St George Bank Agrees to $146 Million Sale Leaseback of HQ in Adelaide South Australia

St. George Bank Web Site - September 1, 2006

St.George Bank today announced the sale and leaseback of its Kogarah Head office at 4-16 Montgomery Street, Kogarah and BankSA Head office located at 97 King William Street, Adelaide to Charter Hall.

St.George is committed to retaining full usage of both sites over the long term and has executed a lease with Charter Hall for the properties for a 15 year term, with an option for a further 25 years (5 x 5 year options).

Peter Clare, Group Executive Strategy said, "The Bank's commitment to leaseback these key properties is integral to our current operations and is part of the implementation of our overall property strategy."

Sale and leaseback transactions have become a common feature of capital management in recent years. For St.George, this transaction will unlock valuable funds, whilst retaining long-term occupancy of the sites. It will allow St.George to more efficiently deploy its capital and focus on the Bank's core activities.

St.George has had a sale and leaseback program of branches over the past four years, which is expected to continue.

The total consideration for the sale of the properties is $146 million. The profit on sale of these buildings, which represents the amount by which the consideration exceeds the carrying value of the properties, will be incorporated in the full year results for the Group announced on 1 November. Sphere: Related Content