INGENIA COMMUNITIES GROUP — Annual Report 2007

Aug 30, 2007

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ASX Announcement ING Real Estate Community Living Group (“ILF”)

31 August 2007

Another Year of Strong Performance for ILF

ING Real Estate Community Living Group today announced its results for the year ended 30 June 2007.

The Fund has delivered another year of strong financial performance and superior returns to investors. Underpinning the performance is a 9.4% increase in distributions per unit from 9.78 cents in June 2006 to 10.7 cents per unit.

Commenting on the results, Mr Ian Muir, ING Real Estate Community Living Group CEO, said, “It has been a year of diversification and growth for ILF and we are well positioned to further enhance returns and deliver another strong performance in 2008”.

“The Fund’s joint venture partnerships will continue to focus on extracting operational synergies, managing the development of existing sites and extending the development pipeline via selective acquisition of new sites in key growth areas. ILF has accumulated 2,896 pipeline units within the existing portfolio and will convert a portion of this pipeline into new homes in 2008. It is an exciting phase for the Fund, as we move forward with this strategy.”

Highlights of the year included:

• 9.4% increase in distributions per unit

• 17% increase in unit price to $1.345

• 27% total return to investors

Portfolio Performance

• Australian seniors portfolio bolstered by acquisition of Settlers portfolio and several development sites in conjunction with joint venture partners, Country Club and Oak Tree Group.

• Canadian seniors, Regency portfolio settled on 29 June 2007. ILF purchased a 50% interest in this portfolio. High occupancies of 99.7% coupled with growing demand underpin the value of this acquisition for the Fund.

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ASX Announcement

ING Real Estate Community Living Group (“ILF”)

31 August 2007

• US seniors out-performed expectations, driven predominantly by operational cost savings and higher operating margins. Overall occupancy is currently 94.5%, in excess of the industry median of 92.9%.

• Students portfolio has seen strong rental increases in the assets located closest to the university campuses, however operating expenses have also increased. Leasing for new academic year is on track.

Acquisitions

• Acquisition of five premium seniors housing communities in the wealthy demographic of Long Island, New York

• First foray into the Canadian Seniors market with the acquisition of eight A class Long Term Care facilities in the greater Toronto area of Ontario, Canada

• Acquisition of two premium student housing complexes in Florida

• Acquisition of a portfolio of four lifestyle retirement villages in strong growth corridors in Queensland and Western Australia

Development

• Expanded the development pipeline in ILF to a total of 2,896 units

• Goodna nearing completion, stages 1 & 2 at Hemsley Park and stage 1 at Rockhampton and Gladstone completed

• Construction commenced at Noosa, Coolaroo, Meadow Gardens, Gayton Terrace

• Development consent obtained for Bacchus March, Bellarine Lakes, Boronia Heights, Frankston North

Outlook and Strategy

“Consolidation opportunities across the seniors housing industry in Australia, Canada, New Zealand and the US continue to offer attractive investment prospects”, said Mr Muir. “The US will remain a significant part of the Fund’s offshore strategy due to the size of its population and quality assets however, the Fund will continue to seek opportunities in other markets.”

“The ageing demographics in Australia and Canada provide considerable opportunities for the Fund, where increased demand for quality seniors housing communities is expected to continue over the long term. The Fund is well positioned to meet this growing demand.”

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ASX Announcement

ING Real Estate Community Living Group (“ILF”)

31 August 2007

Key strategies to deliver forecast earnings growth in 2008 include:

• Increase operating margins in US seniors assets

• Progress developments on surplus land adjoining seniors communities in Texas, Colorado and Ontario

• Continue the roll-out of the development pipeline in Australia

• Selective acquisition of new development sites in growth areas to further expand pipeline

• Improve performance and positioning of Village Life portfolio under the skilled management of SCV Group

“Management’s primary focus is to unlock potential from within the existing portfolio and enhance operational efficiencies through strategic asset management. This will drive the Fund’s future earnings.”

Ian Muir Chief Executive Officer ING Real Estate Community Living Group T: +61 2 9033 1019

About ING Real Estate Community Living Group

ING Real Estate Community Living Group is a publicly traded property trust (REIT) on the Australian Securities Exchange which invests in seniors and student housing in Australia, Canada, New Zealand and the United States and has total assets in excess of A$1.2 billion. The portfolio consists of a 65% weighting to the United States, 21% to Australia, 12% to Canada and 2% to New Zealand.

About ING Real Estate

ING Real Estate is a global real estate company, active in real estate investment management, development and finance. With a total business portfolio of over A$160 billion and offices in 21 countries in Europe, America, Asia and Australia, ING Real Estate ranks among the world’s largest real estate companies. ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries.

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ING Real Estate Community Living Group

Annual Results Presentation 31 August 2007

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SunnyCove Gladstone
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Agenda

• FY07 Achievements

• Portfolio Update

• Development Activities

• Financial Results

• Capital Management

• Growth Strategy & Outlook

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Country Club Hemsley
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FY07 Key Achievements

1. Continued strong performance

2. Distributions up 9.4%

3. NTA up 8.0%

4. Total return 27.0%

5. FY07 acquisitions already outperforming

6. Bristal and Settlers

7. Significantly increased development pipeline

8. Future pipeline 2,896 units

9. Transition to mainstream fund

10. ASX 300 inclusion

11. broadening of investor base

12. reduced gearing

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Sunnycove Forest Lake
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Results Summary

	30 June 07	30 June 06	Variance
Closing price	$1.345	$1.15	17.0%
Distributions per unit	10.7 cents	9.78 cents	9.4%
NTA per unit	$1.22	$1.13	8.0%
Total assets (look through)	$1,421m	$885m	+$536m
Tax deferred component	96%	100%
Gearing ratio (look through)	54.8%	60.1%
Number of unitholders	5,467	2,527

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Earnings Growth History

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DPU
(cents) Acquisitions
7.0%
9.4%
11.45
18.5%
10.7
FY08
9.78 FY07
FY06
8.25
FY05
CAGR 11.5%
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*** FY08 Forecast**

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Portfolio Update

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Bristal North Woodmere
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US Seniors Portfolio

• 26 ILU/ALU communities spread across eastern seaboard and midwest

• Portfolio delivers ahead of budget

• Out-performance driven predominantly by operating costs savings

• Operating margins of 38% being achieved in line with upper quartile of industry benchmarks

• Overall occupancy currently 94.5% is above the industry median of 92.9%

• Vast majority of portfolio located in affluent areas, expected to be unaffected by sub-prime residential downturn

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Aspen Bella Vita
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Bristal Portfolio Acquisition Update

• 5 Premium Assisted Living Communities (640 units), located in affluent Long Island, New York, with high barriers to entry

• Settled after licensing approval in February 2007

• Budgeted Operating Margin of 40% - achieved 43%

• Massapequa (opened Oct 2006) has achieved leasing up quicker than expected – currently 96% occupancy

• 4 stabilized facilities have achieved 97% occupancy (up from 95% at close)

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Students

► State Universities driving enrolment growth

• Leasing up program for the new academic year is progressing well in the US

► Florida – The Preserve 92% & Campus Club 100%

► Connecticut – 88%

► Virginia – 100%

► Rent increases in Connecticut up to 8% because of a shortage in accommodation, but experiencing higher operating costs

• New Zealand students 100% leased for the 2[nd] semester of 2007

► Currently negotiating rental increases with Victoria University of Wellington for 2008 – anticipating circa 6%

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Canadian Seniors Portfolio

• Eight “Class A” Long Term Care (LTC) assets, all built within the last 6 years, providing 1,384 LTC beds, located in Greater Toronto Area

• Settled on 29 June 2007

• Performing in-line with expectations

• Low risk investment

• Strong and growing demand

• Regulated control of new supply

• Occupancy at 99.7% with 100% MOH funding

• 4 properties with development potential for 400 additional units, drive future earnings growth

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Regency, The Westmount
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Australian Seniors

• Favourable market conditions: participation rate increasing, 65+ population increasing, sound residential market

• Settlers Portfolio acquisition performing ahead of expectations

• Oaktree Joint venture ramping up: first village nearing completion and construction commenced on next two

• Country Club Villages: Hemsley Park stage 2 sold, construction commenced on stage 3, construction commenced on 3 other sites.

• Village Life: transition to SunnyCove management nearing completion, occupancy increase to follow, plus potential to reposition some assets

• SunnyCove: lease-up ahead of schedule, Forest Lake (opened in April 2006) now at 81%)

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Settlers Portfolio Acquisition Update

• Settlers Portfolio acquisition A$47m – 28 April 07

• Four villages, 3 in WA and 1 in QLD – the two strongest State economies

• 499 existing units + 243 unit development pipeline under construction or to be developed - 70% has development approval

• Ridgewood has 45 units under construction and 52 agreements for lease

• Lakeside has 27 units under construction and 21 agreements for lease – will be fully built 6 months ahead of schedule

• Sales price growth outperforming Perth residential market

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Settlers Meadow Springs
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Development Activities

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Oak Tree Goodna
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Strong Growth Pipeline

A$600m pipeline

Seniors	Students
1,780 8,449 Units existing
110 2,786 Units in development pipeline
1,890 11,235 Total units
Seniors	Students
Total US NZ Total Canada US Aus
1,780 1,418 362 8,449 1,179 4,505 2,765 Existing
110 110 0 2,786 400 513 1,873 Development pipeline
1,890 1,528 362 11,235 1,579 5,018 4,637 Total units
1,890 1,528 362 6,595 790 2,459 3,346 ILF share of total

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FY07 Development Activity

► Hemsley Park stages 1 and 2 complete and sold

► Development consent for Bacchus Marsh & Bellarine Lakes obtained

► Construction started at Noosa, Coolaroo, Meadow Gardens, and Hemsley Stage 3

► Goodna (69 units) nearing completion

• Development consent for Frankston and Boronia

• Awarded building contract for stages 5 and 6 at Ridgewood Rise, WA

► Redesigned plan for Settlers Meadow Springs expansion into 69 ILU’s

► Completed stage 1 of SunnyCove Rockhampton & Gladstone

► Commenced construction 98 unit extension at Gayton Terrace, Richmond, VA

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Canadian Growth Opportunities

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The Westmount, Kitchener

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The Waterford, Oakville

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The Woodhaven, Markham

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The WynField, Oshawa

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Financial Results

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Campus Club Florida
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Financial Results

Distribution statement

Earnings per unit (cents) Distributions per unit (cents) Distributable income per unit (cents) Distributable income Other Net finance costs AUS Seniors NZ Students US Students US Seniors Net operating income	Earnings per unit (cents) Distributions per unit (cents) Distributable income per unit (cents) Distributable income Other Net finance costs AUS Seniors NZ Students US Students US Seniors Net operating income	30 June 2007 $m 31 Dec 2006 $m	30 June 2007 $m 31 Dec 2006 $m	30 June 2007 $m 31 Dec 2006 $m
		16. 0. 13. 17.	8 7 7 8	8.2 0.3 6.6 7.5
		(1. (13. 49.	3) 3) 0	(0.7) (6.3) 22.6
		34.	4	15.6
		27.0 10.7 10.7 15.3 5.35 5.1	7 7

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Financial Results

Balance sheet

US Seniors (share of associates) NZ Students (share of associates) Net asset value per unit Net assets Total liabilities Other Borrowings Total assets Other AUS Seniors (including share of associates) US Students Assets*	62.4 11.9 270.8 184.8 297.1 30 Jun 2007 $m 188.4 10.7 38.9 207.2 196.0 31 Dec 2006 $m
	75.8 228.1 827.0 36.5 239.2 641.2
	303.9 275.7
	523.1 365.5
	$1.22 $1.18

*** Reduced by residents’ loan liabilities**

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Capital Management

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Regency The Waterford
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Capital Management

Balance sheet hedging & borrowings

• Foreign assets substantially hedged by foreign debt and cross-currency swaps

• Long term debt facilities in place;

• US – 10 years

• Canada – 20 years

• NZ – 2.5 years

Australia – 2.5 years

• No debt maturities in next 2 years

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US CAN NZ
US$m C$m NZ$m
Assets 708 123 30
Debt (433) (81) (19)
CCY swap (236) (42) (11)
Unhedged 39 - -
% 5% 0% 0%
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Capital Management

Currency - income

CAD	US
Rate % hedged	Rate % hedged
0.7606 100% 0.8693 100% FY08
0.7606 100% 0.8693 100% FY09
0.7606 100% 0.8693 100% FY10
0.7606 80% 0.8693 100% FY11
0.7606 60% 0.8693 100% FY12
0.7606 5.0 yrs 0.8693 5.0 yrs Ave. Term/Rate

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Capital Management

Interest Rates

CAD	US	AUS
Rate % hedged	Rate % hedged	Rate % hedged
FY08 6.62% 100% 5.10% 99% 5.20% 100%
FY09 6.62% 100% 5.10% 99% 5.20% 100%
FY10 6.62% 100% 5.10% 100% 5.20% 100%
FY11 6.62% 100% 5.10% 100% 5.20% 100%
FY12 6.62% 83% 5.10% 100% 5.20% 100%
Ave. Term/Rate 6.62% 4.8 yrs 5.10% 10.1 yrs 5.20% 20.0 yrs

► Interest Coverage 3.5 times

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Growth Strategy & Outlook

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Oak Tree Goodna
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Growth Strategy

Earnings growth to be enhanced by

• Increasing operating margins in the US

• Occupancy gains in US throughout the year

• Progress developments on spare land in Texas, Colorado & Ontario

• Roll-out of existing Australian development pipeline (target IRR 20%)

• Selective acquisition of new sites in growth areas

• Improve Village Life occupancy, and asset repositioning

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Bristal Massepequa
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Outlook

• Australian market conditions are favourable

► Fund is well placed to capitalise through its existing development pipeline and through selective acquisitions

• North American seniors portfolio expected to continue good performance, with upside from development of surplus land

• FY08 DPU forecast 11.45 cents (7.0% growth)

► Long term DPU growth of 5%+

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Thank You and Questions

A copy of this presentation will be made available on www.ingrealestate.com.au/investment

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Disclaimer

This presentation was prepared by ING Management Limited (ABN 15 006 065 032) (IML) as Responsible Entity of the ING Real Estate Community Living Fund (ARSN 107 459 576) and ING Real Estate Community Living Management Trust (ARSN 122 928 410) (together ILF or the Fund) This presentation is provided for information purposes only and does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Accordingly, no action should be taken on the basis of, or in reliance on, this presentation.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation. By receiving this presentation and to the extent permitted by law, the Recipient releases the Responsible Entity its affiliates or any of their respective directors , officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any recipient relying on anything contained in or omitted from this presentation.

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Responsible Entity. In particular, they speak only as of the date of these materials, they assume the success of ILF's business strategies, any they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.

The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. Without limiting the above, this document may not be distributed in the United States or to any US Persons.

This presentation is provided to you as person to whom disclosure is not required under section 708(8) or (10) (Sophisticated Investor) or (11) (Professional Investor) of the Corporations Act (Cth) 2001. By receiving this document you represent and warrant to ING Management Limited, in its capacity as responsible entity of ILF, you confirm that you are a person to whom disclosure is not required under section 708(8) or (10) (Sophisticated Investor) or 11 (Professional Investor) of the Corporations Act (Cth) 2001 and that you accept this presentation on the basis set out in this notice. If you are not such an investor, please do not consider the contents of this presentation and return it.

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