CHARTER HALL GROUP — Capital/Financing Update 2007

Oct 2, 2007

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BUNNINGS SELLS NEW HOMEMAKER CENTRE TO CHARTER HALL

Wednesday, 3 October 2007

The Charter Hall Group, one of Australia’s leading property fund managers and property developers, announced its Core Plus Retail Fund (CPRF) has acquired a bulky goods retail site in Rothwell, Queensland from Bunnings Group Limited.

Bunnings is currently developing the centre which is anchored by a 10 year lease to Harvey Norman and is adjacent to an existing Bunnings Warehouse store.

General Manager of Property for Bunnings, Matthew Toohey said the development was the first the company had undertaken that was not occupied by Bunnings itself and that it intended to do further Homemaker Centre developments in the near future.

“Our primary focus will always be the development of Bunnings Warehouses to support the store rollout program but where property development opportunities present themselves we will look at developing sites adjacent to us for non Bunnings uses” said Mr Toohey.

“In addition to the Rothwell project, we have acquired 2 large parcels of land at Dubbo and Taree in NSW and plan to develop new Homemaker Centres at both locations”

Charter Hall has acquired the site for $8 million and will pay the balance upon completion of the 7,400m[2 ] development, with total consideration expected to approximate $17.4 million. Bunnings as developer will pay CPRF a coupon on the initial $8 million until completion of the centre.

David Harrison, Charter Hall’s Joint Managing Director said “Rothwell is the 17[th] asset, including the recent Ipswich acquisition, to be acquired for CPRF’s seed portfolio bringing to approximately $500 million the size of our latest core plus wholesale offering. We have recently launched the marketing for CPRF and expect it to reach first close over the next 6 months”.

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

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The site is located on Anzac Avenue in Rothwell, the northern suburb of Brisbane. Anzac Avenue is a four lane dual carriageway servicing the Redcliffe peninsula and used by over 45,000 cars per day. The centre will be serviced by approximately 206 cars and the commitment from Harvey Norman represents over 80 percent of the net lettable area. Two other smaller tenancies will adjoin Harvey Norman including Petwise.

Richard Champion, Retail Director and CPRF Fund Manager commented that “Harvey Norman’s commitment will increase the already strong weighting to national anchor tenants in CPRF to over 65 percent of income from the seed portfolio with majors including Bunnings, Harvey Norman, Woolworths, Coles, Spotlight, Fantastic Furniture, JB Hi Fi and The Good Guys. The purchase reflects Charter Hall’s ability to source quality assets off market with over 80 percent of the CPRF assets having been off market purchases”.

ENDS

For more information contact

David Harrison Richard Champion Matthew Toohey Joint Managing Director Retail Director & Fund Manager General Manager, Property Charter Hall Charter Hall Bunnings Group Limited 02 8908 4033 02 8908 4018 61 2 9846 7264 davidh@charterhall.com.au richardc@charterhall.com.au mtoohey@bunnings.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

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

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