CHARTER HALL GROUP — Capital/Financing Update 2009

May 27, 2009

No:

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ASX Circular

Date: 28 May 2009

Key topics

1. Charter Hall Group

2. ASX Code: CHC

3. Entitlement Offer

CHARTER HALL GROUP – ACCELERATED NONRENOUNCEABLE PRO RATA ENTITLEMENT OFFER TO RAISE APPROXIMATELY $73 MILLION.

Participating Organisations are advised that Charter Hall Group (the “Group”) has announced a 2 for 7 accelerated non-renounceable pro rata entitlement offer (the “Entitlement Offer”), at an offer price of $0.33 per new stapled security (the “Offer Price”) to raise up to $49 million. The Group has also announced an institutional placement of stapled securities (the “Institutional Placement”) at the Offer Price to raise $24 million.

The Entitlement Offer has two components:

Reading List

Client Advisers Compliance Managers Corporate Advisory DTR Operators Issuers Institutions ASTC Participants Office Managers

Operations Managers (back office) Research Analysts ACH Participants Market Participants

Authorised By

Andrew Black

Contact

Ben Wacher

• An institutional entitlement offer, where offers have been made to qualifying institutional stapled security holders for them to apply for their pro-rata entitlement to raise approximately $29 million (the “Institutional Entitlement Offer”).

• A retail entitlement offer, where an offer will be made to qualifying retail stapled security holders for them to apply for their pro-rata entitlement to raise approximately $20 million (the “Retail Entitlement Offer”).

The Entitlement Offer is fully underwritten.

The Record Date for the Entitlement Offer is 1 June 2009.

The Retail Entitlement Offer is expected to close on 18 June 2009.

The Group will ignore changes in stapled security holdings which occur after the commencement of the trading halt on Wednesday, 27 May 2009 (other than registrations of transactions which were effected through ITS before the commencement of the trading halt).

New stapled securities issued under the Entitlement Offer and Institutional Placement will rank equally with existing stapled securities on issue from allotment and will be entitled to the 2H FY09 distribution.

ASX Limited ABN 98 008 624 691 Exchange Centre 20 Bridge Street Sydney NSW 2000 PO Box H224 Australia Square NSW 1215

Internet: http://www.asx.com.au

No responsibility is accepted for any inaccuracies contained in the matter published.

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The indicative timetable in relation to the Entitlement Offer is as follows:

Thur 28 May2009	Announce results of Institutional Entitlement Offer**Trading Halt Lifted:**Tradingof CHC securities resumes.
Mon 1 June 2009	Record Date for Entitlement Offer– Books close at 7.00 pm.
Wed 3 June 2009	Retail Entitlement Offer Opening Date: Despatch of Retail Rights Offer materials.
Wed 10 June 2009	Retail Entitlement Offer Early Close Date: Last day by which acceptances may be received for theearly close of the Retail Entitlement Offer.
Thur 11 June 2009	**Institutional Entitlement Offer and Early Retail Settlement Date:**Settlement of InstitutionalEntitlement Offer and Early Retail New Securities (and Placement to Gandel).
Fri 12 June 2009	**Initial Allotment Date:**Allot New Securities under the Institutional Entitlement Offer (including anyshortfall) and Early Retail (and the Placement to Gandel). Lodge Placement On-sale Cleansing Noticewith ASX.**Trading of New Securities:**Normal settlement trading of New Securities issued under InitialAllotment.**Despatch Date:**Holding Statements despatched for New Securities allotted under Initial Allotment.
Thur 18 June 2009	**Retail Entitlement Offer Final Close Date:**Last date for applications under the Retail EntitlementOffer.
Tues 23 June 2009	Retail Entitlement Offer Shortfall Notification
Fri 26 June 2009	Announce results of allocations under Retail Entitlement OfferRetail Entitlement Offer Settlement Date
Mon 29 June 2009	**Retail Allotment Date:**Issue New Securities under Retail Entitlement Offer and enter intouncertificated security holdings.
Tue 30 June 2009	**Retail Trading Date:**New Securities issued under the Retail Entitlement Offer commence normalsettlement trading.
Wed 1 July 2009	**Despatch Date:**Holding statements despatched for New Securities allotted under Retail Allocation.

Settlement issues

Despite the fact that stapled securities are trading “ex entitlement” on ITS, CHESS will not recognise for settlement purposes the “ex entitlement” or the “cum entitlement” tag on CHESS messages and CHESS will not maintain cum balances in these stapled securities within the system. As a result any transfer that occurs prior to record date will be effectively transferred on a “Cum” basis.

Therefore, Participants must ensure that any transfer, including the priming of Broker Entrepot Accounts, is conducted in accordance with the basis of quote. For example, a transfer in relation to a transaction conducted on an ex-basis should ordinarily only occur post record date.

In addition, CHESS will not perform any automatic diary adjustments to “cum entitlement” settlement obligations outstanding as at the record date.

Trading issues

ASX will not price a “cum” market with respect to trading in the Group’s stapled securities. Persons who acquire the Group’s stapled securities after the commencement of the trading halt on Wednesday, 27 May 2009 are not entitled to participate in the Entitlement Offer.

Further information

For further details, please refer to the Company’s announcements.

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