Property portfolio update, distribution announcemt

NEWS RELEASE I N G P R O P E R T Y T R U S T
Auckland • Friday 23 February 2007

Property portfolio update and distribution announcement

ING Property Trust (the “Trust”) today announced that it has unconditionally sold one property and has secured two new tenants for design and build developments at Manawatu Business Park in Palmerston North. The Trust also announced its third quarter distribution.

As part of the established practice of actively managing the Trust’s real estate assets, the Farmers Centre in Hamilton has been unconditionally sold in an off-market transaction for $27.2 million reflecting a property yield of 7.9%. The sale follows a recent lease renewal and extension of the Farmers lease and reinforces the current high level of investor demand for large retail assets. The property is due to settle on 31 March 2007.

Tenant demand has also been strong for new design/build industrial properties at the Trust’s 50% joint venture asset, Manawatu Business Park in Palmerston North. Two tenants have committed to new buildings in the Park, both of which will be subject to long-term leases, with a combined average weighted lease term of 10 years. The two tenants will occupy approximately 2 hectares of land, with a combined rental of close to $400,000 per annum. Negotiations are at an advanced stage with another tenant to take a further 1 hectare of land at a rental of $300,000 per annum.

Andrew Evans, Managing Director of ING Property Trust Management Limited, said “the level of activity and interest to date supports ING’s decision to invest in the Park, and we expect to make further announcements shortly”.

Mr Evans also indicated that the Park’s stage 2 infrastructure programme was well underway, including the further construction of approximately 1.2 kilometres of internal road networks to service new developments.

Early indications from valuers currently undertaking the Trust’s annual portfolio revaluation process is that there is likely to be a strong increase in asset value. A further announcement on the revaluation process will be made mid-March.

The Trust also announced a third-quarter distribution for the 2007 financial year of 2.50 cents per unit.

The Trust’s interim distribution for the quarter 1 October to 31 December 2006 of 2.50 cents per unit includes imputation credits of 0.20 cents per unit. The record date for the distribution will be 2 March 2007, and the payment date will be 16 March 2007.

Under the terms and conditions of the Dividend Reinvestment Plan, no discount will be applied in the calculation of the strike price for the current distribution.

ENDS

The ING Property Trust portfolio has 95 buildings, with total property assets of more than $945 million. ING Property Trust is New Zealand’s only truly diversified listed property investment vehicle, with assets across the retail, industrial and commercial office sectors. The Trust is managed by ING Property Trust Management Limited.

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