Charter Hall Group signs Development Agreement with VicUrban to Develop Lacrosse Apartments

Media Release from Charter Hall

Monday, 19 April 2010

The Charter Hall Opportunity Fund No.5 (CHOF5) is pleased to announce it has acquired the development rights to develop stage one of the Lacrosse Apartments in the Docklands of Melbourne by entering into a Development Agreement with landowners, VicUrban.

The off-market opportunity arose last year for Charter Hall to partner with Melbourne based developer PanUrban, to build the first of two towers, over two stages. Stage one has been substantially advanced by PanUrban over the past 24 months, with construction due to commence in May once town planning approval is finalized. Construction is anticipated to take approximately 23 months.

The development, located at 675 LaTrobe Street in the Melbourne Docklands (adjacent to Docklands Stadium), will comprise 312 apartments and will include 1,300m² of retail space at concourse level and parking for 150 cars. Highly regarded architects Elenberg Fraser Architects have designed the apartments and the Group will announce a builder once negotiations have been finalised.

With an average apartment price of $500,000, the pre-sales campaign has been extremely successful with over 75% off-the-plan sales completed.

Charter Hall’s Joint Managing Director, David Southon said “This latest development in an exciting emerging precinct that reinforces Charter Hall’s capabilities to source well incubated development projects and deliver a quality product through our experienced Melbourne development team.”

Adding further: “The Lacrosse project fitted well with our strategy to take advantage of the current buoyant Melbourne residential market”.

PanUrban Chairman, Morry Schwartz said “We are delighted to be partnering with Charter Hall and look forward in delivering a successful project together”.

David Young, VicUrban's General Manager responsible for Docklands said “Following recent announcements regarding new commercial developments in Docklands, this is evidence development momentum that is now building in the residential sector following the GFC.”

Plans to build stage two are well advanced, PanUrban and Charter Hall are in discussions in relation to progressing with the stage two tower.

ENDS

For further information, please contact:

David Southon Joint Managing Director, Charter Hall 0418 479 155 davids@charterhall.com.au

Jo Stiles Marketing & Communications Manager, Charter Hall 0414 499 199 jos@charterhall.com.au

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