INGENIA COMMUNITIES GROUP — Capital/Financing Update 2011

Nov 1, 2011

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ASX Announcement

REAL ESTATE INVESTMENT M A NAGEMENT

Date

2 Novemb e r 2011

Fund

ING Real Estate Community Living Group

ILF c etes a l sal e of U S S e nior s ompl parti – portf o lio rep o sitio n s for gro w th

ING Real E state Co m munity Liv i ng Group ( ILF) is ple a sed to an n ounce tod a y the settl e ment of its parti a l sale of the US Se n iors portfolio and pro v ide an up d ate on th e sell down of its DMF Con v ersion proj e ct.

Sales of Non-New York US Seniors portfolio

As annou n ced on 19 July 2011, the Fund divested its 5 0% intere s t in 15 of i t s 21 US S e niors communiti e s to its jo i nt venture partner, C h artwell Seniors Housing Real E s tate Investment Trust (Ch a rtwell) for U S$171.5 m illion, which was in line with Dec e mber 201 0 book valu e .

The settle m ent of thi s transacti o n has sig n ificantly st r engthened the Fund’ s capital p o sition with net p roceeds o f A$31.3 m illion (7.1 cents of N et Asset V alue) bei n g repatria t ed to Australia a nd US$3.2m remaini n g in the U S under tra n saction re l ated escro w s. A majority of the proce e ds will be used to r e duce the F und’s LV R to below 40% resulting in a m argin reduction o f 100 bps. The balan c e will be used to fun d growth ini t iatives wit h in the Aus t ralian Seniors b u siness in c luding the expansion of the Gl a dstone an d Rockha m pton conv e rsion villages.

ILF CEO S imon Owen said, “The completi o n of this s a le marks a turning p o int in the F und’s transform a tion into a focused, a p propriatel y -geared s e niors living business w ith a portf o lio of well perfo r ming villag e s across A ustralia and a growin g develop m ent pipelin e . We are n ow in a sound p osition to advance our progr a m of rigo r ously ass e ssed gro w th opport u nities including the expansi o n of existi n g high oc c upancy villages, bolt- o n acquisitions and s e eding Greenfield sites.”

Remaining New York US Seniors portfolio

Following our announcement i n July of t he partial US portfolio sale, w e have re c eived numerous expressio n s of inter e st in our premium B ristal port f olio which consists o f six A-grade s e niors com m unities lo c ated on Long Island, N ew York.

Mr Owen s aid “Whils t the Fund i s not activ e ly pursing a sale proc e ss, we will carefully a s sess the variou s expressi o ns of inte r est and explore opportunities to monetise t he equity i n our remaining US Seniors commu n ities. The Bristal as s ets repre s ent a uni q ue, high q uality portfolio of seniors c ommunitie s in the premium Lo n g Island d emographic. These a ssets

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REAL ESTATE INVESTMENT M A NAGEMENT

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have signi f icant barri e rs to entry and we w o uld requir e an offer s u bstantially in excess of the current bo o k value fo r us to cont e mplate th e ir divestm e nt.”

DMF Conversion villages update

Earlier in t h e year, th e Fund co m menced th e sell down of 216 uni t s across three village s in Queensla n d which h a ve been c o nverted from the rent a l to the De f erred Man a gement F e e (DMF) mo d el. Following a mode s t first quar t er, it is ple a sing to re p ort that pr e sently ove r 25% of total units have eit h er been s e ttled, contr a cted or ha v e an expr e ssion of in t erest in pl a ce with sales momentu m continuin g to build. T h e convers i on project i s expecte d to be a ke y driver of e a rning over the next few years an d will relea s e in exces s of $35m o f cashflow during this period.

Managem e nt is also w ell advan c ed in its selection of t h e next con v ersion as s et with expected launch in the first half of FY2012.

For further information, please contact

Simon Owen Chief Executive Officer - ING Real E state Com m unity Livin g Group ING Real E state Investment Mana g ement Australia T: +61 2 9 033 1310 M: +61 412 389 339

About ING Real Estate Community Living Group

ING Real Estate Community Living G roup (ASX code: ILF) i s an externally managed ASX-listed r eal estate inve s tment trust t hat owns, m anages and develops a diversified portfolio of s e niors housi n g communities. The Fund has total lo o k-through assets under manageme n t of $644 m i llion with operations l ocated predominantly throughout A u stralia and t h e United States.

About ING Real Estate Investment Management

ING Real Estate Community Living G roup is on e of three lis t ed real esta t e investme n t trusts that are manag e d by ING R e al Estate Investment M a nagement A ustralia. IN G Real Esta t e Investme n t Manageme n t is part of ING Group, a global fina n cial instituti o n of Dutch o rigin offering banking, investment s , life insura n ce and retir e ment servi c es to over 85 million pri v ate, corpor a te and institutional clients in m o re than 40 c ountries

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