Leighton Holdings Limited Investor Presentation on ... Leighton Holdings Limited Investor Presentation on Leighton Properties Pty Limited Presentation to Analysts 9.30am, 2 July 2003

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Leighton Holdings Limited Investor Presentation on

Leighton Properties Pty Limited

Presentation to Analysts9.30am, 2 July 2003

Leighton Holdings Limited Investor Presentation on


Presentation to Analysts9.30am, 2 July 2003

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Presentation outline

Background of Group Strategy/History– Dieter Adamsas, LHL Deputy CEO & CFO

Leighton Properties Overview – Vyril Vella, Managing Director

Queensland Operations– Bob Borger, Queensland Manager – Jon Barker, Development Manager

Victorian Operations– Bill Beck, Manager, Victoria

New South Wales Operations– Mark Gray, Manager NSW Projects

Questions and Conclusion

Background of Group Strategy/History– Dieter Adamsas, LHL Deputy CEO & CFO

Leighton Properties Overview – Vyril Vella, Managing Director

Queensland Operations– Bob Borger, Queensland Manager – Jon Barker, Development Manager

Victorian Operations– Bill Beck, Manager, Victoria

New South Wales Operations– Mark Gray, Manager NSW Projects

Questions and Conclusion

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BackgroundDieter Adamsas

Deputy CEO and CFO Leighton Holdings Limited

BackgroundDieter Adamsas

Deputy CEO and CFO Leighton Holdings Limited

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Leighton Holdings Welcome

Diversity a key strategy of GroupProperty development a good fit with contractingMixed performance historicallyStrategic re-alignment in 1990’sOutlook now very positive

Diversity a key strategy of GroupProperty development a good fit with contractingMixed performance historicallyStrategic re-alignment in 1990’sOutlook now very positive

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Leighton Properties OverviewVyril Vella

Managing Director Leighton Properties Pty Limited

Leighton Properties OverviewVyril Vella

Managing Director Leighton Properties Pty Limited

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Leighton Properties Overview

Property DeveloperEquity ContributorFocus is on commercial, industrial and bulky goodsActivities confined to eastern seaboardJV’s preferredStrong association with JFGForward market conditions generally favourableDemand for property strongWorkload at record high

Property DeveloperEquity ContributorFocus is on commercial, industrial and bulky goodsActivities confined to eastern seaboardJV’s preferredStrong association with JFGForward market conditions generally favourableDemand for property strongWorkload at record high

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Background

Established in 1972Since then have completed over 70 development projectsThese have included several landmark projects:

– Maritime Plaza, Sydney– Casino, Sydney– 417 St Kilda Road, Melbourne– Jetset House, Melbourne– Eden’s Landing, Queensland– MacArthur Chambers Stage 1 (Retail)

Established in 1972Since then have completed over 70 development projectsThese have included several landmark projects:

– Maritime Plaza, Sydney– Casino, Sydney– 417 St Kilda Road, Melbourne– Jetset House, Melbourne– Eden’s Landing, Queensland– MacArthur Chambers Stage 1 (Retail)

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Current Position

13 projects now at various stages of developmentTotal end value approaching $1.8bMajority JV’sEnd value to Leighton Properties approximately $1.2b

13 projects now at various stages of developmentTotal end value approaching $1.8bMajority JV’sEnd value to Leighton Properties approximately $1.2b

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Current Position

State Managers will talk in detailIn summary:State Managers will talk in detailIn summary:

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Current Project Position

New South WalesNew South Wales

50%140JV*Comm.Riverside

50%30StrataComm.56 Delhi Road

50%90JVComm.233 Castlereagh Street

50%80JVComm.101 George Street, Parramatta

50%140JVComm.100 Pacific Highway

100%630Pre-SoldComm.KENS

LPPL Share of Value

TotalEnd

Value $m

DeliveryType

Category

*Potential JV

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Current Project PositionCurrent Project Position

100%45Pre-soldB.G.Mornington

100%35Mixed*B.G.Lyndhurst

50%135JVComm.700 Collins Street

100%7LandSubdiv.

Ind.Thomastown –15 Edgars Rd

100%60MixedC/Ind.Mulgrave –245 Wellington Rd

LPPL Share of Value

TotalEnd

Value $m

DeliveryType

Category

*Potential JV

VictoriaVictoria

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50%125JVComm.MacArthur –Commercial

50%100JVRetailMacArthur – Retail

50%180JVResortNoosa Resort

LPPL Share of Value

TotalEnd

Value $m

DeliveryType

Category

Current Project PositionCurrent Project Position

QueenslandQueensland

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QueenslandBob Borger / Jon Barker


QueenslandBob Borger / Jon Barker


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Queensland Overview

Brisbane Office Market– Vacancy factor: 6.8%– Incentive levels remain high– Achieving rents $400m2 (face)– Limited new supply

Brisbane Industrial market– Focus on Gateway precinct, Yatala & Heathwood– Rents from $57m2 to $93m2

– Yields 8.8%

Bulky Goods– Continuing growth but limited zoned sites in BCC– Better opportunities outside

Brisbane Office Market– Vacancy factor: 6.8%– Incentive levels remain high– Achieving rents $400m2 (face)– Limited new supply

Brisbane Industrial market– Focus on Gateway precinct, Yatala & Heathwood– Rents from $57m2 to $93m2

– Yields 8.8%

Bulky Goods– Continuing growth but limited zoned sites in BCC– Better opportunities outside

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Viridian Project Noosa

50 % Joint Venture withAriadne8 Homes - $22.7m23 Villas - $34.50m147 Resort Units +Conference Centre & Health Spa - $ 130mLand purchase settled 23 May 20037 of 8 Homes pre-sold22 of 23 villas pre-soldNegotiating with resort operatorsResort completion –February 2005

50 % Joint Venture withAriadne8 Homes - $22.7m23 Villas - $34.50m147 Resort Units +Conference Centre & Health Spa - $ 130mLand purchase settled 23 May 20037 of 8 Homes pre-sold22 of 23 villas pre-soldNegotiating with resort operatorsResort completion –February 2005

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Viridian Project Noosa

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MacArthur Central Brisbane

Retail purchased by Investa- $96.95mSettled 25 June 2003Joint Venture with SeymourFully Leased Brisbane CBD centreWoolworths / Big W /Dymocks

Retail purchased by Investa- $96.95mSettled 25 June 2003Joint Venture with SeymourFully Leased Brisbane CBD centreWoolworths / Big W /Dymocks

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MacArthur Central Brisbane

24,800m2 office tower above Retail Centre Completion December 200310,500m2 currentlypre leased Value $123m

24,800m2 office tower above Retail Centre Completion December 200310,500m2 currentlypre leased Value $123m

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New projects

Helensvale, Gold Coast - Bulky Goods & IndustrialHeathwood, Brisbane - IndustrialChermside, Brisbane - CommercialTrade Coast Central - IndustrialNewstead Riverpark – Mixed use

Helensvale, Gold Coast - Bulky Goods & IndustrialHeathwood, Brisbane - IndustrialChermside, Brisbane - CommercialTrade Coast Central - IndustrialNewstead Riverpark – Mixed use

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VictoriaBill Beck


VictoriaBill Beck


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Victoria Overview

Melbourne CBD Office Market–Vacancy factor: 7.5%–Incentive levels remain low to moderate–Achieving rents $250-350m2

(face)–Extensive new supply

Melbourne Suburban Market–Office Focus on Mulgrave–Industrial Focus on West and South East–Rents from $65m2 to $200m2

–Yields 8-9%

Bulky Goods–Continuing growth in selected areas–South and East

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700 Collins Street Vic

50 % Joint Venture withFolkestone LtdOffice 32,200m2

Bureau of Meteorology17,000Medibank Private 12,500Retail 1,600m2

265 CarsBuyer in due diligence Completion – July 2004

50 % Joint Venture withFolkestone LtdOffice 32,200m2

Bureau of Meteorology17,000Medibank Private 12,500Retail 1,600m2

265 CarsBuyer in due diligence Completion – July 2004

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Com.Park Mulgrave

Hi-Tech Office Park18 Lots12 Developed and Sold1 Pre-lease being finalised for 4,500m2 officePlanning underway for 3,300m2 office

Hi-Tech Office Park18 Lots12 Developed and Sold1 Pre-lease being finalised for 4,500m2 officePlanning underway for 3,300m2 office

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Com.Park Thomastown

Industrial Park30 Lots29 Sold1 Remaining

Industrial Park30 Lots29 Sold1 Remaining

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Homemaker Centres

Growing Demand– Retailers– Investors– Consumers

Unique branding for LPPL

Growing Demand– Retailers– Investors– Consumers

Unique branding for LPPL

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Homemaker Centres Mornington

JFG buying the landLPPL developing and leasingStrong demand for space32,000m2Offers from National Tenants

– Harvey Norman– Clive Peeters– Freedom– Fantastic Furniture– Oz Design Furniture

JFG buying the landLPPL developing and leasingStrong demand for space32,000m2Offers from National Tenants

– Harvey Norman– Clive Peeters– Freedom– Fantastic Furniture– Oz Design Furniture

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Homemaker Centres Moorabin

Completed 2002– Sold to GPT

Completed 2002– Sold to GPT

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Homemaker Centres Lyndhurst

City of Casey– Fastest growing city – Stage 1 20,000m2

– Future stages

City of Casey– Fastest growing city – Stage 1 20,000m2

– Future stages

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Deer Park– Large scale industrial estate

Scoresby– Homemaker Centre and Industrial

Monash– High Tech research Facility

Burwood– Mixed use office and retail complex

Deer Park– Large scale industrial estate

Scoresby– Homemaker Centre and Industrial

Monash– High Tech research Facility

Burwood– Mixed use office and retail complex

Prospects

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New South WalesMark Gray


New South WalesMark Gray


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Market Overview - Sydney

Sydney is global city, external factors influence property market

Growth restrained 2000 to 2003 by world events– Sluggish overseas economies– Iraq

Demand negative as businesses cut costs to improve profitability

Continuing strong appetite for investment property

Limited supply coupled with positive sentiment should create DEMAND LEAD UPSWING 2004 to 2007

Sydney is global city, external factors influence property market

Growth restrained 2000 to 2003 by world events– Sluggish overseas economies– Iraq

Demand negative as businesses cut costs to improve profitability

Continuing strong appetite for investment property

Limited supply coupled with positive sentiment should create DEMAND LEAD UPSWING 2004 to 2007

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Market Overview - Sydney

Survey just released by Jones Lang LaSalleCommercial markets compared to 12 months ago show we are in a troughConsistent with LPPL view of upswing 2004-2007

Survey just released by Jones Lang LaSalleCommercial markets compared to 12 months ago show we are in a troughConsistent with LPPL view of upswing 2004-2007

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2003 to 20072003 to 2007

--North Ryde

--Parramatta

North Sydney

Sydney – Secondary

Sydney – Prime

YieldVacancyIncentiveRentLocation

Market Overview - SydneyMarket Overview - Sydney

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Strategy

LPPL positioned to meet demand in:Sydney - Prime - KENS Project

- Secondary - 233 Castlereagh

North Sydney - 100 Pacific Highway

Parramatta - 101 GeorgeStreet

North Ryde - Julius Avenue,Riverside

LPPL positioned to meet demand in:Sydney - Prime - KENS Project

- Secondary - 233 Castlereagh

North Sydney - 100 Pacific Highway

Parramatta - 101 GeorgeStreet

North Ryde - Julius Avenue,Riverside

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KENS Project Sydney

Seek limited precommitmentMarket in 2005 to meet demand

Seek limited precommitmentMarket in 2005 to meet demand

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KENS Project Sydney

Pre-lease to WestpacTake-out to Westpac OfficeTrustExposed to delivery risk

Pre-lease to WestpacTake-out to Westpac OfficeTrustExposed to delivery risk

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KENS Project Sydney

76,700m2 NLA854 carsProgressive take-up aligned to lease expiryCompletion progressively through 2006 including integrated fitout7 stages

76,700m2 NLA854 carsProgressive take-up aligned to lease expiryCompletion progressively through 2006 including integrated fitout7 stages

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233 Castlereagh Street Sydney

JV with Real Estate Partners18,000m2 B+ Grade200 cars (approx)Target 10/2004 completion

JV with Real Estate Partners18,000m2 B+ Grade200 cars (approx)Target 10/2004 completion

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100 Pacific Highway North Sydney

50/50 JV with ISPTAchieved DA in March21,000m2 NLA – A Grade1,200m2 footprint129 cars

50/50 JV with ISPTAchieved DA in March21,000m2 NLA – A Grade1,200m2 footprint129 cars

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101 George Street Parramatta

DA approved for 17,800m2

A Grade301 carsCommencing October, complete mid 2005

DA approved for 17,800m2

A Grade301 carsCommencing October, complete mid 2005

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Lots 8 & 9 Riverside North Ryde

DA approved 36,000m2JV with ISPTPotential to build in stagesSeeking pre-commitment

DA approved 36,000m2JV with ISPTPotential to build in stagesSeeking pre-commitment

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56 Delhi Road North Ryde

JV with land ownerStrata officeCommence 3rd Qtr 2003Complete 4th Qtr 2004

JV with land ownerStrata officeCommence 3rd Qtr 2003Complete 4th Qtr 2004

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56 Delhi Road North Ryde

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Summary

Quality projects in each of the principal commercial marketsTake advantage of upswing to 2006Continue to seek and purchase assets where added value can be established, including bulky goods and industrial in west and south-westernSydney

Quality projects in each of the principal commercial marketsTake advantage of upswing to 2006Continue to seek and purchase assets where added value can be established, including bulky goods and industrial in west and south-westernSydney

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Questions and ConclusionDieter Adamsas

andVyril Vella

Questions and ConclusionDieter Adamsas

andVyril Vella

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Summary

13 projects with total end value of $1.8bnWorth $1.2bn to Leighton PropertiesManage risk through joint ventures, pre-commitments and cap on capital employedExpect stronger contribution to Group over next few years

13 projects with total end value of $1.8bnWorth $1.2bn to Leighton PropertiesManage risk through joint ventures, pre-commitments and cap on capital employedExpect stronger contribution to Group over next few years

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Documents

Leighton Holdings Limited Investor Presentation on ... Leighton Holdings Limited Investor Presentation on Leighton Properties Pty Limited Presentation to Analysts 9.30am, 2 July 2003