CHARTER HALL GROUP — Capital/Financing Update 2010

Sep 26, 2010

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ASX/MEDIA ANNOUNCEMENT

CHARTER HALL CORE PLUS INDUSTRIAL FUND ACQUIRES DISTRIBUTION CENTRE IN TASMANIA FOR $75 MILLION FROM WOOLWORTHS

Monday, 27 September 2010

Charter Hall Group (ASX: CHC) is pleased to announce that its flagship industrial wholesale fund, Core Plus Industrial Fund (CPIF) has agreed to acquire a new Woolworths Regional Distribution Centre in Tasmania for $75 million.

Construction is due to commence in October 2010 and the Centre will comprise approximately 46,000 square metres of state-of-the-art logistics space. The facility will be developed by Woolworths Limited who will lease the premises for 25 years from completion, anticipated to be late 2011. The 19.8 hectare site is located adjacent to the Launceston Airport on freehold land and provides for significant expansion, with development approval to build an additional 25,000 square metres. The facility will be operated by Statewide Independent Wholesalers Limited and will service 28 Woolworths supermarkets, 19 BWS stores and 208 independent retailers throughout Tasmania.

The property was purchased on an initial yield of 8.6%. The guaranteed fixed annual rental increases of 2.8% will further anchor CPIF’s solid long term rental escalations generated from a portfolio that will now boast a 12 year weighted average lease expiry (WALE).

The acquisition will be funded via a combination of debt and equity, with equity drawn from the proceeds of the Fund’s recent successful equity raising, which has secured approximately $75 million from both domestic and global investors. Charter Hall is confident of securing further equity for the Fund as its capital raising continues towards its $150 million target.

David Harrison, Joint Managing Director said: “This significant off market transaction further demonstrates the strength of the Group’s relationships with major corporate companies such as Woolworths. We continue to source quality long WALE assets to further diversify what is a pure logistics fund designed to maximise NTA and income growth and avoid lease expiry downtime and capital expenditure.

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“We are also pleased to welcome a new major Australian superannuation fund and London-based pension fund as investors onto the CPIF register and look forward to welcoming several new investors in coming months as CPIF expands further,” Mr Harrison added.

CPIF’s Fund Manager, Paul Ford said: “This acquisition enhances the Fund’s long WALE to now exceed 12 years; further diversifies what is a first rate tenant covenant profile that includes Woolworths, Coles, Toll, Smorgon Steel, Schenker and Myer; and increases the portfolio occupancy to 99.5%. With 92% of the Fund’s income backed by listed, national, international or government covenants, CPIF is well placed to attract capital in an improving asset value cycle where our tenant customers have confidence to expand their premises requirements.”

For further information, please contact:

David Harrison David Southon Joint Managing Director Joint Managing Directopr Tel: +61 412 259 751 Tel: +61 418 479 155 david.harrison@charterhall.com.au david.southon@charterhall.com.au

Investor enquiries: Media enquiries: Kylie Ramsden Rachel Mornington-West Head of Listed Investor Relations Senior Communications Manager Tel: +61 2 8295 1016 Tel: +61 2 8908 4093 - kylie.ramsden@charterhall.com.au rachel.mornington west@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, Adelaide and Chicago. 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, which own and/or manage over $10 billion in real estate assets. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 19 year history of managing wholesale and retail 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.