$237 Million Charter Hall Umbrella Fund Signals the Evolution of Retail Funds Management Platform

The Charter Hall Group is pleased to announce the initial offer of the Charter Hall Umbrella Fund has closed nearly double subscribed, raising a total of $187 million in capital from retail investors. With Charter Hall's co-investment of $50 million, the total size of the Fund at inception is $237 million. The response to the equity raising by retail investors and financial planning groups has been extremely positive, with the targeted raising of $100 million well exceeded.

The launch of the Charter Hall Umbrella Fund builds on the recent success of the Charter Hall Diversified Property Fund and signals the evolution of Charter's Hall's retail funds management platform into a mature business division. David Harrison, Joint Managing Director said: "Charter Hall has successfully translated its credibility and expertise in the wholesale markets to launch retail funds with strong demand by retail investors and many of Australia's market leading financial planning groups. Adding further, "Charter Hall is determined to grow its retail funds management business, generating valuable growth within the business model, as well further diversifying its sources of capital".

"Retail investor's appetite for the initial offer has been extremely positive Charter Hall's solid track record of delivering above average returns, coupled with their ability to source and manage core plus assets in Australia really appealed" commented Bill Halmarick, nabCapital's Director of Structured Property Finance. NAB acted as Sole Equity Arranger, Underwriter and Distributor of the Fund.

Cedric Fuchs, Charter Hall Co-founding Director commented: "We are particularly pleased with the diversity of financial planning groups that have supported this new venture for the Charter Hall Group. Charter Hall has attracted a wide range of new sources of retail equity, with over 40 financial planning firms supporting this inaugural retail capital raising. It is worth noting that from a standing start 24 months ago, we now have over 2,500 retail investors invested across our suite of retail funds".

David Harrison, Joint Managing Director of Charter Hall said: "We are delighted with the outcome and it has justified our decision to partner with NAB in raising the initial equity for the Charter Hall Umbrella Fund. NAB's contribution to the structuring and extensive distribution reach through nabCapital Investor Services Group enabled Charter Hall to gain immediate scale with this Fund".

The Charter Hall Umbrella Fund provides retail investors with an opportunity to invest across a suite of Charter Hall property funds. The success of the Fund is underpinned by its diversified exposure to over 45 quality assets located throughout Australia and New Zealand which include commercial properties in office, industrial and retail markets. The Fund also retains a diversified tenancy mix dominated by bluechip companies with a weighted average lease expiry of 10 years, one of the longest in the industry.

David Harrison further added: "Charter Hall staff firmly believe in the performance of the Group's property funds. Staff and family have taken the opportunity to get exposure to Charter Hall's property funds by investing $8.5 million in the Charter Hall Umbrella Fund".

The Charter Hall Umbrella Fund was recently rated "highly recommended" by Lonsec and is one of only 3 hybrid property funds to receive this rating.

The Charter Hall Umbrella Fund units will be allotted on 10 December 2007. While the initial offer period will close on 10 December 2007, the Fund is open-ended and retail investors will be able to invest on a daily basis after allotment.

The Charter Hall Umbrella Fund offering complements Charter Hall's Diversified Property Fund which provides retail investors with direct diversified property exposure. The Diversified Property Fund has doubled in size over the last 12 months increasing its Gross Asset Value to approximately $163 million, significantly increasing its number of retail investors to approximately 550, and now owns 12 quality yield biased properties diversified by state and sector. Charter Hall's Diversified Property Fund has a weighted average lease expiry of approximately 9 years. Importantly, the Diversified Property Fund has recorded a net of fees equity IRR of 18.2% pa since inception and was one of the strongest performing retail unlisted property funds in Australia over the 12 months to 30 September 2007.