INGENIA COMMUNITIES GROUP — Fund Information / Factsheet 2008

Feb 27, 2008

INVESTMENT MANAGEMENT

ING Real Estate Community Living Group

==> picture [84 x 37] intentionally omitted <==

ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK

ABOUT THE FUND

ING Real Estate Community Living Group is a signifi cant owner of community housing, with an interest in 126 seniors and student properties.

ILF’s portfolio returns are underpinned by investment in asset classes possessing strong demand and supply fundamentals, secure income streams sourced primarily from rental investments and a diversifi ed portfolio of quality assets across Australia, Canada, New Zealand and the United States. Key joint venture relationships and experienced management teams drive earnings growth for investors.

ILF was the fi rst listed property group on the Australian Securities Exchange (ASX) specialising in seniors and student housing communities.

ASSET DIVERSIFICATION BY VALUE (A$M)[ 1]

GEOGRAPHIC DIVERSIFICATION BY VALUE (A$M)[ 1]

AUSTRALIAN DMF 10.2% AUSTRALIAN RENTAL 14.5% CANADIAN SENIORS 11.4% US SENIORS 48.2% US STUDENTS 13.6% NZ STUDENTS 2.1%

AUSTRALIA 24.7% CANADA 11.4% UNITED STATES 61.8% NEW ZEALAND 2.1%

1) ILF’s interest as at 31 December 2007

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

IFC ABOUT THE FUND 02 PROPERTY PORTFOLIO 04 AUSTRALIAN SENIORS 16 CANADIAN SENIORS 20 US SENIORS 30 US + NZ STUDENTS

OVERVIEW

As at 31 December 2007, ILF’s portfolio comprised an interest in 126 seniors and students properties across Australia, Canada, New Zealand and the US. The Fund is signifi cantly weighted to the rental model, providing 84% of ILF’s cash fl ows. Further complementing these income streams, the Fund derives development profi ts and deferred management fee income from its Australian DMF portfolio, which is expected to continue to deliver strong returns resulting from rollout of its development pipeline.

ILF’s stapled security structure allows the Fund to take an active role in the operation and development of its assets. The Fund leverages the local market knowledge and expertise of its partners and operators to anticipate and respond to market trends. Partners are aligned to achieve ILF’s capital and property returns via their co-investment in portfolios.

ILF AND PARTNERS

==> picture [437 x 201] intentionally omitted <==

----- Start of picture text -----

STUDENTS 15.7% SENIORS 84.3%
NZ US AUSTRALIA US CANADA
CAMPUS LIVING RABIL
CHARTWELL JV CHARTWELL JV
VILLAGES PROPERTIES
COUNTRY CLUB
OAK TREE SUNNYCOVE VILLAGE LIFE SETTLERS
VILLAGES
----- End of picture text -----

1

PROPERTY PORTFOLIO

126 PROPERTIES	126 PROPERTIES
101 SENIORS COMMUNITIES
25 STUDENT COMMUNITIES
32 DEVELOPMENT SITES
10,477 COMPLETED UNITS
3,356 PIPELINE UNITS
90% AVERAGE PORTFOLIO OCCUPANCY
1.3BN TOTAL ASSETS1

1) As at 31 December 2007

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [553 x 563] intentionally omitted <==

----- Start of picture text -----

UNITED STATES SENIORS UNITED STATES STUDENTS
ALABAMA 1 CONNECTICUT 18
COLORADO 6 FLORIDA 2
FLORIDA 4 VIRGINIA 2
MICHIGAN 2
NEW YORK 6
OHIO 3 CANADIAN SENIORS
OKLAHOMA 1
ONTARIO 8
RHODE ISLAND 1
TENNESSEE 1
TEXAS 1
VIRGINIA 1
AUSTRALIAN SENIORS
NEW SOUTH WALES 9
QUEENSLAND 18
SOUTH AUSTRALIA 1
TASMANIA 7
VICTORIA 23
WESTERN AUSTRALIA 8
NZ STUDENTS
WELLINGTON 3
----- End of picture text -----

2 3

AUSTRALIAN SENIORS

In Australia, ILF has an interest in 44 existing seniors housing communities, eight of which have spare land capable of further development. In addition to this, ILF has an interest in a further 14 greenfi eld sites on which the Fund is currently designing new villages. As as 31 December 2007, this translated into 2,894 existing units and a development pipeline of 2,333 units.

The quality of the assets and strong demographics continue to deliver strong returns for the Fund. Approximately 65% of the existing Australian portfolio is based on the rental model. The remaining assets are invested in the Deferred Management Fee (DMF) model, providing income streams sourced from development profi t and deferred management fees.

PORTFOLIO	COUNTRY CLUB	OAK TREE	SETTLERS	SUNNYCOVE	VILLAGE LIFE
VALUATION AS AT 31 DEC 2007(A$M)	32.2	13.4	82.8	31.1	154.6
OWNERSHIP INTEREST %	27%	50%	100%	100%	100%
NUMBER OF PROPERTIES	10	7	4	3	42
COMPLETED UNITS	399	69	558	216	1,652
PIPELINE UNITS	1,494	457	176	86	120
% OF TOTAL FUND(ASSETS)	2.5%	1.1%	6.6%	2.4%	12.1%

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

OAK TREE GOODNA, QUEENSLAND

4 5

AUSTRALIAN SENIORS

PORTFOLIO STATISTICS

PORTFOLIO COUNTRY CLUB	PROPERTY YEAR BUILT / SITE AREA PROPERTY NAME LOCATION TYPE REFURBISHED M2OR HA TITLE
	BELLBROOK GARDENS BACCHUS MARSH, VIC VILLAGE SITE N/A 12.4 FREEHOLD
	BELLARINE LAKES MOOLAP, VIC VILLAGE SITE N/A 49.9 FREEHOLD
	BENDIGO BENDIGO, VIC VILLAGE SITE N/A 12.2 FREEHOLD
	MELBA VALE COOLAROO, VIC VILLAGE SITE COMMENCED 2007 4.4 FREEHOLD
	GEELONG GROVE GROVEDALE, VIC VILLAGE COMMENCED 1983 4.5 FREEHOLD
	HEMSLEY PARK BALLARAT, VIC VILLAGE COMMENCED 2005 10.3 FREEHOLD
	MEADOW GARDENS DELACOMBE, VIC VILLAGE COMMENCED 2002 6.5 FREEHOLD
	NOOSA DOMAIN NOOSAVILLE, QLD VILLAGE SITE COMMENCED 2007 6.7 FREEHOLD
	HAMPTON VIEWS NORTH ROCKHAMPTON, QLD VILLAGE SITE N/A 6.5 FREEHOLD
	ROSEBANK SEPASTOPOL, VIC VILLAGE COMMENCED 1999 4.0 FREEHOLD
OAK TREE	BORONIA BORONIA HEIGHTS, QLD VILLAGE SITE COMMENCED 2007 9,902 LEASEHOLD
	CAIRNS CAIRNS, QLD VILLAGE SITE COMMENCED 2008 23,641 FREEHOLD
	CARDIFF NEWCASTLE, NSW VILLAGE SITE N/A 20,464 FREEHOLD
	FRANKSTON FRANKSTON NORTH, VIC VILLAGE SITE COMMENCED 2007 9,657 LEASEHOLD
	GOODNA GOODNA, QLD VILLAGE 2007 10,094 LEASEHOLD
	KINGSTON KINGSTON, TAS VILLAGE SITE N/A 30,300 LEASEHOLD
	ORANGE ORANGE, NSW VILLAGE SITE N/A 28,700 FREEHOLD
SETTLERS	LAKESIDE RAVENSWOOD, WA VILLAGE COMMENCED 1999 14.6 FREEHOLD
	MEADOW SPRINGS MEADOW SPRINGS, WA VILLAGE COMMENCED 2003 3.2 FREEHOLD
	NOYEA PARK MOUNT WARREN PARK, QLD VILLAGE COMMENCED 1987 8.8 FREEHOLD
	RIDGEWOOD RISE RIDGEWOOD, WA VILLAGE COMMENCED 2002 10.8 FREEHOLD
SUNNYCOVE	FOREST LAKE FOREST LAKE, QLD VILLAGE 2006 9,859 FREEHOLD
	GLADSTONE GLADSTONE, QLD VILLAGE 2006 12,564 FREEHOLD
	ROCKHAMPTON ROCKHAMPTON, QLD VILLAGE 2007 22,240 FREEHOLD
VILLAGE LIFE	ALBANY YAKAMIA, WA VILLAGE 2004 7,365 FREEHOLD
	ALBURY LAVINGTON, NSW VILLAGE 2005 7,253 FREEHOLD
	ARMADALE SEVILLE GROVE, WA VILLAGE 2003 5,275 FREEHOLD
	BALLARAT SEBASTOPOL, VIC VILLAGE 2004 4,973 FREEHOLD
	BENDIGO 1 BENDIGO, VIC MANAGERS UNIT N/A N/A FREEHOLD
	BENDIGO 2 BENDIGO, VIC MANAGERS UNIT N/A N/A FREEHOLD
	BUNBURY BUNBURY, WA VILLAGE 2005 5,698 FREEHOLD
	BUNDABERG BUNDABERG NORTH, QLD VILLAGE 2005 6,000 FREEHOLD
	CABOOLTURE CABOOLTURE, QLD MANAGERS UNIT N/A N/A FREEHOLD
	CESSNOCK CESSNOCK, NSW VILLAGE 2004 9,369 FREEHOLD
	CLAREMONT CLAREMONT, TAS VILLAGE 2004 6,831 FREEHOLD
	COFFS HARBOUR COFFS HARBOUR, NSW VILLAGE 2004 6,164 FREEHOLD

1) Last valued at 31 December 2006

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

VALUATION	VALUATION								% OF
AS AT	OWNERSHIP								TOTAL
31 DEC 2007	INTEREST		OWNERSHIP	COMPLETED	PIPELINE	TOTAL		DISCOUNT	FUND
A$M	%	CAP RATE	INTEREST	UNITS	UNITS	UNITS	OCCUPANCY	RATE (DMF)	(ASSETS)
6.01	1.6	N/A	27%	0	251	251	N/A	N/A	0.1%
14.71	4.0	N/A	27%	0	338	338	N/A	N/A	0.3%
3.21	0.9	N/A	27%	0	238	238	N/A	N/A	0.1%
5.01	1.4	N/A	27%	0	103	103	N/A	N/A	0.1%
11.51	3.1	N/A	27%	149	0	149	99%	12.0%	0.2%
16.01	4.3	N/A	27%	46	171	217	87%	12.0%	0.3%
5.71	1.5	N/A	27%	101	51	152	96%	12.0%	0.1%
43.61	11.8	N/A	27%	0	169	169	N/A	N/A	0.9%
6.41	1.7	N/A	27%	0	154	154	N/A	N/A	0.1%
7.01	1.9	N/A	27%	103	19	122	96%	12.0%	0.1%
1.2	0.6	N/A	50%	0	45	45	0%	18.0%	0.0%
3.8	1.9	N/A	50%	0	77	77	N/A	18.0%	0.1%
5.5	2.8	N/A	50%	0	100	100	N/A	18.0%	0.2%
1.2	0.6	N/A	50%	0	52	52	0%	18.0%	0.0%
13.5	6.7	N/A	50%	69	0	69	3%	14.0%	0.5%
0.0	0.0	N/A	50%	0	85	85	N/A	18.0%	0.0%
1.6	0.8	N/A	50%	0	98	98	N/A	18.0%	0.1%
30.5	30.5	N/A	100%	222	7	229	94%	13.0%	2.4%
10.6	10.6	N/A	100%	56	60	116	88%	12.0%	0.8%
9.0	9.0	N/A	100%	149	0	149	100%	13.0%	0.7%
32.7	32.7	N/A	100%	131	109	240	98%	13.0%	2.6%
12.8	12.8	8.0%	100%	86	0	86	88%		1.0%
7.7	7.7	8.3%	100%	56	30	86	66%		0.6%
10.6	10.6	8.3%	100%	74	56	130	42%		0.8%
5.3	5.3	7.3%	100%	56		56	84%		0.4%
5.5	5.5	7.3%	100%	51		51	92%		0.4%
4.4	4.4	7.3%	100%	44		44	95%		0.3%
4.0	4.0	7.5%	100%	47		47	67%		0.3%
0.3	0.3	8.0%	100%	1		1	100%		0.0%
0.3	0.3	8.0%	100%	1		1	100%		0.0%
4.8	4.8	7.5%	100%	50		50	83%		0.4%
4.9	4.9	7.5%	100%	50		50	62%		0.4%
0.3	0.3	8.0%	100%	1		1	100%		0.0%
5.5	5.5	7.3%	100%	54		54	91%		0.4%
4.2	4.2	7.5%	100%	50		50	72%		0.3%
4.9	4.9	7.5%	100%	50		50	80%		0.4%

6 7

AUSTRALIAN SENIORS

PORTFOLIO STATISTICS (CONTINUED)

PORTFOLIO VILLAGE LIFE	PROPERTY YEAR BUILT / SITE AREA PROPERTY NAME LOCATION TYPE REFURBISHED M2OR HA TITLE
	DEVONPORT DEVONPORT, TAS VILLAGE 2004 6,290 FREEHOLD
	DROMANA SAFETY BEACH, VIC MANAGERS UNIT N/A N/A FREEHOLD
	DUBBO DUBBO, NSW VILLAGE 2005 6,800 FREEHOLD
	ELPHINWOOD LAUNCESTON, TAS VILLAGE 2003 6,334 FREEHOLD
	GLENORCHY GLENORCHY, TAS VILLAGE 2005 4,781 FREEHOLD
	GOULBURN GOULBURN, NSW VILLAGE 2003 6,036 FREEHOLD
	GROVEDALE 1 GROVEDALE, VIC MANAGERS UNIT N/A N/A FREEHOLD
	GROVEDALE 2 GROVEDALE, VIC VILLAGE 2006 6,498 FREEHOLD
	HORSHAM HORSHAM, VIC VILLAGE 2005 5,459 FREEHOLD
	IPSWICH IPSWICH, QLD VILLAGE 2001 5,625 FREEHOLD
	KINGSTON KINGSTON, TAS VILLAGE 2006 9,230 FREEHOLD
	LOVELY BANKS 1 CORIO, VIC VILLAGE 2006 9,057 FREEHOLD
	LOVELY BANKS 2 CORIO, VIC VILLAGE SITE N/A 9,057 FREEHOLD
	MANDURAH ERSKINE, WA VILLAGE 2004 6,545 FREEHOLD
	MARSDEN MARSDEN, QLD VILLAGE 2006 15,580 FREEHOLD
	MELTON 1 BROOKFIELD, VIC VILLAGE 2004 6,761 FREEHOLD
	MELTON 2 BROOKFIELD, VIC VILLAGE 2005 5,950 FREEHOLD
	PORT MACQUARIE PORT MACQUARIE, NSW VILLAGE 2004 5,100 FREEHOLD
	SALISBURY SALISBURY DOWNS, SA MANAGERS UNIT N/A N/A FREEHOLD
	ST ALBANS PARK 1 ST ALBANS PARK, VIC VILLAGE 2005 8,296 FREEHOLD
	ST ALBANS PARK 2 ST ALBANS PARK, VIC VILLAGE 2005 8,296 FREEHOLD
	SWAN VIEW SWAN VIEW, WA VILLAGE 2006 8,034 FREEHOLD
	TAREE TAREE, NSW VILLAGE 2006 9,385 FREEHOLD
	TOOWOOMBA 1 TOOWOOMBA, QLD MANAGERS UNIT N/A N/A FREEHOLD
	TOOWOOMBA 2 TOOWOOMBA, QLD VILLAGE 2004 6,320 FREEHOLD
	TOOWOOMBA 3 TOOWOOMBA, QLD VILLAGE 2004 6,216 FREEHOLD
	TOOWOOMBA 4 TOOWOOMBA, QLD VILLAGE 2005 6,270 FREEHOLD
	WANGARATTA WANGARATTA, VIC VILLAGE SITE N/A 5,959 FREEHOLD
	WELCOME INN KINGSTON, TAS VILLAGE 2005 17,300 FREEHOLD
	WYNNUM WYNNUM, QLD MANAGERS UNIT N/A N/A FREEHOLD

TOTAL

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

VALUATION	VALUATION								% OF
AS AT	OWNERSHIP								TOTAL
31 DEC 2007	INTEREST		OWNERSHIP	COMPLETED	PIPELINE	TOTAL		DISCOUNT	FUND
A$M	%	CAP RATE	INTEREST	UNITS	UNITS	UNITS	OCCUPANCY	RATE (DMF)	(ASSETS)
3.9	3.9	7.8%	100%	50		50	71%		0.3%
0.4	0.4	8.0%	100%	1		1	100%		0.0%
4.3	4.3	7.5%	100%	51		51	84%		0.3%
4.3	4.3	7.5%	100%	54		54	72%		0.3%
4.1	4.1	7.5%	100%	42		42	93%		0.3%
4.7	4.7	7.3%	100%	48		48	69%		0.4%
0.4	0.4	8.0%	100%	1		1	100%		0.0%
4.9	4.9	7.5%	100%	50		50	95%		0.4%
4.4	4.4	7.3%	100%	46		46	96%		0.3%
4.2	4.2	7.3%	100%	45		45	89%		0.3%
4.8	4.8	7.8%	100%	50		50	38%		0.4%
5.5	5.5	7.5%	100%	65		65	54%		0.4%
0.7	0.7	N/A	100%	0	70	70	N/A		0.1%
4.4	4.4	7.5%	100%	50		50	78%		0.4%
9.8	9.8	7.5%	100%	96		96	33%		0.8%
4.2	4.2	7.5%	100%	50		50	44%		0.3%
4.1	4.1	7.5%	100%	50		50	54%		0.3%
4.3	4.3	7.5%	100%	44		44	61%		0.3%
0.3	0.3	8.0%	100%	1		1	100%		0.0%
4.7	4.7	7.5%	100%	49		49	71%		0.4%
4.9	4.9	7.5%	100%	52		52	65%		0.4%
7.7	7.7	7.3%	100%	72		72	77%		0.6%
4.5	4.5	7.5%	100%	50		50	38%		0.4%
0.3	0.3	8.0%	100%	1		1	100%		0.0%
4.1	4.1	8.0%	100%	50		50	86%		0.3%
4.3	4.3	8.0%	100%	58		58	66%		0.3%
3.8	3.8	8.0%	100%	50		50	30%		0.3%
0.8	0.8	N/A	100%	0	50	50	N/A		0.1%
1.0	1.0	8.5%	100%	20		20	60%		0.1%
0.4	0.4	8.0%	100%	1		1	100%		0.0%
414.5	314.1			2,894	2,333	5,227			24.7%

8 9

AUSTRALIAN SENIORS

COUNTRY CLUB

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

HEMSLEY PARK, BALLARAT, VIC
----- End of picture text -----

In April 2006 ILF announced, in conjunction with ING Real Estate Investment Management, the joint acquisition of a 30% interest in Country Club Villages Pty Ltd (CCV) for A$23.5 million. 90% of this partial interest is held within ILF. CCV is a private owner, operator and developer of retirement villages, established in the mid 1980’s, and is based in Ballarat, Victoria. This acquisition represented the Fund’s fi rst acquisition in retirement villages operated under the Deferred Management Fee (DMF) model.

At the time of acquisition CCV owned two existing villages, had one under construction, two development sites with development approval and two sites pending development approval. Since then the joint venture has purchased two properties and has one under an unconditional contract to be settled on 25 February 2008. This brings the portfolio to a total of ten assets which will comprise approximately 1,900 units upon completion. The assets are located primarily in regional Victoria and Queensland.

The development stock in the CCV portfolio represents a signifi cant portion of the development pipeline for the Fund with a further three of these sites commencing construction during the 2007/08 year.

==> picture [344 x 189] intentionally omitted <==

----- Start of picture text -----

HAMPTON VIEWS
NT
WA QLD
NOOSA DOMAIN
SA
BELLBROOK GARDENS
NSW BELLARINE LAKES
BENDIGO DOMAIN
VIC MELBA VALE
GEELONG GROVE
HEMSLEY PARK
MEADOW GARDENS
ROSEBANK
----- End of picture text -----

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

OAK TREE

==> picture [440 x 200] intentionally omitted <==

GOODNA, QLD

In October 2006, ILF announced an agreement to enter into a joint venture with the Oak Tree Group (Oak Tree). Under the agreement, the joint venture has the fi rst right to acquire up to 5,000 seniors accommodation units sourced by Oak Tree, which has identifi ed a substantial pipeline of future seniors accommodation sites in attractive metropolitan locations throughout Australia.

The Oak Tree villages will operate under the Deferred Management Fee (DMF) model, with the joint venture intending to operate these villages under the Oak Tree brand. The joint venture completed construction of its fi rst development project, a 69 independent living unit (ILU) retirement village in the Brisbane suburb of Goodna, in November 2007. The joint venture continues to seek new opportunities across Australia and aims to have a pipeline of 1,000 units within the joint venture by June 2008.

Oak Tree are experienced developers with a long track record of producing quality facilities for residents.

==> picture [306 x 178] intentionally omitted <==

----- Start of picture text -----

CAIRNS
NT
WA QLD
BORONIA
SA GOODNA
NSW CARDIFF
ORANGE
VIC
FRANKSTON
KINGSTON
----- End of picture text -----

10 11

AUSTRALIAN SENIORS

SETTLERS

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

LAKESIDE, WA
----- End of picture text -----

The Settlers Portfolio was founded in 1999 by the former Settlers Group. The portfolio includes four retirement villages, three of which are located in Western Australia and one in Queensland. ILF acquired this portfolio in April 2007 for $47 million.

The Settlers Portfolio currently comprises 558 completed ILUs and has a further 176 units either in construction or pending development stage. The portfolio upon completion will have in total 734 ILUs.

The Fund is also the strata manager of a further 14 investor owned ILUs. The Fund has been able to acquire 15 of these units back to date and will acquire an additional two in March 2008.

The Fund has a Management Services Agreement with Retraite Partnership, a partnership formed between key executives of the former Settlers Group. The Fund has implemented performance based remuneration which is dependent on the management team exceeding the Fund’s forecast hurdle rates.

==> picture [333 x 151] intentionally omitted <==

----- Start of picture text -----

LAKESIDE
MEADOW SPRINGS
RIDGEWOOD RISE
NT
WA QLD
NOYEA PARK
SA
NSW
VIC
----- End of picture text -----

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

SUNNYCOVE

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

GLADSTONE, QLD
----- End of picture text -----

The Fund acquired a portfolio of three seniors housing communities from Queensland based SCV Group Limited (SCV) for a total of $31.4 million. The second stages at Rockhampton and Gladstone are still to be developed. SCV is a leading operator of retirement villages, offering quality rental products to independent retirees, and is a long term specialist property manager of seniors communities. SCV currently manages ILF’s three Sunnycove branded properties at Forest Lake, Gladstone and Rockhampton, as well as the Fund’s 32 Village Life branded assets.

==> picture [324 x 151] intentionally omitted <==

----- Start of picture text -----

ROCKHAMPTON
GLADSTONE
NT
WA QLD
FOREST LAKE
SA
NSW
VIC
----- End of picture text -----

12 13

AUSTRALIAN SENIORS

VILLAGE LIFE

==> picture [440 x 200] intentionally omitted <==

SWAN VIEW, PERTH, WA

On 1 June 2007, SCV Group Limited (SCV) assumed operation of ILF’s portfolio of 32 Village Life branded retirement villages. The properties are located in geographically diverse regions across Australia, in well developed residential neighbourhoods with a high proportion of the population aged over 65.

The Village Life portfolio offers investors a rental stream which has an attractive growth rate of 4.0% per annum which is backed predominantly by the Australian aged pension. The Village Life portfolio has been valued at $154.7 million as at 31 December 2007, representing 12% of the Fund.

==> picture [439 x 251] intentionally omitted <==

----- Start of picture text -----

ALBANY
ARMADALE
MANDURAH
SWAN VIEW
BUNBURY
BUNDABERG
CABOOLTURE
IPSWICH
NT QLD MARSDEN
WA SALISBURY TOOWOOMBA
WYNNUM
SA
ALBURY
BALLARAT CESSNOCK
NSW BENDIGO COFFS HARBOUR
VIC DROMANA DUBBO
CLAREMONT GROVEDALE GOULBURN
DEVONPORT HORSHAM PORT MACQUARIE
GLENORCHY LOVELY BANKS TAREE
LAUNCESTON MELTON
KINGSTON ST ALBANS PARK
WELCOME INN
WANGARATTA
----- End of picture text -----

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [255 x 10] intentionally omitted <==

----- Start of picture text -----

SUNNYOVE FOREST LAKE, QUEENSLAND
----- End of picture text -----

14 15

CANADIAN SENIORS

The fund acquired a 50% interest in the Regency portfolio, consisting of eight Class A Long Term Care (LTC) facilities in June 2007. The assets are located in the Greater Toronto Area of Ontario, Canada and represents the Fund’s entry into the Canadian seniors housing market and the LTC asset class.

All assets were constructed in 2001 or later and are located in established residential communities, well serviced by public transport and major roads. The portfolio has a strong track record of high occupancy.

PORTFOLIO	REGENCY
VALUATION AS AT 31 DEC 2007(A$M)	145.5
OWNERSHIP INTEREST %	50%
NUMBER OF PROPERTIES	8
TOTAL UNITS	1,179
PIPELINE UNITS	400
% OF TOTAL FUND(ASSETS)	11.4%

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [255 x 10] intentionally omitted <==

----- Start of picture text -----

REGENCY THE WESTMOUNT, ONTARIO
----- End of picture text -----

==> picture [37 x 10] intentionally omitted <==

----- Start of picture text -----

16 17
----- End of picture text -----

CANADIAN SENIORS

PORTFOLIO STATISTICS

PORTFOLIO REGENCY	PROPERTY YEAR BUILT / SITE AREA PROPERTY NAME LOCATION TYPE REFURBISHED ACRES TITLE
	THE BRANT CENTRE BURLINGTON, ONTARIO CLASS A LTC 2003 3.7 LEASEHOLD
	THE WATERFORD OAKVILLE, ONTARIO CLASS A LTC 2003 4.4 FREEHOLD
	THE WENLEIGH MISSISSAUGA, ONTARIO CLASS A LTC 2001 2.7 FREEHOLD
	THE WESTBURY TORONTO, ONTARIO CLASS A LTC 2004 1.2 LEASEHOLD
	THE WESTMOUNT KITCHENER, ONTARIO CLASS A LTC 2002 4.2 FREEHOLD
	THE WILLOWGROVE ANCASTER, ONTARIO CLASS A LTC 2004 2.9 FREEHOLD
	THE WOODHAVEN MARKHAM, ONTARIO CLASS A LTC 2003 4.0 LEASEHOLD
	THE WYNFIELD OSHAWA, ONTARIO CLASS A LTC 2003 4.0 FREEHOLD
TOTAL

REGENCY

==> picture [284 x 259] intentionally omitted <==

The Fund has acquired a 50% interest in a portfolio of eight Class A Long Term Care (LTC) facilities situated within the Greater Toronto Area (GTA) of Ontario, Canada. Four of the eight sites have further development potential via excess land zoned for the addition of approximately 400 non-care (assisted living or independent living) units.

The average age of the assets in the Regency Portfolio is fi ve years. The Regency portfolio is managed by Chartwell Seniors Housing REIT, Canada’s largest manager of seniors housing facilities as at 31 December 2006. Chartwell also owns the remaining 50% interest in the portfolio.

The Regency Portfolio has a strong track record of high occupancies and receives funding from the Ministry of Health of up to 100% for properties with occupancies of 97% or greater.

THE WENLEIGH, MISSISSAUGA, ONTARIO

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

VALUATION	VALUATION	VALUATION								% OF
AS AT	AS AT	OWNERSHIP						PROPORTION		WAITING	TOTAL
31 DEC 2007	31 DEC 2007	INTEREST		OWNERSHIP	LICENSED	PIPELINE	TOTAL	OF PREFERRED		LIST (% OF	FUND
CAD$M	A$M1	A$M	CAP RATE	INTEREST	BEDS	UNITS	UNITS	ACCOMMODATION	OCCUPANCY	TOTAL BEDS)	(ASSETS)
30.6	35.0	17.5	7%	50%	175		140	60%	99%	93%	1.4%
32.3	37.0	18.5	7%	50%	168	100	136	60%	100%	60%	1.5%
29.2	33.4	16.7	7%	50%	161		155	60%	99%	78%	1.3%
33.0	37.8	18.3	7%	50%	187		145	60%	99%	61%	1.4%
30.7	35.1	17.6	7%	50%	160	100	141	60%	100%	94%	1.4%
30.9	35.4	17.7	7%	50%	169		137	60%	99%	108%	1.4%
35.5	40.6	20.3	7%	50%	192	100	173	60%	96%	41%	1.5%
33.1	37.9	18.9	7%	50%	172	100	152	60%	99%	193%	1.5%
255.3	292.2	145.5				400	1,179				11.4%

==> picture [295 x 230] intentionally omitted <==

----- Start of picture text -----

CANADA
ONTARIO
----- End of picture text -----

THE BRANT CENTRE THE WATERFORD THE WENLEIGH THE WESTBURY THE WESTMOUNT THE WILLOWGROVE THE WOODHAVEN THE WYNFIELD

1) Exchange rate of A$1 = C$0.8736

18 19

US SENIORS

The US seniors portfolio represents 48% of the Fund’s assets, comprising 27 assets primarily located in strong income and demand demographic areas with rental income entirely sourced from private means. Key investment attributes of the seniors housing asset class continue to provide the Fund with sustainable future returns.

The properties are managed by Horizon Bay Seniors Communities (Horizon Bay), ranked in the Top 20 seniors accommodation managers by the American Seniors Housing Association.

ILF will assess expansion opportunities within its US seniors portfolio in conjunction with its joint venture partner, Chartwell, via acquisition or by unlocking development potential within existing sites in the portfolio. Ongoing capital works completed at many of the properties will also ensure occupancy levels remain competitive.

					LAKE
PORTFOLIO	ASPEN	BRISTAL1	CYPRESS	MERIDIAN	WORTH	POCASSET	TROWBRIDGE
VALUATION AS AT 31 DEC 2007(A$M)	127.7	181.6	89.5	168.1	10.0	17.2	19.9
OWNERSHIP INTEREST	49%	49%	49%	49%	49%	49%	49%
NUMBER OF PROPERTIES	8	6	4	6	1	1	1
COMPLETED UNITS	1,365	760	818	1,043	170	169	300
PIPELINE UNITS	98	0	0	415	0	0	0
% OF TOTAL FUND(ASSETS)	10.0%	14.3%	7.0%	13.2%	0.8%	1.4%	1.5%

1) Includes 100%interest in Lynbrook

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [255 x 10] intentionally omitted <==

----- Start of picture text -----

ASPEN GAYTON TERRACE, VIRGINIA (ARTIST’S IMPRESSION)
----- End of picture text -----

20 21

US SENIORS

PORTFOLIO STATISTICS

PORTFOLIO ASPEN	VALUATION AS AT YEAR BUILT / SITE AREA 31 DEC 2007 PROPERTY NAME LOCATION REFURBISHED ACRES TITLE US$M
	AMBER PARK CINCINNATI, OHIO 1983 3.6 FEE SIMPLE 14.3
	BELLA VITA VENICE, FLORIDA 1988/1999 5.0 FEE SIMPLE 33.6
	GAYTON TERRACE RICHMOND, VIRGINIA 1987 9.9 FEE SIMPLE 27.0
	VILLAGE AT LOWRY DENVER, COLORADO 1995/2002 4.9 FEE SIMPLE 23.6
	WATERFORD DAYTON, OHIO 1987 8.3 FEE SIMPLE 7.5
	WILLOWWOOD FT. LAUDERDALE, FLORIDA 1987/1995/2007 18.3 FEE SIMPLE 53.7
	WOODSIDE VILLAGE BEDFORD, OHIO 1988 20.0 FEE SIMPLE 39.0
	WYNDHAM LAKES JACKSONVILLE, FLORIDA 1986 13.7 FEE SIMPLE 29.4
BRISTAL	EAST MEADOW EAST MEADOW, NEW YORK 2000 3.0 FEE SIMPLE 50.8
	LYNBROOK LYNBROOK, NEW YORK 1971/1998 1.05 FEE SIMPLE 19.3
	MASSAPEQUA MASSAPEQUA, NEW YORK 2006 4.7 FEE SIMPLE 53.9
	NORTH HILLS NORTH HILLS, NEW YORK 2004 4.2 FEE SIMPLE 74.1
	NORTH WOODMERE NORTH WOODMERE, NEW YORK 2003 2.9 FEE SIMPLE 47.4
	WESTBURY WESTBURY, NEW YORK 2001 2.3 FEE SIMPLE 58.9
CYPRESS	AUDUBON PARK MEMPHIS, TENNESSEE 2001 12.0 FEE SIMPLE 43.0
	STERLING HEIGHTS STERLING HEIGHTS, MICHIGAN 2002 13.4 FEE SIMPLE 42.0
	TULSA TULSA, OKLAHOMA 2001 12.3 FEE SIMPLE 31.9
	VESTAVIA HILLS BIRMINGHAM, ALABAMA 2001 11.4 FEE SIMPLE 42.9
MERIDIAN	ARVADA ARVADA, COLORADO 1988 7.8 FEE SIMPLE 25.8
INDEPENDENT ASSETS	BOULDER BOULDER, COLORADO 1986 3.8 FEE SIMPLE 37.5
	ENGLEWOOD ENGLEWOOD, COLORADO 1985/2007 3.9 FEE SIMPLE 103.5
	LAKEWOOD LAKEWOOD, COLORADO 1988 9.9 FEE SIMPLE 57.0
	TEMPLE TEMPLE, TEXAS 1984 21.0 FEE SIMPLE 40.1
	WESTLAND LAKEWOOD, COLORADO 1988 12.2 FEE SIMPLE 36.1
	LAKE WORTH GARDENS LAKEWORTH, FLORIDA 1984/2007 7.3 FEE SIMPLE 17.9
	POCASSET BAY MANOR JOHNSTON, RHODE ISLAND 1989/2003 13.3 FEE SIMPLE 30.8
	THE PARK AT TROWBRIDGE SOUTHFIELD, MICHIGAN 1988/2005 7.0 FEE SIMPLE 35.5
TOTAL	1,076.4

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

VALUATION	VALUATION									% OF
AS AT	OWNERSHIP			TOTAL	TOTAL	TOTAL				TOTAL
31 DEC 2007	INTEREST		OWNERSHIP	UNITS	UNITS	UNITS	PIPELINE	TOTAL		FUND
A$M1	A$M	CAP RATE	INTEREST	ILU	ALU	ALZ	UNITS	UNITS	OCCUPANCY	(ASSETS)
16.3	8.0	6.75%	49%	73	52	0		125	94%	0.6%
38.4	18.8	6.75%	49%	63	52	0		115	97%	1.5%
30.9	15.1	6.75%	49%	63	37	0	98	198	100%	1.2%
27.0	13.2	6.50%	49%	104	50	15		169	89%	1.0%
8.6	4.2	6.75%	49%	110	0	0		110	85%	0.3%
61.4	30.1	6.75%	49%	168	110	0		278	94%	2.4%
44.5	21.8	7.00%	49%	97	105	18		220	90%	1.7%
33.6	16.5	6.75%	49%	103	124	21		248	95%	1.3%
58.1	28.4	6.00%	49%	0	109	12		121	97%	2.2%
22.0	22.0	7.00%	100%	0	120	0		120	79%	1.7%
61.6	30.2	6.00%	49%	0	95	25		120	96%	2.4%
84.7	41.5	6.00%	49%	0	121	20		141	99%	3.3%
54.2	26.5	6.00%	49%	0	99	19		118	91%	2.1%
67.3	33.0	6.00%	49%	0	126	14		140	96%	2.6%
49.1	24.1	6.25%	49%	176	0	0		176	99%	1.9%
47.9	23.5	6.50%	49%	222	0	0		222	91%	1.8%
36.5	17.9	6.25%	49%	198	0	0		198	98%	1.4%
49.0	24.0	6.25%	49%	222	0	0		222	98%	1.4%
29.5	14.4	6.25%	49%	125	0	0	143	268	99%	1.1%
42.9	21.0	6.25%	49%	96	0	0		96	94%	1.6%
118.3	58.1	6.25%	49%	177	89	0	48	314	95%	4.6%
65.1	31.9	6.25%	49%	101	71	0		172	98%	2.5%
45.9	22.5	7.50%	49%	171	60	0	122	353	96%	1.8%
41.3	20.2	6.25%	49%	153	0	0	102	255	96%	1.6%
20.5	10.0	6.75%	49%	170	0	0		170	93%	0.8%
35.2	17.2	6.75%	49%	110	59	0		169	97%	1.4%
40.6	19.9	6.75%	49%	260	40	0		300	83%	1.5%
1,230.0	614.0			2,962	1,519	144	513	5,138		48.2%

1) Exchange rate of A$1 = US$0.8751

22 23

US SENIORS

ASPEN

==> picture [440 x 200] intentionally omitted <==

BELLA VITA, VENICE, FLORIDA

The Aspen portfolio comprises 1,365 completed units and is located in the states of Florida, Virginia, Colorado and Ohio.

The portfolio has demonstrated an average occupancy of 92% during the six months to December 2007. Gayton Terrace in Virginia has embarked upon an expansion of the community which will double its size and capitalise on its dominant position in the market.

The properties are all located in suburban areas, close to local amenities and are characterised by favourable demographic profi les and solid economic fundamentals. Recently a number of the properties have benefi ted from a refurbishment programme initiated by Horizon Bay, repositioning the properties in their respective markets.

VILLAGE AT LOWRY

==> picture [317 x 151] intentionally omitted <==

----- Start of picture text -----

UNITED STATES
OHIO
COLORADO VIRGINIA
FLORIDA
----- End of picture text -----

AMBER PARK WATERFORD WOODSIDE VILLAGE GAYTON TERRACE BELLA VITA WILLOWWOOD WYNDHAM LAKES

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

BRISTAL

==> picture [440 x 200] intentionally omitted <==

BRISTAL, NORTH WOODMERE, NEW YORK

In October 2006, the Fund’s joint venture with Chartwell acquired fi ve high quality assisted living communities in Long Island, New York for US$290.5 million. The portfolio was acquired at a discount to valuation of 1.8%. In December 2007, the Fund further bolstered the portfolio with the acquisition of SeniorCare at Lynbrook. Lynbrook consists of 120 Assisted Living Units, located within close proximity to the fi ve existing properties. The property will undergo signifi cant refurbishment in 2008 and will be rebranded to become part of the Bristal portfolio.

The portfolio is located in the highly affl uent demographic of Long Island, New York, which has one of the highest proportions of seniors in the US, with the 85+ age group forecast to grow by 3.96% p.a. over the next fi ve years.

Built between 2000 and 2006, the portfolio is very modern and contains large luxury unit designs averaging 102sqm. The communities are operated by Chartwell & the Engle-Burman group, the original developer of the portfolio. Occupancy is expected to remain strong as a result of favourable supply and demand attributes.

==> picture [317 x 151] intentionally omitted <==

----- Start of picture text -----

UNITED STATES NEW YORK
----- End of picture text -----

EAST MEADOW LYNBROOK MASSAPEQUA NORTH HILLS NORTH WOODMERE WESTBURY

24 25

US SENIORS

CYPRESS

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

CYPRESS STERLING HEIGHTS, MICHIGAN
----- End of picture text -----

In May 2006, the Fund acquired a 49% interest in a portfolio of four independent living seniors housing assets for US$128.2 million. The portfolio includes a total of 818 units located in four modern, purpose built complexes situated in the States of Oklahoma, Michigan, Tennessee and Alabama in areas with strong income demographics.

The portfolio is one of the Fund’s best performers, demonstrating average occupancies of 97% for the six months to December 2007. The portfolio benefi ts from the long term management in place and the high quality product on offer. The geographically diversifi ed properties are dominant communities in each of their markets.

==> picture [393 x 160] intentionally omitted <==

----- Start of picture text -----

STERLING HEIGHTS
MICHIGAN
UNITED STATES
TULSA
OKLAHOMA AUDUBON PARK
TENNESSEE
VESTAVIA HILLS
ALABAMA
----- End of picture text -----

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

MERIDIAN

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

MERIDIAN ARVADA, COLORADO
----- End of picture text -----

In July 2005, ILF announced the acquisition of a 49% interest in the Meridian portfolio of six A class seniors housing communities for US$232 million, in conjunction with Chartwell. Five of the assets are in Colorado and one in Texas. Recent renovations to the communities have enhanced their appeal.

The assets are dominant in their markets with good brand recognition, which is supported by the long history of 95%+ occupancy and waiting lists. The properties benefi t from management effi ciencies due to the concentration of properties in the area and a solid management team which has been in place for some time.

The portfolio comprises 1,043 units, and four of the assets have surplus land for further development.

==> picture [373 x 162] intentionally omitted <==

----- Start of picture text -----

ARVADA
BOULDER
ENGLEWOOD
LAKEWOOD
UNITED STATES WESTLAND
COLORADO
TEXAS
TEMPLE
----- End of picture text -----

26 27

US SENIORS

INDEPENDENT ASSETS

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

LAKE WORTH GARDENS, FLORIDA
----- End of picture text -----

Lake Worth Gardens, Lake Worth

In August 2006 ILF acquired a 49% interest in a 170 unit seniors housing asset in Palm Beach County. Lake Worth Gardens has undergone signifi cant refurbishment and market repositioning this past year which has provided good results for occupancy levels in excess of 90%.

Pocasset Bay Manor, Rhode Island

In October 2005, ILF acquired a 49% interest Pocasset Bay Manor retirement community, Rhode Island for the purchase price of US$20 million. Pocasset Bay Manor comprises 168 units, including 58 assisted living studios. It was built in 1989 and was substantially refurbished in 2003. The community is situated on 13 acres of landscaped land with good development potential.

The Park at Trowbridge, Michigan

A 49% interest in The Park at Trowbridge was acquired in October 2005 for US$27 million, representing a discount of 4.8% to independent valuation. Built in 1988, the community underwent an extensive renovation which was completed in June 2005.

==> picture [413 x 150] intentionally omitted <==

----- Start of picture text -----

THE PARK
AT TROWBRIDGE
MICHIGAN
RHODE
ISLAND POCASSET BAY MANOR
UNITED STATES
FLORIDA
LAKE WORTH GARDENS
----- End of picture text -----

LAKE WORTH GARDENS

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [255 x 10] intentionally omitted <==

----- Start of picture text -----

ASPEN BELLA VITA, FLORIDA
----- End of picture text -----

28 29

US + NZ STUDENTS

The student portfolio comprises 22 properties located in Connecticut, Florida and Virginia in the US and three in Wellington, New Zealand.

The US assets are located in markets where there is a signifi cant under provision of student accommodation and growing college enrolments.

The New Zealand properties are located in the central business district of Wellington, providing accommodation for students of the Victoria University of Wellington (VUW).

PORTFOLIO	US STUDENTS	NZ STUDENTS
VALUATION AS AT 31 DEC 2007(A$M)	173.4	26.7
OWNERSHIP INTEREST %	100%	90%
NUMBER OF PROPERTIES	22	3
NUMBER OF UNITS	1,417	362
PIPELINE UNITS	110	0
% OF TOTAL FUND(ASSETS)	13.6%	2.1%

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

==> picture [255 x 10] intentionally omitted <==

----- Start of picture text -----

MCKENZIE APARTMENTS, WELLINGTON
----- End of picture text -----

==> picture [34 x 10] intentionally omitted <==

----- Start of picture text -----

30 31
----- End of picture text -----

US + NZ STUDENTS

PORTFOLIO STATISTICS

US STUDENTS

			YEAR	BUILT /	SITE AREA
PORTFOLIO	LOCATION	PROPERTY TYPE	REFURBISHED		ACRES
34 FAIRVIEW STREET	WEST HARTFORD, CONNECTICUT	GARDEN STYLE APARTMENT BUILDING		1964	0.5
45 OAKWOOD AVENUE	WEST HARTFORD, CONNECTICUT	GARDEN STYLE APARTMENT BUILDING		1964	0.3
ASHFORD HILLS APARTMENTS	ASHFORD, CONNECTICUT	GARDEN STYLE APARTMENT BUILDING		1969	11.6
CEDAR CREEK APARTMENTS	NEW BRITAIN, CONNECTICUT	GARDEN STYLE APARTMENT BUILDING & HOUSE		1970	2.5
CLUBHOUSE APARTMENTS	STORRS MANFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1965	22.8
HUNTING LODGE APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE 8-PLEX COMMUNITY		1963	13.5
KELLY GARDENS APARTMENTS	NEW BRITAIN, CONNECTICUT	GARDEN STYLE APARTMENT COMMUNITY		1970	2.9
KNOLLWOOD APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1964	52.7
MAPLEWOOD APARTMENTS	STORRS MANFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1964	65.8
MILLBROOK APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1975	6.0
OAKRIDGE APARTMENTS	WILLIMANTIC, CONNECTICUT	GARDEN STYLE APARTMENT COMMUNITY		1965	3.4
OAKWOOD APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE DUPLEX COMMUNITY		1964	2.5
ORCHARD ACRES APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1962	27.0
PERRY HILL ESTATES	ASHFORD, CONNECTICUT	GARDEN STYLE 8-PLEX COMMUNITY		1969	25.8
RENWOOD APARTMENTS	STORRS MANSFIELD, CONNECTICUT	GARDEN STYLE 4-PLEX COMMUNITY		1966	35.4
RIDGEVIEW HEIGHTS	WILLINGTON, CONNECTICUT	GARDEN STYLE APARTMENT COMMUNITY		1970	24.3
SPRINGWOOD APARTMENTS	NEW BRITAIN, CONNECTICUT	GARDEN STYLE APARTMENT COMMUNITY		1970	4.2
WILLINGTON OAKS APARTMENTS	WILLINGTON, CONNECTICUT	GARDEN STYLE APARTMENT COMMUNITY		1966	62.1
CAMPUS CLUB	TAMPA, FLORIDA	APARTMENT COMMUNITY		2003	5.5
THE PRESERVE	TALLAHASSEE, FLORIDA	APARTMENT COMMUNITY		2003	36.2
RAMZ HALL	RICHMOND, VIRGINIA	APARTMENT BUILDING		2004	1.0
CAPITAL GARAGE APARTMENTS	RICHMOND, VIRGINIA	APARTMENT BUILDING		2000	0.3
TOTAL

NZ STUDENTS

			YEAR BUILT /	SITE AREA
PORTFOLIO	LOCATION	PROPERTY TYPE	REFURBISHED	M2	TITLE
CUMBERLAND HOUSE	WELLINGTON, NEW ZEALAND	STUDENT ACCOMMODATION	2000	2603	FREEHOLD
EDUCATION HOUSE	WELLINGTON, NEW ZEALAND	STUDENT ACCOMMODATION	2002	723	FREEHOLD
MCKENZIE APARTMENTS	WELLINGTON, NEW ZEALAND	STUDENT ACCOMMODATION	1998	2181	FREEHOLD
TOTAL

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

	VALUATION	VALUATION
	AS AT	AS AT		OWNERSHIP				DISTANCE TO		% OF
	31 DEC 2007	31 DEC 2007		INTEREST	TOTAL	TOTAL	NUMBER OR		CAMPUS	TOTAL
TITLE	US$M	A$M1	CAP RATE	%	BEDS	UNITS	BUILDINGS	OCCUPANCY	MILES	FUND
FEE SIMPLE	1.5	1.7	7.00%	100%	24	23	1	100%	2	0.1%
FEE SIMPLE	0.8	0.9	7.00%	100%	15	14	1	93%	2	0.1%
FEE SIMPLE	3.0	3.4	6.75%	100%	80	52	1	77%	5	0.3%
FEE SIMPLE	3.7	4.2	7.25%	100%	124	63	5	70%	0.25	0.3%
FEE SIMPLE	4.7	5.4	7.00%	100%	72	44	11	100%	1	0.4%
FEE SIMPLE	8.1	9.3	6.25%	100%	75	40	5	100%	0.25	0.7%
FEE SIMPLE	1.6	1.8	7.00%	100%	105	66	3	79%	0.25	0.1%
FEE SIMPLE	10.3	11.8	7.00%	100%	184	136	34	72%	0.25	0.9%
FEE SIMPLE	3.8	4.3	7.00%	100%	80	40	10	93%	2	0.3%
FEE SIMPLE	1.3	1.4	7.00%	100%	21	12	3	92%	2.5	0.1%
FEE SIMPLE	2.9	3.3	6.25%	100%	48	36	3	97%	7	0.3%
FEE SIMPLE	0.9	1.0	7.00%	100%	10	10	5	100%	0.25	0.1%
FEE SIMPLE	9.0	10.3	6.25%	100%	96	96	24	98%	0	0.8%
FEE SIMPLE	4.9	5.6	6.25%	100%	96	48	6	98%	7	0.4%
FEE SIMPLE	7.6	8.7	6.25%	100%	120	76	19	95%	2	0.7%
FEE SIMPLE	4.4	5.0	6.25%	100%	72	48	4	90%	7	0.4%
FEE SIMPLE	3.9	4.5	7.50%	100%	180	107	6	79%	1	0.4%
FEE SIMPLE	14.8	16.9	6.25%	100%	192	128	12	99%	1.5	1.3%
FEE SIMPLE	13.8	15.8	6.50%	100%	256	64	2	100%	<1	1.2%
FEE SIMPLE	26.8	30.6	6.50%	100%	570	190	23	91%	1	2.4%
LEASED FEE ESTATE	17.2	19.7	6.25%	100%	172	88	1	100%	0	1.5%
LEASED FEE ESTATE	6.8	7.8	6.25%	100%	72	36	1	100%	0	0.6%
	151.8	173.4			2,664	1,417				13.6%

VALUATION	VALUATION	VALUATION
AS AT	AS AT	OWNERSHIP							DISTANCE	% OF
31 DEC 2007	31 DEC 2007	INTEREST		OWNERSHIP	TOTAL	TOTAL	NUMBER OF		TO CAMPUS	TOTAL
NZ$M	A$M2	A$M	CAP RATE	INTEREST	BEDS	UNITS	BUILDINGS	OCCUPANCY3	KM	FUND
15.5	13.6	12.2	9.97%	90%	215	191	1	80%	0.1	1.0
6.4	5.6	5.1	9.59%	90%	108	108	1	80%	0.1	0.4
12.0	10.5	9.4	9.41%	90%	212	63	1	80%	0.1	0.7
33.9	30.9	27.8			535	362				2.1

• 1) Exchange rate of A$1 = US$0.8751

• 2) Exchange rate of A$1 = NZ$1.1429

• 3) NZ occupancy seasonally adjusted based on 100% occupancy for academic year

32 33

US + NZ STUDENTS

US CONNECTICUT

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

CLUBHOUSE APARTMENTS, STORRS MANSFIELD, CONNECTICUT
----- End of picture text -----

In early 2006, ILF acquired 18 student accommodation assets in Connecticut, totalling 1,040 beds, for US$87.8 million. The properties are predominantly leased to individual students under 12 month contracts which are secured by bonds and with parental guarantees.

This portfolio is the dominant provider of student accommodation within a seven mile radius of the University of Connecticut. Five of the assets also service the Central Connecticut State University, University of Hartford and local colleges as well as local families. The assets are managed by local property managers and overseen by Rabil Properties. In November 2007, specialist managers were appointed to manage the outlying New Britain properties servicing local families as well as students.

A number of initiatives were undertaken to further drive occupancies in 2007, including a rebranding exercise and extensive capital works to ensure the properties remain competitive in their market.

==> picture [278 x 151] intentionally omitted <==

----- Start of picture text -----

CONNECTICUT
UNITED STATES
----- End of picture text -----

34 FAIRVIEW STREET 45 OAKWOOD AVENUE ASHFORD HILLS APARTMENTS CEDAR CREEK APARTMENTS CLUBHOUSE APARTMENTS HUNTING LODGE APARTMENTS KELLY GARDENS APARTMENTS KNOLLWOOD APARTMENTS MAPLEWOOD APARTMENTS MILLBROOK APARTMENTS OAKRIDGE APARTMENTS OAKWOOD APARTMENTS ORCHARD ACRE APARTMENTS PERRY HILL ESTATES RENWOOD APARTMENTS RIDGEVIEW HEIGHTS SPRINGWOOD APARTMENTS WILLINGTON OAKS APARTMENTS

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

US FLORIDA

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

CAMPUS CLUB, TAMPA, FLORIDA
----- End of picture text -----

ILF acquired two quality collegiate style student apartment complexes in the Florida student market in July 2006 for US$36.45 million. The two properties include The Preserve in Tallahassee and Campus Club Apartments in Tampa, both located in Florida, USA.

The Preserve at Tallahassee, was built in 2003, has 190 units (570 bedrooms) and is located on 36.2 acres, less than three miles from Florida State University and one mile from Tallahassee Community College. Campus Club at Tampa, was completed in 2005, has 64 units (256 bedrooms) and is located on 5.5 acres, just one mile from the University of South Florida.

==> picture [353 x 151] intentionally omitted <==

----- Start of picture text -----

UNITED STATES
FLORIDA
THE PRESERVE
CAMPUS CLUB
----- End of picture text -----

34 35

US + NZ STUDENTS

US VIRGINIA

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

RAMZ HALL, RICHMOND, VIRGINIA
----- End of picture text -----

In January 2006, ILF acquired two student accommodation assets in Virginia, totalling 244 beds. The assets, purchased for US$21.7 million are both master leased to the Virginia Commonwealth University (VCU). RAMZ Hall has a fi ve year master lease expiring in 2010 with fi xed 3% per annum rental increases and includes retail tenancies. Capital Garage Apartments has a year-to-year master lease with VCU and has experienced 3% rental growth over the last fi ve years. The Virginia assets are located within 250 metres of the campus and are managed by local property managers.

==> picture [419 x 151] intentionally omitted <==

----- Start of picture text -----

UNITED STATES
VIRGINIA
RAMZ HALL
CAPITAL GARAGE APARTMENTS
----- End of picture text -----

ING REAL ESTATE COMMUNITY LIVING GROUP PROPERTY PORTFOLIO REVIEW

NZ WELLINGTON

==> picture [440 x 200] intentionally omitted <==

==> picture [440 x 9] intentionally omitted <==

----- Start of picture text -----

MCKENZIE APARTMENTS, WELLINGTON
----- End of picture text -----

The New Zealand student housing portfolio comprises three mixed use properties located in the Central Business District of Wellington, providing accommodation for students of the Victoria University of Wellington (VUW). The three properties accommodate 535 students and are operated by Campus Living Villages, specialist student accommodation managers.

The Fund acquired a 90% interest in these assets alongside ING Real Estate Investment Management Australia who is a 10% investor. The properties are in demand during the academic year when they enjoy 100% occupancy. Recently four fl oors of McKenzie Apartments were renovated to hotel quality standard and will be rebranded to attract further interest over the summer holiday period with backpackers, language schools and tour and sporting groups. A number of energy and water saving initiatives have been implemented and in July 2008, the refurbished pizza restaurant and bar will be launched.

==> picture [143 x 177] intentionally omitted <==

==> picture [97 x 30] intentionally omitted <==

----- Start of picture text -----

CUMBERLAND HOUSE
EDUCATION HOUSE
MCKENZIE APARTMENTS
----- End of picture text -----

36 37

==> picture [595 x 171] intentionally omitted <==

REGISTERED OFFICE

ING REAL ESTATE INVESTMENT MANAGEMENT AUSTRALIA

Level 6, 345 George Street Sydney NSW 2000 T : + 61 2 9033 1035 F : + 61 2 9033 1060 E : realestate@ingrealestate.com I : www.ingrealestate.com.au/investment

UNIT REGISTRY

LINK MARKET SERVICES Level 12, 680 George Street Sydney NSW 2000

INVESTOR SERVICES

Toll Free: 1300 653 497 T : + 61 2 8280 7057 F : + 61 2 9287 0303 E : ingrealestate@linkmarketservices.com.au

INVESTOR ENQUIRIES

IAN MUIR CHIEF EXECUTIVE OFFICER ING REAL ESTATE COMMUNITY LIVING GROUP T : + 61 2 9033 1019

The ING Real Estate Community Living Group is listed on the Australian Securities Exchange (ASX). The ASX Code is ILF.

ING REAL ESTATE GLOBAL NETWORK RESPONSIBLE ENTITY ING MANAGEMENT LIMITED AUSTRALIA HUNGARY SPAIN ABN 15 006 065 032 BELGIUM ITALY SWEDEN AFS LICENSE 237534 CANADA JAPAN TAIWAN CHINA KOREA THAILAND CZECH REPUBLIC POLAND THE NETHERLANDS FRANCE ROMANIA UK GERMANY SINGAPORE USA

==> picture [84 x 36] intentionally omitted <==

www.ingrealestate.com.au/investment