LENDLEASE GROUP — M&A Activity 2007

5 February 2007

Dear Sundowner Shareholder.

Re: Your acceptance of the offer for all of your shares in Sundowner Motor Inns Limited (Sundowner)

In January 2007, you should have received an offer from Lend Lease Funds Management Limited as trustee of LLREP2 Motor Inns Trust (LLFM), to acquire all of your shares in Sundowner (the Offer).

Thank you if you have accepted the Offer. If you have not, it is important that you read this letter carefully.

As outlined in the combined Bidder's Statement and Target's Statement for the Offer (the Offer Documents), the Offer closes at 7pm (Sydney time) on 21 February 2007 (unless extended).

We are pleased to report that, as at 2 February 2007, we have received acceptances for approximately 84.9% of Sundowner shares.

These include acceptances from Sundowner's major shareholders and directors. Mr Peter Copulos. Mr Stephen Copulos and Mr Andrew Fairley (and their associated entities), who collectively control 64.7% of Sundowner shares.

The Sundowner board has also unanimously recommended that Sundowner shareholders accept the offer.

If you accept the Offer, you will receive:

• 26.5 cents in cash from LLFM for each Sundowner share: plus
• A 2.5 cent special dividend payable by Sundowner, for each Sundowner share held on the appropriate record date, if the offer becomes unconditional.

The aggregate cash payment of 29 cents per Sundowner share represents an attractive premium to Sundowner's trading price prior to the announcement of the Offer on 22 December 2006.

In the event that acceptances are obtained for at least 90% of the Sundowner shares, it is LLFM's intention to acquire the remainder of the shares under a compulsory acquisition process. If your shares are compulsory acquired, you may be paid later than shareholders who accept the Offer before it closes.

You should read the Offer Documents carefully before making your decision to accept. If you have any questions about the offer or require further Offer Documents (including an acceptance form) please do not hesitate to contact the offer information line on 1800 882 147 (toll free) from within Australia or +61 2 8280 7924 (not toll free) outside Australia.

Yours sincerely,

Mr Brian Norris Chairman Lend Lease Funds Management Limited, in its capacity as trustee of the LLREP2 Motor Inns Trust

Yours sincerely,

Cloration Farvey

Mr Andrew Fairley Chairman Sundowner Motor Inns Limited