CHARTER HALL GROUP — Capital/Financing Update 2007

Jul 11, 2007

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CHARTER HALL AND CIP JOINT VENTURE $20 MILLION BRISBANE INDUSTRIAL PROJECT

Thursday, 12 July 2007

Charter Hall Group announces that it has secured an off-market industrial project for an initial outlay of $6.9 million for its Core Plus Industrial Fund (CPIF). This property acquisition from Commercial and Industrial Property Pty Ltd (CIP), demonstrates the new investment opportunities expected to arise following the recent acquisition of 50 percent of CIP by Charter Hall Group, announced last month.

Located at 772 Boundary Road, Richlands in Brisbane’s South West, the acquisition adds to the growing pipeline of enhanced product for the fund and has an on completion value of circa $20 million. Richlands is one of Brisbane’s traditional and highly sought after industrial precincts which are currently experiencing strong demand from large industrial users seeking excellent accessibility to major motorways and Brisbane’s growing south western suburbs. The site was introduced by Mathew Richards of Scan Industrial.

This latest acquisition comprises a 23,050sqm industrial site which has the potential to accommodate 13,500sqm of lettable space that will be developed in a joint venture with CIP. Paul Ford, CPIF’s Fund Manager said “Richlands represents the 8[th] property in the CPIF portfolio, bringing the current total Fund size on a fully developed basis to approximately $270 million, whilst increasing the volume of enhanced properties that are expected to deliver higher IRR's”.

CIP Managing Director, Paul McKenna said: “As CIP had secured an option over the site, we offered Charter Hall the opportunity to acquire the site on a joint venture basis, where CIP provides design and delivery capability in the industrial market, taking on the leasing risk in return for a share of development profits. It is a formula which we already have in place on several sites with various joint venture partners and this represents the second such transaction with Charter Hall.”

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

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Paul Ford added: “Richlands is a strategic logistics location dominated by users such as Toll, Allied Pickford, TNT, Metcash and Corporate Express and is set to benefit from major infrastructure upgrades to the Ipswich Motorway and Centenary Highway.”

David Harrison, Charter Hall’s Joint Managing Director said: “This acquisition supports the Fund’s strategy to focus on minimizing transaction costs, targeting locations with superior growth prospects and sharing in development profits whilst de-risking the delivery obligations to a proven developer in the industrial pre-lease market.”

ENDS

For more information contact Charter Hall Group:

David Harrison Paul Ford Joint Managing Director Fund Manager 02 8908 4033 02 8908 4077 davidh@charterhall.com.au paulf@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. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 11 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