INGENIA COMMUNITIES GROUP — Capital/Financing Update 2009

May 27, 2009

ASX ANNOUNCEMENT ING REAL ESTATE COMMUNITY LIVING GROUP (ILF) 28 MAY 2009

ILF Update on Fund borrowings

ING Real Estate Community Living Group (ILF or the Fund) provides the following update on its borrowings and discussions with lenders.

US Loan

ILF has a bank loan (US Loan) from a United States bank (US Lender). On 16 February 2009 ILF announced the US Lender exercised its right to call for repayment of the US Loan. ILF has until 17 June 2009 to repay the US Loan. The current balance of the US Loan is US$15.5m (approximately A$20m). The fund is in discussions with the US Lender regarding refinancing this loan

NZ Loan

The Fund’s associate, which owns the NZ Student portfolio, remains in negotiations with its lender on the terms of a refinance of its existing NZ$20.8m facility which is due for expiry on 29 May 2009. The NZ Lender has granted a 3 month extension while the terms of a longer term facility are negotiated.

Australian Loan

As previously disclosed, the Fund’s Australian loan facility with its Australian lender (which expires on 22 December, 2009) contains various financial covenants which are tested on a six monthly basis. In particular, it has a maximum loan to value ratio for its secured Australian properties (Garden Villages and Settlers). The Fund will be revaluing these portfolios as at 30 June 2009.

A downward movement in the value of the Australian portfolio may require the Fund to make such additional payments under the Australian loan facility as is required in order to stay within the loan to

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value ratio covenant. The ability of the Fund to make these payments will depend on the amount of repayment required and a number of factors which will determine its available cash balance prior to 30 June 2009.

Derivatives

The Fund has a number of derivatives instruments entered into to hedge its exposure to foreign exchange and interest rate movements. As at 31 December 2008 the market value of these instruments was a net liability to the Fund of $A70m. Due to the appreciation of the Australian dollar and changes in interest rate movements, the market value is now estimated at a net liability of $A43m. While this is a positive for the Fund, the value of the derivatives remain exposed to future movements in rates, and this in turn impacts the refinancing prospects of the Fund’s Australian loan facility.

Outlook

While the reduction in the derivatives liability is positive for the Fund, the Fund’s overall financial position remains uncertain and is heavily reliant on current and future negotiations with its lenders.

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For further information, please contact:

Hugh Thomson Chief Executive Officer - ING Real Estate Investment Management Australia T: +61 2 9033 1000

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