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Charter Hall acquires \$NZ28 million Foodtown shopping centre in Auckland CBD

Wednesday, 27 June 2007

Charter Hall Group announced today, it has secured a \$NZ28 million retail investment for its Core Plus Retail Fund (CPRF). This acquisition marks the second New Zealand investment for Charter Hall's CPRF, which secured the Harvey Norman Centre in Dunedin earlier this year.

Located in the heart of Auckland's CBD, covering an 8,160 sqm site, the property was built as a flagship supermarket for the ASX listed Woolworths Ltd subsidiary Foodtown supermarket's 4,393 sqm store, plus six retail speciality shops and parking for 190 cars.

The acquisition was brokered by Peter Herdson and John Green of Colliers International.

Foodtown supermarket has 12.5 years remaining on the original 15 year lease. The Foodtown brand is recognised throughout New Zealand as a leading supermarket retailer.

Neil Berryman, Charter Hall's New Zealand General Manager said: "The acquisition is an extension of Charter Hall's strategy to secure high quality retail assets within the Core Plus Retail Fund. We were attracted to the property because it is regarded as one of New Zealand's highest turnover supermarkets and its strategic location, in close proximity to the commercial precinct, surrounding residential developments and city universities."

The new acquisition is one of two core investments in New Zealand, representing approximately 10 percent of the \$438 million retail fund expanded with the recently announced \$197 million of retail acquisitions in Australia.

The acquisition reflects an initial yield of approximately 7.65 percent with the further benefit of guaranteed fixed annual increases throughout the term.

Charter Hall Limited ABN 57 113 531 150 Charter Hall Funds Management Limited ABN 31 082 991 786 Sydney Brisbane Perth Auckland

Level 11 | 333 George Street | SYDNEY | NSW 2000 GPO Box 2704 | SYDNEY NSW 2001 Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 www.charterhall.com.au

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David Harrison, Charter Hall's Joint Managing Director said: "This acquisition reinforces Charter Hall's commitment to the New Zealand market and raises the total assets of the Australasian Core Plus Retail Fund to \$438 million with an average lease term exceeding 9 years."

Adding further "The acquisition is in line with Charter Hall's strategy to include up to 20 percent of New Zealand assets in its future funds".

ENDS

For more information contact Charter Hall Group:

Neil Berryman General Manager - New Zealand 0011 64 21 478 937 [email protected]

About the Charter Hall Group:

Charter Hall Group is a property funds management and development company, based in Sydney with offices in 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 Group currently has funds under management in excess of \$2.5 billion and a market cap of over \$1.2 billion. The Charter Hall Group has achieved a solid track record across its activities demonstrating a 10 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, incentivised and motivated management team with diverse expertise across property sectors and risk-return profiles.

Charter Hall Limited ABN 57 113 531 150 Charter Hall Funds Management Limited ABN 31 082 991 786 Sydney Brisbane Perth Auckland

Level 11 | 333 George Street | SYDNEY NSW 2000 GPO Box 2704 | SYDNEY NSW 2001 Ph: +61 2 8908 4000 | Fax: +61 2 8908 4040 www.charterhall.com.au