INGENIA COMMUNITIES GROUP — Capital/Financing Update 2009

Nov 22, 2009

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ASX ANNOUNCEMENT ING REAL ESTATE COMMUNITY LIVING GROUP (ILF) 23 November 2009

ILF continues withdrawal of exposure to US Students housing

Consistent with previous announcements in relation to divestment of non-core US Student assets, ILF announced today that subsidiary companies holding the Fund’s remaining US Student assets have informed their US bankers that they have ceased payment of interest on those loans.

This will result in a default on some of its non-recourse subsidiary loans. These loans are fully non-recourse to ILF and are secured only against the US Students housing portfolio. This decision has no impact on ILF’s Australian secured debt facilities and its Australian lender has confirmed this is not a breach of the terms of its facility.

US Students Housing Portfolio Withdrawal

Post the sale of two US Student housing facilities in October 2009, the table below highlights the portfolio’s financial position:

portfolio’s financial position:
Book Value of remaining US Students portfolio(15 in Connecticut and 2 in Florida) as at 30 June 2009	US$72.6m
Outstanding US Students loan balance	US$76.0m
Portfolio in negative equity	(US$3.4m)

As a result of the withdrawal of debt support payments for this portfolio, ILF will benefit from a reduction in cash outflow of circa US$3.6m per annum.

Management intends to work with the US loan administrators to find a satisfactory outcome for all parties which may include completion of a deed-in-lieu (asset hand back transaction), a negotiated loan restructure or sale to third parties.

This loan default process will not impact the existing tenants or the operation of the assets. ILF will continue to provide adequate funding to meet all financial obligations to maintain and upkeep the assets to ensure there are no disruptions to the tenants, pending resolution with the lenders on the future of the assets.

ILF Chief Executive Officer, Simon Owen said, “Management is firmly focussed on making the difficult decisions required to restore value for unitholders. The decision to cease funding negative cashflow arising out of interest payments for the US Students portfolio has been under consideration for some time and has been made with the knowledge of our Australian lender.

Management is well advanced in its refinancing negotiations of the Fund’s existing Australian loan facility with our Australian lender which expires in December 2009. We will continue to evaluate the divestment of other non-core assets in the interests of unitholder value.”

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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. The portfolio consists of a 64% weighting to the United States, 23% to Australia, 10% to Canada and 3% to New Zealand.

About ING Real Estate Investment Management

ING Real Estate Community Living Group is one of six property trusts managed by ING Real Estate Investment Management Australia (INGREIMA) on behalf of 60,000 investors. INGREIMA meets the needs of both institutional and retail investors through listed and unlisted Funds. The Funds operate in key real estate sectors including office, industrial, retail, seniors housing, entertainment and healthcare property. INGREIMA is part of the global ING Real Estate Investment Management platform. With over 70 Funds, offices in 21 countries and more than 1500 employees across the globe, ING Real Estate Investment Management is one of the world’s leading property investment managers.

For further information, please contact:

Simon Owen Johanna Keating Chief Executive Officer Head of Investor Relations & Marketing ING Real Estate Community Living Group ING Real Estate Investment Management ING Real Estate Investment Management Australia Australia T: +61 409 168 848 T: +61 2 9033 1310/ +61 412 389 339

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