Stockland Direct Retail Trust No. 1

SDRT1 is an unlisted property trust established in December 2006 to acquire three neighbourhood shopping centres and a single bulky goods centre. The Trust’s assets include Pacific Pines Shopping Centre and Benowa Gardens Shopping Centre in Queensland, Tamworth Homespace, New South Wales and Fremantle Shopping Centre, Western Australia.

The Trust aims to provide regular distributions with the opportunity for capital growth

Highlights:

• Fremantle Shopping Centre reached practical completion and commenced trading in June 2008.
• Distributions in line with Product Disclosure Statement forecasts.
• 9.5% total return for the year to 30 June 2008; and
• Benowa and Pacific Pines sustained 0% vacancy.

SDRT1 is an unlisted property fund with a limited secondary market provided by a Limited Liquidity Facility. This Facility provides investors with the opportunity to sell their units each quarter based on the latest net tangible assets of SDRT1 as published in the accounts, less the aggregate of a 2.5% discount and any transaction costs.

As at 30 June 2008, the SDRT1 Net Tangible Asset (NTA) for each unit is $0.95.

The NTA per unit includes a liability in relation to performance fees potentially payable to Stockland. The performance fee may be payable when the properties are sold or when SDRT1 is wound up. The performance fee is subject to the future performance of SDRT1.

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. When no willing purchaser has been identified, the unitholder may transfer their units under the Limited Liquidity Facility ("LLF") available to all unitholders of SDRT1.

Please note applications are processed on an 'order of receipt' principle and that the maximum number of units processed each quarter will not exceed 1,000,000 units.

If you would like to participate in the LLF for the quarter ending 30 September 2008, please complete the LLF form and submit to National Australia Bank by Tuesday 9th September 2008.

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