CHARTER HALL GROUP — Capital/Financing Update 2007

Oct 4, 2007

==> picture [411 x 98] intentionally omitted <==

TRANSFIELD HOLDINGS SELLS DOWN CHARTER HALL GROUP HOLDING

Friday, 5 October 2007

Transfield Holdings sold overnight approximately 12.2% (53.2 million securities) in Charter Hall Group, via a selldown to a range of institutional investors. Transfield Holdings continues to hold 13 million securities or 3% in Charter Hall Group, which are escrowed until 30 June 2008. The selldown enables Transfield Holdings to fund a significant investment opportunity.

Transfield Holdings became an equity investor in Charter Hall Group in 2004 when it acquired 50% of the Group. At IPO in 2005 Transfield Holdings’ investment in the Group was diluted to 20%, which was then diluted to 15.2% following subsequent Charter Hall Group capital raisings.

David Harrison, Joint Managing Director of Charter Hall said, “We would like to express our appreciation to Transfield Holdings for the strong support provided to the Board and Management over the years”.

David Harrison advised that Mr. Roy Woodhouse and Mr. Glenn Fraser will continue as Non Executive Directors of the Charter Hall Group Board.

Macquarie Securities (Australia) Limited acted as Sole Lead Manager in the selldown.

ENDS

For more information contact

David Harrison David Southon Joint Managing Director Joint Managing Director Charter Hall Charter Hall 02 8908 4033 02 8908 4025 davidh@charterhall.com.au davids@charterhall.com.au

About the Charter Hall Group:

Charter Hall Group is a property funds management and development company, based in Sydney with offices in Brisbane, Perth and Auckland. Established in 1991 and listed on the ASX in 2005 as a stapled security under the code CHC, Charter Hall Group combines Charter Hall Limited with Charter Hall Property Trust. The Group currently has funds under management in excess of $2.8 billion and a market cap of over $1.2 billion. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 16 year history of managing wholesale capital, making it one of Australia’s leading property fund managers. Charter Hall’s success has been underpinned by a highly skilled, incentivised and motivated management team with diverse expertise across property sectors and risk-return profiles.

Charter Hall Limited

ABN 57 113 531 150 Charter Hall Funds Management Limited ABN 31 082 991 786 Sydney Brisbane Perth Auckland

Level 11 | 333 George Street | SYDNEY | NSW 2000 GPO Box 2704 | SYDNEY NSW 2001 Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 www.charterhall.com.au