Sydney

Level 15, 255 Pitt Street Sydney NSW 2000 Australia GPO Box 3698 Sydney NSW 2001 www.challenger.com.au

Telephone 02 9994 7000 Facsimile 02 9994 7777

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street

SYDNEY NSW 2000

20 March 2008

By electronic lodgement

Dear Sir

Re: Notice of initial substantial holder ~ Babcock & Brown Japan Prop Trust (BJT)

We enclose notice of initial substantial holder in Babcock & Brown Japan Prop Trust. This notice is given by Challenger Financial Services Group Limited and each of its subsidiaries named in Annexure 1 to this notice.

Yours faithfully

Syanne Koppenhistory

Suzie Koeppenkastrop Company Secretary

attach

Melbourne Level 10, 101 Collins Street PO Box 297, Flinders Lane, Melbourne VIC 3000 Telephone 03 8616 1800 Facsimile 03 8616 1899 Level 9, CUA Building 175 Eagle Street GPO Box 3234, Brisbane QLD 4001 Telephone 07 3218 8000 Facsimile 07 3220 3132 Brisbane Level 3, 55 St Georges Terrace PO Box Z5065, St Georges Terrace, Perth WA 6831 Telephone 08 9223 7800 Facsimile 08 9221 2499 Perth Adelaíde Level 1, 212 Pirie Street Adelaide SA 5000 Telephone 08 8211 7777 Facsimile 08 8212 1661

Challenger Financial Services Group Limited ABN 85 106 842 371 Challenger Group Services Pty Limited ABN 91 085 657 307
Challenger Life No.2 Limited ABN 44 072 486 938 AFSL 234670 Challenger Commercial Lending Limited ABN Challenger Listed Investments Limited ABN 94 055 293 644 AFSL 236 887 CIF Investment Trust 1 ARSN 114 139 703 CIF Investment Trust 2 ARSN 114 139 632 Challenger Wine Trust ARSN 092 960 060 Challenger Diversified Property Trust 1 ARSN 121 484 606 Challenger Diversified Property Trust 2 ARSN 121 484 713 Challenger Kenedix Japan Trust ARSN 124 068 971 Challenger Management Services Limited ABN 29 092 382 842 AFSL 234 678

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

The holder became a substantial holder on 18.03.2008

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

7. Addresses

The addresses of persons named in this form are as follows:

Signature

print name Suzie Koeppenkastrop capacity Company Secretary sign here Syame Kopenhistory date 20/03/2008

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a sa sa sala

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. . . . . . . . . . . .

This is page 1 of 3 pages of Annexure 1 referred to in Form 603 signed by me and dated 20/03/2008

$\cdot$

Syame Kopenharap

Suzie Koeppenkastrop
Company Secretary

$\sim$ , $\sim$ $\sim$

This is page 2 of 3 pages of Annexure 1 referred to in Form 603 signed by me and dated 20/03/2008

Syame Koppenharing

Suzie Koeppenkastrop
Company Secretary

÷.

. . . . . . . . .

计字体

This is page 3 of 3 pages of Annexure 1 referred to in Form 603 signed by me and dated 20/03/2008

Syame Koppenhistory

Suzie Koeppenkastrop
Company Secretary

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This is page 1 of 4 pages of Annexure 2 referred to in Form 603 signed by me and dated 20/03/2008

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Syanne Koppenharap

Suzie Koeppenkastrop

Transactions:

à.

$\bar{z}$ $\frac{1}{2}$

$\langle \ldots \ldots \rangle$ , $\langle \ldots \ldots \rangle$

$\label{eq:2.1} \frac{1}{\sqrt{2}}\int_{\mathbb{R}^3}\frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2\frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2\frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2\frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2.$

$\label{eq:2.1} \mathcal{L}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}})) \leq \mathcal{L}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}})) \leq \mathcal{L}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}(\mathcal{L}^{\mathcal{L}}{\mathcal{L}}))$

$\label{eq:2.1} \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mu}{d\mu} \right|^2 \, d\mu = \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mu}{d\mu} \right|^2 \, d\mu = \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mu}{d\mu} \right|^2 \, d\mu = \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mu}{d\mu} \right|^2 \, d\mu = \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mu}{d\mu} \right|^2 \,$

$\label{eq:1} \begin{array}{ll} \mathcal{L}{\text{max}} & \mathcal{L}{\text{max}} = \mathcal{L}_{\text{max}} \end{array}$

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