INGENIA COMMUNITIES GROUP — Capital/Financing Update 2009

Jun 21, 2009

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ING Real Estate Investment Management Australia Pty Ltd ABN 91 096 136 202

Level 6, 345 George Street Sydney, NSW 2000

Tel (02) 9033 1000 Fax (02) 9033 1087

22 June 2009

Dear Unitholder,

Following ING Management’s Strategic Review of the ING Real Estate Community Living Group (ILF) in February this year, we have made the following progress:

• Exit from both capital intensive development joint ventures in Australia

• Sale of two non-core US Student assets in Richmond, Virginia

• Steady sales volume and occupancy increases in the Australian Seniors DMF and Rental portfolios

• Recent success in refinancing the Fund’s only short term US borrowing, with its remaining US borrowings maturing in 3 to 10 years

• Since the Fund suspended distributions in December 2008, it has repaid in excess of $A20m of its various loan facilities

In Australia, the Fund has sufficient cash reserves to make appropriate payments which may be required to keep it within the loan to value ratio of its Australian loan facility as at 30 June 2009. The Fund has a number of derivatives instruments which it entered into to hedge its exposure to foreign exchange and interest rate movements. With the recent appreciation of the Australian dollar, the market value of these derivatives has moved in our favor with the Fund’s liabilities decreasing from $A70m (as at 31 December 2008) to $A37m (as at 15 June 2009). While this is a positive for the Fund, the value of the derivatives remains exposed to future fluctuations in foreign exchange and interest rates.

Notwithstanding this positive progress, the future of the Fund remains heavily dependent on its ability to refinance its Australian loan facility maturing in December 2009. Management will continue to pursue orderly asset sales and prudently manage the Fund’s cashflow. Therefore, as previously disclosed to the market, the Fund will not pay a distribution for the June 2009 quarter.

The Board and Management remains very committed to navigate ILF through these difficult times. I hope to be able to update you with some more positive news at our upcoming Full Year Results announcement and presentation in late August.

Kind regards,

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Hugh Thomson Chief Executive Officer ING Real Estate Investment Management Australia