INGENIA COMMUNITIES GROUP — Interim / Quarterly Report 2007

Feb 28, 2008

INvESTMENT MANAgEMENT

INg Real Estate Community Living group Half Year Review 31 December 2007

ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK

ING real estate commuNIty lIvING Group

UNIQUE gLOBAL ADvANTAgE

ING real estate community living Group is one of eight property funds managed by ING real estate australia on behalf of over 60,000 investors. In australia, the main activities of ING real estate include funds management, property and asset management, finance and development. operations span global real estate markets and encompass office, industrial, retail, seniors and student housing, entertainment and healthcare property sectors. ING real estate australia is part of the ING real estate global platform, one of the world’s leading property investment managers, with over $160 billion in assets under management and a presence in 27 countries around the globe.

ING real estate

$160 bIllIoN IN assets uNder maNaGemeNt preseNce IN 27 couNtrIes

==> picture [177 x 104] intentionally omitted <==

BELLA vITA, fLORIDA

==> picture [170 x 100] intentionally omitted <==

COUNTRY CLUB gEELONg gROvE, vICTORIA

==> picture [170 x 100] intentionally omitted <==

ING real estate commuNIty lIvING Group half year revIew 2007

2 ACHIEvEMENTS 4 KEY fINANCIAL DATA 6 CEO’S LETTER 8 fUND UPDATE 17 PROPERTY PORTfOLIO 22 INvESTOR RELATIONS 24 OTHER INvESTMENT OPPORTUNITIES

ING real estate community living Group is a significant 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 diversified 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 first listed property group on the australian securities exchange (asX) specialising in seniors and student housing communities.

1

achIevemeNts

==> picture [392 x 442] intentionally omitted <==

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

SETTLERS LAKESIDE, wESTERN AUSTRALIA
----- End of picture text -----

ING real estate commuNIty lIvING Group half year revIew 2007

==> picture [43 x 442] intentionally omitted <==

solid performance in challenging market conditions, increasing distributions for the period by 7% to 5.73 cents per unit

us seniors portfolio exceeds industry benchmarks with occupancies of 94% as at 31 december 2007

acquisition of lynbrook to bolster bristal portfolio in the affluent long Island market expansion of australian pipeline to 2,000 units with purchase of five greenfield sites in key locations

australian dmf portfolio continues to perform above expectations due to delivery of development pipeline in western australia

2 3

Key fINaNcIal data

	31 DECEMBER	2007	2006
	asX closing price	$1.22	$1.26
	total distributions(centsper unit)	5.73	5.36
	distributable income(centsper unit)	5.5	5.1
	tax deferred component1	76%	92%
annualisedyield on closing price		9.4%	8.5%
Net asset valueper unit		$1.13	$1.18
market capitalisation		$533m	$390m
total assets(look through)		$1.3b	$940m
Gearingratio(debt to total assets)		57%	56%
units on issue		436.9m	309.5m
Number of unitholders		6,101	3,170

1) 31 dec 2007 is an estimate

ING real estate commuNIty lIvING Group half year revIew 2007

BRISTAL NORTH wOODMERE, LONg ISLAND

4 5

ceo’s letter

“ Management is confident the Fund can continue delivering sustainable returns given the quality of its well diversified portfolio, the large development pipeline which offers investors the opportunity for future growth, and the underlying demand and supply fundamentals driving strong sector returns.”

==> picture [223 x 223] intentionally omitted <==

ian muir chIef eXecutIve offIcer ING real estate commuNIty lIvING Group

ING real estate commuNIty lIvING Group half year revIew 2007

the fund’s conservative capital management program is supported by long dated debt facilities, with an average term to maturity of 9.6 years, and 95% of debt hedged for an average duration of 9.5 years. the hedging strategy of the fund’s debt and foreign currency exposures serves to mitigate the fund’s earnings from interest rate and foreign currency fluctuations.

dear unitholder, In recent months, the listed property trust (lpt) sector has endured significant volatility as a result of the sub-prime issues affecting the united states and the subsequent credit squeeze in domestic and global markets. despite these difficult market conditions, the demand and supply fundamentals underpinning the performance of Ilf’s portfolio remain strong. the key attributes driving sustainability of returns from Ilf’s portfolio include:

the fund also continues to leverage from its joint venture relationships and the ING real estate global platform in extracting superior returns from its portfolio investments.

• Quality assets

• large and growing development pipeline

• strong occupancies

yours sincerely,

• stable income streams from rental model

==> picture [105 x 55] intentionally omitted <==

• Key joint venture relationships

• proven management track record

In the six months to 31 december 2007, Ilf delivered 5.73 cents per unit in distributions to unitholders, representing a 7% increase on the same period in 2006. this increase was driven partly by acquisitions but primarily due to the sound performance of the existing assets. portfolio performance is underpinned by strong occupancies and effective management of operations. as at 31 december 2007, overall occupancy for the fund was approximately 90%, which was driven by strong occupancies in North america.

IAN MUIR

Chief Executive Officer

ING real estate community living Group

6 7

fuNd update

==> picture [392 x 442] intentionally omitted <==

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

SUNNYCOvE fOREST LAKE, QUEENSLAND
----- End of picture text -----

ING real estate commuNIty lIvING Group half year revIew 2007

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 significantly weighted to the rental model, providing 84% of Ilf’s cash flows. further complementing these income streams, the fund derives development profits 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.

ASSET 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%

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.

gEOgRAPHIC DIvERSIfICATION BY vALUE (A$m)[ 1]

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

1) Ilf’s interest

8 9

fuNd update

OAK TREE gOODNA, QUEENSLAND

ING real estate commuNIty lIvING Group half year revIew 2007

AUSTRALIAN PORTfOLIO

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 greenfield 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 profit and deferred management fees.

the performance of the australian portfolio over the period has exceeded expectations with the settlers portfolio being the major source of the outperformance. during the period, the fund built 67 units and purchased back 15 investor owned units, bringing the total of completed units to 558 with average portfolio occupancy of 96%. the portfolio was acquired in april 2007 for $47 million and in december 2007 the fund benefited from significant uplift in value for the portfolio to $83 million.

Ilf’s joint venture with oak tree Group continues to progress a number of development opportunities, boosting the pipeline with the acquisition of greenfield sites in cairns (77 units), cardiff (100 units), Kingston (85 units) and orange (98 units) during the period. the joint venture opened its first village in Goodna, brisbane, in November 2007 which has generated much local interest, the first units expected to settle early in 2008. construction has commenced on sites in frankston, victoria and boronia heights and cairns in Queensland.

country club villages has performed well, featuring high quality assets, high occupancies and strong interest in villages coming through the pipeline. construction has commenced at coolaroo, victoria and Noosa, Queensland and stage 3 at hemsley park and the final stage at meadow Gardens are underway. In december 2007 the joint venture acquired a greenfield site in bendigo which has subsequently received development approval to develop 238 units. construction is expected to commence in the second half of 2008.

the fund’s australian rental portfolio has now transitioned to being wholly managed by sunnycove management. the portfolio is to undergo a rebranding exercise through 2008 and capital works have been undertaken in many of the villages which should translate into improved occupancy levels over the medium term.

10 11

fuNd update

==> picture [393 x 442] intentionally omitted <==

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

BRISTAL PORTfOLIO, LONg ISLAND
----- End of picture text -----

ING real estate commuNIty lIvING Group half year revIew 2007

US SENIORS

while the effects of the us sub-prime mortgage fallout are being felt across most sectors, rental based seniors housing accommodation does not appear to have been materially affected by the downturn. this is evidenced by sustained high occupancies within Ilf’s portfolio, and market evidence which supports the rental model not being substantially reliant on residents selling their homes in order to finance their accommodation. this in turn supports the view that valuations for good quality portfolios remain firm.

the portfolio averaged 93% occupancy for the period June to december 2007, an improvement over the same period in 2006, and exceeded industry benchmarks for the 12 month period June 2006 to July 2007. capital works completed at many of the properties over the winter months will also ensure occupancy levels remain competitive.

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

the fund is pleased to announce further investment into the affluent long Island market with the acquisition of seniorcare at lynbrook. lynbrook consists of 120 assisted living units (alus), located within close proximity to the five existing bristal properties in long Island, New york. the property will undergo significant refurbishment in 2008 and will be rebranded to become part of the bristal portfolio.

12 13

fuNd update

==> picture [165 x 157] intentionally omitted <==

==> picture [225 x 157] intentionally omitted <==

==> picture [392 x 10] intentionally omitted <==

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

REgENCY PORTfOLIO, ONTARIO
----- End of picture text -----

CANADIAN LONg TERM CARE

the regency portfolio has provided stable and predictable cash flows for Ilf since it was acquired by the fund’s joint venture with chartwell seniors housing reIt in June 2007. the portfolio eight class a assets have enjoyed occupancies exceeding 99%, with long waiting lists, driven by the high quality of the facilities and the regulation of the supply of licensed beds in the province.

four of the eight sites have adjoining land with development plans in place to extend the portfolio by a further 400 assisted or independent living units (al and Ilus). during the period to 31 december 2007, the joint venture appointed architects and a project manager and expect construction to commence by the end of 2008.

ING real estate commuNIty lIvING Group half year revIew 2007

==> picture [420 x 157] intentionally omitted <==

==> picture [420 x 10] intentionally omitted <==

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

MCKENzIE APARTMENTS, NEw zEALAND
----- End of picture text -----

STUDENTS

the student portfolio consists of 22 properties in the us and three in New Zealand. the high barriers to entry and a unique set of demand drivers, enhance the returns of this asset class.

the student housing sector is needs driven and presents a low risk investment opportunity during times of economic instability. research suggests that during a recession, enrolments increase as students undertake further study in lieu of limited employment opportunities.

capital works in the connecticut and New Zealand properties over the semester break have been completed to improve facilities and ensure the properties remain competitive in their markets.

a number of strategic initiatives were also undertaken in connecticut including rebranding the assets to Gr8 space. In New Zealand we have implemented a number of energy initiatives, converted unutilised ground floor space into retail space and are renovating four floors to a hotel quality standard to market over the summer.

the performance of the portfolio remains stable, with average occupancy for the period June to december 2007 at 91%.

14 15

fuNd update

DEBT & INTEREST RATE MANAgEMENT

Ilf’s debt is held both directly and indirectly within its joint ventures in australia, New Zealand, the us and canada. all debt is secured and has an average maturity of 9.6 years. with a significant portion of the core debt having a long dated maturity, less than 2% of total drawn loans are due to mature within the next 12 months.

on a look through basis and with assets of $1.3 billion, Ilf has a debt to asset ratio of approximately 57%.

the fund’s exposure to interest rate fluctuations is reduced through a combination of fixed rate loans and interest rate derivatives (collectively known as interest rate hedging). the fund’s usd and cad denominated debt is fixed for an average of 12 years. these measures minimize the impact of movements in interest rates on Ilf’s future earnings.

Ilf has developed partnerships and acquired quality cornerstone assets in target global markets being the us, canada and New Zealand. while these assets have the potential to deliver superior returns, the fund may be exposed to currency risks through movements in foreign exchange rates. to protect future earnings and the fund’s capital base against fluctuations in foreign exchange rates, management undertakes an comprehensive currency hedging strategy.

OUTLOOK

while challenges lie ahead in this uncertain economic environment, Ilf is well positioned to continue to deliver secure returns to investors. Ilf’s portfolio of high quality assets are performing well in their respective markets, the seniors and students housing sectors proving to be resilient asset classes amidst global market volatility.

Ilf will continue to drive shareholder returns via its secure and growing income streams from rental assets, and look to enhance earnings through the delivery of the development pipeline.

active management of the portfolio, coupled with the experience and expertise of specialist developers and operators, ensures optimum performance is extracted from its assets. the capital improvement and expansion program for existing villages will benefit from the local expertise of the fund’s partners.

the favourable demand/supply drivers characterising the seniors and student housing asset classes will ensure the fund is well placed to deliver sustainable returns in the future.

ING real estate commuNIty lIvING Group half year revIew 2007

property portfolIo

australIaN seNIors

==> picture [420 x 265] intentionally omitted <==

SUNNYCOvE gLADSTONE, QLD
	COUNTRY	OAK		SUNNY	vILLAgE
PORTfOLIO	CLUB	TREE	SETTLERS	COvE	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%

16 17

property portfolIo

caNadIaN seNIors

==> picture [392 x 265] intentionally omitted <==

REgENCY THE wENLEIgH, ONTARIO

==> picture [392 x 13] intentionally omitted <==

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

PORTfOLIO REgENCY
----- End of picture text -----

PORTfOLIO	REgENCY
valuatIoN as at 31 dec 2007(a$m)	145.5
owNershIp INterest %	50%
Number of propertIes	8
completed uNIts	1,179
pIpelINe uNIts	400
% of total fuNd(assets)	11.4%

ING real estate commuNIty lIvING Group half year revIew 2007

us seNIors

==> picture [420 x 265] intentionally omitted <==

POCASSET BAY MANOR, MICHIgAN

PORTfOLIO	ASPEN	BRISTAL1	CYPRESS	MERIDIAN	OTHER
valuatIoN as at 31 dec 2007(a$m)	127.7	181.6	89.5	168.1	47.1
owNershIp INterest %	49%	49%	49%	49%	49%
Number of propertIes	8	6	4	6	3
completed uNIts	1,365	760	818	1,043	639
pIpelINe uNIts	98	0	0	415	0
% of total fuNd(assets)	10.0 %	14.3%	7.0%	13.2%	3.7%

1) Includes 100% interest in lynbrook

18 19

property portfolIo

NZ studeNts

==> picture [392 x 265] intentionally omitted <==

MCKENzIE APARTMENTS, wELLINgTON

==> picture [392 x 13] intentionally omitted <==

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

PORTfOLIO Nz STUDENTS
----- End of picture text -----

PORTfOLIO	Nz STUDENTS
valuatIoN as at 31 dec 2007(a$m)	26.7
owNershIp INterest %	90%
Number of propertIes	3
Number of uNIts	362
pIpelINe uNIts	0
% of total fuNd(assets)	2.1%

ING real estate commuNIty lIvING Group half year revIew 2007

us studeNts

==> picture [420 x 265] intentionally omitted <==

RAMz HALL, vIRgINIA

PORTfOLIO	US STUDENTS
valuatIoN as at 31 dec 2007(a$m)	173.4
owNershIp INterest %	100%
Number of propertIes	22
Number of uNIts	1,417
pIpelINe uNIts	110
% of total fuNd(assets)	13.6%

20 21

INvestor relatIoNs

INvESTOR RELATIONS

Information relating to ING real estate community living Group can be found at www.ingrealestate.com.au/investment

the website is a useful source of information about the fund and its property portfolio. the site allows unitholders to access their investment details including holding balance and payment history. copies of the most recent annual report and half year reviews may be downloaded from the site. asX announcements are also posted to the site.

DISTRIBUTION PAYMENTS

distributions are paid at the end of each calendar quarter in february, april, august and october.

enquiries relating to ING real estate community living Group can be directed to:

UNIT REgISTRY

Link market Services Limited

level 12, 680 George street sydney Nsw 2000 locked bag a14 sydney south Nsw 1235

telephone: 1300 653 497 (local call cost) or from outside australia +61 2 8280 7057 facsimile: +61 2 9287 0303

email: ingrealestate@ linkmarketservices.com.au

PRIvACY POLICY

ING management limited is committed to ensuring the confidentiality and security of your personal information. the ING privacy policy, detailing our handling of personal information, is available to view on our website www.ingrealestate.com.au/investment

COMPLAINTS

ING management limited is a member of an independent dispute resolution scheme, the financial Industry complaints service. any unitholder wishing to register a complaint should direct it, in the first instance, to:

inG management Limited

level 6, 345 George street sydney Nsw 2000

telephone: +61 2 9033 1035 facsimile: +61 2 9033 1059 email: ingrealestate@ingrealestate.com

fINANCIAL REPORT

the half year financial report will be sent to unitholders on request, free of charge, by calling the unit registry:

telephone: 1300 653 497 (local call cost) or from outside australia +61 2 8280 7057.

alternatively you can access the financial report via the internet at our website: www.ingrealestate.com.au/investment

ING real estate commuNIty lIvING Group half year revIew 2007

2008 UNITHOLDER CALENDAR

2008 UNITHOLDER CALENDAR
distributionpaid for thequarter ended 31 december 2007	29 february2008
distributionpaid for thequarter ended 31 march 2008	30 april 2008
distributionpaid for thequarter ended 30 June 2008	29 august 2008
tax statement for theyear ended 30 June 2008	29 august 2008
annual reportpublished	30 september 2008

the above dates are indicative only and are subject to change. an asX announcement will be lodged prior to each period confirming the dates of distribution payments.

INg REAL ESTATE COMMUNITY LIvINg gROUP

inG real Estate Community Living management Trust arsN 122 928 410

inG real Estate Community Living Fund arsN 107 459 576

RESPONSIBLE ENTITY

inG management Limited abN 15 006 065 032 level 6, 345 George street sydney Nsw 2000 afsl 237534

ENvIRONMENTALLY fRIENDLY

this document is printed on monza satin recycled, an fsc accredited paper, manufactured using elemental chlorine free pulp that contains 55% recycled fibre (25% post consumer fibre / 30% pre consumer fibre). the mill is certified under Iso 14001 and Ippc environmental management systems. fsc chain of custody (coc) promotes responsible forest management. fsc has developed principles for certifying the management of forest holdings, and a system of tracing, verifying and labeling timber and wood products which originate from fsc certified forests.

==> picture [79 x 37] intentionally omitted <==

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

25%
Cert no. SGS-COC-3047
----- End of picture text -----

==> picture [53 x 36] intentionally omitted <==

22 23

other INvestmeNt opportuNItIes

ING real estate in australia is recognised as one of the leading property fund managers. In addition to ING office fund we manage both listed and unlisted funds across all major property sectors – industrial, retail, seniors and students housing, entertainment and healthcare. Information relating to these funds can be found at www.ingrealestate.com.au/investment

ING real estate eNtertaINmeNt fuNd Ief

ING real estate healthcare fuNd Ihf

==> picture [85 x 121] intentionally omitted <==

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

INvESTMENT MANAgEMENT
INg Real Estate
Entertainment fund
Half Year Review
31 December 2007
ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK
----- End of picture text -----

==> picture [85 x 121] intentionally omitted <==

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

INvESTMENT MANAgEMENT
INg Real Estate
Healthcare fund
Half Year Review
31 December 2007
ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK
----- End of picture text -----

total assets	$512m
propertIes	54
taX deferred1	54%
uNItholders	2,665

total assets	$205m
propertIes	7
taX deferred1	77%
uNItholders	2,947

ING real estate entertainment fund is a listed property trust that invests in entertainment and leisure venues. Ief delivers value to unitholders by investing in assets that demonstrate the potential for growth in earnings through active management. the fund’s investment strategy combines the depth, experience and resources of ING real estate with the trading experience of proven operators within the hospitality and leisure sector.

ING real estate healthcare fund is a listed property trust that invests in healthcare properties including hospitals, specialist medical office buildings, medical centres, rehabilitation facilities, residential aged care, medical related laboratories and other purpose built healthcare facilities. the fund has a diversified australian portfolio and is the only asX listed entity that focuses solely on investment in healthcare properties.

1) estimate only

ING real estate commuNIty lIvING Group half year revIew 2007

ING INdustrIal fuNd IIf

==> picture [86 x 121] intentionally omitted <==

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

INvESTMENT MANAgEMENT
INg Industrial fund
Half Year Review
31 December 2007
ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK
----- End of picture text -----

total assets	$6.0b
propertIes	>500
taX deferred1	35%
uNItholders	21,266

ING Industrial fund is a listed property trust included in the s&p/asX 100 index. IIf is a full service industrial space provider in key global markets, based on an operating model of ‘develop, own and manage’. the fund owns a highly diversified industrial property portfolio located throughout australia, canada and western europe, and with investments of $6.0 billion, is the largest industrial property trust listed in australia. the fund’s assets demonstrate potential for income and capital growth over the medium to long term, and the fund has a substantial development pipeline to attract new companies to its portfolio.

ING offIce fuNd Iof

		INvESTMENT MANAgEMENT
			INg Office fund
			Half Year Review
			31 December 2007
		ASIA /AUSTRALIA/ EUROPE / NORTH AMERICA / UK
	total assets			$3.9b
	propertIes			25
	taX deferred1			30%
	uNItholders			27,250

ING office fund invests in office buildings located in key markets throughout the world and receives rental income from long-term leases to blue-chip tenants. the fund is a publicly traded property trust on the australian securities exchange (asX) and is one of the top 100 listed entities on the asX. Iof has assets across three continents – australia, europe and the united states, with total assets of approximately $3.9 billion. the fund has an average lease term to expiry of 5.3 years and a 97% occupancy rate.

24 25

==> picture [420 x 117] intentionally omitted <==

INg REAL ESTATE INvESTMENT MANAgEMENT AUSTRALIA

Level 6, 345 george Street Sydney NSw 2000 T : + 61 2 9033 1035 f : + 61 2 9033 1060

INg REAL ESTATE gLOBAL NETwORK AUSTRALIA HUNgARY SPAIN BELgIUM ITALY SwEDEN CANADA JAPAN TAIwAN CHINA KOREA THAILAND CzECH REPUBLIC POLAND THE NETHERLANDS fRANCE ROMANIA UK gERMANY SINgAPORE USA

www.ingrealestate.com.au/investment