LENDLEASE GROUP — M&A Activity 2007

8 February 2007

The Manager Companies Section Australian Stock Exchange Limited

Pages: Two (2) pages

Dear Sir

The Manager Companies Section New Zealand Stock Exchange Limited

Stock Exchange Announcement

Takeover bid by Lend Lease Funds Management Limited ACN 000 335 473 (as trustee of the LLREP2 Motor Inns Trust) for Sundowner Motor Inns Limited - Notice that defeating condition to takeover bid fulfilled

We enclose, by way of service pursuant to paragraph 630(5) (b) of the Corporations Act 2001 and as required by subsection 630(4) of the Corporations Act 2001, a notice declaring that the condition in section 9.7 (g) (minimum acceptance) of the bidder's statement has been fulfilled.

Yours faithfully LEND LEASE CORPORATION LIMITED

S. Shanpe

S J SHARPE Company Secretary

Lend Lease Funds Management Limited ACN 000 335 473 (as trustee of the LLREP2 Motor Inns Trust) (LLFM)

Notice that defeating condition to takeover bid fulfilled

To: ASX Limited

Sundowner Motor Inns Limited ACN 078 847 784 (Sundowner)

For the purposes of subsection 630(4) of the Corporations Act 2001, LLFM gives notice declaring that the condition to its takeover offers for all the ordinary shares in Sundowner (Offers), set out in section 9.7 (g) of its bidder's statement dated 22 December 2006, has been fulfilled (so that the Offers have become free of that condition).

Date: 8 February 2007

Signed for and on behalf of Lend Lease Funds Management Limited (in its capacity as trustee of the LLREP2 Motor Inns Trust) by:

Eric Wells Company Secretary- Lend Lease Funds Management Limited