Not for release, publication or distribution, in whole or part, in, into or from the United States, Canada or Japan. The attached formal announcement has been prepared for release in the United Kingdom. It is lodged with the ASX as a matter of record only and does not constitute distribution to, or an offer or invitation to, any holder of securities of Halladale Group plc resident in Australia.

For immediate release

RECOMMENDED PROPOSALS

for the acquisition of

HALLADALE GROUP PLC

STOCKLAND UK DEVELOPMENT LIMITED, A WHOLLY OWNED SUBSIDIARY OF STOCKLAND CORPORATION LIMITED

to be effected by means of a Scheme of Arrangement under section 425 of the Companies Act 1985

Summary

The boards of directors of Stockland Corporation Limited (“Stockland”) and Halladale Group plc (“Halladale”) are pleased to announce that they have reached agreement on the terms of the recommended cash acquisition of the entire issued and to be issued share capital of Halladale by Stockland UK Development Limited (the “Acquisition”). It is intended that the Acquisition be implemented by way of a court sanctioned scheme of arrangement under section 425 of the Companies Act.

Stockland is one of Australia’s leading diversified property groups. Stockland UK Development Limited (“Stockland UK”) is a newly incorporated company and is a wholly owned subsidiary of Stockland.

Under the Proposals, each Halladale Shareholder will receive 225 pence in cash for each Halladale Share held at the Scheme Voting Record Time, valuing the entire issued and to be issued share capital of Halladale at approximately £171 million.

The consideration of 225 pence for each Halladale Share represents a premium of approximately 33.9 per cent. over the closing price of 168 pence per Halladale Share on 6 February 2007, being the last Business Day prior to the making of this announcement.

The interim dividend of 1.75 pence per Halladale Share announced on 9 January 2007 (the “Interim Dividend”) will be paid on 13 February 2007 as set out in Halladale’s interim results statement dated 9 January 2007. If the Scheme becomes effective, Halladale Shareholders will not receive a final dividend for the financial year ended 30 April 2007.

The Directors of Halladale, who have been so advised by Kinmont and Collins Stewart, their joint financial advisers, consider the terms of the Acquisition to be fair and reasonable. In providing their advice, Kinmont and Collins Stewart have taken into account the commercial assessments of the Directors. Accordingly, the Directors intend unanimously to recommend Halladale Shareholders to vote in favour of the Acquisition, as the Directors have irrevocably undertaken to do on behalf of themselves and their immediate families, and as persons connected with the Directors have irrevocably undertaken to do, each in respect of their own holdings, representing in aggregate, 5,561,316 Halladale Shares, representing approximately 10.6 per cent. of the entire issued share capital of Halladale.

In connection with the Acquisition, Stockland UK has also received irrevocable undertakings to vote in favour of the Proposals at the Court Meeting and the EGM from VTB Europe Strategic Investments Limited, Forum European Realty Income II LP, Resolution Investment Services, Hansa Trust PLC and Allan Lockhart with respect to their entire holdings of Halladale Shares, representing 17,818,842 Halladale Shares or 34.0 per cent. of the entire issued share capital of Halladale.

In aggregate, Stockland UK has, therefore, received irrevocable undertakings to vote in favour of the Proposals in respect of 23,380,158 Halladale Shares, representing 44.6 per cent. of the entire issued share capital of Halladale.

A Loan Note Alternative will also be made available to all Halladale Shareholders (other than Restricted Overseas Persons).

It is expected that the Scheme Document will be posted by late February 2007 and that the Proposals will be put to Halladale Shareholders at the Court Meeting and the EGM which are expected to be held by late March 2007. Subject to the satisfaction, or where relevant, waiver of all relevant Conditions, the Scheme is expected to become effective by the end of April 2007.

Stockland UK intends to make an offer for all outstanding convertible unsecured loan stock issued by Halladale (“CULS”), pursuant to Rule 15 of the Takeover Code, reflecting the appropriate “look through” offer price of 225 pence per Halladale Share and the relevant conversion terms of the CULS. Further details of the proposals to CULS Holders will be set out in full in the Scheme Document.

Commenting on the Acquisition, Matthew Quinn, Managing Director of Stockland, said today:

“Stockland is one of Australia’s largest and most respected diversified property groups, and we are focused on delivering long term value and sustainable returns to our shareholders.

Following extensive research on strategic opportunities to expand our successful business platform and capabilities into the UK market, we are excited about this first step in our expansion strategy in the UK. We see the potential for Stockland to develop a significant and successful international business in the long term.

Halladale has an outstanding capability in the development of retail and office space in co-venture with its capital partners and we will look to build on this capability to increase the scale of the operation and add our residential, retail, office and industrial property investment management and development expertise, which has been so successful in the Australian market place.

Halladale is an excellent strategic fit for Stockland’s business, with a like minded focus on shareholder value and complementary skill sets. The acquisition of Halladale will provide a springboard to capitalise on further growth opportunities in the UK by combining our integrated development capabilities and expertise with Halladale’s existing successful business and extensive local relationships.

Stockland’s strategic goal was to acquire a strong UK operating business rather than just property assets and, importantly, the highly regarded Halladale executive directors and management team will join Stockland.”

Commenting on the Acquisition, David Lockhart, Chief Executive of Halladale, said today:

“The Board of Halladale is delighted to recommend the acquisition of the company by Stockland. This is a significant opportunity for Halladale’s entrepreneurial asset management, development and fund management skills to be applied within a much enlarged group with the benefits of a stronger balance sheet and international reach.

We believe that the Acquisition is in the long term interests of Halladale and represents a fair cash value for its shareholders. Stockland’s commitment to utilise Halladale as its platform to build its presence in the UK and to expand into mainland Europe will allow Halladale to enter into a new phase in its growth and development from a position of increased strength.”

Enquiries:

Stockland
Johanna Keating (Corporate Affairs) +61 2 9321 1529
Amy Menere (Media and Corporate Communications) +61 2 9561 2664

Citigroup Global Markets Limited (Financial adviser to Stockland) 020 7986 4000
Nick Jacobson
Grant Kernaghan
Ronan Veale (Corporate Broking)

Maitland (Financial PR adviser to Stockland) 020 7379 5151
Martin Leeburn
Philip Gawith

Halladale 0845 070 4633
David Lockhart

Kinmont (Joint financial adviser to Halladale) 020 7493 8488
Gavin Kelly
John O’Malley

Collins Stewart (Joint financial adviser and broker to Halladale) 020 7523 8350
Nick Ellis
Chris Howard

Bell Pottinger Corporate and Financial (Financial PR adviser to Halladale) 020 7861 3232
David Rydell
Geoff Callow