2003 Media Releases

Deutsche Diversified Trust (ASX: DDF) has signed a ten year lease with the Victorian Government for an A-grade office property at 8 Nicholson Street, Melbourne.

The lease agreement is for the entire property (23,723 square metres) and will be utilised by the Departments of Primary Industries, Sustainability and Environment and Planning.

The lease is effective from July 2003 until July 2013, with two 5 year options. The initial net rent will be $280 per square metre with annual increases of 4 per cent and market reviews in years four and eight.

“This is a significant deal for the Trust,” said David McFadyen, General Manager of DDF, “and a very strategic one. It significantly reduces the leasing risk of the property, the office component of the Trust, and the portfolio overall.”

“Our DB Real Estate Research team expects the Melbourne office market to be negatively impacted in the next few years by new supply, and we believe this lease agreement allows the Trust to avoid a potentially very difficult re-letting situation in 2005. Simultaneously, the leasing deal enhances our expectations for net property income for this property and for the earnings for the Trust as a whole,” he added.

AXA Asia Pacific Holdings currently controls the lease for the building until November 2005, with approximately 50 per cent of the space subleased to the Victorian Government Departments of Natural Resources and Environment and Department of Sustainability.

DB Real Estate

Following discussions with AXA regarding their future lease requirements, the Trust has negotiated to terminate its lease early. Mr McFadyen said this allowed the Trust to cater for AXA’s desire to further reduce its space requirements within the building while at the same time accommodating a major sub tenant for its requirement to expand.

As part of the transition, AXA will retain the use of 8,426 square metres of space under the current rent until September 2003. The property will then be refurbished with new carpet, ceilings and upgraded lifts for the Government’s occupation .

Further information:

David McFadyen
General Manager, Deutsche Diversified Trust
Mobile: 0405 134 851

Kristin Silva/Ainsley Gee
Corporate Communications
Phone: (02) 9249 9568 / (02) 9249 9904

About Deutsche Diversified Trust

Deutsche Diversified Trust is listed on the Australian Stock Exchange (ASX: DDF) and has assets valued at approximately A$1.5 billion. This highly diversified trust, by sector as well as geographic allocation, has 26 properties across the retail, office, industrial and carpark property sectors in five major Australian states and the ACT. The Trust has a potential development book of around $350 million, and is currently undertaking or planning major development activities in its retail, office and industrial portfolios.