CHARTER HALL GROUP — Capital/Financing Update 2009

Jun 29, 2009

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ASX ANNOUNCEMENT

CHARTER HALL REACHES $108 MILLION IN ASSET SALES FOR

CPRF

Tuesday, 30 June 2009

Following three previously announced asset sales to private investors, Charter Hall’s Core Plus Retail Fund (CPRF) has sold four retail properties including Bunnings Nerang and Bunnings Kalgoorlie, together with Harvey Norman Dunedin New Zealand and Harvey Norman Rothwell in Queensland, for a total consideration of $108 million. The four sales announced today total $50 million as detailed below, representing an average discount to the 31 December 2008 independent valuation of approximately 6%.

Bunnings Nerang	$16.35 million	Yield 7.45%
Bunnings Kalgoorlie	$6.1 million	Yield 8.20%
Harvey Norman Rothwell	$14.9 million	Yield 8.00%
Harvey Norman Dunedin NZ*	NZ$15.5 million	Yield 10.00%

*The NZ sales price equates to AUD$12.4 million at a $1.24 conversion rate.

All properties had 8-10 year lease terms remaining except Dunedin which had a 3 year WALE.

Total sales of $108 million, including the previously announced sales of Bunnings Nowra, Bunnings Box Hill and Bunnings Belconnen, will reduce gearing in CPRF to below 40% post 30 June 2009. Sale proceeds will be used to both reduce debt and interest rate hedging, thereby reducing the average weighted interest expense per unit and accordingly, grow the distribution per unit of CPRF from FY09 levels.

Joint Managing Director, David Harrison, said: “The CPRF asset sales programme has reinforced the strong liquidity that exists for sub $50 million property assets, where private investors can access both equity and debt at an attractive cost relative to property yields. We continue to see a polarisation of yields, with long term leased assets showing signs of yield compression in the last two months, compared with the higher yields required for higher risk, short term leased assets”.

ENDS

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For further media enquiries, please contact:

David Harrison

David Southon

Jo Stiles

Joint Managing Director Joint Managing Director Marketing & Communications Manager 0412 259 751 0418 479 155 0414 499 199 davidh@charterhall.com.au davids@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 Melbourne, 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 Charter Hall Group has achieved a solid track record across its activities demonstrating a 14 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 and motivated management team with diverse expertise across property sectors and risk-return profiles.