CHARTER HALL GROUP — Capital/Financing Update 2010

Jul 26, 2010

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ASX/MEDIA ANNOUNCEMENT

CHARTER HALL ANNOUNCES CIP INDUSTRIAL LEASE PRE-COMMITMENTS OF 50,000 SQUARE METRES AND NEW DIRECT INDUSTRIAL FUND

Tuesday, 27 July 2010

Charter Hall Group (ASX: CHC) today announced a number of significant industrial lease precommitments by the 50% owned national industrial developer CIP, together with the launch of the Charter Hall Direct Industrial Fund by its direct retail funds management business.

CIP’s strong lease commitments

CIP, a leading nationwide industrial development business, has secured industrial lease commitments for over 50,000 square metres of lettable area across four development sites totalling 180,000 square metres in land area. The relatively low site coverage reflects the nature of the uses and potential for expansion. The tenant commitments include leading companies such as Toll Holdings Limited, Boart Longyear and P&O. CIP has also signed a major development contract with Brisbane City Council for the construction of a bus depot at Sherwood, Brisbane, which is pre-committed on a 25 year lease to Brisbane City Council.

Paul McKenna, Managing Director, CIP said: “The past six months has seen significant interest in leasing across Sydney, Melbourne, Adelaide and Brisbane. The calibre of these recent tenant commitments is testament to the confidence in our delivery capability and our high quality developments.”

The majority of the development projects have been pre-sold to a range of investors with the remainder at an advanced stage of sale. The development projects have an on-completion value of approximately $130 million.

Commenting on the performance of the industrial market, David Harrison, Charter Hall Group Joint Managing Director said: “As the high initial yields of the past 18 months return to more historic levels, we anticipate well leased high quality industrial assets to experience yield compression during the next phase of the property cycle.”

Charter Hall Direct Property Funds Update

Charter Hall’s direct retail funds management business, Charter Hall Direct Property, also today announced it has launched the Charter Hall Direct Industrial Fund (DIF) for investment by retail and self

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managed superannuation fund investors. DIF, positioned as a closed-end sector-specific fund, has secured an attractive seed asset located in Altona North, Melbourne which is underpinned by a 15 year lease pre-commitment by Toll Holdings Limited over the whole property. The asset reflects an initial 8.6% yield on a total anticipated cost of $23.2 million.

DIF, which has achieved independent rating agency Lonsec’s highest investment rating, namely “Highly Recommended”, has a minimum equity raising target of $14.2 million. Charter Hall Group has used existing cash reserves to make the initial seed investment in DIF in order to secure the site at Altona North, with the intention of selling its interest in DIF to retail investors during the retail equity raising.

“Charter Hall’s investment in CIP provides our funds with access to a robust industrial pipeline of investment opportunities. Larger pre-leased investments are being made available to our wholesale industrial fund, CPIF.

“We have continued to see strong tenant and investor demand for direct property and are confident there will be a positive response to DIF following the recent successful combined equity raising of $85 million for Macquarie Martin Place Trust and 130 Stirling Street Trust,” David Harrison said.

DIF will be marketed to retail investors via Charter Hall’s extensive distribution network of financial advisors and their respective clients.

For further information, please contact:

David Harrison

David Southon

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

Investor enquiries:

Investor enquiries: Media enquiries: Kylie Ramsden Rachel Mornington-West Head of Listed Investor Relations Senior Communications Manager Charter Hall Charter Hall Tel: +61 2 8295 1016 Tel: +61 28908 4093 kylie.ramsden@charterhall.com.au rachelm@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, 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 will now 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.

Disclaimer

Units in the Charter Hall Direct Industrial Fund (“CHDIF”) are made available by Charter Hall Direct Property Management Limited (ACN 56 073 623 784, AFSL 226849) (“CHDPML”) under a Product Disclosure Statement (“PDS”). Potential investors should consider the PDS before making any decisions regarding the offer. Copies of the PDS can be obtained from CHDPML by calling 1300 652 790 or www.charterhall.com.au/dif

Any advice contained in this announcement has been prepared without taking into account any particular potential investor’s objectives, financial situation or needs. Before investing, CHDPML recommends that you consider whether it is appropriate for your circumstances having regard to your own objectives, financial situation and needs. The CHDIF offer is not open to persons in any jurisdiction in which an offer, invitation, solicitation or inducement for the issue, sale or purchase of any CHDIF units would be contrary to local laws or regulations.

CHDPML does not receive fees in respect of the general financial product advice it may provide, however it will receive fees for operating CHDIF which, in accordance with the CHDIF Constitution, are calculated by reference to the value of the assets of and performance of CHDIF. Entities within the Charter Hall Group may receive fees for managing the assets of, and providing resources to CHDPF. For more detail on fees, see the PDS.