Commonwealth Property Office Fund : 25 January 2012 - 2012 distribution guidance upgrade

Responsible Entity:

Commonwealth Managed Investments Limited

ABN 33 084 098 180

AFSL 235384

Colonial First State Property Limited

ABN 20 085 313 926

Manager of Commonwealth Property Office Fund

Registered Address: Ground Floor, Tower 1

201 Sussex Street

Sydney NSW 2000

Principal Office of the Manager: Level 7 52 Martin Place

GPO Box 3892

Sydney NSW 2001 Australia

Telephone: [phone]

Facsimile: 02 9303 3622

25 January 2012

COMMONWEALTH PROPERTY OFFICE FUND (CPA) 2012 distribution guidance upgrade

Commonwealth Managed Investments Limited (CMIL), Responsible Entity of Commonwealth Property Office Fund (CPA or the 'Fund'), is pleased to announce the Fund's estimated half-year results for the six- month period to 31 December 2011, as well as an upgrade to the distribution guidance from 5.65 cents per unit to 5.85 cents per unit for the 12 months ending 30 June 2012.
The upgrade in distribution guidance results from the active approach taken by the Manager to drive unitholder value. In particular, this has been evidenced by the successful $66.5 million off-market unit buy-back which was completed on 14 December 2011, and the subsequent improvement in the Fund's Net Tangible Asset (NTA) backing per unit.

31 December 2011 half-year result

The following half-year results are subject to the finalisation of the independent review by the Fund's auditors and CMIL Board approval:
- Net profit of $135.9 million
- NTA of $1.13, up 1.8% on 30 June 2011
- Gearing of 19.0%, and
- Undrawn debt of $455 million.

2012 financial year distribution guidance

Despite the ongoing challenges within the operating environment, there has been an improvement in both the Fund's distribution per unit and NTA as a result of continued resilience in the underlying portfolio as
well as the successful completion of the off-market unit buy-back. As such, the Responsible Entity has upgraded the Fund's distribution guidance1 for the 12 months ending 30 June 2012 to 5.85 cents per unit, assuming a payout ratio of 80% of distributable income. This is a 3.5% increase on the previous 2012 financial year distribution guidance of 5.65 cents per unit, and up 6.4% from the 2011 annual distribution.
Charles Moore, Fund Manager of CPA said: "We are very pleased with the result of the off-market unit buy-back and the underlying value we have created for our unitholders. Importantly, the Fund retains the capacity to undertake additional capital management initiatives. The success of the off-market buy- back reaffirms our commitment to the on-market buy-back."
"We will be disciplined in our approach to buying units on-market, and will only do so at a price where it continues to be in the best interests of our unitholders."
The Fund's auditors are currently undertaking their half-year review. Full details of the half-year results will be released to the market on 21 February 2012.

1. Assuming a performance fee is payable for the second half of the 2012 financial year, the Fund's taxable income is no more than 80% of distributable income and there is no unforseen material deterioration in existing economic conditions.

ENDS

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For further information please contact:

Charles Moore Angus McNaughton

Fund Manager Managing Director, Property

Commonwealth Property Office Fund Colonial First State Global Asset Management

Phone: [phone] or [phone] Phone: [phone] or [phone]

Email: [e-mail]: [e-mail]

Investor and media contacts:

David Yates Mathew Chandler

Head of Investor Relations and Corporate Affairs Investor Relations and Corporate Affairs Manager

Colonial First State Global Asset Management Colonial First State Global Asset Management

Phone: [phone] or [phone] Phone: [phone] or [phone]

Email: [e-mail]: [e-mail]

About Commonwealth Property Office Fund

Commonwealth Property Office Fund (CPA or the 'Fund') is an office sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in prime quality office property located in central business districts and major suburban markets across Australia. Its stock market trading code is CPA. The Fund is managed on behalf of more than 25,000 investors from 28 countries.

About Colonial First State Global Asset Management (CFSGAM)

CFSGAM is the consolidated asset management arm of Commonwealth Bank of Australia (the 'Bank'), and sits within the Bank's Wealth Management division. Entities within CFSGAM provide management services to the Trust. CFSGAM Property is a fully integrated real estate investment business with approximately $18 billion in funds and assets under management, employing more than 850 people across Australia and New Zealand.

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