ASX RELEASE

ASX Announcement - CHC

Monday, 23 April 2007

Charter Hall's DPF acquires a \$10.65 million Melbourne

industrial investment

Charter Hall Group announces that it has secured a \$10.65 million portfolio of industrial leasehold investments for its Diversified Property Fund (DPF). The three modern office/warehouse facilities are located at South Centre Road and Jets Court. Tullamarine in the new Melbourne Airport Business Park.

The new acquisitions comprise a 5,000m² stand alone office/warehouse building leased to Bax Global with 7 years remaining on their initial lease, and a separate facility comprising two adjoining office/warehouse properties of 2,400m² and 3,000m² leased to Jets Transport and Gibson Freight, with the portfolio having a weighted average lease term remaining of 5.7 years.

The acquisition further demonstrates Charter Hall's ability to source off market transactions, bringing the total value of the DPF portfolio of nine properties to approximately \$108 million, all of which have been purchased off market. The Tullamarine assets were negotiated by Colliers International agent, Tony Iuliano.

The latest acquisition reflected an initial yield of 8.4 percent, and a capital value rate of \$1,018 per square metre on a combined basis.

Located within the Melbourne airport precinct, the properties are well positioned to capitalise on major road and air transport nodes. The Melbourne Airport Business Park continues to attract blue chip national and global tenants including Caterpillar Logistics, Star Track Express and Katmandu.

Executive Director Cedric Fuchs confirmed that "DPF's portfolio provides excellent diversification, a very long WALE of approximately 11.7 years and strong rental growth prospects. The acquisition increases DPF's Victorian weighting to approximately 26 percent." The DPF portfolio comprises office, industrial and retail bulky good assets currently across NSW, VIC, QLD and WA.

Charter Hall Limited ABN 57 113 531 150 Charter Hall Funds Management Limited ABN 31082 991 786 Level 11, 333 George Street SYDNEY NSW 2000 GPO Box 2704 SYDNEY NSW 2001 Telephone: +61 2 8908 4000 Facsimile: +61 2 8908 4040 www.charterhall.com.au

ASX RELEASE

Joint Managing Director David Harrison said "DPF will continue to diversify through further investment acquisitions during a strong period of support from investors and will continue to focus on growth markets across Australía and properties that enhance the funds asset, sector, tenant type and geographic diversity in the value range of approximately \$5 million to \$30 million."

ENDS

For more information contact Charter Hall Group:

David Harrison Joint Managing Director 02 8908 4033 [email protected]

Cedric Fuchs Director 02 8908 4030 [email protected]

About the Charter Hall Group:

Charter Hall Group is a property funds management and development company with offices in Sydney, Brisbane, Perth and Auckland. Established in 1991 and listed on the ASX in 2005 as a stapled security (Code CHC), Charter Hall Group combines Charter Hall Limited with Charter Hall Property Trust. The Group currently has assets under management in excess of \$2.2 billion and a market cap of over \$1 billion. Charter Hall Group has achieved a solid track record across its activities demonstrating a 10 year history of managing wholesale capital. This 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 31082 991 786 Level 11, 333 George Street SYDNEY NSW 2000 GPO Box 2704 SYDNEY NSW 2001 Telephone: +61 2 8908 4000 Facsimile: +61 2 8908 4040 www.charterhall.com.au