Charter Hall Direct Property Fund wins new Citibank and nib tenancies and Lonsec "Recommended (Upper End) rating

The recently reopened Charter Hall Direct Property Fund (CHDPF/the ‘Fund') has been boosted by a
number of new tenancies including two new high profile tenants and a 'Recommended (Upper End)'
rating from Lonsec.

Occupancy across the CHDPF portfolio increased in the first quarter of 2011 to 95%, aided by financial
conglomerate Citibank signing a 10 year lease at 68 Pitt Street, Sydney. Citibank, which took
occupancy at its new premises last week, has committed to leasing 440 square metres of retail and
office space at the Pitt Street property, a 26-level office building located in the heart of Sydney's
financial district on the corner of Pitt and Hunter Streets. This follows the recent lease commitment in
this building by Pacific Smiles Group Limited, leasing some 928 square metre metres of retail space for
15 years, for a flagship nib Dental & Eye Care Centre.

Citibank said its decision to choose 68 Pitt Street for its new Sydney retail branch was due to the
building's position on one of the busiest intersections in the city and the excellent site exposure. 'We
are pleased to continue our strong working relationship with Charter Hall, who also manages our
existing Head Office tenancy at 2 Park Street Sydney,' Head of Property Maurice Gallagher said.
Charter Hall's existing relationship with nib Dental & Eye Care Centres was also a key driver in securing
the new Pitt Street lease. An nib Dental & Eye Care Centre is currently a tenant at 333 George Street,
which is an asset of Charter Hall's Core Plus Office Fund.

'As a result of changing business needs, we had outgrown our current premises at 333 George Street.
Charter Hall has assisted us with a smooth transition between tenancies and we are excited that the nib
Dental & Eye Care Centre will be moving into our new retail location at 68 Pitt Street in the coming
months,' said Mr John Gibbs, the CEO of Pacific Smiles Group, the owner and operator of the nib
Dental and Eye Care Centre.

CEO of Charter Hall Direct Property, Richard Stacker, said both the Citibank and nib Dental & Eye Care
Centre tenancies indicated the attractiveness of 68 Pitt Street, which was refurbished in 2009 and 2010
to take advantage of its position in the centre of the CBD and excellent retail presence on the corner of
Pitt and Hunter Streets. He said the asset has a remaining retail and office suite which is attracting
strong interest.

'The current occupancy of 68 Pitt Street is 92% and we expect this to reach 100% in the near future,
given strong interest in the remaining areas. We've seen financial institutions, particularly banks,
increasing their demand for good quality, CBD office and retail space as they look to move back into
CBD retail space. This coupled with forecast growth in employment and office rentals means the
CHDPF, with its focus on the commercial office sector, is well positioned to benefit from such trends,'
Mr Stacker said.

Lonsec rating reflects ‘improved opinion'

Lonsec has rated CHDPF 'Recommended (Upper End)', because in its opinion 'the Fund had been
improved as a result of the progressive capital expenditure upgrades to the property portfolio, which is
attracting better tenants and lifting rents'.

Mr Stacker said the rating was a strong commendation for both CHDPF and the improvements Charter
Hall has made post-GFC. These measures, which Lonsec described as industry leading, include
reducing gearing to 45% with a target of 35-45%, reductions in the base management fee and
performance fee share, as well as the inclusion of liquidity features, such as a semi-annual withdrawal
offer and defined liquidity event every five years.

'Since reopening the CHDPF, we've achieved strong operational and leasing performance and we
believe CHDPF is well placed to maximise value for investors as the market improves and tenants
continue to seek high quality property,' Mr Stacker concluded.

For further information, please contact:

Richard Stacker
Chief Executive Officer
Charter Hall Direct Property
Tel: +61 2 8295 1011
Richard.stacker@charterhall.com.au

Rachel Caton
Account Executive
Honner Media
Tel: 02 8248 3745 / 0439 872 221
rachel@honnermedia.com.au

About Charter Hall Direct Property:

Charter Hall Direct Property is one of Australia's leading unlisted property fund managers, with approximately $1.5
billion of real estate assets across the commercial, retail and industrial sectors under management as at 31
December 2010. Charter Hall Direct Property, part of Charter Hall Group, has a strong track record, managing
unlisted property funds and syndicates on behalf of investors for more than 10 years.
Charter Hall Group (ASX:CHC) is one of Australia's leading fully integrated property groups, with 20 years'
experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has
over $10 billion of funds under management across the office, retail, industrial and residential sectors. The Group
has offices in Sydney, Melbourne, Brisbane, Adelaide, Perth, Warsaw and Chicago.

Disclaimer

1. The Lonsec Limited ('Lonsec') ABN 56 061 751 101 rating (assigned April 2011) presented in this document is
limited to 'General Advice' and based solely on consideration of the investment merits of the financial product(s). It
is advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no
obligation to update.