Charter Hall Joins Forces With TA Global on Little Bay Project

Charter Hall Group (ASX: CHC) today announced it has entered into a 50:50 development sponsorship arrangement with the Malaysian listed property developer and owner, TA Global Berhad ("TA Global"), for the development of the Little Bay residential project.

The $600 million Little Bay residential development project was acquired by Charter Hall's Opportunity Fund No. 5 (CHOF5) in early 2008. The 13.6 hectare site, which is located at the southern end of Sydney's eastern suburbs peninsula, 14 kilometres from Sydney's CBD, is anticipated to include over 500 dwellings, comprising houses, townhouses and apartments.

A wholly owned Australian subsidiary of TA Global will assume an active joint development management role for the project, thereby ensuring a complete alignment of interests. The transaction is subject to a number of conditions including Foreign Investment Review Board approval.

Charter Hall's Joint Managing Director, Mr David Southon, said: "We are delighted to be working with TA Global, one of Malaysia's leading property developers and owners, to develop one of Sydney's last remaining prime coastal development opportunities.

"This important alliance not only highlights the growing interest from international investors in Australia's quality developments but it also reinforces Charter Hall's reputation and track record as an experienced developer and fund manager," Mr Southon added.

TA Global's Executive Chairman, Datuk Tony Tiah, said the Group has been looking to expand its property development presence in the Australian market for sometime and the Little Bay development presented a highly attractive opportunity to enter into an alliance with one of Australia's leading property fund managers and developers.

"We are excited to be working with Charter Hall on such a desirable lifestyle project in one of Sydney's sought after residential areas," he said.

Stage 1 of the project is scheduled to commence in late 2010 and involves remediation, bulk earthworks, services infrastructure and landscaping. The Little Bay project, expected to be completed in four to five years, will aim to set a new benchmark for architectural design and integrated masterplanning, for coastal communities and developments in Australia.

TA Global was introduced to Charter Hall Group through Jones Lang LaSalle's Regional Corporate Finance Group.