Media Release July 2007

MFS Diversified Group have entered into a Development Agreement with Sydney Developer, Augusta Properties to develop a large industrial estate.

The shortage of medium sized industrial buildings in Sydney's west and the shortage of quality investment opportunities have brought Sydney developer Augusta Properties and the rapidly growing MFS Diversified Group together in a $28 million dollar deal to develop a 15,800m2 business park to be known as MFS Diversified Group Bankstown M5 Business Park.

The site has been acquired for $10.1 million from a private owner through Paul Byrne of LJ Hooker Bankstown and Colliers International.

Mr Wayne Smith Augusta Properties director said "The company continues to identify attractive development opportunities and MFS Diversified Group is an excellent partner for us. We both recognise that the Bankstown M5 Business Park combines classic industrial features like close proximity to the M5 motorway, flexibility in unit size, high clearance and modern amenities such as the on-site cafe."

"With much of the current development focus on creating mega-warehouses for large scale users, there are very few options for the tenant requiring medium sized industrial space of 700 to 5,000 sq m. On completion in early 2008, Bankstown M5 Business Park will perfectly satisfy this need and at very competitive rentals," he said.

MFS Diversified Group is an ASX listed diversified property group with a residential development pipeline comprising approximately 6500 lots, and a growing trust portfolio of strategically located industrial, commercial and retail properties in New South Wales, Victoria and Queensland. Group CEO Mr Brent Hailey said the partnership with Augusta Properties offered the Group entry to western Sydney to cater for demand for modern industrial lease properties.

Augusta Properties is a specialist property development group that offers its investment partners access to higher returns and an extensive commercial, industrial and residential development opportunity pipeline. Augusta is currently developing and managing projects in Sydney, the Southern Highlands, the Central Coast, Byron Shire and Tweed Shire with a total end of value of $250m.

For further information and leasing enquiries contact Wayne Smith at Augusta Properties on 02 9889 3552.