INGENIA COMMUNITIES GROUP — Management Reports 2008

Dec 8, 2008

ASX ANNOUNCEMENT ING REAL ESTATE COMMUNITY LIVING GROUP (ILF) 9 December 2008

Answers to frequently asked questions addressed in Management’s presentation at the ILF Annual Unitholders Meeting

1. Unit prices - Why has the price fallen to current levels, and what steps are in place to restore it to its former levels?

• A: We cannot attribute the price fall to any one factor. Some of the more specific reasons that could have resulted in pressure on our unit price include:

  • High debt levels and concerns over the Fund’s ability to refinance its main debt facility and hedge contracts by 2009;

  • The Fund’s high dependence on the US economy;

  • Weaknesses in the Australian housing market and its effects on the Fund’s development program; and

  • The sell-off by institutional investors as they exit out of highly geared small cap funds.

We are listening to the market and exploring every avenue possible to address investors concerns. As per the ASX Announcement last Friday, the primary objective for ILF is to strengthen our balance sheet. We believe this will assist in relieving market concerns about our on-going sustainability. In time, we hope this will be reflected in a stronger unit price.

2. How will the Fund reduce its current gearing ratio to a more comfortable level?

• A: At 30 June, the Fund’s look through gearing stood at 57%. However we expect this to rise by 31 December largely due to deterioration in asset values. We aim to reduce gearing in the new year by applying proceeds from asset sales to our debt.

As previously mentioned, we are actively pursing the sales of the 4 US Student assets in Virginia & Florida. When appropriate, we will undertake further sales in our other portfolios.

Let me assure you that we will conduct the sales in an orderly manner with a view to maximise the realisation value of each asset.

ING REAL ESTATE: ASX ANNOUNCEMENT

1

==> picture [510 x 43] intentionally omitted <==

3. Where was the Fund’s debt sourced and what were the terms of repayment?

• A: Our debt has been sourced in countries where the assets are secured. In Australia, our Head Trust and other Australian joint venture debts (Oak Tree & CCV) are financed by major Australian banks. Our US debts are financed by a mix of US banks.

Debt in the US & Canada are long term with maturities generally > 5 years. The NZ Student debt and the Head Trust facility are both due for renewal in calendar year 2009.

4. Is ILF able to fund new developments going forward?

• A: The group has scaled back its development projects and is only continuing with committed works. This represents a 20% reduction on the remaining FY09 development program. Our on-going capital commitments are included in our revised cash flow forecasts.

5. What is the real NAV of the Fund?

• A: At 30 June 2008, the NAV of the fund was 94 cents. However in the current market where there is limited transactional based evidence, the value of assets is a widely debated topic.

We are in the process of reviewing the portfolio, using both internal and external valuations. Our expectation is that the NAV will fall from the June 08 position.

6. Timing of Distribution suspension

• A: As stated in the lodgement of the notification on 18th November, the Fund has been reviewing its capital management strategies. The Fund has been reluctant to cut or suspend distributions and was hopeful that this could be avoided through asset sales. It has become apparent to the Fund that it will not be in a position to conclude the necessary asset sales by 31 December 2008. Under these circumstances and taking in the current economic conditions, Management had no alternative but to suspend distributions to strengthen the balance sheet.

7. Does ING Real Estate Guarantee the Fund?

• A: ING Real Estate offers investors in ING Real Estate funds certain advantages including a global investment platform and local market experience. However, ING has not and does not guarantee or stand behind the financial success of investments which are made by investors based upon the information provided to them in the PDS. ING demonstrates its commitment to the success of the fund by its investment in the fund as one of the larger unit holders.

ING REAL ESTATE: ASX ANNOUNCEMENT

2

==> picture [510 x 44] intentionally omitted <==

8. Will ING Management fee be waived?

• A: Currently, the RE fee charged by ING has been reduced to only cover ING’s base operating costs of managing the Fund. At present, ING does not generate a profit in running this Fund. Furthermore these fees will not be paid until the cash flow of the Fund improves.

About ING Real Estate Community Living Group

ING Real Estate Community Living Group is a publicly traded property trust (REIT) on the Australian Securities Exchange which invests in seniors and student housing in Australia, Canada, New Zealand and the United States and has total assets in excess of approximately A$1.2 billion. The portfolio consists of a 62% weighting to the United States, 25% to Australia, 11% to Canada and 2% to New Zealand.

About ING Real Estate

ING Real Estate is an integrated real estate group focused on investment management, development and financing of quality real estate in all major global markets with a total portfolio of over A$170 billion. ING Real Estate ranks among the world’s leading real estate companies and serves a broad client base from offices in 22 countries in Europe, North America, Asia and Australia.

ING Real Estate is part of ING group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 75 million private, corporate and institutional clients in more than 50 countries.

For further information, please contact:

Victor Breuer	Hugh Thomson
Chief Executive Officer -	Chief Executive Officer -
ING Real Estate Community Living Group	ING Real Estate Investment Management
ING Real Estate Investment Management	Australia
Australia	T: +61 2 9033 1007
T: +61 2 9033 1039

ING REAL ESTATE : ASX ANNOUNCEMENT

3