Investment Strategy

The Fund's investment strategy is to:

• invest in quality Australian industrial properties for the medium to long term and actively manage them to increase

• their value and income growth prospects;

• 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 Portfolio, including where appropriate, sell Properties to maximise returns for Investors.

Charter Hall Direct Industrial Fund No.4 (DIF4), an unlisted fund investing in long leased Australian industrial properties, is open for investment.

DIF4 is the fourth in the successful and highly rated industrial fund series which initially launched in 2010.

By investing in the Fund, you have the potential to receive sustainable and stable tax-advantaged income paid quarterly. Distributions are derived from real properties with long-term leases, annual rent increases and the potential for capital growth.

Features of an investment in Australian industrial property include:

• investment returns highly correlated to economic growth and the provision of infrastructure;

• demand driven by the distribution, logistics and manufacturing sectors;

• low risk of oversupply due to limited speculative development, long lead times for provision of infrastructure and quick response to imbalances due to short construction times; and

• long dated leases with a high proportion of fixed rental increases.

Initial Portfolio

The Initial Portfolio comprises a direct interest in a high quality industrial property and an investment in a Charter Hall managed wholesale investment partnership:

• 27-35 Sturton Road, Edinburgh Parks, SA: the Fund's 50% interest in this Property is valued at $34 million, with a

• 23.2 year lease term remaining (comprised of a 15 year lease that commenced in November 2014 and a further 10

• year option enforceable by either the lessor or the lessee); and

• Core Logistics Partnership investment: the Fund will initially invest $50 million in CLP, a $1.6 billion wholesale partnership that invests in 26 industrial assets with an average lease term of 9.6 years.

Investment Criteria

When considering an investment for DIF4, we will have regard to the following:

• Property type: A-grade industrial properties.

• Location: In established Australian industrial precincts, positioned near major transport infrastructure.

• Tenants: Highly regarded tenants in the industrial property sector to provide a secure income stream.

• Average lease term: At acquisition, a property will not reduce the portfolio's average lease term below seven years.

• Occupancy: Target 100%.

• Development: Any direct 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-investments: All co-investments will be in high quality industrial properties alongside Charter Hall's institutional funds, partnerships 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 Responsible Entity may give effect to these investment criteria by taking an interest in funds or trusts (including funds or trusts managed by other entities).

The Fund will also initially invest in Core Logistics Partnership (CLP) - a Charter Hall managed wholesale investment partnership with total assets valued at $1.6 billion. Investing in institutional-grade industrial assets across Australia, CLP has a focus on long leased assets with high occupancy rates. The Fund will initially invest up to $50 million in CLP.

Derivatives

Interest rate swaps are used to hedge the Fund's interest rate and are recorded at fair value in the balance sheet, with movements reflected in the income statement.