CHARTER HALL GROUP — Capital/Financing Update 2012

Jul 31, 2012

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ASX/MEDIA ANNOUNCEMENT

CHARTER HALL’S DIF COMPLETES $115M RETAIL EQUITY RAISING

Wednesday, 1 August 2012

Charter Hall Group (ASX:CHC) (the Group) today announced its Direct Industrial Fund (DIF), has closed more than 5% oversubscribed, raising more than $115 million since its launch in July 2010.

DIF, a closed-end retail investor fund, currently has a $156 million portfolio located across wellestablished Australian metropolitan industrial markets. The portfolio is 100% leased to national tenants including Australia Post, Coles Group, Woolworths, Grace Worldwide and Toll Holdings and has a weighted average lease expiry of 12.5 years. All equity raised has been allotted providing DIF capacity for new acquisition opportunities of up to $45 million, which will take the fully invested portfolio value to approximately $200 million.

Charter Hall‟s Joint Managing Director, David Harrison, said: “The income profile provided by DIF‟s long lease durations and high quality tenants, secured through off market acquisitions, provides DIF investors with an attractive property portfolio. We are pleased to see advisers and their clients appreciate that the industrial market is currently trading at attractive entry price valuations with low volatility of income returns.”

Richard Stacker, Head of Charter Hall Direct Property, said: “We have seen very strong interest in DIF from financial advisers and their clients and over 70% of the capital raised has been sourced from SelfManaged Superannuation Funds. This raising is one of the largest unlisted “retail investor” property fund capital raisings achieved within the property funds management industry since 2007 and given the strong demand, we are currently in the process of finalising the Product Disclosure Statement for DIF 2, which we expect to have open for investment this year.”

DIF was awarded the 2011 „New Unlisted Fund of the Year‟ award by property research house, PIR, and has a „Highly Recommended‟ rating from Lonsec[1] .

1. The Lonsec Limited (“Lonsec”) ABN 56 061 751 102 rating (assigned September 2011) presented in this document is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria

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For further information, please contact:

David Harrison

Joint Managing Director Tel: +61 2 8908 4033 david.harrison@charterhall.com.au

David Southon

Joint Managing Director Tel: +61 2 8908 4025 david.southon@charterhall.com.au

Investor enquiries:

Kylie Ramsden

Head of Listed Investor Relations Tel: +61 2 8295 1016 kylie.ramsden@charterhall.com.au

Media enquiries:

Rachel Mornington-West

Head of Marketing and Communications Tel: +61 2 8908 4093 - rachel.mornington west@charterhall.com.au

About the Charter Hall Group:

Charter Hall Group (ASX:CHC) is one of Australia‟s leading fully integrated property groups, with over 20 years‟ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has circa $9 billion of funds under management across the office, retail, industrial and residential sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

The Group‟s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.

Disclaimer:

This is not intended as an offer or solicitation with respect to the purchase or sale of any security.

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