2003 Media Releases

Deutsche Diversified Trust (ASX: DDF) has today announced plans to commence work on a $62 million expansion of its second largest asset, West Lakes Shopping Centre. Located in West Lakes, Adelaide, South Australia, the expansion of the property is anticipated to provide an initial yield of 8.5%, creating an asset worth approximately $220 million.

Scheduled for completion in September 2004, the Centre will be expanded by approximately 12,500 square metres to incorporate a new seven-screen cinema complex, around 54 additional speciality stores, six mini major stores, and a relocated food court. The expansion will also create an additional 400 undercover car parking spaces.

According to General Manager of DDF, Mr David McFadyen, a key catalyst for the redevelopment was the increased community demand for quality family entertainment and lifestyle facilities.

“The expansion is underpinned by anticipated growth in the retail trade area generally, as well as the ability to secure greater market share, particularly in the Centre’s secondary catchments, by offering new retailing not offered by the centre previously. The introduction of Sunday trading from October this year should further benefit the Centre,” said Mr McFadyen.

Significant new leases have been secured for the Centre. Existing tenant Kmart has recently extended its lease until 2014, while Coles has agreed to a ten-year lease extension to 2021, and Woolworths has agreed to a new 20 year lease to 2021. As part of the expansion, these stores will also undergo major refurbishments.

In addition, the Trust has secured a 15-year lease agreement with Anderson Cinemas and agreed lease terms for six mini major stores - five of which will be new tenancies to the centre.

DB Real Estate

Mr McFadyen said he anticipates strong interest in leasing the specialty stores given the Centre’s high quality and good growth in turnover.

Carnarvon Street sale secured above book value

DDF today also announced it has entered into an agreement to sell an industrial property at 75 Carnarvon Street, Silverwater, NSW.

The property which was valued in March 2003 at $21.5 million, will be sold to an owner-occupier for $22 million (book value $21.47 million as at March 2003), with settlement to occur on 30 June 2004.

In addition to the sale price, the RE will retain income from the property on the equivalent of a fully-let basis until settlement, notwithstanding that the major lease (ACI 37,000 m2) expires in December 2003. The current net rent is nearly $3 million per annum. This will therefore provide additional income beyond the current lease agreement and provide an opportunity for the funds to be reinvested in the numerous development activities being undertaken by the Trust.

”The sale will significantly improve the quality, age and lease duration for the industrial portfolio and for the Trust as a whole,” said Mr McFadyen.

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$1.6 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 significant development book and is currently undertaking or planning major development activities in its retail, office and industrial portfolios.