Investment Strategy

The Fund's investment strategy is to:

• invest in office properties in emerging or established Australian office markets 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 attracting and retaining government and well regarded corporate tenants 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 PFA Fund is an unlisted property fund with an income generating, established and growing office property portfolio anchored by government tenants.

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  predominantly with longterm leases, annual rent increases and the potential for capital growth.

The established and growing Property Portfolio currently comprises seven office properties that are located in emerging or established office markets around Australia:

• 1-21 Dean Street, Moonee Ponds, Vic;

• 9 Wentworth Street, Parramatta, NSW;

• Lot 107, Nile Street, Port Adelaide, SA;

• 134 Macquarie Street, Hobart, Tas;

• 200 Adelaide Street, Brisbane, Qld;

• 303 Sevenoaks Street, Cannington, WA; and

• 44 Sydney Avenue, Forrest, ACT.

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

For details on the Fund's assets for sale, refer to section 3.1 of the PDS.

Investment Criteria

• Property type: A/B-grade office properties.

• Location: All Properties will be located in emerging or established Australian office markets with an emphasis on strong and growing income streams.

• Tenant: Government or well-regarded corporate tenants to provide a secure and stable income stream.

• Average lease term: At the time of acquisition, the Property will not reduce the portfolio's average lease term below four 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 office investment opportunities alongside Charter Hall's institutional office funds or major Australian or international investors.

The Responsible Entity may revise this 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.