Investment Strategy

The Fund's investment strategy is to:

• invest in properties leased to distributors and producers of consumer staples goods predominantly located in Australia, for the medium to long term and actively manage them to increase their value and income growth prospects;

• grow the rental income of the Fund by predominantly investing in properties with a quality anchor tenant on long leases with structured rental increases;

• seek investment opportunities, including co-investment opportunities through Charter Hall Group's investment pipeline, its joint venture partners and others in accordance with clear investment criteria; and

• regularly review and rebalance the Property Portfolio, including where appropriate, selling Properties to maximise risk adjusted returns for Investors.

Charter Hall Direct Diversified Consumer Staples Fund is an unlisted property fund with a diversified portfolio of assets leased to tenants that distribute or produce the things people are unwilling to do without - consumer staples.

By investing in the Fund, you have the potential to receive strong, sustainable and stable tax-advantaged income paid monthly.

Distributions are derived from real properties with long-term leases, annual rent increases and the potential for capital growth.

The Initial Portfolio comprises two retail and four industrial Properties that are well located and that are leased to distributors and producers of consumer staples goods. The Properties are diversified across Queensland, Tasmania, New Zealand, New South Wales and Victoria.

The Fund is actively considering other Property acquisitions that satisfy the investment criteria.

Investment Criteria

• Property type: Well located commercial properties.

• Location: All Properties will be located in Australia or New Zealand, with no less than 85% of Properties by value located in Australia (this applies once the Portfolio is greater than $100 million).

• Tenant: Quality anchor tenants that derive the majority of their revenue from being a distributor or producer of consumer staples goods.

• Average lease term: At the time of acquisition, the Property will not reduce the Portfolio's average lease term below five years.

• Development: To reduce risks associated with development, any Property acquired that is subject to development will have an approved development application and an agreement for lease over the majority of the Property.

• Co-investment: All co-investments will be in quality commercial property investment opportunities alongside Charter Hall's institutional funds or major Australian or international investors.

The Responsible Entity may revise these investment criteria from time to time, having regard to the best interests of Investors. Changes to these investment criteria will be communicated to Investors via the Fund's website or in writing. The Board of the Responsible Entity will consider each potential acquisition on a case-by-case basis.