this was the start ...many more to follow ......

and will cont,...

21 October, 2005
The Manager
Company Announcements
Australian Stock Exchange


Dear Sir/Madam,

Q1’s first tranche of settlements repay 100% project debt
Sunland Group Limited is pleased to announce that the first tranche of settlements on Q1 has
enabled the joint venture (Sunland and Surfers Paradise Beach Resort - SPBR) to retire its total
construction and development debt of $307m to its banking syndicate, comprising National
Australia Bank, Westpac, ANZ, OCBC Bank and James Fielding Funds Management.
Q1’s total gross realisation for the 526 apartments is $425 million.
The first tranche of settlement notices were issued on 30th September for 475 apartments on
levels 3 – 61. Settlement commenced on Friday 14th October with 358 apartments settled in
the first week.
The settlement of contracts for units sold in the second tranche (levels 62 – 74) comprising 18
units, will commence from 25th October. A final settlement for the observation deck, retail and
management rights will occur towards the end of November.
Following the repayment of debt, the balance of settlement proceeds relating to the above three
tranches will total $150m. A further $70m is due from the proceeds of unsold stock (comprising
32 apartments). After the payment of $20m in project management and construction fees to
Sunland, GST and commission, the $200m balance will be allocated equally to the Joint
Venture parties.
The Board of Sunland, on behalf of the Q1 joint venture, wishes to thank the banking syndicate
for its support in funding this iconic landmark. The repayment of construction and development
debt in such a short period marks a historic event in project funding and shows the strength of
the market for quality high rise developments.
It should be noted that the media reports in The Australian newspaper, indicated that lawyers -
Slater & Gordon represented 28 apartments in dispute. At the time of this release, a total of 9
apartments in the value of $7.9m are in dispute, of which 3 in the value of $3.1m, are
represented by Slater & Gordon lawyers.
As stated in Sunland’s previous ASX announcement on 20th September, 2005, SPBR and
Sunland will strongly defend any action by purchasers seeking to terminate contracts of sale.
The Q1 Resort and Spa will open on 26th October, and the Observation Deck is scheduled to
open on 6th December.
Q1 commenced construction in July 2002.
Yours faithfully

ANNE JAMIESON
GENERAL MANAGER