***the jewell in sunlands crown****

Please note Dubai is still one of the fastest growing cities in the world and their desire to make their country a premier tourist and gold/diamond trading nation in the world. Their ambition is a result of huge cash reserves and the depletion of their oil reserves.


March 3 2005
The Manager
Company Announcements
Australian Stock Exchange
Sunland Dubai JV enters into Land Agreement
The Board of Sunland Group Limited is pleased to announce that its JV partner
in Dubai – Gulf Resources and Emirates International Holdings Limited (an entity
of Emirates Investment Group) has entered into an agreement with Dubai
Properties for the purchase of two land parcels.
Gulf Resources acquired the land for $AED$375 million (approx $AUD 134m)
and is located in a new development precinct known as Arabian Bays on the
Dubai Creek. The acquisition forms part of a master planned development,
comprising a man-made harbour featuring the Miracles of Dubai – a cultural and
exhibition centre to be developed by the Government of Dubai in line with other
great buildings around the world – such as the Sydney Opera House. The
precinct will also feature a finger wharf development and the new Palazzo
Versace Dubai.
The joint venture group has also secured a residential tower site which will be
launched and developed simultaneously with Palazzo Versace Dubai. At this
stage, it is envisaged that these projects will be launched by June 2005, with an
end value of in excess of $AUD 1.6 billion.
Acquisition of the land is a key milestone for the Group’s overseas expansion,
with Joint Managing Director, Mr Sahba Abedian currently in Dubai finalising
documentation and the establishment of offices for Sunland International.
The move into the overseas market by Sunland further strengthens the future
income stream of the Group with some 50% of the Group’s earnings expected to
come from the overseas arm (by 2010). The geographical diversification
overseas also provides a buffer to the cyclical Australian property market.
The above acquisition follows the announcements made in late December, when
the Group entered into a joint venture agreement with a company associated with
Emirates Investment Group (EIG), to develop and construct resorts, and
residential and commercial projects in the Gulf Region.
Yours faithfully,
SUNLAND GROUP LIMITED
Anne Jamieson
General Manager