INGENIA COMMUNITIES GROUP — Capital/Financing Update 2008

Dec 4, 2008

ASX ANNOUNCEMENT ING REAL ESTATE COMMUNITY LIVING GROUP (ILF) 5 December 2008

ILF TO STRENGTHEN ITS BALANCE SHEET

ING Management Limited, as Responsible Entity for ING Real Estate Community Living Group (“ILF”), today announced a series of measures to further strengthen ILF’s balance sheet.

The measures have been designed following a review of ILF’s year to date operating performance and the continuing challenges presented by the global financial crisis, and its effects on the markets within which ILF has investments.

The initiatives are summarised as follows:

• Initiate a detailed whole-of-business strategic review;

• Implement a deferral of all uncommitted capital expenditure;

• The distribution for the December 2008 and March 2009 quarters will be suspended; and

• A distribution of 1.0 cent per unit is forecast for the June 2009 quarter (however this remains subject to market conditions and forecast asset sales).

Cash retained from these distribution reductions will be used to strengthen the balance sheet.

These initiatives are designed to position ILF to meet the challenges presented by the deteriorating market conditions and a current uncertain economic outlook.

Management and the Board acknowledge and appreciate that many investors will be disappointed with the distribution reductions. However, the capital management strategy set out above is a proactive approach to managing ILF’s balance sheet in these unprecedented times, and one which we strongly believe to be in the best interest of all unitholders.

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Interim operating update

Deteriorating operating conditions in a number of the markets in which ILF operates are expected to negatively impact earnings throughout FY09.

The weakness in the US economy has affected the US Students portfolio and to a lesser degree the US Seniors portfolio, while locally the weakness in the residential market has slowed sales in the retirement villages.

We are however seeing encouraging signs in our Garden Villages portfolio as occupancy is on the rise since we internalised management in October.

ILF has no breaches of loan financial covenants and the above initiatives will further strengthen the balance sheet through the reduction of debt.

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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 approximately A$1.2 billion. The portfolio consists of a 62% weighting to the United States, 25% to Australia, 11% to Canada and 2% to New Zealand.

About ING Real Estate

ING Real Estate is an integrated real estate group focused on investment management, development and financing of quality real estate in all major global markets with a total portfolio of over A$170 billion. ING Real Estate ranks among the world’s leading real estate companies and serves a broad client base from offices in 22 countries in Europe, North America, Asia and Australia.

ING Real Estate is part of ING group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 75 million private, corporate and institutional clients in more than 50 countries.

For further information, please contact:

Victor Breuer Hugh Thomson Chief Executive Officer - Chief Executive Officer - ING Real Estate Community Living Group ING Real Estate Investment Management ING Real Estate Investment Management Australia Australia T: +61 2 9033 1007 T: +61 2 9033 1039

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