procedures and worked with our internal auditor, Deloitte.

The Nominations Committee has undertaken due process for a number of Board appointments during the year. These include the Independent Director search and preparation for the Group Member director election.

Mr John Sutton continued as Chair of the Environmental Sustainability Committee with Mr Brian Daley and Mr John Livanas as members.

Environmental sustainability and governanceISPT’s Board and Management are committed to owning an environmentally sustainable portfolio and operating the portfolio in a way which minimises our environmental impact, conserves resources and mitigates climate change.

An issue facing the property sector is the planned introduction of a carbon tax. ISPT believes the impact of the carbon tax on our existing property portfolio should be minimal. We are however conscious of the potential effect the carbon tax may have to construction costs, electricity pricing and CPI.

ISPT appreciates the continued strong support of our investors. The debate regarding corporate governance standards in particular, transparency, managing conflicts of interest and improving alignment between investors and managers continues to grow. ISPT’s ‘investor owned and aligned model’ is widely regarded as a benchmark in corporate governance. First and foremost, ISPT’s objective is to provide superior risk adjusted property returns to our investors.

Our ‘cost recovery’ model is therefore driven by investing to create value and not by simply growing the asset base.

The Board ensures it keeps abreast of all structural and major operational issues affecting the business and we keenly debate key issues with Management. This will continue as we concentrate on ensuring the relevance of the business platform to deliver superior property investment value to both the investor and owner constituencies. It is our view in partnership we can meet the current challenges in both property markets and the rapidly evolving superannuation industry.

Issues facing superannuation and propertyIn recent times, several superannuation funds have been involved in consolidations and this trend is expected to continue with the benefits of larger-scale operations, greater economies of scale, efficiency and a stronger overall market position. The consolidation in the Australian superannuation industry is a result of both Government policy initiatives and market forces. At ISPT, we are mindful to treat all our investors regardless of size, in a fair and equitable manner through our governance, ownership and our Board structure. In addition, we monitor the effect of consolidation on the Funds' tax status. In the coming period, the Government's response to the Cooper Review of Superannuation will be finalised. ISPT expects the outworkings and the Review will have impacts on product, definition and investment strategy for our investors.

Our peopleOur results this year are a direct reflection of the focused and dedicated effort of our 80 strong team of experienced and talented professionals. Their expertise includes development, property and fund management, engineering, property analysis and valuation, leasing, legal and compliance, IT investment, finance and administration. In addition to continued development of our people, the business continues to develop and invest in the operating platform strengthening leasing, IT and sustainability. Leadership of the business is driven by our CEO Daryl Browning whose experience and expertise is critical to our success. On behalf of the Board and investors, I would like to thank the team for their substantial contributions during the year.

The business has two key assets, our investors and our employees; they are the foundation of our long term value proposition.

James Cain Chairman

Against a background of subdued economic recovery and continuing volatility, ISPT’s performance over the year is in line with our long term benchmarks. This reflects both the relatively stable nature of property as an investment asset class and the care and effort over the last several years to shape our funds to achieve steady growth over the long term.


Our objective is to be the best performing wholesale property fund manager in Australia and be the first choice in property for superannuation funds.

The severity of the global economic downturn has resulted in the global road to recovery stretching and the momentum waning. The Australian economy is relatively robust, with exports and capital markets not as weak as previously forecast. The global economy has further deteriorated with additional stimulus required in the USA and the sovereign debt crisis in the Euro-zone area becoming treacherous. Consistent positive growth in the Australian economy and property market and uncertain prospects for the global economy continues the challenging property investment outlook.

Australian property investment markets saw stable transaction volume during the year signaling domestic investor confidence has returned. International investors remain committed to the 'flight to quality' investment mantra chasing secure income in deep, liquid and transparent markets such as Australia. We expect substantial sovereign and institutional equity to continue in spite of the strong Australian Dollar which may create a danger of pricing getting ahead of fundamentals. The previously predicted refinancing crisis has not eventuated. Some of the troubled funds and assets are starting to be marketed, however many attractive assets are embedded in complex financial structures which make it difficult for these assets to transact.

Property risk has been repriced and return premiums are now reverting to long term averages with both investment and leasing markets being cyclical and responding differently to macro-economic trends. Property values remain below the peaks of late 2007 due to easing capitalisation rates, reduced rental growth outlook and increased vacancy levels in some markets.

Looking ahead, real estate characteristics of high cash yields, low correlations with stocks and bonds and a hedge against inflation should continue to appeal as an asset class particularly given the high incidence of fixed or CPI linked rental increases.

The office markets have remained relatively attractive predominately due to limited supply coming to market as a result of tight debt and equity conditions during and following the GFC. On the demand side, leasing interest has been relatively steady although decision making is slow particularly from international groups.

The retail environment is undergoing fundamental change through evolving consumer behaviour and the rise of the internet. While this poses challenges in the retail sector, the uncertainty creates an opportunity to evolve asset management and development opportunities within our retail strategy mindful of the effect on performance and portfolio construction. We believe retailers will continue to develop a multi-channel approach combining online and physical retailing via bricks and mortar.

Unfortunately this year was a year of natural disasters. The floods in Queensland, New South Wales and Victoria, Cyclone Yasi in North Queensland and the West Australian bush fires have been devastating. We undertook all possible actions to minimise the damage to our property portfolio and are able to report no properties were materially affected. On behalf of the Board, Senior Management and our investors, I would like to thank the tireless efforts of both ISPT staff and the property management teams whom managed to protect our properties and attend to our tenants' needs.

We are cognisant of the important issues for our investors such as Cooper Review, manager fees and ESG and continue to evolve the business to best meet our investors' changing needs. Investor requirements of placing capital in the property asset class must be astutely managed in terms of the dilutive effect of acquisitions on fund performance, managing equity inflows, managing debt profile and competitively sourcing quality investment opportunities.

The ISPT business and its Funds are well positioned with a quality investment and development property portfolio. The low gearing, strong investor base and access to capital are our competitive advantages allowing continued but controlled growth for the future.

Chief Executive O"cer’s Report

The portfolios include high quality investment and development properties across a diverse range of property sectors and locations. The Core Fund portfolio has security of income from Government and corporate tenants and is continuously improving its environmental footprint. During the year, we have committed to several office and retail refurbishments to increase value, improve tenant occupation and further income proof the portfolio. The Development and Opportunities Funds continue to source transactions on and off market in their own right and with selected joint venture partners.

Gearing levels of the Core Fund and 50 Lonsdale Street are conservative by industry standards. We have actively chosen a low risk debt strategy and are regarded as a high quality borrower by all of the major Australian banks. We continuously monitor the balance sheet and financial performance of all our funds to ensure our capital and risk is allocated appropriately.

The ISPT teamOur team has increased to 83 with the addition of Perth representation during 2011 to complement our Sydney, Brisbane and Melbourne offices. Staff turnover remains well below industry benchmarks, which we see as a competitive advantage for our business. ISPT continues to invest in the training and development of all staff across both technical and personal skills.

ISPT is proud of our diverse staff base with 50% female representation. The Board and Senior Management are committed to encouraging women to senior positions within the business and ISPT has expanded the executive to include three women in development, operations and legal.

Our fundsTotal funds under management increased 9% during the financial year to $7 billion due to valuation uplifts and acquisitions in our Australian funds.

The Core Fund had another positive year delivering a solid return of 9.1% after fees for the financial year 2011. Assets have increased from $5.4 billion to $5.9 billion as at 30 June 2011 due to the net effect of transactions and valuation uplift.

During the year, the Core Fund purchased a 25% shareholding in the Westfield Doncaster Shopping Centre for $350 million at a yield of 5.75%. The acquisition is consistent with the Core Fund Three Year Strategy and Retail Investment Strategy and we are positive about the potential of both the property and our co-owners 25%

Westfield Group, 25% Westfield Retail Trust and 25% LaSalle Investment Management Asia Property Fund. The Core Fund has continued its disposition strategy of non-core assets with five properties totaling $135 million sold during the year.

Our Core Fund developments have changed the office landscape of Canberra and we are continuing to provide ‘green’ and state of the art offices whilst upweighting our strategic Canberra holdings. Currently we are redeveloping the heritage listed 2 National Circuit, Barton for occupation by the Commonwealth of Australia and have commenced the construction of the 4 National Circuit, Barton a 30,000m2 premium office building due for delivery in financial year 2012.

Several commercial and retail capital expenditure projects also commenced. The big scale projects for office include Casselden Place, Melbourne, 363 George Street, Sydney and 270 Pitt Street, Sydney. For retail, Forrest Chase Shopping Centre masterplanning and Barkly Square Shopping Centre redevelopment planning are priorities and evolving during financial year 2011. Retail refurbishments are underway at Arana Hills Kmart Plaza, Southgate Sylvania Shopping Centre, Southgate Plaza Shopping Centre, Eastgate Shopping Centre and GPO, Melbourne. The major redevelopment project at the Wintergarden Brisbane saw the opening of Stage 1 on 26 May 2011. Construction work continues on Stage 2 with completion due April 2012. Leasing is progressing well in terms of both tenant mix and rents achieved. The adjoining Regent Tower office development continues to seek precommitments prior to construction.

The 50 Lonsdale Street Property Trust returned 14.9% after fees and ranked first for the second consecutive year in the IPD/Mercer index. The property increased in value by 4.7% from $370.5 million in June 2010 to $387.0 million at year end and maintains 100% occupancy.

The ISPT Development and Opportunities Fund No.1’s (DOF 1) five projects have performed well delivering since inception a total return of 16.3% after fees and before tax. Completion and settlement of Society, South Yarra was a success in joint venture with Hamton and continued above forecast lot sales at Alamanda Point Cook with our joint venture partner Villawood have been highlights. DOF 1 is progressing through its development program and returning both equity and profits to investors as it nears its targeted seven year life.

The ISPT Development and Opportunities Fund No.2 (DOF 2) currently has six projects including the additional two residential investments in Metro Residences, Chatswood and NorthOne, Subiaco during the year. Three of the residential


Risk management At both portfolio and property level, we are committed to improving risk management within the business and the portfolios. Constant review of processes and procedures are undertaken both internally and in consultation with external specialists.

In undertaking Property Risk Management (Health Safety and Environment) we have adopted best practice principles to manage the potential of injury, illness, damage to property and/or damage to the environment. A set of performance standards, based around key risk areas, are in place and are regularly independently audited to ensure compliance.

Our investors Throughout the year, we met with most of our investors as part of increased investor engagement. These meetings are extremely valuable and I look forward to further developing investor interactions over the coming year. We enjoyed strong attendances at our Annual General Meeting and half year investor update presentations and undertook to improve communications and reporting.

ISPT strives to remain relevant to our investors for their real estate allocation by constantly reviewing emerging real estate sectors and developing ISPT products. During the year, substantial research for investment opportunities within the retirement sector and long dated residential development sector was undertaken and evolution of these funds will continue during financial year 2012.

BoardThere were two significant changes to the ISPT Board during the year. Ms Elana Rubin resigned after 13 years on the Board. Elana has been a pioneer in the funds management industry, a champion for promoting the industry fund collective and at the forefront for gender diversity. I would like to personally thank Elana for her contribution to ISPT since fund inception.

Mr Brian Baker also retired after nine years on the Board. Brian has been a doyen in the property industry during his distinguished career. I would like to thank him for his pragmatic and challenging approach to all aspect of property.

RecognitionThis year, the business has had many successes with recognition of DOF's Alamanda and Society projects by the Property Council of Australia, the Core Fund's Enex 100/St Georges Terrace from the Western Australian Property

Council and 500 Bourke Street from the Victorian Awards of the Australian Institute of Architects. Our partnering with SecondBite received the Victorian Rotary Community Award and the 2010 ISPT Annual Report received a Bronze Medal at the Australasian Reporting Awards. We are pleased to be recognised by our peers and the business community.

Community and industryThe ISPT Board and staff have provided financial support and general assistance to many community groups across a diverse range of programs and charities within Australia and overseas. Importantly, we have encouraged staff members to champion particular causes which in some instances have directly touched them. A major initiative during the year was to encourage participation with our business partner, SecondBite, through financial support and volunteering and we were delighted to be recognised by the Victorian Rotary Awards.

Our team members have also been very active participants with industry associations such as Property Council of Australia, Australian Property Institute, Urban Development Institute of Australia, Green Building Council and Shopping Centre Council.

Looking forward, ISPT will continue its corporate leadership, social responsibility and intention to stand apart in the property industry. We will remain disciplined in the pursuit of strong and tangible investment returns for our investors and benefits to the wider community. Our challenge is to source attractive opportunities and create property funds which meet our investors' investment return objectives.

Daryl Browning Chief Executive Officer

development projects recorded above 90% pre-sales at 50 Albert, South Melbourne, The Guilfoyle, Southbank and Metro Residences, Chatswood. DOF 2 is continuing to selectively review development opportunities both directly and with joint venture partners in all sectors and markets. As DOF 2 is currently in the formative investment phase, since inception total return is 8.1% after fees and before tax.

We continued to progressively exit the ISPT Grosvenor International Property Trust (IGIPT). The managed divestment strategy to sell the assets over the next 12 to 24 months and return the proceeds to investors has seen two US assets sold and the currency hedging program cancelled at 30 June 2011. IGIPT has continued to suffer from volatile international property markets due to its exposure to the US, UK and Spanish property markets. Both investment and occupational markets have yet to stabilise and the total return for financial year 2010/11 was a disappointing 2.6% after fees.

Business partnersWe have built strong partnerships with companies who share our ethos, values and mutual understanding of common goals. Our property managers, valuers, agents and specialist consultants in the development and construction field have been valued associates over the past year.

Particular mention should be made of CB Richard Ellis, Colliers International, Jones Lang LaSalle, Knight Frank and McKenzie Hall who are responsible for the day to day management of our assets and are the direct interface with many of our tenants. These property firms have worked in parallel with the ISPT investment teams ensuring income levels were maintained and operating costs closely controlled.

Holding Redlich Lawyers and Gadens Lawyers have worked closely with our internal legal team and investment staff to achieve positive and timely resolution of our leasing, sale and various contract agreements. Pleasingly we have been almost dispute free during the year, in line with our approach of mutual respect and fair dealing.

Ernst & Young has worked very well with Management on their external audit of all ISPT funds and provision of tax advice in what is an increasingly complex and changing regulatory environment. Deloitte has completed a successful year as internal auditors.

Our tenants are integral to the overall investment management process and critical to our success in creating value for our investors and maintain our position as a preferred landlord. We pride ourselves on our relationships with our tenants whom we deem as important customers.

Joint ventures2011 has seen the number of joint ventures in the marketplace remain limited subsequently reducing development activity. The tight credit conditions have resulted in innumerable approaches for joint ventures or provision of debt and equity. Our team has remained disciplined and very selective of our partners.

The Core Fund continued its positive relationship with the Pellicano Group and Multiplex Developments whilst we divested our joint venture with Cbus Property in the Docklands VIC.

The ISPT Development and Opportunities Funds have continued their successful joint ventures with Hamton, Evolve Development, Villawood, Pellicano Group, Otan Property Funds Management and Galileo.

IGIPT has continued its relationship with Grosvenor Fund Management, the Fund Manager and a co-investor in the fund.

Environmental sustainability and governanceThroughout the year, we continue to proactively explore ways to improve the environmental performance of our portfolios in a cost effective manner as part of our fiduciary duties.

Our sustainability endeavours are threefold. We maintain our building operations and systems to be as environmentally efficient as possible, our ESG team works with prospective tenants to design the optimum sustainability fitout and our investment and property managers work with our tenants to educate on best practice in sustainable environmental behaviour.

ISPT has signed the United Nations-backed Principles for Responsible Investment and participated in the 2011 Global Real Estate Sustainability Benchmark (GRESB) strengthening our commitment to incorporating environmental, social and governance criteria into our investment practices.

Our robust valuation policy has set industry standards with all valuations and valuers being external and independent of ISPT. All properties including developments within the Core Fund and 50 Lonsdale Street Property Trust are valued on a quarterly basis, IGIPT is valued on a bi-annual basis and the DOF Funds are valued on an annual basis.

We have been actively engaged with the Investment Property Databank (IPD) to improve transparency of the IPD Mercer Index, the benchmark of the unlisted property industry. We have accepted positions on the Board and the Advisory Committee with the common goal to improve reporting of performance and providing increased transparency for investors to compare their investments on a like-for-like basis.

CHIEF EXECUTIVE OFFICER’S REPORT


During the year Internal Audit has focused on conducting a more detailed audit process including reviewing a number of properties to ensure the laid-down procedures have been followed. A study was undertaken of procedures for selection of joint venture partners for ISPT’s development activities. ISPT’s internal controls for Risk and Compliance and unit pricing have also been reviewed. As in earlier years, a number of useful suggestions for process enhancement have emerged from the internal audit investigations and have been implemented.

Deloitte has played a key role this year in reviewing ISPT’s risk profile, contributing to the review of completeness of the risk register, to the potential likelihood of each risk occurring, and to the severity of consequences in each case. Management efforts over a number of years have focused on mitigation of risks wherever possible, and it is pleasing to note that very few risks remain as serious issues provided these mitigation procedures are followed.

While the full risk register is reviewed each year by the A&CC, management is now focusing on identifying and monitoring a short list of the most important risks, and this list will continue to be reported to the ISPT Board on a more frequent basis.

Compliance monitoringThe electronic compliance assurance process which was rolled out across the business during 2010 and 2011 has been refined during the year. The assurance process ensures line managers provide regular attestation as to compliance with operational processes within their area of responsibility. The process is based on the policies and procedure flow charts on the ISPT intranet, which in turn are developed from a full set of policies covering the whole of ISPT’s business, both at a corporate level and for each of the Trusts.

The electronic compliance monitoring is primarily based upon staff confirming that procedures have been followed, however is also supplemented by the targeted physical testing conducted by Deloitte, which provides reassurance to the A&CC and ISPT Board.

Health and safetyA particular area of risk focus is health and safety and ISPT’s aim is not just to meet legal requirements but to adopt industry best practice across all its activities. The A&CC adopts an ongoing monitoring role on behalf of the Board, and has been assisted by risk specialists, Noel Arnold & Associates.

The property manager of each property is required to maintain a full check list of health and safety control standards, covering 19 separate issues from asbestos to working at heights. Quarterly compliance with the controls is certified by each property manager with a minimum 90% compliance mandated by agreement. In the past year ISPT in conjunction with Noel Arnold & Associates have reviewed and revised the control issues to ensure that our current performance standards align with industry best practice. A revised database platform has been implemented which stores compliance records and information via a web portal for improved reporting and access.

New OH&S harmonisation laws are currently being finalised at a Federal Government level to seek consistency across the nation. These new laws are due to come into effect on 1 January 2012. In the meantime ISPT will be monitoring the changes to OH&S legislation and will be amending our risk controls to suit.

A process of sample audits by Noel Arnold & Associates continues to support this compliance framework and regular education is provided to the property managers to maintain their OH&S knowledge base.

The year aheadA major phase of activity, notably the re-design of the ISPT Risk Profile under which ISPT operates, is now largely complete. The focus will now be on refinement of this process, and ensuring that effective measurement and assessment of risk is in place to cover all Enterprise risks. From an operational perspective, ISPT came through the challenges of the GFC in good shape. Further changes in the operating and regulatory environment will surely occur, and the A&CC will be alert to identify and adapt to them as they occur.

Michael Barker Chair, Audit and Compliance Committee

The Audit and Compliance Committee’s (A&CC) objectives involve assisting the ISPT Board to fulfil its corporate governance and oversight responsibilities, by focusing on accounting and financial reporting practices, internal control structures, and risk management systems. The A&CC has direct interface to the internal and external audit functions. It fulfils its objectives by overseeing and appraising:

The integrity of the financial statements of ISPT Pty Ltd and its managed trusts;

Risk management policies and controls;

ISPT’s financial reporting policies and controls;

Health, safety and environment policies and procedures;

The activities of internal and external auditors;

Compliance with regulatory requirements;

Any litigation and/or claims; and

Insurance coverage.

ISPT is committed to a superior level of governance, while ensuring high ethical standards and corporate integrity are maintained at all times.

External auditErnst & Young is ISPT’s external auditor. Its role is to provide assurance the financial statements are accurate, free from material misstatement and comply with applicable accounting standards. The external auditor performs an annual audit of the accounts and a review of the annual distributions for each of the investment vehicles managed by ISPT in accordance with Australian Auditing Standards and submits reports on these activities to the A&CC, and subsequently to the ISPT Board. The A&CC is also responsible for recommending to the ISPT Board the appointment, compensation, retention and oversight of the external auditor.

The A&CC:

Approves all audit and non-audit services including timeframes;

Evaluates the impact of any accounting changes on the financial statements;

Reviews and recommends the Trustee and Trust Financial Reports to the ISPT Board;

Regularly reviews the independence of the external auditor; and

Evaluates the effectiveness of the external auditor.

ISPT prohibits the external auditor from any internal audit activities. A minimum three year period must expire before any former partner can be appointed to the ISPT Board. The senior audit partner must be rotated at least every five years and the incumbent Mr David Shewring, has been in the position for three years.

The external auditor performs an audit of ISPT Pty Ltd’s and IGIPT Pty Ltd’s Australian Financial Services Licences and Derivative Risk Statements.

Risk management and internal auditDeloitte is currently in its fourth year as ISPT’s internal auditor. Deloitte reviews most activities within ISPT, adopting a compliance and risk based audit approach, and reports its findings at regular scheduled A&CC meetings.

Each of the findings is classified as significant, important or minor and then categorised as a hazard or opportunity. Priority for action of the findings is based upon the classification of the issue. A robust process for ensuring appropriate resolution of audit issues is maintained including written reports on all issues raised and the progress of highlighted matters at each A&CC meeting until satisfactory resolution has been achieved.

Audit and Compliance Report

Compliance is more than an operational obligation, and we endeavor to make it a sustainable part of our everyday business. We use the compliance platform to review opportunities for organic growth of the business and identify efficiencies and best practice within our operations.


Corporate Governance StatementISPT Pty Ltd is not legally required to comply with the best practice recommendations of the Australian Stock Exchange (‘ASX’) Corporate Governance Council, as neither it, nor the Trusts it manages, are listed on the ASX. However, to ensure best practice applies, ISPT Pty Ltd does comply with the recommendations unless otherwise detailed below.

The best practice recommendations issued by the ASX have been recently updated and ISPT Pty Ltd has re-assessed itself against these criteria.

Board compositionThe skills, experience and expertise of each Director in office at the date of the Annual Report are detailed in the section ‘Our Directors and CEO’ on pages 12 and 13.

The size and composition of the Board is set within the parameters of ISPT’s Constitution. ISPT’s ownership structure and constitution vary significantly from an ASX listed entity.

ISPT’s constitution (post 14 June 2006 amendments) ensures Board representation from those Founding Members (Founding Member Directors) while their unitholdings remain greater than specified levels in the Qualifying Trusts (Founding Members represent the majority of the total units on issue) and the remaining Members (i.e. Group Members) elect three directors to the Board (Group Member Directors).

The Founding Member Directors and Group Member Directors collectively then have the ability to appoint a further three directors (“Board Appointed Director”), based on skill, expertise, knowledge and experience. These three Board Appointed Directors must have no vested interest whatsoever and must meet stringent independence criteria.

Having regard to the above, ISPT’s Constitution requires a minimum of three and a maximum of eleven directors. The Board currently comprises nine directors – four Founding Member Directors, three (one vacant) Group Member Directors and three independent Board Appointed Directors. The Chair of the Board is one of the independent Board Appointed Directors.

The Founding Member Directors and the Group Member Directors acknowledge they do not meet the ASX criteria for determination of independence.

The directors nominated and elected by Founding Members and Group Members meet all the ASX independence criteria listed below, apart from criteria 1 since they have an association with the shareholders of ISPT Pty Ltd.

Notwithstanding this, the Board is aware of its obligations to manage any actual or potential conflicts of interest that may arise as a result of their duties as a director of ISPT and the relationship a director may have with a shareholder or investor. To assist ISPT Directors in managing this obligation, ISPT has established a conflicts of interest policy and its own criteria to determine independence.

The independence criteria revolve around the directors’ ability to be free to exercise their unfettered and independent judgment. The criteria are:

(i) independence from Management including not having been employed by ISPT prior to their appointment to the ISPT Board; and

(ii) being free from material business and other relationships with ISPT, either directly or indirectly. Materiality is assessed on a case-by-case basis having regard to the individual circumstances of each director.

Against these criteria, each of the Founding Member Directors and Group Member Directors is considered independent throughout the financial year.

Commi$ees of the BoardThe Board operates several committees that are responsible for particular business areas:

Audit and Compliance Committee (A&CC);

Remuneration Committee;

Nominations Committee; and

Environmental and Sustainability Committee.

Each of these committees operated in accordance with its terms of reference, a copy of which is available upon request from the Company Secretary. Members of the respective committees and their attendance at meetings are detailed in the ISPT Pty Ltd Financial Report.

Risk and complianceThe Board determines the overall risk management strategy for ISPT. It is also responsible for reviewing major risk exposures and monitoring the overall effectiveness of the risk management program.

The Board is assisted by the A&CC in carrying out this function.

ISPT has a formal risk program based on Standards Australia AS/NZ ISO-3100-2009 and The International Organisation for Standardisation IEC/ISO-31010-2009. The program includes policies and procedures in place to identify and address material financial and non-financial risks.

The A&CC are responsible for overseeing compliance with the program and its continuous evolution. Key ISPT staff implementing the program are:

Chief Financial Officer;

Legal Counsel, Corporate Governance; and

Manager, Risk and Compliance.

At the time of confirming the integrity of financial reports to the Board, the Chief Executive Officer and Chief Financial Officer confirm the reports are founded on a sound system of risk management, internal compliance and control which implements the policies adopted by the Board. In addition they confirm the ISPT risk management and control system is operating efficiently and effectively in all material respects.

Communicating with unitholdersAlthough not bound by continuous disclosure obligations, ISPT, through its regular (monthly, quarterly and annual) financial and transaction reporting, compares favourably to listed entities for communication and disclosure to unitholders.

The level of detail provided to investors reflects the transparency which applies between ISPT and its stakeholders. All investors and their consultants are invited to regular briefing sessions on ISPT funds, investment and asset management initiatives and are able at any time to meet with Management to discuss any matters arising from operations.

Corporate Governance


Brian Daley'BMath

National President - United Voice (formerly LHMU), Director (AustralianSuper), Director (HOSTPLUS), Deputy Chair - ISPT Pty Ltd (Group Members), Environment and Sustainability Commi$ee, Remuneration Commi$ee, Nominations Commi$ee

Brian Daley is the National President of United Voice, the union operating within the property services, hospitality and health sectors. Brian is a Director of three industry funds being AustralianSuper, HOSTPLUS and ARIA (the Australian Reward Investment Alliance).

John BurgeDirector (CareSuper), Director - ISPT Pty Ltd (Group Members), Audit and Compliance Commi$ee, Remuneration Commi$ee, Nominations Commi$ee

John Burge has been involved in industry superannuation since 1987. Prior to retiring from full-time employment, John was Executive Director of Insurance Employers Industrial Association and served for some years as the Chair of the National Finance Industry Training Advisory Body. Past employment includes administrative and industrial relations appointments in the mining industry. John is a Director of CareSuper, and previously has been a Director of Finsuper and an Independent Director of HOSTPLUS.

John Livanas'BSc (Engineering), MBA, Grad Dip Investments

CEO (AMIST), Director - ISPT Pty Ltd (Group Members), Environment and Sustainability Commi$ee

John Livanas is the Chief Executive Officer of the $1 billion AMIST Super Fund. He has over 25 years experience in financial services and investments in Australia and internationally. John's previous roles include General Manager at $15 billion FuturePlus Financial Services, Director of Investments for SEBO, a $3 billion superannuation and pension fund and Principal Consultant for Financial Services at Deloitte. John also has extensive corporate management experience having held senior executive positions in a wide range of industries.

Brian Baker'FRICS, AREIV

Director - ISPT Pty Ltd, Nominations Commi$ee

Brian Baker is a property consultant who has worked for over 50 years in the property industry in Australia and the UK. Brian was a Director of the Capital & Counties Group (in Australia), Baillieu Knight Frank, AT Cocks & Partners (now Urbis) and Hudson Conway Ltd (United Kingdom). Brian retired from the ISPT Pty Ltd Board at the expiry of his term on 30 June 2011.

Michael Barker'MA, FIA, FIAA

Director - ISPT Pty Ltd, Chair - Audit and Compliance Commi$ee

Michael Barker is an actuary with over 40 years of experience in investment and property related activities in both Australia and the UK. Previous employers included Aetna Life and Casualty and NatWest Investment Management. Michael is a Director of MetLife Insurance Limited and an independent member of the Approved Products and Investments Committee for NAB’s dealerships.

Changes to the BoardPursuant to Ms Elana Rubin's resignation, AustralianSuper nominated Mr Brian Daley as their Nominee effective 20 July 2011. Mr Brian Daley's term as a Group Member Director expired 30 June 2011.

Following the 30 June 2011 expiration of Mr Brian Baker's term, the ISPT Pty Ltd Board appointed Ms Rosemary Hartnett as an Independent Director effective 20 July 2011.

Rosemary Hartne('BBus (Property)

Director - ISPT Pty Ltd

Rosemary is the Chief Operating Officer of Housing Choices Australia (HCA). HCA is a not-for-profit organisation providing a wide range of accommodation solutions for low income and socially disadvantaged people, including the homeless and those with disability. Rosemary has over 20 years experience in Australian property with extensive senior management experience in the property finance sector.

James Cain'BPD (Melb), BBldg (Melb), MBA (AGSM)

Chair - ISPT Pty Ltd, Chair - Remuneration Commi$ee, Chair - Nominations Commi$ee

James Cain joined the Board of ISPT with more than 20 years experience as an executive in property and major capital works in both the public and private sectors. In 2006 James founded M21 Pty Ltd, a commercial property and development advisory business serving the Government and corporate sectors. He has a property, construction and development background having worked with Lend Lease and the Victorian Government’s Major Projects Unit. James is currently Deputy Chair of the Port of Melbourne Corporation.

ISPT Pty Ltd’s Directors during financial year 2010/11

Elana Rubin'BA (Hons), MA, F Fin, FAICD, FAIM, FAIST

Chair (AustralianSuper), Deputy Chair - ISPT Pty Ltd, Remuneration Commi$ee, Nominations Commi$ee

Elana Rubin is the Chair of AustralianSuper and the Victorian WorkCover Authority. Elana is also a Non Executive Director of the Victorian Transport Accident Commission (TAC), TAL Limited, Infrastructure Australia (Commonwealth), Mirvac Group Ltd, SecondBite and the Melbourne Community Foundation (MCF). Elana resigned from the ISPT Board on 8 November 2010.

Mark Delaney'BEc (Hons), CFA

Director (AustralianSuper), Director - ISPT Pty Ltd

Mark Delaney is Deputy Chief Executive and Chief Investment Officer for AustralianSuper (following the merger of Australian Retirement Fund and Superannuation Trust of Australia). Mark has over 20 years investment experience having been Chief Executive Officer of Superannuation Trust of Australia and also held senior positions with AXA and Federal Treasury. Mark is responsible for the management of AustralianSuper’s $42 billion investment portfolio as well as being a Director of the Australian Council of Super Investors Inc. and a member of the Industry Fund Management (IFM) Investor Advisory Board.

John Su(on'BEc (Hons)

Director (Cbus), Director - ISPT Pty Ltd, Chair - Environment and Sustainability Commi$ee

John Sutton is currently an Associate Commissioner at the Productivity Commission. He was formerly the National Secretary of the CFMEU and a former Vice-President of the ACTU. Until recently, John was a long-standing Director of the CBUS superannuation fund and the ACIRT redundancy fund.

Glenn Bunney'BBus

Director (HESTA), Director - ISPT Pty Ltd, Audit and Compliance Commi$ee

Glenn Bunney is a Director of HESTA’s board and is a current member of the Industry Funds Management (IFM) Investor Advisory Board. Glenn has an extensive management background across a range of industrial and consumer service industries and has held CEO positions for more than 25 years, the last 14 of which have been aged and health care related. Glenn is currently the CEO of Sundale, a Queensland community based organisation operating community and residential aged care, rehabilitation services (including a private rehabilitation hospital), childcare, housing and retirement living based on the Sunshine Coast. He has worked for several years as an industry representative at state, national and international levels and is the current Board Chair for the International Industry Association.

Daryl Browning'AAPI, FRICS, Grad Dip Vals, Cert of Business Studies - Real Estate, Diploma of Financial Services

Chief Executive O"cer - ISPT Pty Ltd

Daryl Browning was appointed Chief Executive Officer in April 2005 and is responsible for the overall management of ISPT’s business. He has over 27 years experience in the property investment and management sector, including nine years in direct financial services. In May 2002 he joined the senior management team at ISPT. Daryl is a Board Member of Investment Property Databank (IPD) and past Divisional President of the Property Council of Australia (Victoria).

Our Directors and CEO


Our committed and dedicated team has strived to deliver our investors and their members sustainable long term investment performance.

Our senior management team

Daryl Browning'AAPI, FRICS, Grad Dip Vals, Cert of Business Studies - Real Estate, Diploma of Financial Services

Chief Executive O"cer

Daryl has over 27 years experience in the property investment and management sector including nine years in direct financial services and fund management. In his role as CEO, Daryl is responsible for the supervision of ISPT's fund management business together with overseeing all property matters as well as the development of new business initiatives.

Darren Schultz'BBus (Accounting), CPA, CFTP

Chief Financial O"cer and Company Secretary

Darren is Chief Financial Officer and Company Secretary. In this role, Darren is responsible for financial reporting, capital management and debt structuring for the trustee and the funds as well management of the shared services of finance, legal, governance, risk management, compliance, performance reporting and IT.

Mark Basse('BEng (Hons)

Fund Manager - ISPT Core Fund and ISPT 50 Lonsdale Street Property Trust

Mark acts as the Fund Manager for both the ISPT Core Fund and ISPT 50 Lonsdale Street Property Trust. Mark is responsible for the strategy implementation, investment performance, asset management and developments within the ISPT Core Fund as well as overseeing the investment management of the ISPT 50 Lonsdale Street Property Trust asset.

David McFadyen'Assoc Dip Vals, AAPI, MAICD

Fund Manager, Development and Opportunities Funds

David is the Fund Manager of ISPT's Development and Opportunities Funds. He is responsible for sourcing development deals to create value by developing and repositioning assets through all stages of the property cycle. His role also includes structuring participation with joint ventures, development delivery and implementing exit strategies whilst mitigating and managing risk for each project.

Leith Hunniford'BA, LLB, post grad. LP, Diploma of Financial Services

Senior Legal Counsel

Leith is responsible for managing all legal and corporate matters for the ISPT business including acquisitions, disposals, leasing, developments, banking and finance, corporate structuring, litigation and the implementation of legal policies, procedures and precedent documentation.

Robert Pepicelli'BBus (Property), Dip App Finance

Manager, Investment Strategy and Markets

Robert heads the Strategy and Capital Markets team. In his role, Robert is responsible for initiatives to further understand current economic and property market trends to identify emerging investment themes. Robert provides strategic advice to support the investment management decisions of both the funds and the ISPT business and is responsible for the development of new investment products.

Tony McCormack'BBus (Property), Dip App Finance

Head of Capital Transactions

Tony provides the ISPT Core Fund with a capital transactions platform for engaging and negotiating all acquisition and divestment activities. Tony's role also co-ordinates market intelligence and transaction analysis for the Australian real estate investment market.

Cameron Gregson'BBus (Banking and Finance), Grad Dip (Acc)

Portfolio Manager - Retail

Cameron is responsible for overseeing retail asset management and development projects within the ISPT Core Fund. This includes the implementation of the retail strategy and growth of the retail investment portfolio.

Sandra Schilling'Bach of Planning & Design, Bach of Building, Cert in Property

Senior Development Manager - Retail

Sandra is responsible for the repositioning of the ISPT Core Fund retail portfolio through development and refurbishment. The role includes managing the planning and delivery of development activities for the retail assets with emphasis on customer focus, design, delivery and innovation.

Peter JamesPortfolio Manager - Commercial

Peter is responsible for overseeing commercial asset management and development projects within the ISPT Core Fund and the ISPT 50 Lonsdale Street Property Trust. In addition, Peter is also responsible for the growth of the commercial investment portfolio.

Jill ThreaderPortfolio Manager - Operations

Jill is responsible for operational matters relating to the ISPT Core Fund and ISPT 50 Lonsdale Street Trust. This includes – at a property level – information procurement systems, contract management, insurance, compliance, client relationship management and budget control.

Our Sta#


OUR STAFF

Alistair Capp

Amy Ho

Andy Buchan

Anne Leong

Ashlee Hill

Betty Shallard

Blair Strik

Bryan Moloney

Cameron Dunlop

Carolyn Marriott

Chris Chuah

Chris McCluskey

Chris Wanless

Craig Casson

Dale Browning

Danielle Dalby

David Mark

David Pullan

David Tigani

Dennis Gowing

Elaine Baillie

George Pajmakoski

Georgina Bishop

Graeme Glass

Greg Steedman

Heather Kent

Inna Zorina

Jan Leslie

Jan Paul

Jason Lourensz

Jennifer Tran

Jeremy Fredersdorff

John Carberry

Kate Treacey

Kiera Temby

Kenton Lillecrapp

Kristen Sagar

Kylie Smith

Leah Lucas

Lee Mauceri

Linh Dang

Lisa McDonald

Louise Renato

Lucia Fitzgerald

Margot Anderson

Mark Maltar

Matt Luchich

Matthew Ablethorpe

Megan French Wright

Michelle Moss

Natarsha Logan

Nick Bond

Paul Thompson

Randall Smith

Renee Nutbean

Robert Andreatta

Robert Sviderskas

Rod Walker

Roger Evans

Sally Bourke

Sam Curry

Sam Tieu

Sean Hogan

Sean McGarrity

Sevester Sidiropoulos

Shahram Omidvar

Sue Palavestra

Susannah Bourke

Tom Sherborne

Tracey McGuigan

Trisha Vollmer

Vanessa Bedelis

Warren Cant

ACT team

Victoria team

Queensland team

South Australia

team

South Australia

team

New South Wales team

Western Australia

team

Western Australia

team

South Australia

team

Victoria team

Queensland team



Our Property Managers

Our property management function is outsourced to CB Richard Ellis – office and industrial; Colliers International – office; Jones Lang LaSalle – retail, office and industrial; Knight Frank – office and industrial and McKenzie Hall – retail.

The following teams provide property management services and are responsible for performance in relation to property income, arrears, leasing and vacancies, management reporting and the day-to-day communication with our tenants.

Bradley DrysdaleDaniel O’ConnellDonna KaranfilovskiJamie IrvineJoe PinterovicKaren HowardKire BujcevskiLeanne FoxLiz RossiterLynda WalshMaria SharmanMarion PickfordMark BurnsOliver O’MearaSabrina FleishmannSejal ShahShaligram GhimireSheridan IngoldTracey Thomas

Alyce BrownGreg PlaweckiGuy Humphries John MouldenKellie StewartLauren MackenzieLew BrasseyLisa SeitzLouise MooreLynda PearceMelinda BoyleMichael SheehanNeelima RanaPetrina MiddletonSarah NolanScott O’DonoghueShannon Jackson

David BishopLinda Cox

Amanda CoxhellAnna RollisonCassie GleesonCathy ColeDaniel PalmerFulvio LunardiGerald MartadjajaHayley FisherJack FlemingJanet ScantleburyJoe SullivanKathy GioginesKatrina NewcombeMaureen VercoeMelissa ChisnallRenee PrattenRob de VosSteve Weise

Bianca RennardCathy LondonClaire McLellandGill CollinsPeter ZissiadisRobert PowellRoss CarterTim McGuaneTony Milne

Claire CottamDave WallaceDonna ZwaineJohn SmithMike RyanSerge MakrooussovSimon Grech

Brian JunckenKaren EdwardsPaul Mooney

Ian JollyJoe O’ReilySimon MoussaStuart Green

Ade SuprijatnaAlex MacDonaldDavid RainaFelix ColladoGary OrtonGraig DiSantosGirish BhatiaJenny PembertonJenny SuterJeremy MarsdenKaren CrawfordKristina HangsLincoln EmsleyLinda HawthorneOrla KennedyPaul GoujonRohan FentonRoselle SorrentinoRyan ThistlethwaiteSandra WilsonTracey Sharp

Alwin BaxBrett StevensRoberta Wilson

Andrew Stallan

Queensland team


Queensland team

2120 ISPT Annual Report 2011

RESPONSIBLE INVESTING

OUR PROPERTY MANAGERS

Donald HamlynJohann DeBeerSean NeagleStefanie HydeTanya Sherborne

Amanda Abou-RjeiliClive RobertsCraig LambertGraeme TaitJose RodriguesKevin WardLoren MellowshipPaul NelsonPeter ApostolakosPeter DooleyRobert ScottRodney GiffordGayle MacLennanJason Kroon

Adam NahleAlana BissettAngela BecharaBess DelavegaCraig CurranDale McDermidDiane ByrnesJocelyn MarrKelly ArmstrongMinnie CheokRick MuscatTony Draper


ISPT believes considering environmental, social and corporate governance issues a fundamental part of our responsibilities to our investors, customers and to the community. ISPT is committed to owning an efficient property portfolio and operating it in a way which minimises adverse environmental outcomes, conserves resources and maximises investment returns.

Principle of responsible investingWe have embarked on the final three years of our 10 year responsible investment program. This program is focused on environmental sustainability and improving the operational performance of our properties. It also includes significant investment in socially responsible programs and charities as well as our proud history of leadership in corporate governance.

Responsible investing is consistent with our core mission – to invest the retirement savings of working Australians in property to grow their super.

As a company we are committed to being a leader in the area of responsible investing and we work hard to ensure responsible investing principles are embedded throughout our investment process. Responsible investing is at the centre of all business decisions and is a direct reflection of our organisation’s values. It is these values which set us APART from our competitors:

A Alignment

P Performance

A Acumen

R Responsibility

T Transparency

At ISPT environmental sustainability is more than just about getting star ratings. It requires a focused approach of changing behaviours, astute investment and a commitment to operational excellence. Our initiatives range from ‘good housekeeping’ through the elimination of wasteful practices to ‘big ticket’ items of capital investment to upgrade our buildings. We are continually exploring ways to cost-effectively ‘green’ our portfolio whilst delivering long-term investment value and lower levels of risk.

Our approach to environmental sustainability is very practical, we seek to deliver investors real savings through reduced energy and water consumption. We believe tenants have become increasingly discerning in their selection of premises and superannuation fund managers prefer investing with funds upholding these investment principles.

Our partnershipsAs part of our commitment to promote these responsible investment practices ISPT became a signatory to the United Nations Principles for Responsible Investing (UNPRI) in 2010. This commitment formalises our existing commitment to environmental, social and governance best practice within our investment process.

The UNPRI is an organisation which aims to help investors integrate the consideration of environmental, social and governance (ESG) issues into investment decision-making and ownership practices, and thereby improve long-term outcomes for investors and the community at large.

ISPT is a foundation partner of the Green Building Council Green Star Business Partnership and works in partnership with the organisation to enhance the sustainability rating system.

NABERS is a performance based rating system used by ISPT to measure and improve the operational efficiency of our assets.

In 2007 ISPT entered into a Sustainability Covenant with Sustainability Victoria and the EPA across a range of projects to promote industry cooperation and knowledge sharing.

Global Real Estate Sustainability Benchmark (GRESB)

ISPT participated in the 2011 Global Real Estate Sustainability Benchmark, complementing our commitment to UNPRI. The GRESB is an initiative to assess the environmental and social performance of public and private real estate investments.

Responsible Investing

ISPT Core FundSince its inception, over six years ago, ISPT Super Property’s environmental strategy has assisted in improving the level of engagement between ISPT, our property managers and tenants.

Property managers and service contractors have key performance indicators included in their contracts outlining the sustainability metrics which they are required to be met on an annual basis.

Sustainability initiatives are predicted to achieve 100% improvement in the office portfolio’s average NABERS Base Building Energy and Whole of Building Water Ratings by June 2012.

Beyond this, the ISPT Core Fund is targeting a weighted portfolio average of 5 Star NABERS Energy and 4.5 Star NABERS Water Ratings through combination of major refurbishments, new developments, co-generation and tri-generation retrofits and green power purchase.

Sustainability achievements and milestonesSince July 2006 sustainability initiatives have saved ISPT Core Fund investors over $8.5 million, reduced CO2 emissions by approximately 60,000 tonnes and saved 1,580 mega litres of drinking water.

The reduction in CO2 emissions from electricity and gas usage of approximately 60,000 tonnes has been achieved through good housekeeping and an extensive capital works program of improvements over the past six years.

As we approach industry best practice in the area of environmental sustainability, our focus is now to engage with our key tenants to achieve Whole of Building NABERS Ratings which holistically lower the overall environmental impact of our assets.

Normalised carbon emissions - ISPT portfolio

NABERS Energy Ratings - ISPT commercial portfolio

NABERS Water Ratings - ISPT commercial portfolio

80100120140160180

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Water efficiency

Waste and recycling We continue our commitment to reducing the level of waste produced by our properties. The level of waste recycling for our commercial office properties is improving although portfolio recycling levels dipped during the GFC as a result of lower recycling prices.

ISPT continues to partner with VISY to roll out an integrated waste management program to all Core Fund properties. The aim of the program is to increase recycling levels to 25%.

The recycling data outlined below relates to base building only and will move to include tenant recycling data for single tenant properties over the course of financial year 2012.

Waste to landfill (tonnes) Recycling (tonnes) % recycled

FY09 7,041 1,635 19

FY10 6,314 2,046 22


Connecting With Our Community

Natural disastersISPT responded to the natural disasters in Victoria, New South Wales and Queensland of early 2011 by donating to the Red Cross Disaster Relief and Recovery Fund. Queensland was devastated by floods and cyclone, ISPT also responded and donated to the Premier’s Disaster Relief Fund. The funds have been used for relief services and rebuilding our local communities.

ISPT has also supported the following organisations over the year:2010 Royal Children’s Hospital Home Auction Villawood and ISPT donated a block of land at Alamanda Point Cook in Victoria and Henley built a two storey home with the support of their sub contractors and suppliers. The home was auctioned on Good Friday 2011 for the Royal Children’s Hospital Good Friday Appeal. All proceeds from the sale went directly to the hospital.

Aboriginal Literacy Foundation Provides ongoing literacy programs and opportunities for indigenous young people through education and community based initiatives such as the Books for Learning Program, literacy and heritage camps, literacy resource packs and support services, literacy testing, research and evaluation.

Anglicare Victoria Sponsorship of event, to assist with foster care, emergency food and crisis accommodation, family and community support services.

Canteen Colombo Creek Classic Sponsorship of fundraising event with proceeds to the Royal Flying Doctor Service.

Colliers International Community Charity Lunch Sponsorship of event supporting United Way Queensland and the Down Syndrome Association of Queensland (DSAQ).

Leukaemia Foundation Focuses on the care and cure of patients and families living with leukaemias.

The McGrath Foundation Raises funds to place breast care nurses in our community and increasing awareness in women.

MS Bike Ride ISPT staff in Melbourne participated in the MS Bike Ride raising funds to support people with MS.

MS Research Australia MS carries out research for the prevention, better treatment and to find a cure for MS. ISPT supported a program to predict and diagnose MS symptoms and Optic Neuritis.

Murray to Moyne Donation A cycling fund raising challenge providing assistance to Harrow Bush Nursing Hospital.

Open Aid International The program focusses on South East Asia aiming to expand the capacity of poor and disadvantaged girls to become catalysts of social change and break cycles of poverty and abuse for their families, their children and beyond.

Property Industry Foundation Utilising the property and construction industry network, the foundation has a strong focus on youth homelessness.

Red Cross Foundation Supporting the work of the Red Cross, ISPT subscribed to the Business Humanity Network.

Shrine of Remembrance Donation towards the Shrine’s educational programs for young people.

Starlight Fund Raising Association ISPT sponsored our business partners, CB Richard Ellis in the Walk For A Wish fund raising event.

Suit up and Ride Bike Ride Sponsorship of ISPT team for cycling challenge in support of youth mental health.

SunRise Children’s Association Donation to the children’s orphanage in Nepal.

Our Community Program encourages ISPT sta) and board members to nominate community programs and projects for support. We actively support programs where sta) have a direct connection, regularly volunteer and which they are most*passionate about.

Chain ReactionChain Reaction is a corporate cycling challenge that raises money for sick children. The 2011 course was completed over seven days, starting in Sydney and finishing at Melbourne's Town Hall representing travel distance of 1,000 kms. Daryl Browning and Renee Nutbean from ISPT participated in this event which raised over $1 million for the Starlight Children's Foundation.

Mother's Day ClassicISPT continues to support the Mother's Day Classic – a walk/run event held on Mothers Day to raise funds for breast cancer research and to raise awareness. This event is organised by Women in Super (national network of women working in the superannuation and finance industries). An ISPT team also supported the event by walking on Mothers Day.

SecondBiteISPT’s major community partnership is with SecondBite, a not for profit organisation which identifies sources of nutritious surplus fresh food which would otherwise go to waste and facilitates its distribution to agencies and people in need. The SecondBite model is simple and effective re-distributing over 880 tonnes of food in 2010 enabling community food programs to provide 1.6 million healthy meals to needy people.

ISPT staff regularly volunteer in their own time on a Sunday afternoon at the South Melbourne Market. Our staff collect excess food from stall holders, the food is then sorted and packed into the SecondBite van ready for redistribution to agencies.

In May 2011, ISPT and SecondBite received first prize in the Rotary Community Service Awards. The award recognised the work being done by community groups and their corporate business partners, in particular our sustainable partnership and volunteering program were commended. Mark Bassett, Fund Manager, ISPT and Katy Barfield, CEO, SecondBite, accepted the joint award and SecondBite received a cheque for $10,000.

Working with our local communities is important to us. ISPT supports community groups by donating funds, volunteering, networking and where possible redistributing used o+ce equipment and furniture that otherwise would have gone to land fill.

CRISIS CARE COMMITMENT


ISPT CORE FUND

ISPT DEVELOPMENT AND OPPORTUNITIES FUNDS NO., AND NO.&'pgs 65 & 73

Both funds are designed to achieve attractive returns from investment in opportunistic property development and acquisition activities.

ISPT CORE FUND'pg 27

ISPT -# LONSDALE STREET PROPERTY TRUST'pg 59

ISPT GROSVENOR INTERNATIONAL PROPERTY TRUST'pg 81

The ISPT Core Fund is the Group’s flagship fund. Its property portfolio is well diversified by location and sector and is valued at approximately $5.9 billion as at 30 June 2011.

The ISPT 50 Lonsdale Street Property Trust invests in one of Melbourne’s leading commercial office buildings and was valued at $387 million as at 30 June 2011.

The ISPT Grosvenor International Property Trust invests in international property assets.

Our Property Funds


During the year we achieved three highly commendable Whole of Building NABERS Energy Ratings in conjunction with some of our larger tenants. We will extend this program to many more buildings over coming years.

We would also like to take this opportunity to thank our team, our agency partners, service providers and consultants for their hard work and commitment to the achievement of the Fund’s goals during financial year 2011.

We look forward to working with you in financial year 2012.

Yours sincerely

Mark Bassett Fund Manager

The key features of the Fund as at 30 June 2011 are as follows:

Fund statistics

Total assets $5,898.3 million

Total return FY11 after fees 9.14%

Total return after fees since inception (31 August 1994) p.a.

9.10%

MER 0.31%

Drawn borrowings $538.7 million

Current interest rate (weighted all up cost of drawn debt)

7.12%

Facility expiry Various

Weighted average facility expiry 1.96 years

Property statistics

Property portfolio value $5,755 million

Total net lettable area > 1.43 million m2

Weighted average capitalisation rate 7.64%

Weighted average lease expiry (income) 5.2 years

Weighted average lease expiry (area) 4.8 years

Occupancy (% NLA) 95.95%

Dear Investors,This year has been another solid performance for the ISPT Core Fund (the 'Fund'), seeing strong equity inflows, a reduction in gearing and the completion of all milestones set out in the current Three Year Investment Strategy.

Our disciplined investment approach has seen the Fund grow distributions by 22% over the last three years despite substantial asset sales and high levels of capital investment via acquisitions, refurbishments and developments.

When combined with our diversification and sector specific strategies, this approach has continued to demonstrate the strength of an investment philosophy that maintains a prudent blend of return and risk.

As we commence the final phase of the current strategic plan, management has achieved all of the milestones set two years ago and is well progressed on completing the objectives for the year ahead.

The team has worked diligently and with great passion in volatile market conditions and has been well served by the patience and support of our investors.

Notable highlights include solid growth in distributions, reduction in gearing, completion of numerous refurbishment projects, good cost control, lower vacancy and further gains in our sustainability ratings.

We thank all investors for the strong levels of reinvestment and new equity throughout the year and maintain our commitment to prudently invest for the long term benefit of your members.

The market is still characterised by capital recycling, constrained debt and uncertain offshore economic conditions. This is creating opportunities to invest in well located prime property with strong cash flows and sound tenant covenants. The Fund is currently well positioned to act on these opportunities.

A significant achievement for the Fund during financial year 2011 was the $350 million investment to acquire a 25% share of Westfield Doncaster Shopping Centre in March 2011. The investment is the Fund’s first exposure to the super-regional sector of the retail property market.

Our progress on the Wintergarden redevelopment has been very encouraging, with the initial Stage 1 opening and being well supported by tenants and shoppers. This landmark development continues our strategy of investing in central business districts on or near the primary retail malls.

Construction of the larger Stage 2 has progressed through demolition and structure and is also being supported by retailers. We anticipate a successful launch in April 2012.

The final stage in our Canberra development program is now well underway with works progressing on both 2 and 4 National Circuit. These works, along with extensive upgrades, extensions and refurbishments throughout the portfolio, will see the Fund achieving bottom of the cycle costs rapidly consolidating a powerful growth position as the economy emerges from the GFC.

The team is preparing a further round of retail developments and is actively engaged with the capital transaction markets to secure further high quality opportunities.

ISPT’s treasury team has successfully managed the debt program, achieving the extension of a number of debt tranches and extending the Fund’s term to maturity to approximately 2 years.

The Fund’s strategy to divest non-core assets continued for a third year, with the disposal of five assets for $135 million. Over the past three financial years the divestment program has achieved over $677 million of non-core asset disposals.

Many of these milestones could not have been achieved if it were not for the enduring commitment to the Fund by our investors. The move to quarterly distributions during the year was well received and complemented by support for the Distribution Reinvestment Program. Investors returned $295 million into the Fund during financial year 2011.

Investors have also supported the Fund’s new equity program, committing an additional $200 million of new equity.

Significant progress has been made on enhancing the sustainability credentials of the portfolio. Capital expenditure projects are being continuously rolled out across the portfolio in order to improve the assets NABERS Energy and Water Ratings and we are on track to achieve our forecast office portfolio ratings of 4.5 Star NABERS Energy and 4 Star NABERS Water Rating.

ISPT Core Fund


ISPT CORE FUND

Fund performanceThe Fund’s Three Year Investment Strategy targeted a return of 8% p.a. net of fees and transaction costs for financial year 2011. The Core Fund outperformed this target returning 9.53% p.a. gross of fees and 9.14% p.a. net of fees for the year ending 30 June 2011.

The Fund’s strong performance in financial year 2010, delivered investors a one year total return after fees of 7.0% which resulted in a 350 basis point outperformance over the Mercer / IPD Index, 3.52%. The Fund’s financial year 2011 total return after fees of 9.1% underperformed the 2011 Mercer / IPD Index of 9.8% by 70 basis points.

The two and three year total returns of 8.1% p.a. and -0.3% p.a. after fees have outperformed the Mercer / IPD Index by 150 and 9 basis points respectively.

Benchmarks

The Fund is benchmarked against the following:

Fund Benchmark: Objective is to deliver a real rate of return of 6% p.a. over a 10 year investment cycle; and

Mercer/IPD APPFI: This benchmark measures the Fund’s performance against our competitors. The Core Fund’s objective is to achieve returns above the Mercer/IPD APPFI on an annual basis.

Fund performance against benchmark as at 30 June 2011

1 year %

2 years % p.a.

3 years % p.a.

5 years % p.a.

10 years % p.a.

Since inception

31 Aug 1994 % p.a.

Before fees

Income 7.22 7.37 6.88 6.46 7.48 8.18

Capital 2.31 1.08 (6.82) (1.15) 1.42 1.37

Total returns 9.53 8.45 0.07 5.31 8.89 9.56

A.er fees

ISPT Core Fund 9.14 8.07 (0.26) 4.99 8.57 9.10

Index 9.82 6.58 (0.35) 5.87 8.76 n/a

Relative performance (0.68) 1.49 0.09 (0.88) (0.19) n/a

Inflation (CPI) 3.60 3.33 2.70 2.93 2.97 2.68

Inflation (CPI) + 6% 9.60 9.33 8.70 8.93 8.97 8.68

Relative performance (0.46) (1.26) (8.96) (3.94) (0.40) 0.42

Real returns (after fees) 5.54 4.74 (2.96) 2.06 5.60 6.42

Notes:

1. Inception date: 31 August 1994.

2. Consumer Price Index, weighted average of eight capital cities, quarterly index numbers. Inflation (adjusted for GST impact) is calculated using the index developed by Econtech (Murphy’s model) to eliminate the impact of the New Tax System on the Consumer Price Index. The GST adjustment applies to the period of 1 July 2000 to 30 June 2002.

3. Index is the MUPFI pre September 2009 (GAV weighted) and Mercer/IPD Australian PPFI (NAV weighted) post September 2009. The ISPT Core Fund was included in the Mercer/IPD Australian PPF Index from August 1994.

Core Fund objectivesThe Core Fund is a prime diversified property fund with a secure income bias offering lower relative earnings volatility and higher relative income to achieve 6% real returns over the investment cycle.

The Fund aims to deliver to investors a diversified, high quality property portfolio which is leased to stable tenants with low levels of risk. The delivery of sustainable long term returns should be achieved through investment in properties based on real returns over at least 10 years supported by yield from secure leases and long term capital growth whilst maintaining a conservative financial profile and strong tenant relationships. In order to avoid functional obsolescence, capital is applied to maintain assets, offset asset depreciation and to engage in development activity.

Strategic objectivesTwo years ago we set out to achieve a strategic re-weighting of the portfolio and committed ourselves to a number of progressive milestones and outcomes.

The release of the Three Year Investment Strategy in February 2010 set out a focused and disciplined investment process across all key metrics including, but not limited to, the acquisition of high quality retail assets, investing capital into profitable development and capital expenditure programs and to further improve the sustainability profile of the portfolio. All of these activities combined with our traditional approach of looking after the 'bricks and mortar' aspects of property management will sustain the Fund’s returns over the medium and long term.

Capital management

Equity

We would like to thank investors for their continued strong support of the Fund during financial year 2011. Investors supported the Fund's Distribution Reinvestment Program ('DRP') in financial year 2010 and 2011, reinvesting $285.3 million and $294.6 million respectively. In addition to the DRP, investors have also strongly supported the Fund's new equity program, committing $184 million in financial year 2010 and $200 million in financial year 2011.

Gearing

Prudent and conservative financial management has been one of the cornerstones of the Fund over the past five years. Whilst the Trust Deed allows for a maximum gearing limit of 25%, the Three Year Investment Strategy targets a gearing level of 10% core debt and a tactical capacity of a further 10% to enable asset allocation to function effectively. As a result of the strong DRP and new committed equity combined with a high volume of asset sales, the Fund's gearing level is just below 10% at 30 June 2011.

Asset divestments

Total non-core asset divestments to date is $677 million (including $214.5 million in FY09). Following a very successful year in financial year 2010, the rate of divestments slowed in financial year 2011 as we focused on acquisitions. The transactions team continues to selectively and strategically market assets for disposal.

Asset acquisitions

The 25% investment into Westfield Doncaster Shopping Centre in Victoria is seen as a transformational investment for the retail portfolio. The asset will provide Investors with strong long term returns.

Sector and geographic allocation

The Fund's investment in Westfield Doncaster Shopping Centre assisted to increase the Fund's retail allocation closer to its 40% target.


ISPT CORE FUND

Management expense ratio (MER)The Fund reimburses operating costs incurred by ISPT Pty Ltd in its capacity as Trustee and manager. Custodian and property accounting functions are outsourced and included in Management Expense Ratio (MER) calculations.

The MER for financial year 2011 was 0.31%, a positive result compared with the forecast of 0.33%. This result is due to the continued prudent operations of Management.

The table below outlines the historical MER.

Financial year MER %

Total management cost $‘000

Average assets $‘000

2007/08 0.23 14,138 6,018,250

2008/09 0.24 14,572 6,153,076

2009/10 0.29 15,729 5,393,758

2010/11 0.31 17,187 5,582,214

Capital management

Equity and Distribution Reinvestment Program (DRP)

During the past two years $579.9 million has been reinvested as part of the DRP and $384 million contributed or committed as part of the funding notice program.

Investors reinvested $294.6 million (FY10: $285.3 million) of distributable income during financial year 2011. Current indications are investors will continue to support the DRP during financial year 2012.

The Fund moved to quarterly distributions as at 1 July 2010. This significant milestone was widely embraced by investors.

The $184 million of new equity committed during the financial year 2010 capital raising program was called in April 2011 in order to assist with the settlement of the Westfield Doncaster Shopping Centre investment. In February 2011, the FY11 Funding Notice was issued to investors seeking to raise $200 million of new equity. The Fund received bids for $298.3 million of units. The funding notice was scaled back to $200 million. Management will seek to invest the new equity into prime retail assets, in accordance with the Three Year Investment Strategy.

Over the year we welcomed six new investors to the Fund being the Metropolitan Fire Emergency Services Board, REI Super, Transport Accident Commission, The University of Melbourne, Victorian Managed Insurance Authority and WorkSafe Victoria.

Redemptions

The ISPT Board considers each redemption request on an individual basis and determines whether it is in the best interest of all unitholders. The Fund and ISPT Board work diligently to accommodate the liquidity requests of investors and paid out redemptions to the value of $64.8 million during financial year 2011. This included the redemption of one investor's entire holding.

All future requests will be considered individually having regard to the cash position of the Fund, market liquidity and the impact of the redemption on all unitholders.

Income

The Fund's strategic overweight allocation to long term, high quality tenants, including a significant proportion of leases to the Federal, State and Local Governments, continue to provide sustainable and low risk returns to investors.

The Fund’s net property income for financial year 2011 was $389.2 million, an increase of $5.1 million or 1.3% on financial year 2010 results, and is in spite of $135 million in asset sales, $177 million invested into development and operating capital expenditure projects and a substantial interruption to property income at the Wintergarden Shopping Centre and 2 and 4 National Circuit.

The growth in net property income and an associated decline in fund expenses has contributed to the growth in distributable income in financial year 2011. Fund distributable income was $323.7 million, representing growth of $9.3 million or 2.9% (FY10: $314.4 million) and resulted in a one year gross of fees income return of 7.22%.

0

50

100

150

200

250

300

350

400

FY2006 FY2007 FY2008 FY2009 FY2011FY2010

Net property income($ million) Distribution

Capital

The Fund recorded modest capital growth over the financial year 2011, net of investments made into development and operating capital expenditure, acquisitions and disposals.

Although in isolated cases, we have seen some tightening of some properties cap rates, most valuers have held capitalisation rates relatively steady over the year.

The major movement in the Fund’s weighted average cap rate was during the March 2011 quarter as a consequence of the Westfield Doncaster Shopping Centre acquisition (5.75% cap rate at acquisition) and some tightening of other retail assets cap rates.

Weighted average capitalisation rates

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

Dec

07

Mar

08

Jun

08

Sep

08

Dec

08

Mar

09

Jun

09

Sep

09

Dec

09

Mar

10

June

10

Sep

10

Dec

10

Mar

11

Jun

11

RetailOffice

Industrial

This graph needs to be considered in conjunction with ISPT Core Fund divestments table as the portfolio has experienced change due to asset divestments and new developments.


ISPT CORE FUND

Key financial information

30 June 2011 $’000

30 June 2010 $’000

Summary balance sheet

Assets

- Office 3,583,300 3,436,871

- Retail 1,714,800 1,405,303

- Industrial 395,380 389,700

- Other property 61,550 59,885

Property portfolio value 5,755,030 5,291,759

Other investments (including LPTs) 50,129 54,181

Cash and deposits on call 26,945 31,275

Receivables 66,238 15,219

Total assets 5,842,779 5,392,434

Interest bearing loans (516,200) (665,250)

Other liabilities (including provision for distribution ) (141,389) (356,246)

Net assets 5,185,190 4,370,938

Summary distribution statement

Net property income / (loss) 389,202 405,548

Other income / (loss) 26 1,748

Profit/(Loss) on sale of investment property 938 4,954

Distributions received 2,764 437

Interest 1,931 1,092

Net operating income 394,861 413,779

Interest and facility fees (52,992) (62,303)

MER costs (17,187) (15,670)

Non MER costs (991) (21,377)

Total distributable income 323,691 314,430

Summary fund structure

Net asset value per unit 1.726980 1.691028

Cash as % of total assets 0.33% 0.80%

Borrowings as a % of property portfolio value 8.9% 12.6%

Number of units on issue (‘000s) 3,001,259 2,584,781

Number of unitholders 29 24

Our Investors

Debt

Management continuously reviews the level of current and forecast debt in order to ensure the strategies regarding appropriate levels of debt and equity finance, the maturity profile of loan facilities, interest rate exposure and hedging are implemented. Management monitors both actual and forecast valuations and income movements against the financial covenants inherent in the bank facilities. We are comfortable with our bank covenants based on the assets currently charged. The banking covenants are structured on a Fund wide basis and are broadly similar for each of our facilities.

The drawn debt position reduced to $538.7 million (FY10: $665.3 million) as a result of the strong level of commitment to the DRP, sale proceeds and operating cash flows.

At 30 June 2011, the Fund’s gearing was 9.13% (June 2010: 12.4%), falling underneath the Fund’s long term strategic allocation.

The Fund’s all up cost of drawn debt was 7.12% as at 30 June 2011 (FY10: 7.69%) and the Fund’s financial year borrowing expenses were $4.6 million or 7% below budget due to substantial asset disposals.

Looking forward, Management is documenting a new $300 million facility with an expiry date of November 2014 to combine two existing tranches of $100 million and $200 million.


ISPT CORE FUND

DevelopmentsManagement continues to develop assets within the Fund which meet the Three Year Investment Strategy and where risks can be managed or mitigated.

In pursuing these developments we have avoided financial losses due to the conservative assumptions in our modelling and rigorous focus on leasing and construction risk.

Notable activities for the year are listed below, with Management also undertaking a wide range of smaller development and refurbishment projects throughout the year.

Wintergarden Shopping Centre, Brisbane

Stage 1 of the Wintergarden Shopping Centre refurbishment opened on 26 May 2011. Flagship tenancies include Swarovski, Rodd & Gunn and RM Williams. Stage 2 is underway with 95% of the demolition works complete and the structure is underway. The leasing campaign is well advanced with 30 deals either contracted or being finalised. Stage 2 is due for completion in April 2012.

On completion, the Wintergarden Shopping Centre will comprise six flagship tenancies on the Queen Street Mall and 69 speciality and larger format tenancies. The design includes an expanded food court connected by four internal malls and travelators and will have a spectacular stainless steel and LED light facade.

2 and 4 National Circuit, Canberra

The Fund’s two main office developments at 2 and 4 National Circuit in Canberra progressed throughout the year. Works at 2 National Circuit, Canberra which includes the refurbishment of the 5,000m2 heritage listed building to a sustainable office building with pre-commitment to the Federal Government is due for completion in September 2011.

The development at 4 National Circuit, Canberra will construct a new 30,000m2 sustainable office in two linked buildings. The Attorney General’s Department recently expanded their lease commitment to 8,800m2 and Management is continuing to seek tenants in a competitive leasing market.

Portfolio a$ributesThe Fund has moved closer to achieving the target sector and geographic allocation as outlined in the Three Year Investment Strategy.

The $350 million investment in Westfield Doncaster Shopping Centre in March 2011, in conjunction with the asset sales has increased the Fund's exposure to the retail sector.

Sector and geographic diversification as at 30 June 2011Sector Geographic

Other1.05%

Liquids1.59%

Office60.83%

Retail29.07%

Industrial7.46%

ACT10.03%

WA9.94%

SA2.28%

Liquids1.59%

NSW31.68%

VIC24.07%

QLD20.41%

Acquisitions and disposals

Acquisitions

Westfield Doncaster Shopping Centre, VIC

In December 2010 ISPT entered into an unconditional contract to acquire a 25% investment in the super-regional shopping centre, Westfield Doncaster Shopping Centre. The 120,000m2 shopping centre is located 15 kilometres east of the Melbourne CBD and is anchored by David Jones and Myers department stores, Target, Big W and Woolworths and Coles supermarkets. Complementing these tenants are over 400 specialty tenants, food courts and Village cinemas. The investment settled on 1 March 2011.

The $350 million investment makes it the largest single holding of the Fund at 6.2% of total property assets.

ISPT's partners are Westfield (50% ownership) via two investment vehicles and LaSalle Investment Management (25% ownership).

Disposals

In line with the Fund’s investment strategy, ISPT annually reviews the forecast investment returns of all properties and as a result, has identified many non-core property assets for disposal over the past three years. The divestment program has resulted in the successful divestment of over $677 million of non-core assets over the past three years comprising, $214.5 million in financial year 2009, $328.4 million in financial year 2010 and $135 million in financial year 2011.

The program’s financial year 2011 success, resulting in the disposal of an additional $135 million of non-core assets, comprised three secondary office assets located in Victoria and New South Wales, an industrial asset in New South Wales and an investment in a development site in the Docklands.

In what has been a subdued investment market, Management has achieved divestment prices at or above the current book value to both institutional and private investors in most transactions.

Core Fund divestments as at 30 June 2011

Property Sector Se(lement date

Book value ($ million) Divestment price

($ million)September 2010

December 2010

March 2011

FY 2009 215.5

FY 2010 328.4

FY 2011

Bourke Junction, Docklands VIC Office 20/9/2010 13.5

195 Newton Road, Wetherill Park NSW

Industrial 15/10/2010 12.27 12.5

474 St Kilda Road, Melbourne VIC

Office 31/1/2010 37.45 37.45 38.0

Lot 2 658 Church Street, Richmond VIC

Office 10/2/2011 38.50 41.11 42.0

15 Bourke Road, Mascot NSW Office 24/6/2011 26.00 27.00 28.47 29.0

Total 135.0

Grand total 677.0


ISPT CORE FUND

The Fund’s sustainability credentials are as follows.

ISPT Sustainability Ratings as at 30 June 2011

NABERS Ratings - as at 30 June 2011 Green Star Rating NABERS Rating

Property As Built Design Energy Whole Building

Energy Base Building

Water Whole Building

VIC

Casselden Place - 2 Lonsdale Street, Melbourne 4.5 Star 4 Star

50 Lonsdale Street, Melbourne 4 Star 4.5 Star 4 Star

500 Bourke Street, Melbourne 5 Star

NSW

1 Julius Avenue, North Ryde 2.5 Star

100 Pacific Highway, North Sydney 4.5 Star 3.5 Star

Fujitsu House - 2 Julius Avenue, North Ryde 2.5 Star 3.5 Star

270 Pitt Street, Sydney 4 Star 4.5 Star

345 George Street, Sydney 4 Star 3.5 Star

363 George Street & 24 York Street, Sydney 2.5 Star 2.5 Star

Sydney Central, 477 Pitt Street, Sydney 3 Star 2.5 Star

10 Smith Street, Parramatta 3.5 Star 2.5 Star

ACT

One National Circuit, Canberra 4.5 Star 4.5 Star 4.5 Star

2 Constitution Avenue, Canberra 3 Star 3 Star

3-5 National Circuit, Barton 5 Star 4 Star

7 London Circuit, Canberra 4 Star 4.5 Star 4 Star

18 Marcus Clarke Street, Canberra 4 Star 4.5 Star 4 Star

QLD

100 Creek St, Brisbane 3.5 Star 4 Star

Green Square South Tower, Fortitude Valley 5 Star 5 Star 5 Star 5 Star 4.5 Star

Green Square North Tower, Fortitude Valley 6 Star 6 Star 5 Star 5 Star

Central Plaza One, Brisbane 3.5 Star 4.5 Star

WA 100 St Georges Terrace, Perth 4 Star 5 Star 4 Star

Vacancy

The Fund manages in excess of 1,400,000m2 of quality office, retail and industrial assets diversified across the majority of Australian markets. The Fund maintains a robust occupancy level and did not experience any noticeable increase in risk profile over the financial year as demonstrated by the table below.

Portfolio vacancy As at 30 June 2011 As at 30 June 2010 As at 30 June 2009

Type m2 m2 m2

Office 22,959 22,630 17,718

Retail 11,317 12,397 16,860

Industrial 23,438 23,400 37,096

Total 57,713 58,427 71,674

% of portfolio (by NLA) 4.0% 3.9% 4.8%

Arrears

The accompanying table shows total arrears (payments outstanding over 30 days) at 30 June 2011 was $652,950 (FY10 - $369,875) or 0.7% of total monthly billings, significantly below ISPT’s benchmark of 2.5% of monthly billings. Management continues to maintain its rigorous debtor control and continues to achieve an excellent level of debt recovery. This is in part due to the close relationships we have forged with our tenants.

Total arrears performance against benchmark ($ million)

0

200

400

600

800

1,000

1,200

1,400

1,600

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jan-

09

Total arrears excluding current($ ‘000) 2.5% of billings

Sustainability

As Management embarks on the final three years of our 10 year sustainability program, we are aiming to engage with the tenants of 15 office properties in order to achieve NABERS Whole of Building Energy Ratings. We will focus on five office assets per annum and engage with the tenants of these properties in order to achieve the NABERS ratings.

We remain on track to achieve a 4.5 Star NABERS Energy Base Building Rating across the commercial portfolio as at 30 June 2011 and 5 Star by 30 June 2012.

The capital works program to improve the water consumption of our commercial portfolio is expected to result in the portfolio achieving a weighted 4 Star NABERS Water Rating as at 30 June 2011.

We are committed to reducing the level of waste produced by our properties. The level of waste recycling for our commercial office properties is improving and a 25% recycling target was set for financial year 2011.

The Fund portfolio complies with the Building Energy Efficiency Disclosure Bill (November 2010) and has commenced reporting carbon emissions under the National Greenhouse and Energy Reporting Act (NGER).


O"ce Property Portfolio

Sydney

NorthSydney

87

2

4

3 1

6

9

5

North RydeParramatta

10

New South Wales363 GEORGE STREET (INCORPORATING 24 YORK STREET), SYDNEY

SYDNEY CENTRAL 477 PITT STREET, SYDNEY

Year acquired September 2006 January 1999

Year built 2000 1991

Last refurbished Common areas 2010 2009

NLA/GLA m2 32,375 48,092

Car parks 65 145

Property manager CB Richard Ellis Knight Frank

Property value range $ million 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

345 GEORGE STREET SYDNEY

100 PACIFIC HIGHWAY NORTH SYDNEY

HILTON OFFICE TOWER & CAR PARK, 255 PITT STREET, SYDNEY

September 2006 May 2004 December 2005

1988 2006 1975

Common areas 2010 - 2005

21,076 22,401 15,429

39 129 500

CB Richard Ellis CB Richard Ellis CB Richard Ellis

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

Sydney

NorthSydney

87

2

4

3 1

6

9

5

North RydeParramatta

10

New South Wales DEFENCE PLAZA 270 PITT STREET, SYDNEY

THE BARRINGTON 10 SMITH STREET, PARRAMATTA

Year acquired May 2001 December 2000

Year built 1991 1970s

Last refurbished Currently under refurbishment Common areas 2011

NLA/GLA m2 23,980 13,609

Car parks 56 167

Property manager CB Richard Ellis CB Richard Ellis


1 JULIUS AVENUE NORTH RYDE

FUJITSU HOUSE 2 JULIUS AVENUE, NORTH RYDE

EPICENTRE, RIVERSIDE CORPORATE PARK, NORTH RYDE

March 1997 July 1996 November 1998

1999 1996

This property is a potential development (image a graphic impression only).

2009 -

14,035 7,170

396 263

CB Richard Ellis CB Richard Ellis

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

2

7

4

9

5

10

1

6

3

8


OFFICE PROPERTY PORTFOLIO

Canberra

Barton

15

1211

131416 17

ACT 2 NATIONAL CIRCUIT BARTON

4 NATIONAL CIRCUIT BARTON

Year acquired April 1999 April 1999

Year built

This property is currently being developed (image a graphic impression only).

This property is currently being developed (image a graphic impression only).

Last refurbished

NLA/GLA m2

Car parks

Property manager


Perth18

Western Australia100 ST GEORGES TERRACE (EXCLUDING ENEX100 RETAIL COMPONENT), PERTH

Year acquired June 2005

Year built 2009

Last refurbished -

NLA/GLA m2 31,394

Car parks 203

Property manager Jones Lang LaSalle

Property value range $ million 0-49 50-99 100-149 150-249 250+

3-5 NATIONAL CIRCUIT BARTON

ONE NATIONAL CIRCUIT BARTON

2 CONSTITUTION AVENUE CANBERRA

June 2000 June 2000 June 2004

2009 2007 1986

- - 1998

20,673 15,398 20,008

410 329 200

Knight Frank Knight Frank Knight Frank

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

Canberra

Barton

15

1211

131416 17

ACT 18 MARCUS CLARKE STREET CANBERRA

7 LONDON CIRCUIT CANBERRA

Year acquired June 2006 June 2006


Last refurbished - -

NLA/GLA m2 27,118 18,630

Car parks 231 151

Property manager Knight Frank Knight Frank


1512

17 18

1311 14

16


OFFICE PROPERTY PORTFOLIO

Brisbane

Fortitude Valley

25

2427

26

Townsville28

Queensland CENTRAL PLAZA ONE 345 QUEEN STREET, BRISBANE

GREEN SQUARE SOUTH TOWER, FORTITUDE VALLEY

Year acquired January 2008 June 2006



NLA/GLA m2 40,451 17,613

Car parks 260 355

Property manager Jones Lang LaSalle Colliers International


GREEN SQUARE NORTH TOWER, FORTITUDE VALLEY

100 CREEK STREET BRISBANE

63 STURT STREET TOWNSVILLE

June 2006 March 1998 May 2007

2008 1977 1987

- 2008 2009

24,179 20,574 5,420

154 77 76

Colliers International Colliers International Knight Frank

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

MIDTOWN PLAZA 246 BOURKE STREET MELBOURNE (MIXED USE)

447 COLLINS STREET MELBOURNE

251 SALMON STREET PORT MELBOURNE

April 2007 November 2004 June 2006

1932 1964 1930s

2010 1995 2010

15,794 30,183 4,307

Nil 372 243


0-49 50` 99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

232220 21

19

Melbourne CBD

Port Melbourne

Victoria CASSELDEN PLACE 2 LONSDALE STREET, MELBOURNE

500 BOURKE STREET MELBOURNE

Year acquired April 1999 March 1998


Last refurbished Currently under refurbishment 2009

NLA/GLA m2 61,412 48,234

Car parks 187 342



20 22 2319

24 25 26 27 28

21


Retail Property Portfolio

32

34

29

35

31 Richmond

33 Baulkham Hills

SydneyBondi

Sylvania30

WaggaWagga

Fairfield

Alexandria

New South WalesSOUTHGATE SHOPPING CENTRE AND 27-29 MELROSE AVENUE SYLVANIA

WAGGA WAGGA MARKETPLACE WAGGA WAGGA

Year acquired February 1998 July 1997


Last refurbished Various 2006

NLA/GLA m2 24,201 22,194

Car parks 1,049 947

Property manager Jones Lang LaSalle Jones Lang LaSalle


38

39

41

3740Melbourne

Footscray

36Doncaster

Brunswick

Campbellfield

Victoria WESTFIELD DONCASTER DONCASTER

MELBOURNE GPO CORNER BOURKE & ELIZABETH STREETS, MELBOURNE

Year acquired March 2011 April 2005


Last refurbished 2008 -

NLA/GLA m2 121,508 7,258

Car parks 4,771 Nil

Property manager Westfield Jones Lang LaSalle


32

34

29

35

31 Richmond

33 Baulkham Hills

SydneyBondi

Sylvania30

WaggaWagga

Fairfield

Alexandria

New South WalesHARVEY NORMAN CENTRE 494-504 GARDENERS ROAD ALEXANDRIA

FAIRFIELD FORUM SHOPPING CENTRE, FAIRFIELD

Year acquired October 2006 August 1999


Last refurbished - 2005

NLA/GLA m2 12,062 17,964

Car parks 453 763

Property manager McKenzie Hall Jones Lang LaSalle


RICHMOND MARKETPLACE RICHMOND

EASTGATE SHOPPING CENTRE BONDI JUNCTION

TOTALLY HOME BELLA VISTA BAULKHAM HILLS

November 1997 January 1995 January 2001

1997 1983 2000

2006 Various -

18,267 15,151 19,256

880 923 522

Jones Lang LaSalle Jones Lang LaSalle McKenzie Hall

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

32

36

31 33

37

29

34

30

35


RETAIL PROPERTY PORTFOLIO

BrisbaneMacGregor

Arana Hills

Toowoomba45

43

424644

Queensland WINTERGARDEN SHOPPING CENTRE AND CAR PARK, BRISBANE

ARANA HILLS KMART PLAZA ARANA HILLS

Year acquired February 2003 September 1996

Year built Stage 1: 1982, Stage 2: 1986 1996

Last refurbished Stage 1: May '11, Stage 2: April '12 Currently under refurbishment Nov '11

NLA/GLA m2 13,547 12,837

Car parks 571 830


Property value range $m 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

155 QUEEN STREET BRISBANE

TOOWOOMBA KMART PLAZA TOOWOOMBA

KESSELS COURT MACGREGOR

April 2008 September 1996 June 2000

1982 1996 1988

- 2010 -

1,985 12,772 9,221

Nil 1,006 180

Jones Lang LaSalle Jones Lang LaSalle McKenzie Hall

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

THE STRAND 250 ELIZABETH STREET MELBOURNE

CENTRAL WEST SHOPPING CENTRE, WEST FOOTSCRAY

December 2006 October 2007

1974 2003

2000 2006

9,506 21,895

239 820

Jones Lang LaSalle Jones Lang LaSalle

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

38

39

41

3740Melbourne

Footscray

36Doncaster

Brunswick

Campbellfield

Victoria BARKLY SQUARE BRUNSWICK

CAMPBELLFIELD PLAZA CAMPBELLFIELD

Year acquired January 1995 January 1995


Last refurbished 2000 2004

NLA/GLA m2 17,344 18,082

Car parks 677 889



39

43 44 45 46

4138

42

40


Industrial Property PortfolioRETAIL PROPERTY PORTFOLIO

Adelaide

Morphett Vale51

South Australia SOUTHGATE PLAZA SHOPPING CENTRE, MORPHETT VALE

Year acquired May 1996

Year built 1970

Last refurbished 2008 (relo. Kauto & extending Target)

NLA/GLA m2 14,838

Car parks 750



WestPerth Henderson

Maylands Ascot

52

Western Australia RUSSELL PARK INDUSTRIAL ESTATE, HENDERSON

Year Acquired October 2000

Year Built 1995

Last Refurbished -

NLA/GLA m2 62,426

Car Parks n/a

Property Manager Knight Frank

Property Value Range $ million 0-49 50-99 100-149 150-249 250+

Perth4847

Western Australia FORREST CHASE SHOPPING CENTRE, PERTH

ENEX100 (RETAIL COMPONENT OF 100 ST GEORGES TERRACE) PERTH

Year acquired November 1999 June 2005



NLA/GLA m2 41,282 7,842

Car parks Nil Nil



Adelaide

Regency ParkWoodville49 50

South Australia CHARLES STURT INDUSTRIAL ESTATE, WOODVILLE

REGENCY PARK 491-499 SOUTH ROAD, ADELAIDE

Year acquired October 2001 October 2007


Last refurbished 2004-2008 2009

NLA/GLA m2 117,151 12,289

Car parks n/a 240



48 49 50

52

47

51


INDUSTRIAL PROPERTY PORTFOLIO

Sydney

Rydalmere

Blacktown58

54-56

53

57

New South WalesBESSEMER BUSINESS PARK 13 BESSEMER STREET BLACKTOWN

274 VICTORIA ROAD RYDALMERE

Year acquired March 2002 December 2006



NLA/GLA m2 21,904 22,734

Car parks n/a n/a



PARKLANDS ESTATE 9-11 SOUTH STREET, RYDALMERE

PARKLANDS ESTATE 13-21 SOUTH STREET, RYDALMERE

23-29 SOUTH STREET RYDALMERE

April 2003 July 1996 September 1997

2003 1996 1980

2005 2008 -

15,135 34,552 13,131

n/a n/a n/a


0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

Sydney

Rydalmere

Blacktown58

54-56

53

576160 Banyo

Brisbane

59 Brendale

New South Wales 9 BESSEMER STREET BLACKTOWN Queensland

Year acquired May 2006 Year acquired

Year built 1960 Year built

Last refurbished - Last refurbished

NLA/GLA m2 9,468 NLA/GLA m2

Car parks n/a Car parks

Property manager Knight Frank Property manager

Property value range $ million 0-49 50-99 100-149 150-249 250+ Property value range $ million

250 SOUTH PINE ROAD BRENDALE

1035-1051 NUDGEE ROAD BANYO

10 BUCHANAN ROAD BANYO

October 2001 February 2002 May 2005

1990 1998 2000

- 2009 2006

31,738 15,538 2,578

n/a n/a n/a

CB Richard Ellis CB Richard Ellis CB Richard Ellis

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

54 55

59

56

60

57

61

53

58


INDUSTRIAL PROPERTY PORTFOLIO

6667

626364

65Melbourne

BrunswickFootscray

BayswaterPort Melbourne

Victoria 261 SALMON STREET PORT MELBOURNE

Year acquired June 2006

Year built 1930s

Last refurbished Partially refurbished 2009/2010

NLA/GLA m2 5,425

Car parks 185

Property manager Knight Frank


40 WESTON STREET BRUNSWICK

8 DUNLOP COURT BAYSWATER

820 MOUNTAIN HIGHWAY BAYSWATER

May 1996 November 2005 August 2007

1980 1950 1980

- - 2008

5,073 24,919 1,226

n/a n/a n/a

Jones Lang LaSalle Jones Lang LaSalle Jones Lang LaSalle

0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+ 0-49 50-99 100-149 150-249 250+

6667

626364

65Melbourne

BrunswickFootscray

BayswaterPort Melbourne

Victoria CENTRAL WEST INDUSTRIAL PARK PARCEL B, WEST FOOTSCRAY

CENTRAL WEST INDUSTRIAL PARK PARCEL C, WEST FOOTSCRAY

Year acquired October 2007 October 2007



NLA/GLA m2 94,389 2,331

Car parks n/a n/a



63 65 6662

67

64


Other Property Portfolio

Maddington

Perth

73

Western Australia 207 BURSLEM DRIVE MADDINGTON

Year acquired July 2003

Year built 2003

Last refurbished Reinstated 2010/2011

NLA/GLA m2 2,156

Car parks n/a

Property manager Knight Frank


Brisbane7271

Queensland WINTERGARDEN HILTON HOTEL BRISBANE

THE REGENT THEATRE QUEEN STREET, BRISBANE

Year acquired March 2003 December 2007


Last refurbished 2009 1979 and 2002

NLA/GLA m2 12,338 2,539

Car parks n/a n/a



Heatherton

Lyndhurst

Broadmeadows

7068

69

71

VictoriaPPT 1 - PELLICANO PROPERTY TRUST 1, KARKAROOK PROPERTY FUND TRUST

PPT 1 - PELLICANO PROPERTY TRUST 1, M2 PROPERTY FUND TRUST

Year acquired The Fund’s interest is 48% of the units in two unlisted trusts. The trusts own two quality industrial estates, Parkview and M2 Industrial Park. The estates are strategically located along major transport routes in Melbourne.

The investment comprises 24 properties with a total GLA of 123,041 m2, including Lot 1, Northcorp Boulevard, Broadmeadows, located in Melbourne’s north.

Year built

Last refurbished

NLA/GLA m2

Car parks

Property manager

Property value range $ million

PPT 4 - 359 FRANKSTON ROAD LYNDHURST PELLICANO PROPERTY TRUST 4

The Fund's interest is 50% of the units in a Pellicano Group managed trust. The Trust owns a site of 32.2 ha of land strategically located in Melbourne's south-east. This investment provides ISPT with significant industrial landholding and enhanced returns by participating in development.

68

71

69

72

70

73


ISPT %& LONSDALE STREET PROPERTY TRUST

ISPT Core Fund Investor Information

AssetsAssets in the Trusts are owned by ISPT Pty Ltd as Trustee for the investors in Industry Superannuation Property Trust No.1 (ISPT No.1) and Industry Superannuation Property Trust No.2 (ISPT No.2) (collectively known as ISPT Core Fund). They are subject to investment and other risks, including the loss of income and principal invested. The repayment of capital and the performance of the ISPT Core Fund is not guaranteed by ISPT Pty Ltd.

DistributionsThe ISPT Core Fund's distributable income was $323.7 million for financial year 2011. Of the Fund's twenty-nine investors, nineteen elected to reinvest their distributions totalling $294.6 million.

Period of the TrustISPT No.1 commenced on 28 June 1994 and ISPT No.2 on 13 March 1998. The stapling of ISPT No.1 and ISPT No.2 to form the ISPT Core Fund was effective from 1 October 2005.

Purchase and sale of unitsDetails of the procedure and rights relating to the purchase and sale of units are contained in Clauses 12 to 14 of the respective Trust Deeds for ISPT No.1 and ISPT No.2.

Statutory disclosureISPT Pty Ltd confirms that, other than as disclosed in this report:

i) no initial service charges, ongoing services charges and other fees and charges have been paid or are payable;

ii) no commissions are paid or allowable;

iii) no bonus issue has been made; and

iv) no circumstances that materially affect the holders of prescribed interests are known to exist.

Voting rightsDetails of voting rights attached to each unit are in Clause 28 of the respective Trust Deeds. The Trust Deed may be examined at the registered office of the Trustee, ISPT Pty Ltd, Level 13, 114 William Street, Melbourne VIC 3000.

InsuranceIndustrial special risks, public liability, professional indemnity insurance and directors’ and officers’ policies have been renewed for 12 months from 1 July 2011.

Trustee ISPT Pty Ltd - Level 13, 114 William Street, Melbourne VIC 3000Telephone 03 8601 6666 Facsimile 03 8601 6667 Website www.ispt.net.auABN 28 064 041 283 AFS Licence No 247280

External Auditor Ernst & Young

Internal Auditor Deloitte Touche Tohmatsu

Legal Service Providers Holding Redlich Lawyers, Gadens Lawyers

Accounting Service Provider Knight Frank

Valuers CB Richard Ellis, Colliers International, DTZ, Jones Lang LaSalle, Knight Frank,Landmark White, m3 Property Strategists, Savills, Urbis

Managing Agents CB Richard Ellis, Colliers International, Jones Lang LaSalle, Knight Frank, McKenzie Hall

Investor Inquiries Mark Bassett - Fund Manager Telephone 03 8601 6611Daryl Browning - Chief Executive Officer Telephone 03 8601 6636Susannah Bourke - Investor Services Telephone 03 8601 6630


ISPT 50 Lonsdale Street Property Trust

The key features of the Trust as at 30 June 2011 are as follows:

Fund statistics

Total assets $395.3 million

Total return after fees FY11 14.87%

Total return after fees since inception (31 March 2006) p.a.

15.05%

MER 0.21%

Drawn borrowings $118.0 million


6.47%

Facility expiry June 2013

Property statistics

Property portfolio value $387.0 million

Passing yield 7.5%

Terminal yield 7.75%

Discount rate (10 year period) 9.25%

WALE (income) 4.8 years

WALE (area) 4.8 years

Vacancy (by area) 0.5%

Property descriptionLocated on the north side of Lonsdale Street between Exhibition and Spring Streets, the precinct is firmly established as the primary government sector within the Melbourne CBD.

The Trust's new Two Year Investment Strategy outlines the strategic direction management will take in order to secure the lease expiry profile of the property.

The property’s 66,470m2 office component is securely let to the Department of Human Services, Australian Super, Sustainability Victoria, Frontier Asset Consulting and the Attorney General’s Department.

The weighted average lease expiry profile is currently 4.8 years by income and area.

Dear Investors,The management team at ISPT is pleased to advise the ISPT 50 Lonsdale Street Property Trust (‘the Trust’) has delivered sound investment returns being ranked first for the second consecutive year in the Mercer/IPD Australian Pooled Property Fund Index.

This single asset trust continues to provide investors with strong cash flows, superior covenant security and sustainability leadership.

The Trust achieved a gross investment return of 15.22% and 14.87% after fees for the year to 30 June 2011, resulting in out performance of the Mercer/IPD Index by 5.1%.

The property continues to provide excellent exposure to the improving Melbourne commercial office market albeit protected from downside risks by the 5 year lease expiry profile and fixed rental reviews.

We acknowledge the commitment to environmental excellence by the management team and commercial tenants who continue to work with us to ensure a collaborative approach to sustainability. ISPT also commend our retailers who have provided quality products with high levels of customer service throughout the retail precinct.

Over the past 12 months the Melbourne CBD office market has continued to perform well in a national context, with expectations for continued tenant demand, declining incentives and growth in prime gross effective rents.

The property's capitalisation rate and initial yield are both 7.50% being at the upper end of the prime yield range and significantly higher than the 6.75% peak in 2007.

Despite these higher metrics, the property’s valuation of $387 million at 30 June 2011 reflected growth of $16.5 million over the year, and is approaching pre-GFC levels.

The Trust delivered high income returns of 8.52%, although increased interest costs reduced this from the high of 8.96% in the prior period. The Trust also achieved growth of $0.22 million (1.1%) in distributable income.

Gearing continues to be accretive to the Trust’s performance. Management finalised a new two year debt facility with the Commonwealth Bank during the year.

The ISPT and Knight Frank management teams have maintained the property’s outstanding sustainability benchmarks with an exciting progression planned in the years ahead. This will include an upgrade to the on-site sewage treatment plant and a new NABERS Energy program that will focus on achieving a combined tenant and base building rating of at least 4.5 stars. This initiative will strengthen our tenant partnerships and further reduce CO2 emissions.

Management have completed a strategic review of the Trust and a new Two Year Investment Strategy was endorsed by the Board and investors. The plan focuses on delivering a highly sustainable product at moderate risk levels without compromising investment returns over the medium term.

We look forward to the continuing support of investors, tenants, service providers and suppliers throughout financial year 2012. We remain committed to delivering high service standards to our service providers and consistently good returns to our investors.

Yours sincerely

Mark Bassett Fund Manager


ISPT %& LONSDALE STREET PROPERTY TRUST

Management expense ratio (MER)The MER was 0.21% for the financial year 2011 based on average total assets. The Trust charges management fees on a cost recovery basis and does not charge performance fees. The increase in management cost is attributable to an intensive review of the retail precinct by management, costs associated with the debt negotiations, upgrades to plant and equipment and further investment in the new sustainability plan.


Total management cost '$000

Average assets '$000

2007/08 0.14 578 414,441

2008/09 0.18 722 395,997

2009/10 0.19 687 367,395

2010/11 0.21 801 384,149

SustainabilityISPT is proud of the sustainability credentials this property has achieved over recent years as the project was conceived and constructed well before Green Star and NABERS Ratings programs gained currency in the marketplace.

The certification of a 4 Star Green Star Office As Built v2 Rating in June 2009, and the current ratings of 4.5 Star NABERS Energy and 3.5 Star NABERS Water Ratings all reflect the superior design and construction of the property.

The property incorporates a number of key sustainability features including:

The first operational black water treatment plant in an Australian office building, which recycles up to 75% of the water on site;

High efficiency chillers;

Customised Building Management Control Systems;

Photo voltaic solar hot water at roof level;

Water efficient fixtures;

High efficiency T5 fluorescent lighting;

Low VOC products and materials;

CO2 monitoring and control; and

Provision of extensive cyclist facilities, change rooms and showers.

During the next financial year management will pursue the achievement of a NABERS Whole of Building Energy rating in partnership with our tenants.

Fund performanceThe Trust continues to produce high returns for investors, supported by strong tenancy covenants to the Victorian and Federal Governments and the industry superannuation fund sector.

The Trust’s net property income grew by $1.65 million or 6.2% during financial year 2011 to $28.4 million (FY10: $26.7 million).

Since inception, the Trust has delivered investors very good risk adjusted returns. Over the medium term, the three year total return after fees of 6.05% includes the -9.93% recorded at the peak of the GFC in FY09. The property's value is recovering progressively from the low of $355 million in June 2009.

Performance Rolling per annum

1 year %

3 years % p.a.

Since inception* % p.a.

Before fees

Income 8.52 8.10 6.86

Capital** 6.69 (1.76) 8.48

Total returns 15.22 6.34 15.34

A.er fees

Total returns 14.87 6.05 15.05

Index 9.82 (0.35) 6.58

Relative performance 5.05 6.4 8.47

* Inception date: 31 March 2006 and includes development profits.

** The compound residual effect has been allocated to the Capital return.

Capital management

Income distribution

The Trust's income distribution of $20.62 million represents growth of 1.1% or $0.22 million over the financial year 2010 result of $20.4 million. During financial year 2011, the Trust moved to distribute income on a quarterly basis as part of the capital management program.

Our Investors

Debt and debt strategy

The Trust's three year debt facility with St George Bank was replaced six months prior to expiry and a new two year facility with the Commonwealth Bank of Australia ('CBA') commenced June 2011.

The CBA $120 million facility was drawn to $118.0 million at 30 June 2011 representing a loan to value ratio of 30.5%. The interest rate remained floating throughout the year but has subsequently been hedged at 4.02%. The weighted average cost of drawn debt was 6.47% (excluding establishment fees) as at 30 June 2011.


ISPT DEVELOPMENT AND OPPORTUNITIES FUND NO.'



Internal Auditor Deloitte Touche Tohmatsu

Legal Service Providers Holding Redlich Lawyers

Accounting Service Provider Knight Frank

Valuers Colliers International

Managing Agents Knight Frank

Investor Inquiries Mark Bassett - Fund Manager Telephone 03 8601 6611Daryl Browning - Chief Executive Officer Telephone 03 8601 6636Susannah Bourke - Investor Services Telephone 03 8601 6630

ISPT 50 Lonsdale Street Property Trust Investor Information

AssetsAssets in the Trust are owned by ISPT Pty Ltd as trustee for the investors in ISPT 50 Lonsdale Street Property Trust. The assets are subject to investment and other risks, including the loss of income and principal invested. The repayment of capital and the performance of the Trust is not guaranteed by ISPT Pty Ltd.

DistributionsDistributions are declared and paid quarterly. ISPT 50 Lonsdale Street Property Trust distributed $20.62 million to investors during financial year 2011.

Period of the TrustISPT 50 Lonsdale Street Property Trust commenced on 24 June 2003. The Trust was initially known as Industry Superannuation Development Trust (The Urban Workshop).

Purchase and sale of unitsDetails of the procedure and rights relating to the purchase and sale of units are contained in Clauses 6 and 7 of the Trust Deed.






Voting rightsDetails of voting rights attached to each unit are in Clause 19 of the Trust Deed. The Trust Deed may be examined at the registered office of the Trustee, ISPT Pty Ltd, Level 13, 114 William Street, Melbourne VIC 3000.



Objectives and strategyThe objective of the Fund is to generate attractive returns from investment in opportunistic property development and repositioning and to maximise equity returns, while preserving and protecting investor capital. The Fund’s primary objective is to target a 15% IRR per annum on invested equity, after fees and before tax.

Capital management

Equity and distribution

The Fund was established in October 2006 with total commitments of $130.5 million being received from five investors. Since inception, the Fund has invested in nine projects in Victoria and Tasmania, fully committing the $130.5 million of equity pledged by investors. At balance date $129.5 million (99.2%) had been called.

Total capital distributions (equity and profit) of $27.1 million were made to investors during financial year 2011 following continued settlements at Alamanda, Point Cook and Society, South Yarra. Since inception, $66.0 million of investors' committed equity has been returned and $27.2 million of profit has been distributed.

Our Investors


Debt is sourced on a project by project non recourse basis.

Portfolio a$ributes

The Fund's investments are diversified across three sectors of the property market and all current projects are located in Victoria. Diversity within the residential sector has been achieved through investing in englobo land holdings held for rezoning and sale, zoned land for subdivision to residential allotments and high density inner city residential apartment development.

Property portfolio type by value1

Industrial13%

Mixed use43%

Residential44%

Property portfolio JV partner by value1

Villawood6%

ISPT83%

PellicanoGroup 10%

Hamton 1%

1. Based on the Fund's exposure to individual property assets at their 30 June 2011 property valuation.

ISPT Development and Opportunities Fund No.1

Dear Investors,Despite the fluctuations in the local and global economy the financial year 2011 continued to be an active and successful year for the Development and Opportunities Fund No.1 (the Fund).

The Fund continually monitors and reviews each project and completes regular analysis of the local property market conditions to ensure appropriate development plans and exit strategies are implemented in a timely manner.

We are pleased to report the Fund has achieved since inception an annualised IRR of 16.3% after fees and before tax. A total of $93.2 million equity and profit has been returned to investors since the fund inception.

Highlights during the period include:

'Society', South Yarra, in joint venture with Hamton was successfully completed during financial year 2011 achieving an IRR of 39.5%. Full repatriation to investors of $8.8 million committed equity and $10.5 of profit has been distributed during the year. 'Society' was 100% pre-sold prior to construction, the construction phase completed on time and within budget and settlement of all 242 apartments completed by 30 June 2011.

'Alamanda', Point Cook in joint venture with Villawood continues to outperform expectations as a result of the favourable first home owners grant. During financial year 2011 a further 87 lots were settled, bringing the total number sold settled to 1,416. At year end approximately 1,150 homes are occupied within Alamanda with a further 90 under construction.

The Fund’s three englobo land subdivision projects are located within Melbourne's Urban Growth Boundary at Cranbourne South, Werribee and the industrial subdivision at Lyndhurst. All projects are progressing well with Cranbourne South and Werribee expected to achieve rezoning over the next 12 months.

The 250 Spencer Street, Melbourne mixed use site is currently being masterplanned post the sale of the eastern portion of the site in April 2010. Optimum site utilisation is being worked up as well as the potential exit strategies available. The site is income producing with the office building leased to the Australian Bureau of Statistics, expiring 31 December 2012 and the carpark leased to an independent operator.

For the year ahead, our focus remains the masterplanning of 250 Spencer Street project as well as achieving rezoning and subsequent exiting of our land holdings. We would also like to take the opportunity to thank our Joint Venture partners and our investors for their support and we remain committed to returning equity and distributing profits at the earliest opportunity.

Yours sincerely

David McFadyen Fund Manager

Fund statistics

Fund commitment $130.5 million

Capital called $129.5 million


Since inception capital distributions Equity Profit

$93.2 million $66.0 million $27.2 million

FY11 capital distributions Equity Profit

$27.1 million$13.5 million$13.6 million

IRR since inception (26 October 2006) p.a. after fees and before tax

16.3%


Mixed Use PortfolioResidential Apartments Portfolio

1

Melbourne

SouthYarra

Victoria SOCIETY ELLIS STREET, SOUTH YARRA

Joint venture share ISPT 80%, Hamton and Related Entities 20%

Project description Property comprises a 1,864m2 development site located on the corner of Simmons and Ellis Street, South Yarra, one block east of Chapel Street.

Forecast completion date September 2011

Highlights and status The now complete development comprises 242 residential apartments, ground floor retail suite and rooftop communal space. The only remaining component of the project is the retail suite on the ground floor which settled September 2011.

Melbourne2

Victoria 250 SPENCER STREET MELBOURNE

Joint venture share ISPT 100%

Project description Property comprises a 11,755m2 redevelopment site having sold down part of the site in early 2010 and is currently improved with office and storage accommodation leased to The Australian Bureau of Statistics (ABS). The property provides an opportunity to plan and implement a substantial mixed use development of the site including retail, commercial and residential accommodation with various milestones available through to completion including development, refurbishment or opportunistic divestment of various components of the site after successful planning outcomes.

Forecast completion date July 2012

Highlights and status The masterplan for the site continues to evolve to obtain optimum site utilisation. The design work currently being undertaken will assist determining the appropriate exit strategy.

21


RESIDENTIAL ALFRED ROAD WERRIBEE

INDUSTRIAL INNOVATION PARK FRANKSTON–DANDENONG ROAD, LYNDHURST

ISPT 100% ISPT 50%, Pellicano Group 50%

Property comprises 36.7ha of land located within the Urban Growth Boundary. The subdivision concept plan provides for a predominantly residential development and indicates a potential yield of 492 residential lots.

Property comprises 42ha of Industrial zoned land located within the Urban Growth Boundary. The subdivision plans indicate a lot yield of 54 lots ranging in size from 2,070m2 to 17,227m2.

April 2012 October 2012

Current indications are the Growth Area Authority (GAA) will exhibit the Precinct Structure Plan after the adoption of the broader Wyndham Vale Growth Area Framework Plan (GAFP) in financial year 2012. The landholder group continues to work towards rezoning to residential.

Following statement of compliance and issuance of titles, the settlement of the first nine lots within Stage 1A occurred in June 2011. A further three contracts were entered into during June 2011 and the settlement of these lots is anticipated to take place during financial year 2012.

3

4

6

5

Melbourne

Point Cook

WerribeeLyndhurst

Cranbourne

VictoriaRESIDENTIAL ALAMANDA SNEYDES ROAD, POINT COOK

RESIDENTIAL 91–95 BROWNS ROAD CRANBOURNE SOUTH

Joint venture share ISPT 70%, Villawood and Related Entities 30%

ISPT 100%

Project description This property comprises 130ha of residential land in the suburb of Point Cook. Revised subdivision plans indicate a yield of 1,513 residential lots, a 29 lot 'Over 55' living precinct and a 1.67ha mixed use site.

Property comprises 47.8ha of land located within the Urban Growth Boundary. The subdivision concept plan provides for a residential subdivision and indicates a potential yield of 520 residential lots.

Forecast completion date October 2012 June 2012

Highlights and status Stage 15b commenced marketing in May 2011. A total of 1,416 lots have been settled since inception.

Current indications from the Growth Area Authority (GAA) indicate the Precinct Structure Plan will be exhibited after the adoption of the broader Clyde Growth Area Framework Plan later in 2011. Management continue to work towards rezoning to residential in financial year 2012. Management will continue to work with the GAA in order to bring certainty to the rezoning of the land before re-engaging with interested parties for the orderly sale of the land during financial year 2012.

Englobo Land Portfolio

6 53 4


ISPT DEVELOPMENT AND OPPORTUNITIES FUND NO.(

Assets Assets in the Trust are owned by ISPT Pty Ltd as Trustee for the investors in ISPT Development and Opportunities Fund No.1 (formerly known as Industry Superannuation Property Trust No. 3). They are subject to investment and other risks, including the loss of income and principal invested. The repayment of capital and the performance of the Trust is not guaranteed by ISPT Pty Ltd.

Distributions This Trust is a public trading trust for tax purposes and is liable to pay tax at the corporate rate on any profits. Any distributions will be determined by the Trustee in its sole discretion.

Period of the Trust ISPT Development and Opportunities Fund No.1 commenced on 7 June 2005 with initial subscriptions received 26 October 2006. Investors have the option to extend or terminate the Trust after the six year anniversary of the initial subscription.


Statutory disclosure ISPT Pty Ltd confirms that, other than as disclosed in this report:





Voting rights Details of voting rights attached to each unit are in Clause 15 of the Trust Deed. The Trust Deed may be examined at the registered office of the Trustee, ISPT Pty Ltd, Level 13, 114 William Street, Melbourne VIC 3000.


ISPT Development and Opportunities Fund No.1 Investor Information



Legal Service Providers Holding Redlich Lawyers, Gadens Lawyers, Middletons, Norton Rose

Valuer Charter Keck Cramer, Jones Lang LaSalle, m3 Property, Urbis

Investor Inquiries David McFadyen - Fund Manager Telephone 03 8601 6659Daryl Browning - Chief Executive Officer Telephone 03 8601 6636Susannah Bourke - Investor Services Telephone 03 8601 6630


Objectives and strategyThe objective of the Fund is to generate attractive returns from investment in opportunistic property development and repositioning and to maximise equity returns, while preserving and protecting investor capital. The Fund’s primary objective is to target a 15% IRR per annum on invested equity, after fees and before tax.

Capital management

Equity and distribution

The Fund was established in June 2008 with total commitments of $240.0 million received from five investors. Since inception and commencement of drawdowns in December 2008, the fund has invested in six projects in Victoria, committing $165.1 million of equity pledged by investors. At balance date $150.8 million (62.8%) had been called. No capital distributions occurred during the period.

Our investors

Debt and debt strategyDebt is sourced on a project by project and on a non recourse basis.

Portfolio a$ributesPresently the Fund is wholly invested within the residential property market. Diversification has been achieved within the residential sector with investments made in englobo land holdings held for rezoning and sale and development of high density inner city residential apartments. The Fund is led by ‘stock specific’ investing and will focus on projects which are forecast to positively contribute to the Fund's 15% IRR return target rather than constructing a sector diversified portfolio. Opportunities in other sectors of the property market have been considered however have not met the required return hurdle.

Property portfolio type by value1

Residential100%

Property portfolio JV partner by value1

Hamton9%

ISPT 78%

EvolveDevelopment

8%

Otan Property Funds Management1%Galileo 4%

1. Based on the Fund’s exposure to individual property assets at their 30 June 2011 property valuation.

ISPT Development and Opportunities Fund No.2

Dear Investors,During the financial year 2011, the Development and Opportunities Fund No.2 (the Fund) continued to progress each of the developments, value adding at each stage from planning to delivery. In addition to reviewing over 60 development opportunities, initiatives included lobbying key stakeholders in the planning process to expedite rezoning outcomes and working with Joint Venture partners to reconfigure residential units to meet the dynamic market conditions.

Although residential property markets are subject to economic volatility and receive constant media attention, there has been substantial local and international demand for quality development projects. The Fund invested in two high density residential apartment projects during the year at Chatswood NSW and Subiaco WA, diversifying the Fund's geographic representation away from Melbourne.

The Fund's annualised IRR is 8.1% since inception after fees and before tax due to the costs incurred in the investment process. The total number of investments is six with $165.1 million (69%) of equity committed.

Highlights during the period include:

'Metro Residences' Chatswood in joint venture with Galileo is a residential development project located above the Chatswood Transport Interchange. The development will consist of 553 apartments configured over three towers, two of which, Metro View and Metro Spire, received unprecedented public response and is 100% pre-sold. As a consequence of the strong level of public interest, formal marketing of the third tower, Metro Grand commenced June 2011.

The Fund’s englobo residential land investment at Sayers Road, Truganina achieved rezoning in July 2011 after a protracted planning process. An exit strategy is now being implemented.

'Eden' Abbotsford in joint venture with Hamton commenced Stage 1 marketing in March 2011 and has achieved 70% pre-sales at year end. The development project encompasses 576 apartments and ground floor retail. Stage 2 'Haven' is to be released in September 2011 and has substantial local owner occupier interest.

'The Guilfoyle', Southbank in joint venture with Evolve Development is the development of a 353 residential apartment tower and has achieved 99% pre-sales. Demolition and construction works have commenced with completion due mid 2013.

'50 Albert' South Melbourne, a joint venture with Hamton commenced demolition and construction during the year. The project has been reconfigured from 294 to 284 apartments to capitalise on owner occupier and investor demand for three bedroom apartments and the successful marketing campaign has resulted in 90% pre-sales at year end.

'North One' Subiaco in joint venture with Otan Property Funds Management is the development of 88 apartments over four levels combined with approximately 1,900m2 of commercial, medical and retail space. To date strong public interest has resulted in over 650 registrations of interest being received.

Our focus for the year ahead for the Fund is to oversee and manage the construction phase and settlement risk at each project. Management are committed to creating the right product at the right point in the cycle while keeping a tight focus on cost and timing. We will continue to review all development projects in all sectors and locations.

We would like to take this opportunity to thank our investors and Joint Venture partners and we look forward to a prosperous 2012.

Yours sincerely

David McFadyen Fund Manager

Fund statistics

Fund commitment $240.0 million

Capital called $150.8 million


Capital distributions (equity and profit) n/a

IRR since inception (19 December 2008) p.a. after fees and before tax

8.1%


1Truganina

32

MelbourneSouthbank

South Melbourne4 Abbotsford

Victoria 260–280 SAYERS ROAD TRUGANINA

Joint venture share ISPT 100%

Project description This property consists of 36ha of land within the Urban Growth Boundary. Subdivision concept plans provide for a predominantly residential development with a potential yield of between 505 lots and 526 lots. The concept plan proposed by DSE allows for approximately 6.19ha to be set aside as a conservation area.

Forecast completion date March 2012

Highlights and status Management worked closely with the Truganina South Community Precinct to achieve rezoning to residential in July 2011.

Englobo Land and Residential Apartments Portfolios

50 ALBERT 42-50 ALBERT ROAD SOUTH MELBOURNE

THE GUILFOYLE 35-47 COVENTRY STREET SOUTHBANK

EDEN & HAVEN 675-679 VICTORIA STREET ABBOTSFORD

ISPT 80%, Hamton and related entities 20%

ISPT 50%, Evolve Development and related entities 50%

ISPT 80%, Hamton and related entities 20%

This property comprises a 1,847m2 development site located on the corner of Coventry and Wells Street, South Melbourne, and within walking distance to Albert Park and the Royal Botanic Gardens. Approved development plans provide for the partial retention of a historic Victorian terrace and construction of 294 residential apartments and ground floor retail space. A number of apartments have been reconfigured to 3 bedrooms allowing for 284 apartments in total.

Property comprises a 2,060m2 development site located on the corner of Coventry and Wells Street, Southbank, and within walking distance to the St Kilda Road Boulevard and Southbank entertainment precincts. Approved development plans provide for the construction of 353 residential apartments and ground floor retail tenancies.

This property comprises a 14,220m2 redevelopment site having sold down part of the site in early 2010. The property provides an opportunity to plan and implement a substantial staged residential development with various milestones available through to completion including opportunistic divestment of various components of the site. Approved development plans provide for the construction of 576 residential apartments and ground floor retail space over 3 stages.

July 2013 March 2013 August 2013 - Stage 1

The successful marketing of 50 Albert resulted in pre-sales of over 90% as at 30 June 2011. A construction contract commenced with Hickory, a construction company well known to ISPT. Demolition works on the existing building commenced during the year.

The demolition of the 7 storey existing office building and removal of the underground storage tanks was completed during the year. Excavation works are currently being completed in order for construction to commence. The successful marketing program has resulted in 99% being pre-sold as at 30 June 2011.

Formal marketing of Stage 1, known as Eden, commenced in March. This stage comprises 201 apartments, with approximately 70% pre-sales as at 30 June 2011. Marketing of Stage 2, Haven, is scheduled to commence in September 2011.

3 41 2


Subiaco5

Perth

Western AustraliaNORTH ONE LOT 1 SALVADO ROAD SUBIACO

Joint venture share ISPT 80%, Otan Property Funds Management 20%

Project description Property comprises a 3,398m2 development site located on Salvado Road opposite the St John of God Hospital. The concept plans provide for a predominantly residential development of 88 apartments over four levels together with 1,859m2 of commercial, medical and retail space received planning approval in June 2011.

Forecast completion date August 2013

Highlights and status Formal marketing including the project launch commenced in July 2011. At the time of writing 18 registrations of interest had been received in anticipation of the project release.

Detailed design documentation commenced in March 2011.

Chatswood6

Sydney

New South WalesMETRO SPIRE, METRO VIEW, METRO GRAND METRO RESIDENCES, CHATSWOOD

Joint venture share ISPT 90%, Galileo 10%

Project description This property comprises the Residential Stratum Development and carpark forming part of the development known as the Chatswood Transport Interchange. Approved development plans provide for the construction of 553 apartments with Stage 1 (Tower 2 'Metro Spire' and Tower 3 'Metro View') being 292 apartments and Stage 2 (Tower 1 'Metro Grand') being 261 apartments.

Forecast completion date April 2014

Highlights and status The project marketing commenced with the release of Towers 2 and 3 and received an unprecedented public response achieving over 100% pre-sales.

As a consequence of the strong level of public interest formal marketing of Tower 1 commenced in June 2011. A construction contract commenced with Hutchinson Builders and preliminary works have commenced.

Residential Apartments Portfolio

5 6


ISPT GROSVENOR INTERNATIONAL

PROPERTY TRUST

AssetsAssets in the Trust are owned by ISPT Pty Ltd as Trustee for the investors in ISPT Development and Opportunities Fund No.2. They are subject to investment and other risks, including the loss of income and principal invested. The repayment of capital and the performance of the Trust is not guaranteed by ISPT Pty Ltd.

DistributionsThis Trust is a public trading trust for tax purposes and is liable to pay tax at the corporate rate on any profits. Any distributions will be determined by the Trustee in its sole discretion.

Period of the TrustISPT Development and Opportunities Fund No.2 commenced on 12 June 2007 with initial subscriptions received 19 December 2008. Investors have the option to extend or terminate the Trust at the eight year anniversary of the initial subscription.







Voting rightsDetails of voting rights attached to each unit are in Clause 15 of the Trust Deed. The Trust Deed may be examined at the registered office of the Trustee, ISPT Pty Ltd, Level 13, 114 William Street, Melbourne VIC 3000.


ISPT Development and Opportunities Fund No.2 Investor Information



Legal Service Providers Holding Redlich Lawyers, Gadens Lawyers, Middletons, Maddocks

Valuers Charter Keck Cramer, Knight Frank, Colliers International, Jones Lang LaSalle

Investor Inquiries David McFadyen - Fund Manager Telephone 03 8601 6659Daryl Browning - Chief Executive Officer Telephone 03 8601 6636Susannah Bourke - Investor Services Telephone 03 8601 6630


ISPT Grosvenor International Property Trust

The key features of the Fund as at 30 June 2011 are as follows:

Fund statistics

Total assets AUD $276.2 million

Total return after fees FY11 2.6%

Total return after fees since inception (30 November 2004) p.a.

(6.3%)

MER 1.1%

Borrowings AUD $34.6 million


6.8%

Facility expiry AUD $34.6 million November 2012

Property statistics

Property portfolio value AUD $189.2 million

Total net lettable area (Direct properties only)

69,113 m2

Weighted average capitalisation rate

7.2%

WALE (income) 7.4 years

WALE (area) 7.9 years

Occupancy (% NLA) 83.9%

Dear Investors,2010/11 proved to be another turbulent year where once again the uncertainty surrounding the global economy took centre stage. The ongoing sovereign debt issues escalated to the point where Greece, Ireland and Portugal all required bailouts from the European Central Bank and International Monetary Fund. Fear of contagion set in with major concerns surrounding both Spain and Italy's capacity to meet their debt obligations. The Japanese Tsunami was another major event, which created turmoil in markets and had a detrimental impact on growth. And finally, the deteriorating economic situation in the US, culminated with its credit rating being downgraded. All these factors have contributed to a highly volatile and risk averse investment market, which has most recently witnessed a dramatic decline in global equity indices.

Property has largely managed to withstand these negative events, although a clear value gap has emerged between core and secondary assets. Investment demand for core assets, providing a secure income stream, is strong and has led to yield compression in some markets. Conversely, demand for secondary assets from both occupiers and investors are low, which has resulted in both rental and capital declines.

The orderly windup of the ISPT Grosvenor International Property Trust ("the Fund") continued in this uncertain environment. The Fund has continued to focus on the preservation of capital through actively managing occupancy, lease expiries and arrears. In this respect, the Fund managed to maintain its income level (on a like for like basis) for the year, which together with the income carry from hedging and lower interest expense contributed to the strong annual income return of 9.8%. The net total return for the year of 2.6% was principally driven by the significant write down in value at Lee Farm, US and capital losses incurred on the sale of Park Ridge Four, US and Gateway Village, US.

During financial year 2011, two assets were sold:

Park Ridge Four, Littleton, Colorado, US (Office)

Gateway Village, Valencia, California, US (Retail)

As at 30 June 2011, three direct assets remain in the Fund:

The River, Rancho Mirage, Palm Springs, California, US (Retail)

Lee Farm, Danbury, Connecticut, US (Office)

L'Anec Blau, Barcelona, Spain (Retail)

The sale of these direct assets is scheduled to occur over the next 12-18 month period with the timing dependent on market conditions and specific assets issues being resolved to optimise sales proceeds.

The Fund's one indirect investment, the units in Grosvenor Shopping Centre Fund (GSCF), were marketed for sale during the course of the year and did not attract a suitable offer. This was largely due to the GSCF investment profile expiry in 2014 not being consistent with investors' long term requirements. The expectation is the three UK shopping centre assets within GSCF will be sold during the course of 2012. Therefore, it is likely IGIPT's units will be redeemed as part of this sell down process.

The proceeds from the two US sales were utilised to repay the Barclay's debt facility on L'Anec Blau, Spain. As a result, the Fund’s capital structure has strengthened further over the year with the outstanding debt on the direct portfolio reducing from AUD $114.4 million to AUD $34.6 million and the LVR declining from 37.8% to 18.3%. In addition, the Fund has cash holdings of AUD $79.1 million as at 30 June 2011.

Looking forward, the volatile investment markets and weak economic outlook are likely to continue to have an impact on property markets over the next 12 months. Whilst property investment markets have benefited from low interest rates, the availability of debt remains restricted and critically the outlook for occupancy markets is weak. The latter is likely to lead to rental weakness over the short term and this is a key risk for property capital values for the year ahead. As risk continues to be repriced across all markets and asset classes, core property may benefit on a relative basis with investors actively seeking secure income.

Despite the challenging market conditions outlined above, Management is focused on ensuring the orderly wind down of the Fund is undertaken diligently with proceeds from sales maximised and repatriated to investors.

Yours sincerely

Chris Millard Fund Manager


ISPT GROSVENOR INTERNATIONAL PROPERTY TRUST

Capital management

Equity

During financial year 2011, the disposition strategy continued with all sale proceeds utilised to manage the capital structure of the Fund.

Due to asset sales and the cessation of the Fund's currency hedging program, the Fund holds significant cash reserves, AUD $35 million of which will be repatriated to investors in October 2011. The remaining cash reserves will be utilised to continue property operations including L'Anec Blau, Spain repair works and the orderly wind-up process. Equity will be returned to unitholders at the earliest opportunity.

Hedging

The currency hedging strategy was implemented in June 2007 to mitigate the impact of currency fluctuations on the value of the net property investments. In effect, this mitigates the risk of the local property performance being eroded by adverse movements in the exchange rate.

During financial year 2009, investors contributed AUD $95 million to support the currency hedging program due to the significant devaluation of the Australian Dollar against the US Dollar, the Pound Sterling and Euro. The AUD has continued to rally since 2009 resulting in significant hedging gains and full repatriation of the $95 million to investors was completed during the year.

Effective 30 June 2011, the Fund ceased its currency hedging program and all remaining foreign currency exchange contracts were settled 1 July 2011. The Fund is now subject to foreign currency translation risk in respect of all foreign denominated net assets and net income. This is expected to increase the volatility of fund returns in future financial periods.

Management has undertaken to provide foreign net asset and net income forecast data to facilitate investors own currency hedging of their IGIPT investment.

Financial year 2010/11 distribution details

Distributable income for the financial year 2010/11 was AUD $13.1 million. The distribution is based on the net income of the consolidated group, adjusted for non-cash IFRS items. Non-cash IFRS items include unrealised movements in the fair value of investment properties and straight-lining rental adjustments.

The financial year 2010/11 income distribution will be paid in September 2011.


The debt strategy implemented in 2009 has utilised disposal proceeds to repay debt with the balance held in cash. During the financial year 2010/11, the outstanding debt on the direct portfolio has reduced from AUD $114.4 million to AUD $34.6 million resulting in the Fund LVR declining from 37.8% to 18.3%.

IGIPT continued its orderly wind-down with the sale of Park Ridge Four, US and Gateway Village, US. Sale proceeds totaling USD $61.7 million were utilised to fully repay the L'Anec Blau, Spain �42.6 million Barclays loan facility in February 2011.

The fund's multi-currency loan facility with the NAB (undrawn at 30 June 2010) was cancelled in November 2010.

The Fund's only remaining debt facility is the Column Financial loan for The River, US. The loan is for a period of 85 months with an anticipated repayment in November 2012. The principal and interest loan has a fixed interest rate of 6.8% per annum. The loan remains in place as early repayment would attract significant break costs. The loan does not have a specific LVR covenant, however at year end, the LVR is 53.4%.

There are no undrawn credit facilities as at 30 June 2011.

Fund investors

Fund performanceThe Fund’s net total return for the year was 2.6%.

The disappointing total return was due to a negative capital return of 5.7%. This was driven principally by the significant write down in value at Lee Farm, US (45.6%) due to the building's short income profile. Capital losses were also incurred on the sales of Park Ridge Four, Colorado, US (4.6%) and Gateway Village, US (5.4%) due to sale proceeds being slightly less than book valuation. Positive valuation growth was achieved at L'Anec Blau, Spain, The River, US and GSCF, UK.

At the Fund level, with the currency overlay, the capital loss was offset by the strong income return of 9.8% for the Fund’s assets.

Outlined below are the before and after fees returns for the Trust benchmarked against its return objective of 5% p.a. in excess of Australian CPI.

Performance

1 year %

3 years % p.a.

Since inception1 % p.a.

Before fees

Income 9.80 9.26 7.27

Capital* (5.72) (25.16) (12.22)

Total returns before fees 4.08 (15.90) (4.95)

Total returns a.er fees 2.57 (17.14) (6.28)

Real target return (5% p.a.) 5.00 5.00 5.00

Inflation - Australian CPI 3.60 2.70 3.07

Nominal return benchmark 8.60 7.70 8.07

Out/(Under) performance (6.03) (24.84) (14.35)

1. Inception Date: 30 November 2004.

* The compound residual effect has been allocated to the Capital return.

Management expense ratio (MER)The MER was 1.1% for the financial year 2011 based on total assets. The increase in the MER was as a result of the operating costs remaining relatively constant and the disposal of two assets reducing the total assets under management.

Management fees paid to Grosvenor for direct property investments are 0.6% per annum of average property values. The transaction fees payable to Grosvenor are 0.5% of the net purchase/sale price.

MER historical


Total management cost AUD $’000

Average gross trust assets AUD $’000

2007/08 0.74 6,368 862,439

2008/09 0.79 6,660 839,242

2009/10 0.90 4,695 524,434

2010/11 1.10 3,579 325,184



Income and tenancy covenantThe Fund’s net property income was AUD $15.2 million, a decrease from AUD $28.6 million for financial year 2010 due to the disposal of two US assets in 2010/2011. On a like for like basis excluding currency fluctuations, net income only slightly declined due to an increase in vacancy predominately in the US properties.

Acquisitions and divestmentsPursuant to the IGIPT Board decision to undertake an orderly wind down of the fund, the following assets were sold during the financial year:

Property Sector Se(lement date Sale proceeds

Gateway Village, California USA Retail 10 November 2010 US $35.0 million

Park Ridge Four, Colorado USA Office 14 December 2010 US $26.7 million

Total US $61.7 million

Despite the challenging market conditions, both assets were competitively bid for with several offers received for each asset.

ValuationsThe retail assets in the portfolio increased in value over the course of the year. The River, US and GSCF's value were driven by yield compression. At L'Anec Blau, Spain the increase in value was driven by an increase in rental income as a result of new lettings. The Lee Farm, US office building declined dramatically in value with the yield increasing by 200 bps. This is a direct result of the tenant, GE Capital, only agreeing to a 12 month lease extension.

Sector Valuation 30 June 2010

AUD $m

Valuation movement and capital

expenditure AUD $m

Disposals AUD $m

Currency movement

AUD $m

Closing 30 June 2011

AUD $m

Office 66.3 (16.4) (24.2) (11.2) 14.5

Retail 236.6 4.3 (33.8) (32.4) 174.7

Industrial n/a n/a n/a n/a n/a

Total 302.9 (12.1) (58.0) (43.6) 189.2

Note: Assets held for financial year 2010/11 only.

Looking forward, the expectation is for values to remain constant over the year ahead. The challenging economic conditions are likely to place pressure on occupiers, which will restrict demand for space. In this environment, rental values are likely to be eroded with the key focus being retaining occupancy.

The direct portfolio and the GSCF continue to be valued by independent external valuers. The direct portfolio is valued on a bi-annual basis whilst the GSCF is valued on a quarterly basis.

Key financial information

2011 AUD

$‘000

2010 AUD

$‘000

Summary balance sheet

Assets

- Office 14,447 66,291

- Retail 151,886 213,555

- Industrial -

- Other (Grosvenor Shopping Centre Trust) 22,825 23,089

Property portfolio value 189,158 302,935

- Cash 79,129 82,568

- Receivables 6,564 2,419

- Other 1,313 1,342

Derivative financial instruments - 2,011

Total assets 276,164 391,275

Liabilities

Creditors (5,313) (9,344)

Interest bearing loans (34,614) (114,397)

Provision for distribution (13,072) (4,085)

Derivative financial instruments - (8,256)

Total liabilities (52,999) (136,082)

Net assets 223,165 255,193

Summary distribution statement

Total distribution income 13,071,959 5,555,916

Summary fund structure

Total units issued 434,837,332 482,440,762

Number of unitholders 7 7

Net asset value per unit 0.513216 0.528964

Cash as % of total assets 28.7% 21.1%

Borrowings as % of property portfolio value 18.3% 37.8%



Vacancy and leasing

Total vacancies by area increased from 12.5% to 16.1% over the course of the financial year. The increase in vacancy was across all assets, which is a reflection of the challenging market conditions. Despite the difficult market conditions, the Fund successfully completed 4,706m2 of new leases and 10,072m2 of lease renewals.

FY10 vacancy % FY11 vacancy % Issue

Lee Farm, US 19.4 27.0 GE Capital downsized by 4,040m2. New leases of 2,539m2 and renewals of 6,682m2.

The River, US 7.4 9.5 Office vacancy of 484m2. New leases of 777m2 and renewals of 2,519m2.

At L'Anec Blau, Spain

11.7 13.5 Occupation markets are weak. New leases of 1,390m2 and renewals of 871m2.

The graph below shows the vacancy and lease expiry profile of the Trust, excluding GSCF.

Vacancy and lease expiry by area

0 m2

2,500 m2

5,000 m2

7,500 m2

10,000 m2

12,500 m2

15,000 m2

17,500 m2

20,000 m2

VacantYear ending Dec 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2022+20210%

3%

6%

9%

12%

15%

18%

21%

24%

ArrearsRent arrears at 30 June 2011 were AUD $289,437 or 8.3% of the current monthly billings. The level of arrears has slightly decreased over the year on a like for like basis.

40% of the rent arrears are at The River, US where the Borders tenancy is yet to pay its proportion of Real Estate taxes. Another 40% of arrears relate to the GSCF tenants whom are in administration due to difficult UK trading conditions. The GSCF property team is working with both tenants and their administrators to achieve optimum recovery.

Arrears as a % of total monthly billings

O+ce $’000 AUD

Retail $’000 AUD

Industrial $’000 AUD

Total $’000 AUD

Total %

Arrears - 289.4 - 289.4 8.3

IGIPT yield movement

Property Sector Market yield 30 June 2010

%

Market yield 30 June 2011

%

Capital growth FY11

%

L’Anec Blau, Barcelona Spain Retail 7.25 7.25 3.3

The River, Rancho Mirage, California US

Retail 7.25 6.5 7.1

Gateway Village, Valencia, California US

Retail 8.25 - -

Park Ridge Four, Littleton, Colorado, US

Office 8.5 - -

Lee Farm, Danbury, Connecticut US

Office 9.0 11.25 (46)

GSCF, UK Retail 7.2 6.8 10.2

Portfolio profile

Tenancy covenant by income Tenancy covenant by net le$able area

USA34%

United Kingdom12%

Continental Europe46%USA

8%

Retail 92%

Office 8%

Retail34%

Retail46%

Retail12%

Office8%

USA 42%United Kingdom 12%ContinentalEurope 46%


4

Madrid

Barcelona

Spain - Retail L’ANEC BLAU, CASTELLDEFELS BARCELONA

Year acquired December 2005

Year built 2005

Last refurbished -

NLA/GLA m2 27,873 m2

Car parks 1,600

Property manager Sociedad de Centros Comerciales de España


3

Burton

Grimsby

Basingstoke

Inverness

United Kingdom - Retail GROSVENOR SHOPPING FUND (GSCF)

Year acquired Investments made June 05 & June 06

Year built Various

Last refurbished Various

NLA/GLA m2 233,000 m2

Car parks -


Investment value range $ million 0-49 50-99 100-149 150-249 250+

Property Portfolio

2 Palm Springs

USA - Retail THE RIVER AT RANCHO MIRAGE PALM SPRINGS, CALIFORNIA

Year acquired November 2005

Year built 2002

Last refurbished -


Car parks 1,692

Property manager CB Richard Ellis


1Danbury

USA - Office LEE FARM OFFICE BUILDING DANBURY, CONNECTICUT

Year acquired February 2007

Year built 1988

Last refurbished -


Car parks 638

Property manager CB Richard Ellis


3

4

1

2


PROPERTY INDEX

Trustee IGIPT Pty Ltd - Level 13, 114 William Street, Melbourne VIC 3000Telephone 03 8601 6666 Facsimile 03 8601 6667 Website www.ispt.net.auABN 22 103 498 424 AFS Licence No 278359

Trustee Services Provider ISPT Pty Ltd provides trustee management and administration services to IGIPT Pty Ltd. ISPT Pty Ltd is not paid a fee. ISPT Pty Ltd is re-imbursed for cost of services.ISPT Pty Ltd - Level 13, 114 William Street, Melbourne VIC 3000Telephone 03 8601 6666 Facsimile 03 8601 6667 Website www.ispt.net.auABN 28 064 041 283 AFS Licence No 247280


Australian Legal Service Provider Holding Redlich Lawyers

Valuers CB Richard Ellis, Integra Realty Resources, Denver, Cushman and Wakefield, Barcelona, Jones Lang LaSalle (GSCF)

Managing Agents CB Richard Ellis, Crimson Services LLC, Sociedad de Centros Comerciales de España, Jones Lang LaSalle (GSCF)

Investor Inquiries Chris Millard - Fund Manager Telephone +44 20 7312 6153Daryl Browning - Chief Executive Officer ISPT Pty Ltd Telephone 03 8601 6636Susannah Bourke - Investor Services ISPT Pty Ltd Telephone 03 8601 6630

ISPT Grosvenor International Property Trust Investor Information

AssetsAssets in the Trust are owned by IGIPT Pty Ltd as trustee of ISPT Grosvenor International Property Trust (IGIPT). They are subject to investment and other risks, including the loss of income and principal invested. The repayment of capital and the performance of IGIPT are not guaranteed by IGIPT Pty Ltd.

DistributionsDistributions are declared annually in August. The distribution has been calculated at 30 June 2011 and will be paid in September 2011.

Period of the TrustIGIPT is an open ended trust which commenced on 3 August 2004.

Purchase and sale of unitsDetails of the procedure and rights relating to the purchase and sale of units are contained in Clauses 5 to 7 of the Trust Deed.

Statutory disclosureIGIPT Pty Ltd confirms that, other than as disclosed in this report:





Voting rightsDetails of voting rights attached to each unit are in Clause 18 of the Trust Deed. The Trust Deed may be examined at the registered office of the Trustee Services Provider, ISPT Pty Ltd, Level 13, 114 William Street, Melbourne VIC.


ManagerGrosvenor Fund Management Limited (GFML) (registration no. 4056191) is the investment manager and Grosvenor Investment Management Limited (GIML) (registration no. 2774291) is the investment advisor. GFML and GIML are wholly owned subsidiaries of Grosvenor Group Limited (registration no. 3219943).

The registered office of GFML, GIML and Grosvenor Group Limited is 70 Grosvenor Street, London WIK 3JP.

Grosvenor is the Fund Manager under a five year agreement which expired in December 2009 and was extended until December 2012.


Victoria - O+ce

50 Lonsdale Street, Melbourne 61

251 Salmon Street, Melbourne 45

447 Collins Street, Melbourne 45

500 Bourke Street, Melbourne 44

Casselden Place, 2 Lonsdale Street, Melbourne 44

Midtown Plaza, 246 Bourke Street, Melbourne 45

Victoria - Retail

Barkly Square, Brunswick 48

Campbellfield Plaza, Campbellfield 48

Central West Shopping Centre, West Footscray 49

Melbourne GPO, Corner Bourke and Elizabeth Streets, Melbourne

47

The Strand, 250 Elizabeth Street, Melbourne 49

Westfield Doncaster, Doncaster 47

Victoria - Industrial

8 Dunlop Court, Bayswater 55

40 Weston Street, Brunswick 55

261 Salmon Street, Port Melbourne 54

820 Mountain Highway, Bayswater 55

Central West Industrial Park, Parcel B, West Footscray 54

Central West Industrial Park, Parcel C, West Footscray 54

Victoria - Residential, Mixed Use, Other

The Guilfoyle, 35-47 Coventry Street, Southbank 77

50 Albert Road, South Melbourne 77

91-95 Browns Road, Cranbourne South 70

250 Spencer Street, Melbourne 69

260-280 Sayers Road, Truganina 76

Eden & Haven, 675-679 Victoria Street, Abbotsford 77

Alamanda, Sneydes Road, Point Cook 70

Alfred Road, Werribee 71

Innovation Park, Frankston-Dandenong Road, Lyndhurst 71

PPT 1 - Pellicano Property Trust 1 - Karkarook Property Fund Trust - M2 Property Fund Trust

56 56

PPT 4 - 359 Frankston Road, Lyndhurst - Pellicano Property Trust 4

57

Society, Ellis Street, South Yarra 68

United States of America - O+ce

Lee Farm Office Building, Danbury, Connecticut 90

United States of America - Retail

The River at Rancho Mirage, Palm Springs, California 90

Continental Europe - Retail

L’Anec Blau, Castelldefels, Barcelona, Spain 91

United Kingdom

Grosvenor Shopping Centre Fund (GSCF)* 91

* IGIPT has an equity interest in the GSCF unit trust.

Australian Capital Territory - O+ce

2 Constitution Avenue, Canberra 43

2 National Circuit, Barton 42

3-5 National Circuit, Barton 42

4 National Circuit, Barton 42

7 London Circuit, Canberra 43

18 Marcus Clarke Street, Canberra 42

One National Circuit, Barton 43

New South Wales - O+ce

1 Julius Avenue, North Ryde 41

100 Pacific Highway, North Sydney 41

345 George Street, Sydney 41

363 George Street (incorporating 24 York Street), Sydney 40

The Barrington, 10 Smith Street, Parramatta 40

Defence Plaza, 270 Pitt Street, Sydney 40

Epicentre, Riverside Corporate Park, North Ryde 41

Fujitsu House, 2 Julius Avenue, North Ryde 41

Hilton Office Tower and Car Park, 255 Pitt Street, Sydney 41

Sydney Central, 477 Pitt Street, Sydney 40

New South Wales - Retail

Eastgate Shopping Centre, Bondi Junction 47

Fairfield Forum Shopping Centre, Fairfield 46

Harvey Norman Centre 494-504 Gardeners Road, Alexandria

46

Richmond Marketplace, Richmond 47

Southgate Shopping Centre and 27-29 Melrose Avenue, Sylvania

46

Totally Home Bella Vista, Baulkham Hills 47

Wagga Wagga Marketplace, Wagga Wagga 46

New South Wales - Industrial

9 Bessemer Street, Blacktown 52

23-29 South Street, Rydalmere 53

274 Victoria Road, Rydalmere 52

Bessemer Business Park, 13 Bessemer Street, Blacktown

52

Parklands Estate, 9-11 South Street, Rydalmere 53

Parklands Estate, 13-21 South Street, Rydalmere 53

New South Wales - Residential

Metro Residences, Chatswood 79

Queensland - O+ce

63 Sturt Street, Townsville 45

100 Creek Street (formerly 255 Adelaide Street), Brisbane 45

Central Plaza One, 345 Queen Street, Brisbane 44

Green Square North Tower, Fortitude Valley 45

Green Square South Tower, Fortitude Valley 44

Queensland - Retail

155 Queen Street, Brisbane 49

Arana Hills Kmart Plaza, Arana Hills 48

Kessels Court, MacGregor 49

Toowoomba Kmart Plaza, Toowoomba 49

Wintergarden Shopping Centre and Car Park, Brisbane 48

Queensland - Industrial

10 Buchanan Road, Banyo 53

250 South Pine Road, Brendale 53

1035-1051 Nudgee Road, Banyo 53

Queensland - Other

The Regent Theatre, Queen Street, Brisbane 56

Wintergarden Hilton Hotel, Brisbane 56

South Australia - Retail

Southgate Plaza Shopping Centre, Morphett Vale 50

South Australia - Industrial

Charles Sturt Industrial Estate, Woodville 51

Regency Park, 491-499 South Road, Adelaide 51

Western Australia - O+ce

100 St Georges Terrace, Perth (excluding enex100 retail component)

43

Western Australia - Retail

Enex100, Perth (retail component of 100 Street Georges Terrace)

50

Forrest Chase Shopping Centre, Perth 50

Western Australia - Industrial

Russell Park Industrial Estate, Henderson 51

Western Australia - Residential, Other

207 Burslem Drive, Maddington 57

North One, Lot 1 Salvado Rd, Subiaco 78

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ISPT Pty Ltd Head O+ceLevel '), ''* William Street, Melbourne VIC )&&&T &) + ,&' ,,,,-F &) + ,&' ,,,.

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Perth O+ceLevel *, ,+)/.&) Hay Street Mall Perth WA ,&&&

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Industry Superannuation Property Trust

ISPT Core FundISPT %& Lonsdale Street Property TrustISPT Development and Opportunities Fund No.1ISPT Development and Opportunities Fund No.2 ISPT Grosvenor International Property Trust

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