INGENIA COMMUNITIES GROUP — Capital/Financing Update 2007

Apr 22, 2007

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

23 April 2006

Entry into Canadian Seniors housing market and expansion of existing platform

ING Management Limited (IML) as the Responsible Entity of the ING Real Estate Community Living Group (ILF or the Fund) today announced A\$220 million of acquisitions including the Fund's entry into the Canadian seniors housing market and a further expansion of the Fund's existing platform in Australia and the United States.

The transactions involve:

• Acquisition of a 50% interest in a portfolio of eight Class A Long Term Care (LTC) facilities in Toronto, Canada (Regency Portfolio) for approximately A\$136 million;
• Acquisition of a portfolio of three retirement villages in Western Australia and one retirement village in Queensland (Settlers Portfolio) for A\$47 million:
• Further investment of A\$37 million in the Fund's US Joint Venture with Chartwell.

Following these transactions, ILF will have total assets of approximately \$1.2 billion across 118 properties, comprising over 10,000 units/suites and a development pipeline of over 2,700 units/suites located in Australia, the United States, Canada and New Zealand.

Hugh Thomson, CEO of ING Real Estate Investment Management Australia, commenting on the transactions said, "We are excited at the opportunity to enter into the Canadian market, and in particular the LTC sector in Canada which is characterised by attractive demand demographics and stable government backed income streams. We have been evaluating the Canadian seniors housing market over the last two years and believe it provides an excellent platform from which to continue to grow the Fund's earnings".

The Regency Portfolio has been acquired in conjunction with the Fund's existing joint venture partner, Chartwell Seniors Housing REIT (Chartwell), who will manage the portfolio on behalf of the joint venture. Chartwell is the largest manager of seniors housing facilities in Canada. with over 24,700 suites/beds under management.

The Regency Portfolio comprises 1,384 beds and is currently 99.4% occupied with extensive waiting lists. In addition, four of the eight properties have surplus land which has the potential to accommodate the development of an additional 400 Independent Living or Assisted Living retirement home units. The properties are all modern. Class A facilities constructed during the last five years.

lan Muir, CEO of ILF added, "In addition, we have successfully secured a quality portfolio of retirement villages located Western Australia and Queensland, consisting of 463 completed Independent Living units with an additional 244 units under development. The Fund will also

be making a further investment in our US Joint Venture with Chartwell, increasing the Fund's exposure to the high growth US seniors housing market".

The transactions will be funded through debt and an equity offer involving an accelerated non-renounceable Entitlement Offer and Public Offer to raise A\$155 million (the Offer). Under the Offer, Existing Unitholders can subscribe for 1 New Unit for every 2.791 Units currently held, and Public Investors can subscribe for up to A\$5 million in addition to New Units which are not subscribed for under the Entitlement Offer. The Offer has been fully underwritten by JPMorgan.

The transaction will increase the Fund's 2008 forecast distributions by 2% and reduce its look through gearing to 55%. When combined with the earnings growth of the existing portfolio, the distribution for 2008 is forecast to increase to 11.45 cents per unit, a 7% increase on the prior year. Since assuming management of the Fund in June 2005, ING Real Estate's management team has increased the income distribution to investors by 39%. Continuing this growth in distributions remains management's key focus.

The issue price of New Units under the Offer will be \$1.34 per unit, which represents a 4% discount to the Unit's recent trading price¹ and an 8.5% yield on the Fund's forecast FY2008 distribution of 11.45 cents per unit. Approximately 90% of the distribution is estimated to be tax deferred, and the New Units are entitled to the full distribution for the three months to 30 June 2007 of 2.675 cents

A Product Disclosure Statement (PDS) will be mailed to Existing Unitholders on or around 3 May 2007 which will provide information on the Offer and allow retail investors sufficient time to review the opportunity.

Further information on the Offer timetable can be found in the management presentation or in the PDS. Both the management presentation and the PDS will be available electronically via the ING Real Estate Australia website at www.ingrealestate.com.au/investment.

For further information, please contact:

Hugh Thomson Chief Executive Officer ING Real Estate Investment Management Australia $T: +61290331009$

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

Based on the volume weighted average price in the five business days up to and including 20 April 2007.