APT - Press Release 3 March, 2006.

Australian Public Trustees buys NSW hospital

Australian Public Trustees today announced the purchase of Lismore Private Hospital for $8 million from Owen Ferguson Health.

Australian Public Trustees Chief Executive Officer, Mr Darren Olney-Fraser said, this exciting purchase is an important step in growing our Health and Aged Care Trust, and takes overall assets held by APT to approximately $150 million.”

Lismore Private Hospital will provide to the local community 66 in-patient beds and 30 rehabilitation day beds and provide 100 local health care jobs. Construction of the hospital, which has just begun, is due to be completed in mid 2007. Lismore is in North-Eastern NSW, near Byron Bay.

The hospital will be leased to hospital operator Owen Ferguson Health for 10 years with 2 options for a further 5 years each. Initial rental yield is 10.5%.

“The purchase of Lismore Private Hospital comes on top of our purchase of Canada Bay Private Hospital, Sydney with Owen Ferguson Health in 2005. Owen Ferguson Health is a capable new operator in the hospitals market”, Mr Olney-Fraser said.

Mr Olney-Fraser said, "Our Lismore purchase fits perfectly with our business model. We are keen on new, long-term investments in public infrastructure and community service assets which will give a reliable return to investors.”

Australian Public Trustees and Owen Ferguson Health were shortlisted to bid for the 5 Ramsay hospitals which were sold late last year for $88 million. APT was not ultimately successful. "We prefer to support the development of new health facilities, than tie up our equity in older facilities like the ones offered by Ramsay, which require refurbishment and have ongoing maintenance risk for investors", said Mr Olney-Fraser.

In addition to health and aged care assets, Australian Public Trustees also invests in government-leased property, education facilities and public transport infrastructure.

Further information: Rowan Lee –- 0419 133 139