Accelerated non-renouncable entitlement offer

The Charter Hall Group (the Group) is making an accelerated non-renounceable entitlement offer (Entitlement Offer) of two fully paid stapled securities for every nine existing stapled securities, to raise approximately A$80 million, through the issue of approximately 61.8 million New Securities at an issue price of $1.27 per New Security. The proceeds of the Entitlement Offer will form part of the funding package to be used primarily for:

%u2022 The acquisition of Melbourne Airport Business Park in Tullarmarine for $23.67 million. This acquisition comprises two industrial properties that are currently being developed by the vendors. The properties have been pre-leased to three strong covenants for 5 to 10 years;

%u2022 The acquisition of 25 Nepean Highway, Mentone for $21.90 million. This bulky retail property adjoins Charter Hall's Nylex property which has been granted Ministerial consent for a 40,000 sqm bulky retail development;

%u2022 The investment in the Atrium property which will seed Charter Hall Core Plus Office Fund ("CPOF"). Charter Hall Property Trust warehouses this asset until CPOF closes (expected to be June 2006); and

%u2022 Future commitments for CPOF and the Diversified Property Fund ("DPF"). A combined Product Disclosure Statement and Prospectus (Offer Document) detailing the Entitlement Offer was lodged by the Group with the Australian Securities and Investments Commission on 19 May 2006. A copy of the PDS/Prospectus is available on the Group's website at www.charterhall.com.au.

Enclosed is the Offer Document and a personalised Entitlement and Acceptance Form which has been dispatched to all Eligible Retail Securityholders holding existing stapled securities with a registered address in Australia and New Zealand. Foreign securityholders are not eligible to participate in the Entitlement Offer.

The New Securities will rank equally in all respects with existing securities from 1 July 2006. Hence New Securities will not be entitled to receive any distribution for the six months ending 30 June 2006.

Before making a decision whether to take up any of these securities, please carefully read the PDS/Prospectus.

The offer closes at 5.00pm (Sydney time) on Thursday, 22 June 2006.