CHALLENGER LIMITED — Major Shareholding Notification 2012

May 2, 2012

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Sydney

3 May 2012

The Manager Company Announcements Office ASX Limited 20 Bridge Street

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

SYDNEY NSW 2000

By electronic lodgement

Dear Sir

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

We enclose notice of change of interests of substantial holder in Challenger Diversified Property Group. This notice is given by Challenger Limited and each of its subsidiaries named in Annexure 1 to this notice.

Yours faithfully

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Suzie Koeppenkastrop

Company Secretary

attach

Melbourne Level 19, 31 Queen Street PO Box 297, Flinders Lane, Melbourne VIC 3000 Telephone 02 9994 7000 Facsimile 02 9994 7777 Brisbane Level 7, 320 Adelaide Street GPO Box 3234, Brisbane QLD 4001 Telephone 07 3136 5400 Facsimile 07 3136 5407 Perth Level 2, 168 St Georges Terrace, Perth WA 6000 Telephone 08 9261 7412 Facsimile 08 9321 5277 Adelaide Level 7, Suite 714, 147 Pirie Street Adelaide SA 5000 Telephone 08 7071 7042 Facsimile 08 8227 0395

Challenger Limited ABN 85 106 842 371 Challenger Group Services Pty Limited ABN 91 085 657 307 Challenger Life Company Limited ABN 44 072 486 938 AFSL 234670 Howard Commercial Lending Limited ABN 65 000 033 143 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 Management Services Limited ABN 29 092 382 842 AFSL 234 678 Challenger Retirement and Investment Services Limited ABN 80 115 534 453 AFSL295642 RSE Licence No. L0001304 Challenger Mortgage Management Pty Ltd ABN 72 087 271 109 Challenger Securitisation Management Pty Ltd ABN 56 100 346 898 AFSL 244593

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 ACN/ARSN (if applicable)

Challenger Limited (and the entities listed in Annexure 1) 106 842 371

There was a change in the interests of the substantial holder on 01.05.2012

The previous notice was given to the company on 06.10.2011

The previous notice was dated 06.10.2011

The	previous notice was dated		06.10.2011
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	Voting power (5)	Person's votes	Voting power (5)
	OrdinaryFullyPaid	457,093,869	51.13%	457,093,869	52.40%

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
01/05/2012	Challenger Limited And each other entity named in Annexure1	Increase in voting power due to cancellation of units by on market buybackby CDI	N/A	N/A	N/A

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 Annexure1	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	455,993,935 (ordinary fully paid)	455,993,935
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:

Nameamemee and ACN/ARSN (if applicable)nd ACN/ARSN (if applicable)d ACN/ARSN (if applicable) ACN/ARSN (if applicable)CN/ARSN (if applicable)N/ARSN (if applicable)/ARSN (if applicable)ARSN (if applicable)SN (if applicable)N (if applicable)(if applicable)if applicable)applicable)licable)cable)le)e)

6. Addresses

Nameamemee and ACN/ARSN (if applicable)nd ACN/ARSN (if applicable)d ACN/ARSN (if applicable) ACN/ARSN (if applicable)CN/ARSN (if applicable)N/ARSN (if applicable)/ARSN (if applicable)ARSN (if applicable)SN (if applicable)N (if applicable)(if applicable)if applicable)applicable)licable)cable)le)e) Nature of association N/A N/A

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

ASX\20120503 ASIC Form 604.docx

604 page 2/2 15 July 2001

Name Address Challenger Limited Level 15, 255 Pitt Street, Sydney NSW 2000 And each other entity named in Annexure 1

 Signature

print name Suzie Koeppenkastrop capacity Company Secretary

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date 03/05/2012

ASX\20120503 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 03/05/2012

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Suzie Koeppenkastrop

Company Secretary

Company/Scheme	ABN/ARSN
Challenger Limited	85106 842371
AllfineHoldingsPtyLtd	84 100231918
BelvinoInvestmentsNo.2 PtyLimited	149254919
Bluezen PtyLtd	94 100 220 175
CDPGAustraliaPtyLimited	124 498 095
CescadePtyLimited	76 096 097399
CFSGHoldingsNo. 2 VictoriaPtyLimited	107601605
Challenger AlphaPropHoldingsPtyLtd	143 836 373
Challenger AlphaPropPtyLtd	143 881921
Challenger Boutique (GFI)HoldingsPtyLimited	123 319460
Challenger BoutiqueAlphinityHoldingsPtyLtd	140716 016
Challenger BoutiqueArdeaHoldingsPtyLtd	133 865 853
Challenger BoutiqueHoldingsPtyLimited	123 318 650
Challenger Boutique Merlon Holdings Pty Ltd	140 715 662
Challenger BoutiqueNovaPortHoldingsPtyLtd	140715797
Challenger BoutiquePP HoldingsPtyLtd	152375436
Challenger BoutiqueWavestoneHoldingsPtyLtd	133 626276
Challenger DiversifiedPropertyDevelopmentPtyLimited	121624833
Challenger Direct PtyLtd	52 006 475 501
Challenger FinancialServicesLimited	38 087 464 131
Challenger FM 2 HoldingsPtyLimited	85 080 036 657
Challenger FM NomineesPtyLimited	130 035 353
Challenger FundsManagementHoldingsPtyLimited	107 728 030
ChallengerGroupHoldingsLimited	50 002993 302
ChallengerGroupPtyLtd	85 003 374 196
ChallengerGroup ServicesPtyLtd	91085 657307
Challenger HomeLoanCorporation PtyLimited	058 891302
Challenger InventoryFinance ServicingPtyLimited	36107 706 810
Challenger LBCTerminalsAustraliaPtyLimited	125211 770
Challenger Life CompanyHoldingsPtyLtd	60 006 381 193
Challenger Life CompanyLimited	44072 486 938
Challenger LifeNomineesNo.2 Limited	34078 627013
Challenger LifeNomineesPtyLtd	39 091336793
Challenger Life SubsidiaryHoldings Ltd	38 099 742 122
Challenger ListedInvestmentsLimited	94055293 644
Challenger ManagedInvestments (International)PtyLtd	120 871 212
Challenger Management ServicesLimited	29 092382842
Challenger Margin LendingPtyLimited	47091338 822
Challenger MortgageManagementPtyLimited	72087 271 109
Challenger Non-ConformingFinancePtyLtd	107 725486
ChallengerOriginator FinancePtyLtd	095 085466

Annexure 1

This is page 2 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 03/05/2012

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Suzie Koeppenkastrop Company Secretary

Company/Scheme	ABN/ARSN
Challenger PropertyAssetManagementPtyLtd	90 077569 021
Challenger REIT AFSL Pty Limited	143 430 773
Challenger REIT Holdings Pty Limited	143 376 961
Challenger Retirement and Investment Services Limited	115 534 453
ChallengerSecuritisation ManagementPtyLimited	56100 346 898
ChallengerSkybridge (Fund)Holding CompanyPtyLtd	130 888292
ChallengerSkybridge (Group)Holding CompanyPtyLtd	130 888 327
ChallengerSkybridge (Hastings)Holding CompanyPtyLtd	130 888274
ChallengerSpecialServicingPtyLtd	77 107 707 415
ChallengerStrategic Capital PtyLimited	116411388
Challenger TreasuryLimited	47093 307996
ChallengerUSInfrastructureHoldingsPtyLtd	117 401519
Challenger WholesaleFinanceHoldingsPtyLimited	087 284 240
CPHICInvestmentsPtyLtd	95 093 340 526
CSPP1 Broadbeach PtyLtd	122 460 977
CSPP1 Investment Company1 PtyLimited	120463 023
CSPP1 MaitlandPtyLtd	122 460 968
CSPP1 Mavis CourtPtyLtd	122 461983
EMIF Holdings PtyLtd	130 565 169
EndowmentWarrantsLimited	45 009 568 503
FidantePartnersLimited	94002835 592
FidantePartners ServicesLimited	44 119 605 373
FXF HoldingsPtyLtd	080419 512
GasValpoFinancePtyLtd	003 376 529
Howard Commercial LendingLimited	65 000 033143
InexusAustralian Holdings CompanyLimited	115 840 661
LANV PtyLtd	147 224502
MaitlandNomineeHoldingsPtyLimited	122853114
Mavis CourtDevelopment CoPtyLimited	124 112956
MawburyPtyLimited	95 096 097 479
TalaveraHerringPtyLimited	34086 068 984
TheLiberty Group Consortium PtyLtd	79 082564 289
TLG ServicesPtyLimited	20 092500 608
TLGH PtyLimited	85 092 927 467
TRE Data Centres CanberraPtyLtd	141881 227
Waterford CountyPtyLimited	122853 089

Annexure 1

This is page 3 of 4 pages of Annexure 1 referred to in Form 604 signed by me and dated 03/05/2012

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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 03/05/2012

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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