CHARTER HALL GROUP — Capital/Financing Update 2007

Jul 15, 2007

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CHARTER HALL ACQUIRES PROMINENT PROPERTY IN THE HEART OF SYDNEY CBD FOR $41 MILLION

Monday, 16 July 2007

Charter Hall Group announced today that its Core Plus Office Fund (CPOF) has contracted to purchase a prominent retail/office building in the heart of the Sydney CBD for $41 million from Dymocks. The property located at 34 Hunter Street on the major retail intersection with Pitt Street has been owned by Dymocks for 15 years. CPOF has now secured its 11[th] asset in 12 months bringing the total asset value to approximately $955 million.

The acquisition represents a unique opportunity to secure an island site in the heart of the Sydney CBD. The property has frontages to Pitt, Hunter, Curtin and Hamilton Streets in the core of Sydney’s financial precinct. The building is well positioned and its central location is appealing to a range of tenants.

The property has 12 levels of office space with a total net lettable area of 5,436sqm, including prominent ground floor retail tenancies including the Dymocks bookstore. The strong retail component is underpinned by the outstanding exposure to Pitt and Hunter Streets. The latest acquisition reflects an initial fully let yield of 6.07 percent, however, CPOF Fund Manager Chris Forbes notes that “significant rental reversion exists and the value add potential provides various scenario’s for Charter Hall to enhance the property’s value”.

The acquisition provides CPOF further exposure to the buoyant Sydney CBD commercial office market. David Harrison, Charter Hall’s Joint Managing Director said: “The property is an ideal core plus opportunity with the ability to lease up vacancies in the short term, take advantage of market rent reviews during the next 3 years and to exploit various value add options in the medium term. Further, the CPOF portfolio is now 48 percent exposed to Sydney following the recent $90.7 million acquisition of 167 Macquarie Street, which argues well for exploiting the expected growth that may occur in coming years and completes an active first 12 months for CPOF which has grown from $140 million to $955 million in assets during this period”.

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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Don Grover, CEO of the Dymocks Group of Companies said: ”The divestment of the 34 Hunter Street property places Dymocks well to continue to grow its property and retail assets. The long term future of the Dymocks bookstore on this site is also secure, ensuring our customers continue to receive the best of service in this critical Sydney CBD market”.

The acquisition was brokered by CBRE Director, James Aroney.

ENDS

For more information contact Charter Hall Group:

David Harrison Chris Forbes Jo Stiles Joint Managing Director Fund Manager Marketing & Communications Manager 02 8908 4033 02 8908 4031 02 98908 4026 davidh@charterhall.com.au chrisf@charterhall.com.au jos@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 $2.5 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 10 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