CHARTER HALL GROUP — Capital/Financing Update 2009

Jun 29, 2009

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ASX ANNOUNCEMENT

CHARTER HALL SELLS MONASH UNIVERSITY MELBOURNE OFFICE BUILDING FOR A MINIMUM OF $60.2 MILLION

Tuesday, 30 June 2009

Charter Hall Group (CHC) is pleased to announce that its Core Plus Office Fund (CPOF) has settled the sale of its 299 year leasehold interest in its Monash University, Parkville office complex to a private overseas based foundation. The total consideration from the transaction is $60.2 million which may be higher should confidential contract conditions favourable to the vendor be achieved.

The total consideration range to the vendor reflects a core market cap rate of 7.35% (after adjusting for the PV of fit-out rentals) and a maximum discount to the 30 September 2008 independent value of approximately 15%, which will be reduced if additional consideration is received. The disclosed cap rate for the 30 September 2008 valuation was 6.55%.

The sale of Monash University is part of an asset divestment strategy previously announced by Charter Hall to de leverage CPOF. The resultant gearing of CPOF is likely be approximately 50%, in line with recent announcements, following 30 June 2009 valuations and the use of sale proceeds to reduce debt.

Charter Hall’s Joint Managing Director, David Harrison said: “The initiative to sell Monash University and other CBD fringe assets is supported by wholesale investors and recognises the desire to strengthen CPOF’s Balance Sheet. With a 12% long term IRR target, CPOF will continue to seek acquisitions and divestment recycling that best positions the Fund to outperform its return hurdle”.

The sale of the Monash University asset was facilitated by Jason Williams of Grant Samuel. ENDS

For further media enquiries, please contact:

David HarrisonJoint Managing Director0412 259 751davidh@charterhall.com.au	David SouthonJoint Managing Director0418 479 155davids@charterhall.com.au	Jo StilesMarketing & Communications Manager0414 499 199jos@charterhall.com.au

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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.