CHALLENGER LIMITED — Major Shareholding Notification 2011

May 4, 2011

5 May 2011

The Manager Company A nnouncements Office ASX Limite d 20 Bridge S treet

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Sydney

Level 15 , 255 Pitt Street Sydney N SW 2000 Aus t ralia GPO Bo x 3698 Sydney N SW 2001 www.ch a llenger.com.au Telepho n e 02 9994 700 0 Facsimil e 02 9994 7777

SYDNEY N SW 2000

By electron i c lodgemen t

Dear Sir

Re: Notice of change of interests of substantial holder ~ Challenger Diversified Property Group (CDI)

We enclos e notice of c h ange of interests of sub s tantial hold e r in Challenger Diversifi e d Property Group. This notice is gi v en by Chall e nger Limite d and each o f its subsidi a ries named in Annexur e 1 to this n o tice. Yours faithfully

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Suzie Koeppenkastrop Company S ecretary

attach

Melbourne Le v el 33, 101 Collin s Street PO Box 2 97, Flinders Lan e , Melbourne VIC 3000 Telephone 02 9994 7000 Faccsimile 02 9994 7777 Brisbane Le v el 7, 320 Adelai d e Street GPO Box 3234, Brisbane QLD 4001 Telep h one 07 3136 54 0 0 Facsimile 07 31136 5407 Perth Le v el 2, 168 St Geor g es Terrace PO B o x Z5065, St Geor g es Terrace, Perth W A 6831 Telepho n e 08 9261 7412 FFacsimile 08 9241 0 571 Adelaide Le v el 3, 97 Pirie Stre e t Adelaide SA 50 0 0 Telephone 08 7 1 29 4402 Facsimil e 08 8232 4446 Challenger Limit e d ABN 85 106 84 2 371 Challenger G roup Services Pty Limited ABN 91 0 8 5 657 307 Challenger Life Company Limited A B N 44 072 486 93 8 AFSL 234670 C hallenger Comm e rcial Lending Limited ABN 65 000 0333 143 Challenger Mana g ed Investments Limited ABN 94 00 2 835 592 AFSL 2 3 4668 Challenger Listed Investment s Limited ABN 94 0055 293 644 AFSL 236 887 CIF Investment Trust 1 ARSN 114 139 703 CIF Inves t ment Trust 2 ARS N 114 139 632 C h allenger Wine Tru s t ARSN 092 960 0060 Challenger Diver s ified Property Tru s t 1 ARSN 121 48 4 606 Challenger D iversified Propert y Trust 2 ARSN 121 484 713 Challenger Mana g ement Services L imited ABN 29 09 2 382 842 AFSL 2 3 4 678 Challenger Retir e ment Services Pty Limited ABN 80 1 1 5 534 453 AFSL 2 95642 RSE Licen c e No. L0001304 Challenger Mort g age Manageme n t Pty Ltd ABN 72 087 271 109 Ch a llenger Securitisation Manageme n t Pty Ltd ABN 56 100 346 898 AF S L 244593 Challenger Inve s tment Services Limited ABN 44 119 605 373 AFSL 3 20505

604 page 1/2 15 July 2001

Form 604

Corporations Act 2001 Section 671B

Notice of change of interests of substantial holder

To Company name/Scheme Challenger Diversified Property Group

ACN/ARSN ARSN 121 484 606 – Challenger Diversified Property Trust 1 ARSN 121 484 713 – Challenger Diversified Property Trust 2 1. Details of substantial holder (1)

Name Challenger Limited(andthe entities listed in Annexure 1)

ACN/ARSN (if applicable) 106 842 371

There was a change in the interests of the substantial holder on 03.05.2011

The previous notice was given to the company on 14.05.2010

The previous notice was dated 14.05.2010 2. Previous and present 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 when last required, and when now required, to give a substantial holding notice to the company or scheme, are as follows: Class of securities (4) Previous notice Present notice Person's votes Votingpower (5) Person's votes Votingpower (5) Ordinary Fully Paid 433,728,870 47.48% 448,332,273 49.08%

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 when last required, and when now required, to give a substantial holding notice to the company or scheme, are as follows:

3. Changes in relevant interests

Particulars of each change in, or change in the nature of, a relevant interest of the substantial holder or an associate in voting securities of the company or scheme, since the substantial holder was last required to give a substantial holding notice to the company or scheme are as follows:

Date of change	Person whose relevant interest changed	Nature of change (6)	Consideration given in relation to change (7)	Class and number of securities affected	Person's votes affected
Refer Annexure 2	Challenger Limited And each other entity named in Annexure 1	Refer Annexure 2	Refer Annexure 2	Refer Annexure 2	Refer Annexure 2

4. Present relevant interests

Particulars of each relevant interest of the substantial holder in voting securities after the change are as follows:

Holder of relevant interest	Registered holder of securities	Persons entitled to be registered as holder (8)	Nature of relevant interest (6)	Class and number of securities	Person's votes
Challenger Limited And each other entity named in Annexure 1	BNP Paribas Securities Services	BNP Paribas Securities Services	The relevant interest arises by Challenger Limited and the entites listed in Annexure 1	102,496 (ordinary fully paid)	102,496
As above	JP Morgan Nominees Australia Ltd	JP Morgan Nominees Australia Ltd	The relevant interest arises by Challenger Limited and the entites listed in Annexure 1	447,232,339 (ordinary fully paid)	447,232,339
As above	State Street Australia Ltd	State Street Australia Ltd	The relevant interest arises by Limited and the entites listed in Annexure 1	997,438 (ordinary fully paid)	997,438

5. Changes in association

The persons who have become associates (2) of, ceased to be associates of, or have changed the nature of their association (9) with, the substantial holder in relation to voting interests in the company or scheme are as follows:

Name and ACN/ARSN (if applicable)

N/A

6. Addresses

Nature of association N/A

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

ASX\20110505 ASIC Form 604.docx

604 page 2/2 15 July 2001

Name Challenger Limited And each other entity named in Annexure 1

Address Level 15, 255 Pitt Street, Sydney NSW 2000

 Signature

print name

capacity Company Secretary

Suzie Koeppenkastrop

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date 05/05/2011

ASX\20110505 ASIC Form 604.docx

Annexure 1

This is page 1 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 05/05/2011

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Suzie Koeppenkastrop

Company Secretary

Company/Scheme	ABN/ARSN
Challenger Limited	85 106 842 371
Allfine Holdings PtyLtd	84 100 231 918
Belvino Investments No.2 PtyLimited	149 254 919
Bluezen PtyLtd	94 100 220 175
CDPG Australia PtyLimited	124 498 095
Cescade PtyLimited	76 096 097 399
CFSG Holdings No. 2 Victoria PtyLimited	107 601 605
Challenger Boutique(GFI)Holdings PtyLimited	123 319 460
Challenger Boutique AlphinityHoldings PtyLtd	140 716 016
Challenger Boutique Ardea Holdings PtyLtd	133 865 853
Challenger Boutique Holdings PtyLimited	123 318 650
Challenger Boutique Merlon Holdings PtyLtd	140 715 662
Challenger Boutique NovaPort Holdings PtyLtd	140 715 797
Challenger Boutique Wavestone Holdings PtyLtd	133 626 276
Challenger Commercial LendingLimited	65 000 033 143
Challenger Diversified PropertyDevelopment PtyLimited	121 624 833
Challenger Direct PtyLtd	52 006 475 501
Challenger Financial Services Limited	38 087 464 131
Challenger FM 2 Holdings PtyLimited	85 080 036 657
Challenger FM Nominees PtyLimited	130 035 353
Challenger Funds Management Holdings PtyLimited	107 728 030
Challenger GroupHoldings Limited	50 002 993 302
Challenger GroupPtyLtd	85 003 374 196
Challenger GroupServices PtyLtd	91 085 657 307
Challenger Home Loan Corporation PtyLimited	058 891 302
Challenger InventoryFinance ServicingPtyLimited	36 107 706 810
Challenger Investment Services Limited	44 119 605 373
Challenger LBC Terminals Australia PtyLimited	125 211 770
Challenger Life CompanyHoldings PtyLtd	60 006 381 193
Challenger Life CompanyLimited	44 072 486 938
Challenger Life Nominees No.2 Limited	34 078 627 013
Challenger Life Nominees PtyLtd	39 091 336 793
Challenger Life SubsidiaryHoldings Ltd	38 099 742 122
Challenger Listed Investments Limited	94 055 293 644
Challenger Managed Investments(International)PtyLtd	120 871 212
Challenger Managed Investments Limited	94 002 835 592
Challenger Management Services Limited	29 092 382 842
Challenger Margin LendingPtyLimited	47 091 338 822
Challenger Mortgage Management PtyLimited	72 087 271 109
Challenger Non-ConformingFinance PtyLtd	107 725 486
Challenger Originator Finance PtyLtd	095 085 466
Challenger PropertyAsset Management PtyLtd	90 077 569 021
Challenger Retirement Services PtyLtd	115 534 453

Annexure 1

This is page 2 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 05/05/2011

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Suzie Koeppenkastrop

Company Secretary

Company/Scheme	ABN/ARSN
Challenger Securitisation Management PtyLimited	56 100 346 898
Challenger Skybridge(Fund)HoldingCompanyPtyLtd	130 888 292
Challenger Skybridge(Group)HoldingCompanyPtyLtd	130 888 327
Challenger Skybridge(Hastings)HoldingCompanyPtyLtd	130 888 274
Challenger Special ServicingPtyLtd	77 107 707 415
Challenger Strategic Capital PtyLimited	116 411 388
Challenger TreasuryLimited	47 093 307 996
Challenger US Infrastructure Holdings PtyLtd	117 401 519
Challenger Wholesale Finance Holdings PtyLimited	087 284 240
CPHIC Investments PtyLtd	95 093 340 526
CSPP1 Broadbeach PtyLtd	122 460 977
CSPP1 Investment Company1 PtyLimited	120 463 023
CSPP1 Maitland PtyLtd	122 460 968
CSPP1 Mavis Court PtyLtd	122 461 983
EMIF Holdings PtyLtd	130 565 169
Endowment Warrants Limited	45 009 568 503
FXF Holdings PtyLtd	080 419 512
GasValpo Finance PtyLtd	003 376 529
Inexus Australian Holdings CompanyLimited	115 840 661
LANV PtyLtd	147 224 502
Maitland Nominee Holdings PtyLimited	122 853 114
Mavis Court Development Co PtyLimited	124 112 956
MawburyPtyLimited	95 096 097 479
Talavera HerringPtyLimited	34 086 068 984
The LibertyGroupConsortium PtyLtd	79 082 564 289
TLG Services PtyLimited	20 092 500 608
TLGH PtyLimited	85 092 927 467
TRE Data Centres Canberra PtyLtd	141 881 227
Waterford CountyPtyLimited	122 853 089

Annexure 1

This is page 3 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 05/05/2011

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Suzie Koeppenkastrop

Company Secretary

Overseas Companies Appia Europe Limited Appia Finance 2 Limited Appia Finance Limited Appia Group Limited (Jersey) Appia Investments Limited CDPG Luxembourg Holdings SARL CDPG Luxembourg II SARL CDPG Luxembuorg SARL CDPG Malta Limited Challenger Connections Limited Challenger Connections Mid Company Limited Challenger DPG France II SAS Challenger DPG France SAS Challenger Group Services (UK) Limited Challenger Harbourmasters Holdings Jersey Limited Challenger Holding (Vagyonkezelo) KFT Challenger Hungary International Capital Investment and Management Ltd Liability Company Challenger Jersey I3 Limited Challenger Jersey Management Limited Challenger Jersey Trustee Limited Challenger LBC Terminals Holding Company Limited Challenger LBC Terminals Jersey Limited Challenger LBC Terminals Limited Challenger Life (UK) Limited Challenger Luxembourg Holding No. 1A SARL Challenger Luxembourg Holding No. 1B SARL Challenger Luxembourg Holding No. 2 SARL Challenger Management Services (UK) Limited Challenger MBK Emerging Market Infrastructure Fund Pte. Ltd Challenger MBK Fund Management Pte. Ltd Challenger Northern Gas Ltd (Jersey) Challenger SCR LLP Member Limited Challenger SkyBridge Fund (LP) Limited Challenger SkyBridge Fund (SLP) Limited Challenger Southern Water Limited Challenger Structured Credit Management Limited

Annexure 1

This is page 4 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 05/05/2011

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Suzie Koeppenkastrop

Company Secretary

Overseas Companies Challenger Towers Ltd (Jersey) Challenger UK Tank Storage Limited Challenger UK Terminals Ltd Challenger Wales and the West Gas Ltd (Jersey) Challenger Welcome Break Limited Clashfern Investments (UK) Limited CMS (UK) Pty Limited GasValpo Jersey Holding Company Limited Greensands Holdings Jersey Limited GV Cayman Company Limited GV Chile Holding Limitada GV Chile Limitada GV Jersey Trustee Company Limited GV Jersey Trustee Company No. 2 Limited Inexus Group Holdings Inexus Group Limited Interstar Home Loan Corporation NZ Limited (Foreign) Kabushiki Kaisha C & K Lazor Mangro Namroc Oikos Limited Oikos Storage Limited Rozal Rozalia Park Sabrand Limited SCI Aulnay Invest SCI Gennevilliers Invest Structured Credit Research LLP

Annexure 2

This is page 1 of 1 page of Annexure 2 referred to in Form 604 signed by me and dated

05/05/2011

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Suzie Koeppenkastrop

Transactions:

Challenger Diversified Property Group (CDI) Stapled Units Fully Paid As at 03/05/2011

Date of Change	Holder of relevant interest	Nature of Change	Consideration	Number of securities	Person's Votes Affected
24/05/2010	Challenger Limited (the entities listed in Annexure 1)	Buy	12,833.08	24,926	24,926
24/05/2010	As above	Buy	8,550.61	16,618	16,618
24/05/2010	As above	Buy	119,918.11	224,146	224,146
24/05/2010	As above	Sell	119,918.11	-224,146	224,146
25/05/2010	As above	Buy	34,067.67	65,074	65,074
25/05/2010	As above	Buy	22,704.64	43,382	43,382
03/06/2010	As above	Sell	19,597.56	-39,201	39,201
03/06/2010	As above	Sell	9,596.56	-19,196	19,196
03/06/2010	As above	Sell	101,043.81	-202,118	202,118
04/06/2010	As above	Sell	48,457.84	-96,429	96,429
04/06/2010	As above	Sell	23,729.16	-47,220	47,220
04/06/2010	As above	Sell	249,849.63	-497,190	497,190
07/06/2010	As above	Sell	58,440.25	-112,794	112,794
07/06/2010	As above	Sell	28,617.56	-55,234	55,234
07/06/2010	As above	Sell	301,318.00	-581,566	581,566
16/06/2010	As above	Buy	124,175.49	232,964	232,964
16/06/2010	As above	Buy	416,237.87	770,930	770,930
17/06/2010	As above	Buy	86,828.15	160,528	160,528
18/06/2010	As above	Buy	550,841.98	1,000,000	1,000,000
21/06/2010	As above	Buy	416,110.52	750,000	750,000
17/09/2010	As above	Sell	416,471.09	-849,941	849,941
01/11/2010	As above	Sell	109,887.23	-209,309	209,309
09/12/2010	As above	Sell	3,243.76	-6,238	6,238
09/12/2010	As above	Sell	39,271.96	-75,523	75,523
11/04/2011	As above	Buy	339,826.96	655,716	655,716
12/04/2011	As above	Buy	306,412.95	585,783	585,783
13/04/2011	As above	Buy	121,083.80	230,451	230,451
14/04/2011	As above	Buy	185.12	352	352
15/04/2011	As above	Buy	187,655.62	353,546	353,546
18/04/2011	As above	Buy	309,662.31	583,855	583,855
19/04/2011	As above	Buy	66,577.40	125,411	125,411
20/04/2011	As above	Buy	94,588.36	179,871	179,871
21/04/2011	As above	Buy	539,452.91	1,016,159	1,016,159
28/04/2011	As above	Buy	251,514.32	465,000	465,000
29/04/2011	As above	Buy	2,189,115.28	4,024,817	4,024,817
02/05/2011	As above	Buy	95,006.38	174,259	174,259
03/05/2011	As above	Buy	3,239,804.27	5,935,720	5,935,720

14,603,403