CHARTER HALL GROUP — Capital/Financing Update 2008

Jan 9, 2008

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CHARTER HALL’S OPPORTUNITY FUND NO.5 (CHOF5) ACQUIRES 11 HECTARE PREMIER RESIDENTIAL DEVELOPMENT SITE IN LITTLE BAY

Thursday, 10 January 2008

Charter Hall Group is pleased to announce that Charter Hall Opportunity Fund No.5 (CHOF5) has secured a large, premier residential development site in Sydney’s eastern suburbs at Little Bay for $103 million. This strategic site was acquired from the University of NSW, being surplus to its long term requirements and providing valuable funding for more immediate initiatives, including investment in new cancer and biomedical research facilities.

The acquisition is the fourth for CHOF5 following on from two recent acquisitions in New Zealand and the recent purchase of a 10,000m² commercial development site at Pier Street on the fringe of the Perth CBD. The total equity allocated for CHOF 5 to date since closing the Fund on the 28 May 2007 is approximately $102 million representing 34% of the $300 million of equity committed for this fund. CHOF5 has approximately $1 billion (end value) of capacity and has other potential projects either currently under due diligence or at an advanced stage.

The property is located at 1406-1408 Anzac Parade in Little Bay at the southern end of Sydney’s eastern suburb peninsula. The site has an area of approximately 11.42 hectares, and is situated just 14 kilometres from the Sydney CBD and features sweeping views of the Pacific Ocean, Botany Bay and prestigious golf courses.

The site is considered one of ‘the last’ prime coastal site’s available on Sydney’s eastern coastline and it is anticipated that the development will set a new benchmark for architectural design and integrated master planning, for coastal communities and developments around Australia.

Immediately adjacent to the property is the highly successful and award winning Prince Henry residential estate, incorporating a mix of single, attached and medium density dwellings that have been extremely well received by the market and continue to achieve record prices.

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 Little Bay site has an existing consent for a 149 residential lot subdivision, with approved building envelopes, car parking and open space. The opportunity exists to amend the current approval through sensible master planning within Council’s existing development controls to provide a more appropriate mix of residential dwellings to suit various market demands.

Michael Winnem, Development Director and CHOF5 Fund Manager said: “The development concept for the project is to provide a range of product from single detached dwellings to medium density accommodation in order to capitalise on the demand for well planned residential communities with excellent local amenities, within close proximity to the Sydney CBD and on a magnificent and accessible section of the Sydney coastline”.

Charter Hall’s Joint Managing Director, David Southon said: “This type of opportunity is extremely rare and to secure it in an already proven market, where the Sydney residential property prices are trending upwards represents an outstanding opportunity for CHOF5 and its investors. We are confident this development will produce a quality product that will complement its spectacular surroundings”.

ENDS

For more information contact Charter Hall Group:

David Southon Michael Winnem Joint Managing Director Development Director and Fund Manager + 61 2 8908 4025 + 61 2 8908 4056 davids@charterhall.com.au michaelw@charterhall.com.au

Jo Stiles

Marketing & Communications Manager + 61 2 8908 4026 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 $3.5 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

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