INGENIA COMMUNITIES GROUP — Capital/Financing Update 2006

Oct 19, 2006

ING REAL ESTATE

ASX Announcement ING Real Estate Community Living Fund ("ILF")

20 October 2006

Acquisition of Long Island Seniors Communities Future Growth Opportunity in High Barrier to Entry Market

ING Management Limited ("IML") as Responsible Entity of ING Real Estate Community Living Fund ("ILF" or "the Fund") is pleased to announce the ING/Chartwell Joint Venture ("JV") has contracted to acquire five high quality assisted living communities in Long Island, New York for a total acquisition price of US\$290.5million. The portfolio, known as the "Bristal Portfolio", was contracted on an initial yield of 7.0%, representing a discount to valuation of 1.8%.

The transaction is based on a deferred payment structure, which includes occupancy hurdles triggering full payment of the acquisition price over three years. The initial consideration will be partly funded by debt (83%), with the balance of the consideration being provided by Chartwell. The Fund's economic interest in the JV will reduced from 49% to 43%. ILF maintains equal voting rights and retains the right to re-align its equity interest back to 49% within a two year period.

The acquisition will further enhance the quality and growth profile of the Fund's investments into the US Seniors housing market, which continues to emerge as a high growth asset class.

The portfolio is located in the highly affluent demographic of Nassau County Long Island, a market possessing favourable demand and supply fundamentals. Long Island has one of the highest proportion of seniors populations in the US, and the $85+$ age group is forecast to grow by 3.96% p.a. over the next five years. The market is currently experiencing an under supply of suites, with a demand coverage ratio of 3.5 seniors for each suite (a ratio of 3.0:1.0 is considered equilibrium). The under-supply is expected to increase, with the demand coverage ratio increasing to 3.8:1 over the next five years, as a result of the increasing $85+$ age group and the lack of new supply on the horizon. The Long Island market has very high barriers due to lack of land availability, stringent and time consuming licensing approvals imposed by the State regulatory authority, and high construction and land costs.

Situated in high end residential areas, the communities are close to transport, shops, restaurants and cultural activities. Consisting of 640 assisted living units, the properties are constructed of high quality materials and are collectively the leading assisted living offering in the Long Island market. Built between 2000 and 2006, the portfolio is very modern and contains large unit size designs averaging 102sqm. The communities offer a full spectrum of amenities to residents, including: activity rooms, a swimming pool, movie theatre, putting greens, lounge areas, library, dining areas and exercise facilities.

Occupancy is currently 95.1% (excluding the new development asset which opened in September 2006) and is expected to remain strong as a result of favourable demand/supply attributes and high competing occupancies evidenced in the surrounding area. Rental sources are 100% private pay.

The communities will be operated by Chartwell & the Engle-Burman group, the current owner and developer of the portfolio. Management is confident Chartwell's demonstrated track record in delivering superior returns will ensure strong growth is achieved from the Bristal portfolio.

Hugh Thomson, CEO of ING Real Estate Investment Management Australia said, "This portfolio presents an exciting opportunity for the Fund. The acquisition establishes critical mass in the highly affluent Long Island market, where demand well exceeds supply, and developable land is scarce. This portfolio provides our strongest growth prospect to date."

The complete acquisition will be geared to 71.9% at a forecast rate of 6.0% (subject to an interest rate lock).

ING Management Limited confirms 2007 DPU guidance of 10.7 cents. This represents 10% forecast growth on 2006 distributions and a yield of 9.1% based on the unit price of \$1.18 as at 19 October 2006.

lan Muir, CEO of ILF, added "This portfolio will be the Fund's highest quality seniors investment to date, located in an under supplied and highly affluent market with high barriers to entry, which will further boost the Fund's growth profile."

Additional information on portfolio impact

Asset weightings and geographic exposure post the acquisitions are illustrated below:

	Portfolio Value $(A\mathbb{S}\mathbf{m})$	No. of Properties	No. of Residential Units	$NZ -$ Students $US -$ 3% AUS - Seniors
$US -$ Seniors	$551.1^{\frac{1}{2}}$	26	4.501	Students Developments 20% 8%
$US - Students$	205.9	-22	1.420
Australia – Seniors (completed)	172.0	44	2,080	AUS - Seniors Completed 15% US – Seniors 54%
Australia – Seniors (developments)	$55.3^2$	9	1.338
New Zealand - Students	$27.0^3$	3	362
Total	1,011.3	104	9.701
Assumes exchange rate of $A$1 = US$0.75$

$2$ Represents on completion valuation

$3$ Assumes exchange rate of A\$1 = NZ\$1.13

For further information, please contact:

Hugh Thomson Chief Executive Officer ING Real Estate Investment Management Australia $T: +61290331007$

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