"It has been an exciting year for us, delivering attractive returns to our unitholders and integrating the recent overseas acquisitions, which will help us achieve income and geographical diversification. We remain committed to delivering long-term stable distributions by focusing on enhancing MMP REIT's total returns through asset enhancement initiatives and by pursuing attractive acquisitions in the region." - Franklin Heng, CEO, Macquarie Pacific Star Prime REIT Management Limited

MACQUARIE MEAG Prime Reit (MMP REIT) is a Singapore-based real estate investment trust (Reit) investing primarily in real estate used for retail and office purposes, both in Singapore and overseas.

It is the only S-Reit to own two landmark properties on Singapore's prime shopping street Orchard Road with a 74.23 per cent strata title interest in Wisma Atria and a 27.23 per cent interest in Ngee Ann City.

Since listing in September 2005, MMP REIT has consistently outperformed IPO projections. Total absolute returns for unitholders who have held MMP REIT units since its listing stand at 35 per cent.

In May, the Reit acquired seven quality properties located in the prime areas of Tokyo, Japan for $182.5 million.

In August, MMP REIT completed the acquisition of a 100 per cent interest in a premier retail property in Chengdu, China for $70 million.

These recent acquisitions mark the first stage in delivering on itsregional strategy to diversify income and the Reit's geographical footprint.

New acquisitions will be sourced through its network which includes existing partners, agents and Macquarie Bank, MMP REIT's financial sponsor. These acquisitions could be secured through direct and indirect acquisitions, joint ventures, co-investment with Macquarie Bank-linked funds and development.

MMP REIT is managed by Macquarie Pacific Star Prime REIT Management Limited, a joint venture between Macquarie Bank Limited, MEAG MUNICH ERGO AssetManagement GmbH and Investmore Enterprises Ltd.

Portfolio

10 properties

MMP REIT's principal investment strategy is to invest primarily in real estate used mainly for retail and office purposes in Singapore and overseas.

We remain focused on sourcing property assets in Asia, including Japan, Malaysia, Singapore, China and Hong Kong. Our portfolio includes:

Ngee Ann City, Singapore

Singapore

- Two landmark properties on the premier shopping and tourist precinct, Orchard Road - Ngee Ann City and Wisma Atria.

Ngee Ann City targets a wide demographic segment, including the affluent shopper with luxury retailers such as Louis Vuitton and Chanel; the young and upwardly mobile with trendy retail stores such as Guess and Zara; and families, with retailers such as Books Kinokuniya and stores offering children's apparel and toys.

Wisma Atria is positioned as a modern fashion mall offering a comprehensive range of international fashion labels targeted at the fashion-conscious and trendy shoppers. Key fashion retailers include FCUK, Bebe, GAP and Nine West.

It has a well-diversified base of tenants - 91 retail and 44 office tenants as at Dec 31, 2006.

Following an extensive $30 million renovation in 2004, continued asset enhancements were carried out in Wisma Atria to reinvigorate the centre and keep it relevant in the fast-paced, competitive retail industry. The physical improvements were complemented by new additions to the centre's ever-evolving fashion offering.

We are confident that the office assets will perform strongly again in 2007 given the robust outlook for the office rental market. Some 86,000 square feet of office space is expiring in 2007 at rents significantly below the market.

We see new demand on Orchard Road for cheaper alternatives as office rents in the core CBD area have continued to rise. This bodes well for Ngee Ann City and Wisma Atria as two of the most sought after quality office addresses on Orchard Road.

Holon L, Tokyo

Japan

- Seven properties in the prime areas of Roppongi, Shibuya-ku, Minato-ku and Meguro-ku in Tokyo, Japan. The properties, totalling about 70,000 square feet in gross floor area, carry a balance of master leases which provide stable rental income and short term leases which provide potential for rental upside.

MMP REIT is confident that it can benefit from upward rental revision on the back of improving retail and real estate markets in Japan, the second largest retail market in the world after the United States.

China

- One prime retail property in Chengdu, China. The Renhe Spring Department Store is located in the capital city of Sichuan Province, the second most populous province in China.

The property houses premium brands such as Ermenegildo Zegna, Burberry, Prada, Gucci and Hugo Boss.

Key Highlights

- Consistently strong financial results

- Strong revaluation gains

- Well-positioned properties in attractive markets

- Singapore properties - three-pronged strategy of proactive retail leasing, introduction of more step-rent structures and creative asset enhancements and tenant remixing

- Overseas - acquisitions mark the beginning of MMP REIT's regional strategy to achieve income and geographical
diversification

Milestones

Renhe Spring Department Store, Chengdu

MMP REIT is the S-Reit with the largest presence in Orchard Road. Its prime properties in Singapore include Wisma Atria and Ngee Ann City.

It acquired seven properties located in the prime areas of Roppongi, Shibuya-ku, Minato-ku and Meguro-ku in Tokyo for 14.4 billion yen (S$182.5 million).

The acquisition of six of these properties was completed on May 30, 2007. The transaction for the seventh property is expected to be completed by September 2007.

MMP REIT also purchased a 100 per cent interest in a prime retail property in Chengdu, China for 350 million yuan in total (S$70 million) with first right of refusal into a pipeline of opportunities in China.

This includes another two prime retail properties in Chengdu with a combined gross floor area of more than one million square feet.

Its recent acquisitions are immediately income-producing and have an inherent upside with rising retail and real estate markets in Tokyo and Chengdu.

They provide opportunities to develop long-term relationships with key market players and allow the Reit to achieve diversification of income and geography while complementing its existing portfolio.

Financial Performance

Financial highlights in Q2 2007 results:

- DPU of 1.50 cents exceeded Q2 2006 by 4.2 per cent

- Annualised yield of 4.91 per cent based on last traded unit price of $1.22 on Sept 20, 2007

- H1 2007 DPU of 2.97 cents exceeded H1 2006 by 3.1 per cent

- Revaluation of Singapore assets of $110 million in June 2007, an uplift of 9.5 per cent from revaluation of Singapore properties

- Affirmed Moody's corporate rating of 'Baa1' reflects high quality of assets and provides operational and acquisition funding flexibility

Macquarie Pacific Star Prime REIT Management Limited
Manager of Macquarie MEAG Prime REIT 291B
Orchard Road #21-08 Ngee Ann City Tower
Singapore 238874
Tel: (65) 6835 8633
Fax: (65) 6835 8644
www.mmpreit.com