Stockland Direct Office Trust No. 1

Waterfront Place is a 36 level premium grade office building. Located on Eagle Street and fronting the Brisbane River, Waterfront Place is one of Brisbane’s prime commercial locations providing panoramic river and Brisbane vistas from all commercial levels. Completed in 1990, Waterfront Place is one of the most highly specified buildings from both an architectural and technical perspective.

The offer provided investors with an innovative "built-in" gearing option that enabled investors to pay 40 cents on application with the balance of their unit price funded by a seven year fixed rate loan from Westpac (Geared Investors).

Fund Highlights:

• Waterfront Place remained 100% occupied underpinned by solid demand and a successful tenant retention strategy;
• Distribution increased 5.1% on FY07; and
• One year total return of 35.6% for General Investors and 48.4% for Geared Investors.

# The performance and distributions to investors who have not provided their TFN/ABN will be less than that shown here as we are required by law to deduct withholding tax.

SDOT1 is an unlisted property fund with a limited secondary market provided by a Limited Liquidity Facility. This Facility provides our investors with the opportunity to sell their units each quarter based on the latest net tangible assets of SDOT1 as published in the accounts, less 2.5% and transaction costs. The current price under this Facility is $2.65 per unit less 2.5% and transaction costs.

The NTA per unit includes a performance fee liability in relation to performance fees potentially payable to Stockland. The performance fee may be payable when the Property is sold or when SDOT1 is wound up. The performance fee is subject to the future performance of SDOT1.

If you need to change your address, bank account details, Tax File Number or Australian Business Number, please advise the registrar in writing and quote your Holder Identifier Number (if any).

Computershare Investor Services Pty Ltd
G.P.O. Box 2975 
Melbourne   VIC   3001 
Telephone: 1300 855 080


Alternatively you may use your unique Holder Identifier Number to change details by visiting  www.computershare.com.

The Financial Ombudsman Services (FOS) independently and impartially resolves disputes between consumers, including some small businesses, and participating financial services providers. Membership of FOS is open to any financial services provider carrying on business in Australia. FOS independent dispute resolution processes cover complaints about financial services including banking, credit, loans, general insurance, life insurance, financial planning, investments, stock broking, managed funds and pooled superannuation trusts.

You will not be charged for using the service and your dispute will be handled as fairly and quickly as possible. FOS can be contacted on 1300 78 08 08.

Where a unitholder has identified a willing purchaser for their units, they may transfer their units by submitting the Transfer Form. An Investment Loan Application Form is required to be completed by the individuals or companies who have been nominated as the 'Buyer' of geared units in the Transfer Form. Where no willing purchaser has been identified, the unitholder may transfer their units under the Limited Liquidity Facility (see below).

Please note applications are processed on an 'order of receipt' principle. The maximum number of units processed each quarter will not exceed 521,000 units.

Investors should be aware that the LLF facility is full for the September 2008 quarter and that the LLF form for the December 2008 quarter will be available on the website from 15 October 2008.

For further information regarding the Limited Liquidity Facility please contact our Client Relations Manager, Michael Radziowsky, on 02 9035 3208.