Property Portfolio 30

investment management

ING Industrial Fund Fund Review

30 june 2007 For personal use only use personal For

ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK FUND REVIEW ING INDUSTRIAL FUND

Directory

ING Industrial Fund ARSN 089 038 175

Responsible Entity of ING Industrial Fund ING Management Limited ABN 15 006 065 032 AFS Licence No. 237 534

Registered ofﬁ ce Level 6, 345 George Street Sydney NSW 2000 T (+61) 2 9033 1035 F (+61) 2 9033 1059 E [email protected] I www.ingrealestate.com.au/investment

Unit registry Link Market Services Limited Level 12, 680 George Street Sydney NSW 2000 Postal address: Locked Bag A14 Sydney South NSW 1235

Investor services Toll free 1300 653 497 T (+61) 2 8280 7057 F (+61) 2 9287 0303 E [email protected]

Investor enquiries Paul Toussaint Doug Auchterlonie Chief Executive Ofﬁ cer Chief Investment Ofﬁ cer ING Industrial Fund ING Industrial Fund T (+61) 2 9033 1005 (+61) 2 9033 1030

For personal use only use personal For The ING Industrial Fund is listed on the Australian Stock Exchange (ASX). Its stock code is IIF.

Document published: 28 August 2007

PAGE 1 FUND REVIEW ING INDUSTRIAL FUND BRIESELANG DISTRIBUTION CENTRE, GERMANY CENTRE, DISTRIBUTION BRIESELANG ROSEHILL INDUSTRIAL ESTATE, AUSTRALIA INDUSTRIAL ROSEHILL HARCOURT BUSINESS PARK, AUSTRALIA PARK, BUSINESS HARCOURT DOCKSIDE BUSINESS PARK, AUSTRALIA PARK, BUSINESS DOCKSIDE ALBERTA PARK II, CANADA II, PARK ALBERTA

239 CHRISLEA ROAD, CANADA ROAD, CHRISLEA 239 For personal use only use personal For

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Contents

ING Real Estate 4

Fund summary 5

Management proﬁ le 6

Key results 8

Key achievements 9

New investments 10

Development 15

Leasing 18

Capital management 20

Financial statements 22

Portfolio summary 26

Fund activity post 30 June 2007 29

Property portfolio 30

Glossary of terms 84 For personal use only use personal For

PAGE 3 FUND REVIEW ING INDUSTRIAL FUND

ING Real Estate

ING Real Estate is a global real estate company, active in real estate investment management, development and ﬁ nance.

With a total business portfolio of over A$160 billion and ofﬁ ces in 21 countries across Europe, North America, Asia and Australia, ING Real Estate ranks among the world’s largest real estate ING Industrial Fund companies.

ING Real Estate is part of ING Group, a global fi nancial institution of Dutch origin offering banking, insurance and asset management ING Industrial Fund (IIF) is a publicly listed property to over 60 million private, corporate and trust in Australia and is included in the S&P/ASX 100 institutional clients in more than 50 countries. index. IIF invests in prime industrial properties and business parks in key global markets. The Fund’s “To be the leading provider of operations include property investment, property innovative real estate solutions development and property services. that exceed our customers’ expectations – globally as well As at 30 June 2007, the Fund owns a highly as locally“. diversifi ed portfolio of 547 industrial properties across Australia, Canada and Western Europe. In Australia, ING Real Estate manages property on With total assets of $5.6 billion, the Fund is behalf of over 60,000 investors. Main activities Australia’s largest listed industrial trust. include funds management, property and asset management, and development. The Responsible Entity for the Fund is ING Management Limited. Operations span global real estate markets and encompass all major property sectors - offi ce, industrial, retail, seniors and student housing, “Our mission is to provide investors entertainment and healthcare. with highly competitive investment returns through astute acquisition, development and management of prime industrial properties and business parks in key global markets.”

IIF is a pure real estate investment vehicle, with over 95% of its income derived from rents.

The Fund has an active development pipeline in Australia and Canada, which delivers signiﬁ cant volumes of accretive new products each year. In 90% of the markets IIF invests in, IIF is the sole

For personal use only use personal For industrial vehicle. Tenants are predominately lower risk industry sectors such as logistics, consumer durables and fast moving consumer goods (FMCGs).

IIF’s senior management in Australia comprises a dedicated and stable team of industrial property professionals, with over 100 years of relevant industry experience.

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Fund summary

The Fund is a full service industrial space provider in Australia, Canada and Europe, based on a operating model of “develop, own and manage”. IIF’s strategy is to invest in well located industrial properties in key global markets, focussing on assets that demonstrate potential for income and capital growth over the medium to long term.

In considering future investments, Management will focus on properties which further diversify the Fund’s portfolio by location, tenant, lease maturity and rent review type. The objective is to enhance earnings growth and capital security.

The Fund’s portfolio comprises a substantial development pipeline to cater for the expansion requirements of IIF’s customer base and attract new companies to IIF’s property portfolio. With this strategy, the Fund achieves higher investment yields, lower acquisition costs, newly constructed quality buildings with long term leases and improved taxation beneﬁ ts.

IIF will continue to actively manage its portfolio to enhance the Fund’s income stream wherever possible.

Key Financial Data

as at 30 June 2007 as at 30 June 2006

Distributions (cents per unit) 16.65 15.50

Annualised yield on closing price 7.1% 7.0%

Net asset backing per unit $2.25 $2.08

Market capitalisation $2,591m $1,955m

Total assets (look through) 1 $5,572m $2,864m

Gearing ratio (debt to total assets) 36% 32%

Units on issue 1,107,352,976 876,659,200

Portfolio Overview as at 30 June 2007 Australia Canada Europe Total

Number of properties 63 467 17 547

Total lettable area (sqm) 2 1.75m 3.26m 0.53m 5.54m

Total number of tenants 248 > 2,340 11 >2,600

Weighted average lease term to expiry (by income) 5.4 4.1 6.6 5.0 For personal use only use personal For

Property assets $2.69bn $1.98bn $0.61bn $5.28bn

Occupancy 98% 96% 100% 98%

1 Look through basis 2 Excludes development projects under construction

PAGE 5 FUND REVIEW ING INDUSTRIAL FUND

Management proﬁ le

Key Business Units

ING Industrial Fund Organisation Chart

Paul Toussaint Chief Executive Officer ING Industrial Fund

Tax Accounting,Treasury & Legal Trust Management Acquisitions Property Services Development Management

Jenny Saliba David Hunt Tim Lewis Robert MacKay Director Doug Auchterlonie David Foster Chief Financial Officer hief Investment Officer Global Acqusitions Manager Director Director Capital Transactions & Taxation Industrial Property Services Industrial Development

Facilities/Property Management / CB Richard Ellis - Australia 20 dedicated management staff across NSW,VIC & QLD, comprising: Property Managers, Building Supervisors,Trust Accounting Personnel, Support Staff, and Building Services Engineers.

CANADA: Asset Management Kathy Harder Will Rowson ING Summit Head of Acqusitions - Canada Head of Acqusitions - Europe Industrial Asset and Property Managers located in 8 ING Summit ING Real Estate principal markets across Canada.

ING Summit - Canada ING Real Estate Investment Management EUROPE: Asset Management Canadian Acquisitions Team European Industrial Acquisitions Team ING Real Estate Investment Management Industrial Acquisitions Managers Industrial Acquisitions Managers European Industrial Asset Management team located operate in all provinces. throughout 7 countries, based in Brussels, throughout 7 countries, based in Brussels, Frankfurt, Frankfurt, Madrid, Milan, Paris, Prague Madrid, Milan, Paris, Prague and The Hague. and The Hague. GREAT NORTHERN DISTRIBUTION CENTRE, SPAIN CENTRE, DISTRIBUTION NORTHERN GREAT

MOOREBANK BUSINESS PARK, AUSTRALIA PARK, BUSINESS MOOREBANK For personal use only use personal For

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Senior Management Team - ING Industrial Fund

The Fund’s senior management team is characterised by its stability and depth of experience. The ﬁ ve Australian executives represent over 100 years of industry experience, with an average tenure within ING greater than eight years.

PAUL TOUSSAINT CHIEF EXECUTIVE OFFICER, ING INDUSTRIAL FUND Paul has over 22 years experience in the property and funds management industry. He holds an Associate Diploma in Valuation, is a qualifi ed Valuer, an Associate of the Australian Property Institute and an Affi liate Member of the Securities Institute of Australia. Paul is responsible for the management and administration of ING Industrial Fund, including determination of investment strategies, fi nancial management and forecasting and investor relations.

DOUG AUCHTERLONIE CHIEF INVESTMENT OFFICER Doug has over 20 years experience in the property and funds management industry, including 14 years with ING Real Estate and its predecessor funds. He holds a Bachelor of Property Administration and a Diploma of Business and Administration. Doug is responsible for the daily operation, management and marketing of the Fund, including all ﬁ nancial, reporting and administrative functions.

TIM LEWIS DIRECTOR , INDUSTRIAL PROPERTY SERVICES Tim has over 19 years experience in the property industry, ﬁ ve of that within the ING Industrial Fund. He holds a Bachelor of Business (Land Economy), is a qualiﬁ ed Valuer and is an Associate of the Australian Property Institute. Tim is responsible for the overall management of the Fund’s Asset Management team, which includes tenant relations and lease management.

ROBERT MACKAY DIRECTOR, INDUSTRIAL DEVELOPMENT Robert has over 20 years experience in the property industry, including 13 years with ING Real Estate and its predecessor funds. He holds a Bachelor of Business (Property), is a qualiﬁ ed Valuer and is an Associate of the Australian Property Institute. Robert is responsible for industrial development including overall management of site acquisitions, planning, leasing and project delivery.

DAVID FOSTER GLOBAL ACQUISITIONS MANAGER For personal use only use personal For David has over 19 years of experience in commercial and industrial property. On the domestic front, David is responsible for sourcing and managing Australian acquisitions and coordinating disposals. Globally, he is responsible for collaborating with ING’s North American and European capital transaction teams to manage offshore acquisitions for the Fund.

PAGE 7 FUND REVIEW ING INDUSTRIAL FUND

Key Results

Key ﬁ nancial data

12 months to 12 months to 30 Jun 2007 30 Jun 2006

ASX closing price $2.34 $2.23

Quarterly distributions (cents per unit) September 3.95 3.80

December 4.00 3.90

March 4.35 3.90

June 4.35 3.90

Total (cents per unit) 16.65 15.50

Tax deferred component 45.1% 43.7%

Annualised yield on closing price 7.1% 7.0%

S&P/ASX 300 LPT Accum Index total return 26.3% 14.2%

Net asset backing per unit $2.25 $2.08

Market capitalisation $2,591m $1,955m

Retained distributable income earnings $12.5m $5.5m

Total assets (look through) $5,572m $2,864m

Gearing ratio (debt to total assets) 1 36% 32%

Property portfolio average lease duration (by income) 2 5.0 years 5.7 years

Management expense ratio (MER) 3 0.34% 0.62%

Units on issue as at 30 June 2007 1,107,352,976 876,659,200

Number of unitholders as at 30 June 2007 21,636 20,328

1 Look through gearing is 44% 2 Includes 50% of ING Summit Portfolio Canada in 2007 ﬁ gures

3 The 2007 year includes fee rebate from investment in ING Summit Portfolio Canada; look through MER 0.45% For personal use only use personal For

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Key Achievements

11.5% Other Achievements increase in distributable income to 17.4 cents per unit. > $511 million of new equity raised at average 6.3% premium to net asset backing

> $400 million raised via issue of 11.3% Exchangeable Notes increase in underlying distributable > Strong debt position with average income to 16.7 cents per unit. hedge term of 6.2 years

> Total assets up from $2.86 billion to $5.57 billion 7.4% > 123,000 sqm of developments completed in Australia, at an increase in distribution to 16.65 cents average initial yield of 8.0% per unit. > A portfolio that is 98% occupied with an average lease term remaining of 5.0 years 8.2% > Total lease activity in excess of increase in net asset backing to $2.25 1.0 million sqm per unit. > Customer retention rate of 75%

Five years of strong performance: 33% > Distributable income growth of increase in market capitalisation to 5.8% pa over past 5 years $2.6 billion. > Growth in underlying distributable income of 4.7% pa over past 5 years

> Average growth in DPU of 4.7% $2.3 billion pa over past 5 years of new investments completed. > Net asset backing growth of

>10% pa over past 5 years For personal use only use personal For

PAGE 9 FUND REVIEW ING INDUSTRIAL FUND

New Investments

The Fund had a historic year of acquisition, with new investments in excess of A$2.3 billion. This includes the IIF and ING Real Estate joint acquisition of the 461 property Summit Portfolio in Canada. The portfolio, now known as ING Summit Industrial Fund, is Canada’s largest industrial owner. IIF also completed $318 million of acquisitions in Europe and Australia.

Acquisition and New Investments for the year ended 30 June 2007

Location Investment Purchase Price Cost (AUD)

Canada (50% of Summit Portfolio) $1,980m

Germany (7 properties) $137m

Belgium (1 property) $51m

Spain (3 properties) $69m

Australia (4 properties) $47m

Australia (1 partnership project) $14m

TOTAL NEW INVESTMENTS $2,298m

Note: currency conversions reﬂ ect exchange rates at the time of acquisition 400 NUGGET ROAD, CANADA ROAD, NUGGET 400

3355 AMERICAN DRIVE, CANADA For personal use only use personal For

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Canadian Acquisitions

> Average lease term 4.8 years > 461 properties > 300+ hectares of development in pipeline > 96% leased 5 CHERRY BLOSSOM ROAD, CANADA ROAD, BLOSSOM 5 CHERRY 2335 SPEERS ROAD, CANADA ROAD, SPEERS 2335

ING Summit Industrial Fund The portfolio focuses on the light industrial/ In August 2006, Management announced that warehouse sector of Canadian real estate. ING Industrial Fund had formed a joint venture This is characterised by single level properties with ING Real Estate to acquire the Canadian located in or near major cities. Activities include listed Summit REIT on a 50/50 basis. warehousing, storage, light assembly and shipping, call centres and technical support. The sector As of January 2007 and the completion of is attractive due to is long-term strength and the acquisition, the portfolio was renamed stability, with lower market rent volatility, lower ING Summit Industrial Fund. The acquisition operating costs and more generic-use space. demonstrated excellent metrics relative to market conditions. This portfolio has a number of strategic benefi ts: > Signifi cant positioning in all major industrial This acquisition provided the Fund with markets signifi cant exposure to the Canadian industrial market. This highly diversifi ed property portfolio > 29% weighting of the strongly performing encompasses six Canadian provinces and eight economies of Western Canada major markets. > Strong development pipeline, representing 1.2 million sqm of new space. 55% of this The Canadian portfolio includes a number of pipeline is in the growth markets of Calgary development sites, providing the ability to and Edmonton, Alberta carry out earning enhancing developments, > Consistently high occupancy and tenant catering for growth requirements of tenants, and retention levels enhancing the portfolio’s average building age and average lease duration. Further details of this portfolio is provided in the

Property Portfolio section (from page 78). For personal use only use personal For

PAGE 11 FUND REVIEW ING INDUSTRIAL FUND

European Acquisitions

> Average lease term 7.9 years > 11 properties acquired > Average yield on price 7.7% > 100% leased PURRS DISTRIBUTION CENTRE, BELGIUM CENTRE, DISTRIBUTION PURRS Germany Bautzner Distribution Centre, Leipzig This 16,466sqm warehouse property is located in Leipzig, an emerging industrial hub for trade between central and western Europe.

Lahr Distribution Centre, Lahr Acquired for €23.3 million, Lahr Distribution Centre is located within the Black Forest Business Park on Germany’s A5 Autobahn corridor. This 36,230sqm newly constructed warehouse/logistics facility has 17,000sqm of additional land suitable for development.

Spain Port Bremen West Distribution Centre, Bremen Daganzo II Distribution Centre, Daganzo This 21,566sqm distribution centre is located within This modern logistics facility was acquired in January the Niedervieland logistics zone. The property has 2007 for €19.8 million. With a lettable area of a direct rail connection, access to an intermodal 24,270sqm, the property is subdivided into four rail-road terminal, and the Port of Bremen is tenancies. The property is located 30km northeast of within 3km. Madrid CBD and 15km northeast of Madrid-Barajas International Airport. Bürstadt Distribution Centre, Bürstadt This Distribution Centre is a 10 hecatre site with Valdemoro Distribution Centre, Valdemoro access to the Autobahns A5, A6, A61 and A67 all 100% leased to an established Madrid logistics within 10km of the site. A redevelopment prospect provider, Valdemoro Distribution Centre has access in the medium term, land value represents 78% of to Madrid’s radial motorways to provide fast access valuation, or 87% of purchase price. to all parts of metropolitan Madrid. Groβbeeren Distribution Centre, Groβbeeren Quer II Distribution Centre, Quer Located within a GVZ (Güterverkehrszentrum or Adjacent to another IIF property (Great Northern dedicated logistics area), this 30,333sqm logistics Distribution Centre) Quer II is a single building, warehouse is adjacent to the Autobahn 101 in modern logistic facility. Enjoying 100% occupancy, Berlin. The property has a 10 year lease to leading the property is within the sought after Henares logistics company, Fiege Deutschland. corridor, some 45km northeast of Madrid CBD. Groβ Machnow Distribution Centre, Groβ Machnow Acquired for €14.1 million, this warehouse property is 3km from the Autobahn A10, which Belgium circumnavigates Berlin. The property is in close Puurs Distribution Centre, Puurs proximity to the Berlin Tempelhof and Berlin The Fund acquired this newly constructed Schönefeld airports. warehouse/logistics facility for €30.8 million.

The property is situated near Brussels, in Belgium’s Sehnde Distribution Centre, Hannover-Sehnde For personal use only use personal For most sought after logistics locality and boasts This modern warehouse logistic property was additional land suitable for further development. acquired in August 2006. Located on a 6.4 hectare site, it has 2.5 hectares of undeveloped land offering expansion potential. Autobahns A7 and A2 are accessable within 5km of the property, providing an important international link to all of Europe.

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Australian Acquisitions

> 4 properties acquired > Average yield on price 7.4% > 100% leased > Average lease term 7.8 years EUSTON BUSINESS CENTRE, AUSTRALIA WESTLAND ESTATE, AUSTRALIA

WestLand Industrial Estate, Erskine Park NSW Joint Venture Investments This newly constructed warehouse property on Quarry Road is located in a popular and growing The Fund invested in its ﬁ fth joint venture industrial precinct. The acquisition price of $16.5 development with INGREIMA. million represents an attractive initial yield of 7.4%. Brambles leased the property for a 10 year term Baker & Moore Streets, Banksmeadow NSW from 2006. The Fund co-invested with INGREIMA in this 2.2 hectare development site on Baker & Moore Euston Business Centre, Alexandria NSW Streets. The site will be redeveloped upon expiry In December 2006, the Fund announced the of the existing lease, providing some 12,000sqm of acquisition of this South Sydney property for $11.4 high quality strata industrial space in this sought million. The property is leased to Qantas until 2013. after location.

Foothills Distribution Centre, Arndell Park NSW Situated in the immediate vicinity of two other IIF assets, this $7.9 million property was acquired in May 2007 at a initial yield of 7.8%.

Seaford Industrial Estate, Seaford VIC Located at the southern end of Melbourne’s manufacturing belt, this industrial property is located on a 4.3 hectare site with development potential. Acquired for $11.3 million, the property is leased to Nylex until 2015, providing an initial yield

of 7.9%. For personal use only use personal For

PAGE 13 FUND REVIEW ING INDUSTRIAL FUND BAUTZNER DISTRIBUTION CENTRE, GERMANY CENTRE, DISTRIBUTION BAUTZNER LES TULIPES DISTRIBUTION CENTRE, FRANCE FRANCE CENTRE, DISTRIBUTION TULIPES LES

LAHR DISTRIBUTION CENTRE, GERMANY GERMANY CENTRE, DISTRIBUTION LAHR GRO β BEEREN DISTRIBUTION CENTRE, GERMANY CENTRE, DISTRIBUTION BEEREN

PORT BREMEN WEST DISTRIBUTION CENTRE, GERMANY CENTRE, DISTRIBUTION WEST BREMEN PORT

ERFURT PDLZ DISTRIBUTION CENTRE, GERMANY GERMANY CENTRE, DISTRIBUTION PDLZ ERFURT For personal use only use personal For

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Development

Development is an integral part of the Fund’s activities, providing a number of beneﬁ ts to the Fund. These include ensuring supply of new product to satisfy current and future customers, providing a supply of investment product to the Fund in markets where availability of investment product is limited, enabling the Fund to achieve higher initial and total returns, and lower acquisition costs than the equivalent investment property, along with improved taxation beneﬁ ts.

Development also enhances the Fund’s portfolio proﬁ le with respect to average building age and WALTE, as most development product has lease terms equal to or greater than the portfolio average.

In order to provide for ongoing development activity, the Fund has a substantial development pipeline both in Australia and Canada, representing over 2 million sqm and more than ﬁ ve years supply of new product.

Development projects completed during the year ended 30 June 2007

> 208,000sqm completed in Australia and Canada > 10 Australian projects completed at an average yield on cost of 7.9%, representing a 150bp spread to the equivalent net acquisition yield > Nine Canadian projects completed at an average yield on cost of 8.0%

FY07 Developments completed Capex Average Lease (sqm) Term (years)

NSW 88,000 A$76m 8.1

VIC/SA 35,000 A$24m 7.4

AUSTRALIA 123,000 A$100m 8.0

ONTARIO 44,000 C$32m 6.0

ALBERTA 41,000 C$25m 7.8

CANADA 85,000 C$57m 6.9

Note: Canadian data represents 100% interest. For personal use only use personal For

PAGE 15 FUND REVIEW ING INDUSTRIAL FUND

Current development projects to be complete by 30 June 2008

> 352,000sqm to be completed in FY08, a 70% increase on FY07 volumes > Eight Australian projects currently under way and due for completion in FY08, and a further two planned > Forecast average yield of 7.6% on FY08 Australian development completions > Ten Canadian projects due for completion in FY08, at a forecast average yield of 7.8%

FY08 Forecast completions Capex Average Lease (sqm) Term (years)

NSW 182,000 A$163m 8.3

VIC/SA 20,000 A$13m 5.0

AUSTRALIA 202,000 A$176m 8.1

ONTARIO 65,000 C$42m 9.2

ALBERTA 47,000 C$45m 5.9

QUEBEC 11,000 C$10m 8.1

OTHER 27,000 C$18m 8.7

CANADA 150,000 C$115m 7.8

Note: Canadian data represents 100% interest.

Development Pipeline

> 1,720,000sqm of development capacity after forecast FY08 completions > Equates to ﬁ ve years supply at FY08 volumes > Over 60% of Canadian development capability is in the growth markets on Alberta

Pipeline post FY08 Approx. Capex (sqm)

NSW 553,000 A$770m

VIC/SA 105,000 A$76m

AUSTRALIA 658,000 A$846m

ONTARIO 197,000 C$116m

ALBERTA 655,000 C$419m For personal use only use personal For QUEBEC 158,000 C$126m

CANADA 1,010,000 C$661m

Note: Canadian data represents 100% interest. Capex estimates are based on 2007 values.

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Joint Venture Projects

The Fund has co-invested with ING Real Estate Investment Management Australia (ING REIMA) in ﬁ ve development projects. These projects will continue to provide the Fund with an attractive earnings stream, providing a return on investment in excess of 18%. The Fund’s total investment is currently in the order of $100 million.

FY08 FY09 FY10 FY11 FY12 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Norwest Wyndham - Stage I Wyndham - Stage II Ricketts Road

Redbank - Stage I

Redbank - Stage II

Baker & Moore

income producing hold construction selling

Elevation at Norwest, Bella Vista NSW A strata titled ofﬁ ce development of 38 suites. Completed in late 2006, the project is currently 47% sold or contracted.

Wyndham Industrial Estate, Laverton North VIC Over 21% of this 37 hectare industrial subdivision has been sold or contracted and terms agreed on a further 24%, with the ﬁ nal stage of infrastructure works currently under way.

Ricketts Road, Mt Waverley VIC The existing lease has now expired and works have commenced to redevelop this site into 18 strata industrial units. Works are expected to be completed in mid 2008.

Baker & Moore Street, Banksmeadow NSW The Fund’s investment in this project was announced in 2006. Upon expiry of the existing lease, this 2.2 hectare site will be redeveloped to provide 43 strata industrial units.

Redbank River Park, Redbank QLD Currently in planning stages, this 92 hectare site will be developed in stages, providing industrial lots of between 0.4 hectares and 4.3 hectares. The recently announced Goodna Bypass Motorway will pass through the southern portion of this property, providing a substantial improvement in road access. This, and further strong growth in land values in South East Queensland over the past year, will result in

For personal use only use personal For signiﬁ cantly improved gross realisations from this project.

PAGE 17 FUND REVIEW ING INDUSTRIAL FUND

Leasing

The Fund has maintained its excellent leasing track record as per previous years, achieving a retention rate for the year of 75%, in line with its benchmark. Of the 263,000sqm leased in Australia, over 55% results from development activities of the Fund. Below is a summary of the Fund’s leasing activity.

Leasing Activity during the ended 30 June 2007

Area leased Average lease Annual rental (sqm) term (years) value

NSW 230,000 7.2 A$26.3m

VIC/SA 21,000 3.4 A$1.6m

QLD 12,000 8.0 A$1.4m

AUSTRALIA 263,000 7.1 A$29.3m

ONTARIO 335,000 4.9 A$11.7m

ALBERTA 260,000 4.5 A$9.4m

QUEBEC 108,000 5.4 A$3.4m

OTHER 97,000 4.3 A$3.8m

CANADA 800,000 4.8 A$28.3m

EUROPE N/A - NO EXPIRIES OR VACANCY IN PERIOD

PORTFOLIO 1,063,000 5.9 A$57.6m

Note: Canadian data represents 100% interest. For personal use only use personal For

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Occupancy and Retention Rates

Period end occupancy rate Tenant retention rates

* FY07 data includes 50% interest in ING Summit portfolio Canada

> Occupancy Rate: Consistently at or above 98% > Retention rate: Strong ﬁ ve year average of 78%

Revaluations

During the 12 months to 30 June 2007, Management announced the results of independent valuations completed for 25 of the Fund’s properties, with a total value of $63.8 million or an average of 5.4% on the book value of the properties.

The revaluations resulted in an increase in the Fund’s net asset backing per unit of 5.8 cents per unit. The three largest contributors to this excellent result are:

Rosehill Industrial Estate, NSW > Gain of $9.2 million or 6.8% to $144.5 million. > Premier estate leased since February 2007. This property subsequently became the inaugural winner of the Property Council of Australia Property Investment Award for Business and Industrial Parks.

Laverton Distribution Centre, VIC > Gain of $6.5 million or 10.4% to $69 million. > A market rent review was completed in April 2007, resulting in a 9.7% increase in rental.

ParkWest Industrial Estate, VIC > Gain of $5.8 million or 3.1% to $194 million. > One of the Fund’s trophy properties, the site has enjoyed 100% tenant retention since its

For personal use only use personal For acquisition in 1996.

PAGE 19 FUND REVIEW ING INDUSTRIAL FUND

Capital management

Equity raising

Date Amount Issue Price

Distribution Reinvestment Plan (DRP) June 2006 $10.36m $2.15

September 2006 $9.85m $2.30

December 2006 1 $37.16m $2.31

March 2007 1 $47.04m $2.37 Placement August 2006 $92.00m $2.13

Entitlement Offer September 2006 $300.00m $2.20

Unit Purchase Plan May 2007 $14.40m $2.39

Exchangeable Notes (EN) April 2007 $400.00m n/a

Total and Average (excludes EN) $510.81m $2.22

Total (include EN) $910.81m n/a

1 DRP underwritten for Dec 06 and Mar 07 quarters

Income hedging

100% 0.900

0.800

80% 0.700

0.600 60% 0.500

0.400 40% 0.300

0.200 20%

0.100

0 0.000 For personal use only use personal For FYO8e FY09e FY10e FY11e FY12e

EUR CAD EUR Hedged Rate CAD Hedged Rate

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Interest rate hedging maturity proﬁ le (All debt)

80% 5.0%

70% 4.0% 60%

50% 3.0% 40%

30% 2.0% % of Hedged Debt Weighted Interest Rate 20% 1.0% 10%

0% 0.0% FY07a FY08e FY09e FY10e FY11e

% of All Debt Hedged All Debt - Weighted Rate (excluding margin)

Interest rate hedging maturity proﬁ le (CAD)

90% 5.0%

80%

70% 4.0%

60% 3.0% 50%

40% 2.0%

% of Hedged Debt 30% Weighted Interest Rate Weighted 20% 1.0% 10%

0% 0.0% FY07a FY08 e FY09 e FY10 e FY11 e

% of EUR Hedged EUR - Weighted Rate (excluding margin)

Interest rate hedging maturity proﬁ le (EUR)

80% 5.0%

70% 4.0% 60%

50% 3.0% 40%

30% 2.0%

% of Hedged Debt For personal use only use personal For 20% Interest Rate Weighted 1.0% 10%

0% 0.0% FY07a FY08 e FY09 e FY10 e FY11 e

% of CAD Hedged CAD - Weighted Rate (excluding margin)

PAGE 21 FUND REVIEW ING INDUSTRIAL FUND

Financial statements

Income statement

12 months to 12 months to 30 Jun 2007 30 Jun 2006 $m $m

Revenues and expenses from ordinary activities: Rental income 218.1 175.7 Other property income 29.3 23.5 Property expenses (40.9) (28.3) Net property income 206.5 170.9

Gain on disposal of properties and investments 2.5 4.7

Share of associate’s net proﬁ t/(loss) 48.9 (0.1) Interest income 11.6 2.9 Foreign exchange gain/(loss) 60.1 (7.7) Borrowing costs (74.2) (31.8) Responsible Entity’s fees (7.0) (13.1) Other expenses (2.7) (1.0) Other income 0.6 -

Net operating income 246.3 124.8 Net gain from investment property revaluations 129.9 242.5

Net gain from derivatives revaluations 60.7 9.3

Profi t before income tax 436.9 376.6 Income tax expense (35.0) (6.3) Net profi t for the year 401.9 370.3 Net profi t attributable to preference unitholders (4.0) - Net profi t attributable to unitholders of the Fund 397.9 370.3

Distributions per unit 16.65 15.50 Basic earnings per unit (cents) 39.9 44.7

Diluted earnings per unit (cents) 39.1 44.7 For personal use only use personal For Distributable income per unit (cents) 17.4 15.6

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND

Financial statements

Distribution statement

12 months to 12 months to 30 Jun 2007 30 Jun 2006 $m $m

Net proﬁ t attributable to ordinary unitholders 397.9 370.3

Distributable income Adjusted for: Net gain from investment property revaluations (129.9) (242.5) Straight lining of rental income (8.8) (3.0) Unrealised net gain from derivative revaluations (60.7) (9.3) Net foreign exchange (gain)/loss (58.5) 8.1 Deferred income tax expense 34.1 4.9 Other -0.3 Income available for distribution 174.1 128.8 Transfers from issued units 1.8 1.3 Distributable income brought forward 5.5 5.4 Distributions paid or payable (168.9) (130.0) Distributable income carried forward 12.5 5.5

Units on issue at end of period (m) 1,107.4 876.7 Weighted average units on issue (m) 998.4 828.0 Distributable income per unit (cents per unit) 17.4 15.6 Basic earnings per unit (cents per unit) 39.9 44.7 Distributable underlying earnings per unit (cents per unit) 16.7 15.0

Distributions per unit (cents per unit) 16.65 15.50 For personal use only use personal For

PAGE 23 FUND REVIEW ING INDUSTRIAL FUND

Financial statements

Balance sheet

30 Jun 2007 30 Jun 2006 $m $m

Current assets Cash 25.1 27.1 Receivables 43.9 38.5 Derivatives 68.9 12.7 137.9 78.3 Non current assets Receivables 96.8 58.3 Investment properties 3,028.3 2,479.7 Properties under construction 241.3 229.0 Investments in associates 1,273.9 2.7 Other 6.3 6.8 4,646.6 2,776.5

Total assets 4,784.5 2,854.8

Current liabilities Payables 57.0 58.6 Borrowings 25.8 - Derivatives 12.1 4.9 Provision for distribution 48.2 34.2 143.1 97.7 Non Current liabilities Payables 2.2 0.9 Borrowings 1,704.1 917.5 Deferred tax liabilities 71.4 14.0 1,777.7 932.4

Total liabilities 1,920.8 1,030.1

Net assets 2,863.7 1,824.7

Unitholder’s interest

For personal use only use personal For Issued units (ordinary) 1,818.9 1,321.0 Reserves (59.1) 7.4 Retained earnings 727.1 496.3 Parent entity equity 2,486.9 1,824.7 Preference units 376.8 - Total unitholders interest 2,863.7 1,824.7 Net asset value per unit 2.25 2.08

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND FOREST LAKE DISTRIBUTION CENTRE, AUSTRALIA CATALYST BUSINESS PARK, AUSTRALIA PARK, CATALYST BUSINESS

UNISYS CAMPUS, AUSTRALIA AUSTRALIA CAMPUS, UNISYS CAMPBELLTOWN DISTRIBUTION CENTRE, AUSTRALIA CENTRE, DISTRIBUTION CAMPBELLTOWN

PORTAIR INDUSTRIAL ESTATE, AUSTRALIA INDUSTRIAL PORTAIR

BRAESIDE DISTRIBUTION CENTRE NORTH, AUSTRALIA NORTH, CENTRE DISTRIBUTION BRAESIDE For personal use only use personal For

PAGE 25 FUND REVIEW ING INDUSTRIAL FUND

Portfolio summary Global Portfolio (by value)

Australia 51%

Europe 12%

Canada 37%

Australian geographic diversiﬁ cation

Victoria/ South Australia 19%

Queensland 5%

New South Wales 76%

Canada geographic diversiﬁ cation

Quebec 13%

Ontario 48%

Alberta 29%

Other 10%

Europe geographic diversiﬁ cation Belgium 8%

France 7% For personal use only use personal For Germany 54%

Spain 31%

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND

Top 20 tenants by income (includes committed pre-leases under construction)

al ress DHL ADR Fiege Coles Linfox Unisys Nylex Myer Metcash Sobeys Versand CarrefourMicrosoft Brambles Kd Kaiser Bunnings Ingram Micro DGX Pharma Corporate Exp Nekkermann Houseware Internation

> A well diversiﬁ ed income stream: IIF’s 20 largest tenants represent less than 33% of the Fund’s annual revenue income.

Tenant diversiﬁ cation by industry sector

Automotive 3% Transport / Logistics 30%

Food & Beverage 13% Pharmaceuticals 3% For personal use only use personal For

Consumer Durables 19% Services 9%

Manufacturing 13% IT / Telecommunications 9%

PAGE 27 FUND REVIEW ING INDUSTRIAL FUND

Lease expiry proﬁ le IIF PORTFOLIO

CANADA For personal use only use personal For EUROPE AUSTRALIA

Average expiry FY08 - FY17 inclusive

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND

Fund activity post 30 June 2007

Parkside project 100% precommitted Work commenced on a further two 3 months before completion. prominent sites in North Ryde. CITY VIEWS BUSINESS PARK, AUSTRALIA AUSTRALIA PARK, BUSINESS VIEWS CITY THE PARK, AUSTRALIA PARK, THE

The Park, North Ryde NSW City Views Business Park, North Ryde NSW The Fund has secured a pre-commitment for 100% The Fund is constructing a new 7,500sqm four of Building C at the estate. Technology ﬁ rm star/greenstar rated building at City Views Business Raytheon has committed to a 5 year lease from Park, 67 Epping Road, due for completion in completion (November 2007) of this 4,341sqm October 2008. facility currently. Global Business Park, North Ryde NSW Works have also commenced on a staged development of Global Business Park at 27 Delhi Road, North Ryde. This project will provide over Bluescope signed up for 20 year 32,000sqm of A grade campus space on this lease at $1.8 million pa. prominent site on the western edge of Riverside Corporate Park. ACACIA PARK, AUSTRALIA PARK, ACACIA

Acacia Park, Acacia Ridge QLD For personal use only use personal For The Fund granted a surrender of the existing lease at this facility, due to expire in September 2008, and has entered into a new 20 year lease to Bluescope Steel.

PAGE 29 FUND REVIEW ING INDUSTRIAL FUND

Property Portfolio

IIF investment property locations as at 30 June 2007

Sydney, Australia

/54%27%34 M /PSXFTU 1FOSJUI +INGS0ARK "LACKTOWN ..PUPSXBZ 39$.%9./24( M )VOUJOHXPPE ..PUPSXBZ /PSUI3ZEF &STLJOF &BTUFSO 1BSSBNBUUB 1BSL $SFFL 4NJUImFME 3PTFIJMM

4:%/&: 8FUIFSJMM1BSL

8FTUMJOL. )..%27%34 !40 M

-JWFSQPPM &BTUFSO%JTUSJCVUPS 3/54(39$.%9 .PPSFCBOL 3JWFSXPPE M ..PUPSXBZ #BOLTNFBEPX

0ORT "OTANY

3/54(7%34 *OHMFCVSO M .=)VNF.PUPSXBZ.JOUP

For personal use only use personal For .

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND

Australia Cairns

Townsville

Mount Isa N

Mackay

Rockhampton

QUEENSLAND

Bundaberg

SOUTH AUSTRALIA Toowoom BrisbaneBris $138m ooldld Coast

Lismore

Coffs Harbour

Broken Hill NEW SOUTH WALES Tamworth

Newcastle Bathur Mildura dneydn $2,032m A ide Goulbu

Canberra For personal use only use personal For VICTORIA Cooma

bourne Ge 517m

PAGE 31 FUND REVIEW ING INDUSTRIAL FUND

Canada

"2)4)3( #/,5-")!

!,"%24! 3!3+!4#(%7!. M -!.)4/"! %DMONTON 15%"%# #ALGARY 6ANCOUVER /.4!2)/ M 3EATTLE ./6! 7INNIPEG 1UÏBEC 3#/4)! 5 NI (ALIFAX TE D 3 TA TE S -ONTRÏAL OF !M E R IC A /TTAWA

+ITCHENER7ATERLOO 4ORONTO "UFFALO"U

#HICAGO# For personal use only use personal For

CREATING VALUE

FUND REVIEW ING INDUSTRIAL FUND

Europe

"ERLIN

"RUSSELS '%2-!.9 "%,')5- M M 0ARIS

&2!.#% M .

-ADRID

30!).

M For personal use only use personal For

PAGE 33 FUND REVIEW ING INDUSTRIAL FUND

AUSTRALIA

New South Wales Page No. 1. Great Western Business Centre, 16 Lidco Street, Arndell Park 37 2. Foothills Distribution Centre, 30 Lidco Street, Arndell Park 37 3. Huntley Business Park, 90 Euston Road, Alexandria 38 4. Euston Business Centre, 70 Euston Road, Alexandria 38 5. Green Square Business Park, 25-41 Mandible Street, Alexandria 39 6. Discovery Business Park, 1767 & 1799 Botany Road, Banksmeadow 39 7. Southgate Industrial Park, 47 Stephen Road, Banksmeadow 40 8. Translink Logistics Park, 10-14 McPherson Street, Banksmeadow 40 9. Northpoint Business Park, 7 Maitland Place, Baulkham Hills 41 10. Blacktown Distribution Centre, 37 Bessemer Street & 79 Tattersall Road, Blacktown 41 11. PortAir Industrial Estate, 1 & 1A Hale Street & 25 & 38 Luland Street, Botany 42 12. Campbelltown Distribution Centre, Lot 100 Johnson Road, Campbelltown 42 13. Chatswood Business Park, 372 Eastern Valley Way, Chatswood 43 14. Chullora Industrial Estate, 203 Rookwood Road, Chullora 43 15. Interchange Park, Corner Wallgrove Road and M4 Motorway, Eastern Creek 44 16. WestLand Industrial Estate, 2 Quarry Road, Erskine Park 44 17. WestPark Industrial Estate, 1-107 Erskine Park Road, Erskine Park 45 18. Skyline Business Park, 5 Skyline Place, Frenchs Forest 45 19. Grand Industry Park, 26 Ferndell Street, Granville 46 20. Huntingwood Business Centre, Huntingwood Drive, Huntingwood 46 21. Ingleburn Industrial Estate, 5 MacDonald Road, Ingleburn 47 22. Kings Business Park, 25 Garling Road, Kings Park 47 23. Lidcombe Distribution Centre, 38 Birnie Avenue, Lidcombe 48 24. Airlink Business Park Stage 1, 256-280 Coward Street, Mascot 48 25. Airlink Business Park Stage 2 & 3, 19-33 Kent Road Mascot 49 26. Heritage Business Centre, 5-9 Ricketty Street, Mascot 49 27. Millennium Court Industrial Estate, 33-41 Military Road, Matraville 50 28. Keylink Industrial Centre South, Corner Rose Payten & Pembroke Roads, Minto 50 29. Keylink Industrial Centre North, Corner Ben Lomond & Pembroke Roads, Minto 51 30. Minto Distribution Centre, 42 Airds Road, Minto 51 31. Greenhills Industrial Estate, 11 Greenhills Avenue, Moorebank 52 32. Moorebank Business Park, Corner Moorebank Avenue & Anzac Road, Moorebank 52 33. Moorebank Distribution Centre, 5 Helles Avenue, Moorebank 53

For personal use only use personal For 34. Newington Business Park, 2 Holker Street & 4 Avenue of Americas, Newington 53 35. BD Campus, 4 Research Park Drive, North Ryde 54 36. Catalyst Business Park, 65 Epping Road, North Ryde 54 37. City Views Business Park, 67-75 Epping Road, North Ryde 55 38. Everglade Campus, 82 Waterloo Road, North Ryde 55 39. Global Business Park, 27-37 Delhi Road, North Ryde 56 40. Microsoft Campus, 1 Epping Road, North Ryde 56

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

New South Wales cont. Page No. 41. The Park, 5 Talavera Road, North Ryde 57 42. Unisys Campus, 1G Homebush Bay Drive, Rhodes 57 43. Riverwood Business Park, 92-100 Belmore Road, Riverwood 58 44. Green Central, 61 Dunning Avenue, Rosebery 58 45. Harcourt Business Park, 809-821 Botany Road, Rosebery 59 46. Rosehill Industrial Estate, Corner Unwin & Shirley Streets, Rosehill 59 47. Seven Hills Industrial Estate, 17 Stanton Road, Seven Hills 60 48. Newington Distribution Centre, 4 Newington Street, Silverwater 60 49. Somersby Distribution Centre, Lot 11 Kangoo Road, Somersby 61 50. Villawood Industrial Estate, 70-82 Marple Avenue, Villawood 61

South Australia

51. Wingfield Distribution Centre, 6 Senna Road, Wingfield 62

Victoria

52. ParkWest Industrial Estate, Corner ParkWest Drive & Boundary Road, Derrimut 62 53. Braeside Distribution Centre North, 41-51 Mills Road, Braeside 63 54. Braeside Distribution Centre South, 82 Mills Road, Braeside 63 55. Knoxfield Distribution Centre, 1464 Ferntree Gully Road, Knoxfield 64 56. Laverton Distribution Centre, 63-83 Fitzgerald Road, Laverton 64 57. Dockside Business Park, 111 Turner Street & 770 Lorimer Street, Port Melbourne 65 58. Port Melbourne Industrial Estate, 437-481 Plummer Street, Port Melbourne 65 59. Seaford Industrial Estate, 80 Hartnett Drive, Seaford 66

Queensland

60. Acacia Park, 60 Gay Street, Acacia Ridge 66

For personal use only use personal For 61. Kingsford Smith Corporate Park, 112 Cullen Avenue, Eagle Farm 67 62. Forest Lake Distribution Centre, Stapylton Road, Forest Lake 67 63. Loganlea Distribution Centre, 628 Kingston Road, Loganlea 68 64. Richlands Distribution Centre, 36 Fulcrum Street, Richlands 68

PAGE 35 FUND REVIEW ING INDUSTRIAL FUND

EUROPE Page No. Belgium

65. Puurs Distribution Centre, Brabantstraat, Puurs 69

France

66. Les Tulipes Distribution Centre, ZAC du Parc des Tulipes Sud, Gonesse 69

Germany

67. Erfurt PDLZ Distribution Centre, Sülzenbrücker Straße 7, Apfelstädt 70 68. Huchting Distribution Centre, Bauerland Straße 7-9a, Bremen 70 69. Port Bremen East Distribution Centre, Ludwig-Erhard-Straße 2-4, Bremen 71 70. Port Bremen West Distribution Centre, Ludwig-Erhard-Strasse 22, Bremen 71 71. Brieselang Distribution Centre, Havellandstraße 5, Brieselang 72 72. Großbeeren Distribution Centre, Märkische Allee 15, Großbeeren 72 73. Groß Machnow Distribution Centre, Birkenweg 4, Groß Machnow 73 74. Sehnde Distribution Centre, Im Schnedebruch 12, Hannover-Sehnde 73 75. Lahr Distribution Centre, Archimedesstraße, Black Forest Business Park, Lahr 74 76. Bautzener Distribution Centre, Bautzener Strasse 69, Leipzig 74

Spain

77. Daganzo II Industrial Estate, Unidad de Ejecucion 15, Daganzo 75 78. Great Northern Distribution Centre, E-19209, Quer 75 79. Quer II Distribution Centre, Avennida del Majuelo, Quer 76 80. Valdemoro Distribution Centre, Poligono Industrial La Postura, Valdemoro 76

CANADA Page No.

ING Summit Properties For personal use only use personal For 81. Ontario 77 82. Alberta 79 83. Quebec 81 84. Other regions 82

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

GREAT WESTERN BUSINESS CENTRE

Arndell Park and adjacent Huntingwood are two of Western Sydney’s most sought after industrial precincts, both with excellent access to Sydney’s motorway network. Major occupiers in this locality include Sony, Sharp, Arnotts and Exel.

This property is a high quality 7,251sqm warehouse / office facility that enjoys direct exposure to the Great Western Highway. Constructed in 2000, the site can accommodate further development of 16 Lidco Street, Arndell Park NSW some 3,856sqm.

FOOTHILLS DISTRIBUTION CENTRE

Purchased in May 2007, this modern 5,363sqm office/warehouse property features a climate controlled warehouse space for storage of

temperature sensitive products. 30 Lidco Street, Arndell Park, NSW For personal use only use personal For

PAGE 37 FUND REVIEW ING INDUSTRIAL FUND

HUNTLEY BUSINESS PARK

Alexandria, Rosebery and Mascot form the northern part of the South Sydney industrial area, within 5km of Sydney CBD. This locality is undergoing substantial change, with new campus office properties, retail and medium density residential progressively replacing industrial estates and warehouse properties.

Acquired in 2004, the property comprises two freestanding modern office/warehouse buildings 90 Euston Road, Alexandria NSW totalling 11,074sqm, on a prominent corner site. The property has the added advantage of dual street frontages.

EUSTON BUSINESS CENTRE

The property is a two level, freestanding 5,908sqm warehouse/office building situated on a prominent 70 Euston Road, Alexandria NSW corner site, opposite the Fund’s Huntley

Business Park. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

GREEN SQUARE BUSINESS PARK

Alexandria, Rosebery and Mascot form the northern part of the South Sydney industrial area, within 5km of Sydney CBD. This locality is undergoing substantial change, with new campus office and retail properties and medium density residential progressively replacing industrial estates and warehouse properties.

The property is a two level 15,788sqm older style building, providing both office and production/ warehouse space with extensive rooftop parking. 25 - 41 Mandible Street, Alexandria NSW

DISCOVERY BUSINESS PARK

Banksmeadow is strategically located adjacent to Port Botany and 11km south of Sydney CBD in the heart of the South Sydney industrial precinct, Australia’s most sought after industrial investment market.

This property comprises two functional office/ warehouse buildings on separate titles, situated within 0.5km of Port Botany, with a total area of 7,915sqm. Both buildings were substantially 1767 &1799 Botany Road, Banksmeadow NSW

refurbished in 2004. For personal use only use personal For

PAGE 39 FUND REVIEW ING INDUSTRIAL FUND

SOUTHGATE INDUSTRIAL PARK

Banksmeadow is strategically located adjacent to the Port of Botany and 11km south of Sydney CBD in the heart of the South Sydney industrial precinct, Australia’s most sought after industrial investment market.

Southgate is a 9.6ha site with a 44,479sqm distribution facility completed in 2006 and leased for ten years to leading logistics provider Linfox. 47 Stephen Road, Banksmeadow NSW The property has the benefit of 24/7 operating capability and a dedicated B-double access road. The site can accommodate a further 8,500sqm facility which is expected to be completed in late 2008.

TRANSLINK LOGISTICS PARK

The property consists of two distribution facilities developed by the Fund in 2001/02, totalling 23,241sqm. This property has a high ratio of truck doors and docks, and generous truck circulation

10-14 McPherson Street, Banksmeadow NSW and loading areas. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

NORTHPOINT BUSINESS PARK

This property is situated within Norwest Business Park, a master planned business park in Sydney’s Northwest with associated retail and residential development. Norwest is home to a number of corporate headquarters, including ResMed, Woolworths, Wyeth Australia and Schneider Electrical.

This 6,193sqm building is constructed to a high standard and is divided into three separate areas 7 Maitland Place, Baulkham Hills NSW comprising office, warehouse and air conditioned pharmaceutical manufacturing space.

BLACKTOWN DISTRIBUTION CENTRE

The established Blacktown / Kings Park industrial precinct in Sydney’s Outer West is close to one of Sydney’s primary urban growth corridors, the north west. Blacktown and Kings Park have benefited from significantly improved access following completion of the M7 Motorway in 2006, with resultant market value and rental increases.

This property is an older style distribution centre, constructed in the 1970’s. The property has a site 37 Bessemer Street & 79 Tattersall Road, area of 9.2ha and offers excellent redevelopment potential upon expiry of the Metcash lease. The Blacktown NSW recent acquisition of adjacent land provides

For personal use only use personal For the site with a second entry point and superior accessibility to the Westlink M7 Motorway.

PAGE 41 FUND REVIEW ING INDUSTRIAL FUND

PORTAIR INDUSTRIAL ESTATE

Botany occupies a key location near to both the Port of Botany and Sydney’s Kingsford Smith International Airport, and is 11km south of Sydney CBD. Botany forms part of the South Sydney industrial precinct, Australia’s most sought after industrial investment market.

This property is one of South Sydney’s largest industrial estates, incorporating over 113,000sqm 1 & 1A Hale Street & 25 & 38 Luland Street, of warehouse space in ten separate warehouse Botany NSW buildings, along with some 13,000sqm of rentable container hardstand areas. The site also has the capacity to provide for an additional 6,000 to 8,000sqm of new development.

CAMPBELLTOWN DISTRIBUTION CENTRE

Campbelltown is situated in Sydney’s Southwest, an established and growing industrial belt centered around the M5/Hume Freeway and encompassing Ingleburn and Minto. This locality is popular with larger users including a significant number of manufacturing firms.

This property consists of a 16,639sqm warehouse on a prominent corner site with drive around access, Lot 100 Johnson Road, Campbelltown, NSW utilised for Iron Mountain’s document storage

operations. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

CHATSWOOD BUSINESS PARK

Chatswood is a major office and retail centre in Sydney’s affluent northern suburbs. The eastern edge of Chatswood provides one of the few industrial and commercial service precincts in this locality.

The property is a ten unit 12,673sqm industrial complex constructed over two levels. Each unit provides two levels of office accommodation and high clearance clear span warehouse space, with 372 Eastern Valley Way, Chatswood, NSW excellent showroom/retail exposure to one of Chatswood’s major arterial roads.

CAMPBELLTOWN CHULLORA DISTRIBUTION INDUSTRIAL CENTRE ESTATE

The Inner West industrial suburb of Chullora has traditionally attracted a broad spectrum of industrial users. Key occupants in the vicinity include Franklins, Fairfax Newspapers, News Limited, Transfield and one of Sydney’s major intermodal rail freight facilities.

This property comprises two generic office/ warehouse buildings along with a purpose built

courier facility, totalling 15,899sqm in area. 203 Rookwood Road, Chullora NSW For personal use only use personal For

PAGE 43 FUND REVIEW ING INDUSTRIAL FUND

INTERCHANGE PARK

The Eastern Creek and Erskine Park industrial precincts are major areas of industrial development in Sydney’s Outer West, 38km from Sydney CBD, with superior motorway access attracting a wide range of warehousing and logistics users.

Interchange Park is the Fund’s premier Western Sydney development site, comprising some 58 has situated at the junction of the M4 and M7 Corner Wallgrove Road & M4 Motorway, motorways and capable of accommodating over Eastern Creek NSW 250,000sqm. Construction of site infrastructure and the first two buildings totalling 60,000sqm will be completed by December 2007.

WESTLAND INDUSTRIAL ESTATE

This property consists of one 7,009sqm building constructed in 2006 and leased to Brambles for ten years, along with additional land. Development of 2 Quarry Road, Erskine Park NSW a further 5,675sqm building is likely to commence

in late 2007. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

WESTPARK INDUSTRIAL ESTATE

The property comprises a 39 ha development site situated at the junction of Erskine Park and Mamre Roads, Erskine Park. New facilities for Capral and 1-107 Erskine Park Road, Erskine Park NSW SCA have been completed, and Kagan Logistics’ new facility will be completed in late 2007.

SKYLINE BUSINESS PARK

Frenchs Forest is a business park precinct 15km northwest of Sydney CBD, servicing Sydney’s northern beaches.

The property consists of two separate buildings divided into five modern industrial units totalling 6,368sqm in area.

5 Skyline Place, Frenchs Forest NSW For personal use only use personal For

PAGE 45 FUND REVIEW ING INDUSTRIAL FUND

Artist impression GRAND INDUSTRY PARK

Granville is an industrial precinct situated between Parramatta and Moorebank in Sydney’s Central West. This locality is characterised by light manufacturing uses.

The property is a vacant 3.8 ha development site subject to a development agreement with Australand. The Fund receives land rental from Australand which equates to a return of approximately 9.0% on the current book value, 26 Ferndell Street, Granville NSW until April 2008. Australand has exclusive rights to develop the property over this period.

HUNTINGWOOD BUSINESS CENTRE

Huntingwood and adjacent Arndell Park are two of Western Sydney’s most sought after industrial precincts, both with excellent access to Sydney’s motorway network. Major occupiers in this locality include Sony, Sharp, Arnotts and Exel.

This property consists of five high quality freestanding office/warehouse buildings constructed between 1998 and 2006, and totalling

Huntingwood Drive, Huntingwood NSW 25,296sqm in area. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

INGLEBURN INDUSTRIAL ESTATE

Ingleburn is situated in Sydney’s Southwest, an established and growing industrial belt centered around the M5/Hume Freeway and encompassing Minto and Campbelltown. This locality is popular with larger users including a significant number of manufacturing firms.

The property has three freestanding modern warehouse buildings constructed between 1999 and 2002 and totaling 20,585sqm, on a high profile 5 MacDonald Road, Ingleburn NSW site adjacent to the Brooks Road interchange on the M5 Motorway.

HUNTINGWOOD KINGS BUSINESS BUSINESS CENTRE PARK

Modern office/warehouse complex of three self contained units in two buildings totalling 25 Garling Road, Kings Park NSW 12,841sqm. A major refurbishment of this property and construction of the second building was completed in November 2004.

For personal use only use personal For

PAGE 47 FUND REVIEW ING INDUSTRIAL FUND

LIDCOMBE DISTRIBUTION CENTRE

Lidcombe is a central location in Sydney’s Inner West, 16km west of Sydney CBD. This locality accommodates industrial, business park and bulky goods retail uses, and is immediately adjacent to the M4 Motorway.

TNT occupy this 12,080sqm office/warehouse building, constructed in 2002 and featuring both grade and dock loading, substantial canopy areas 38 Birnie Avenue, Lidcombe NSW and high quality office space.

AIRLINK BUSINESS PARK STAGE 1

Mascot, Rosebery and Alexandria form the northern part of the South Sydney industrial area, within 5km of the Sydney CBD. This locality is undergoing substantial change, with new campus office properties, retail and medium density residential progressively replacing industrial estates and warehouse properties.

Two adjoining office/warehouse buildings totalling 256-280 Coward Street, Mascot NSW 10,389 sqm with basement parking, situated adjacent to Mascot Station on Sydney’s passenger rail network. A major refurbishment of this property was completed in November 2004, including new lifts in

For personal use only use personal For each building.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

AIRLINK Artist impression BUSINESS PARK STAGE 2&3

Mascot, Rosebery and Alexandria form the northern part of the South Sydney industrial area, within 5km of Sydney CBD. This locality is undergoing substantial change, with new campus office properties, retail and medium density residential progressively replacing industrial estates and warehouse properties.

This property is a development site with an approved master plan and development consent to 19-33 Kent Road, Mascot NSW construct up to 62,500sqm of campus office space.

HERITAGE BUSINESS CENTRE

The property is a modern 14,227sqm office/ warehouse complex built in 1995 to a very high 5-9 Ricketty Street, Mascot NSW standard, and consisting of seven units. The estate is accessed from both Gardeners Road and

Ricketty Street. For personal use only use personal For

PAGE 49 FUND REVIEW ING INDUSTRIAL FUND

MILLENNIUM COURT INDUSTRIAL ESTATE

Matraville forms the eastern extent of the South Sydney industrial precinct, and is immediately adjacent to Port Botany, 12km from Sydney CBD.

This 53,728sqm estate comprises three separate high clearance office/warehouse facilities with exclusive hardstand and truck circulation areas, accommodating Ingram Micro, DHL and TNT. All buildings are accessed via a private estate road. 33-41 Military Road, Matraville NSW

Artist impression KEYLINK INDUSTRIAL CENTRE SOUTH

Minto is situated in Sydney’s Southwest, an established and growing industrial belt centered around the M5/Hume Freeway and encompassing Ingleburn and Campbelltown. This locality is popular with larger users including a significant number of manufacturing firms.

This property is a 16.8 ha development site. As with Keylink North, this property is subject to a development agreement with Australand and Corner Rose Payten & Pembroke Roads, Walker Corporation. A 37,573sqm distribution Minto NSW centre for Australian Discount Retail is currently under construction and will be completed in late

For personal use only use personal For 2007. The site benefits from direct frontage to the Sydney - Melbourne rail freight line.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

KEYLINK INDUSTRIAL CENTRE NORTH

This property is a 13.0 ha development site that is subject to a development agreement with Australand and Walker Corporation. The Fund Corner Ben Lomond & Pembroke Roads, receives income from the SPV on all undeveloped land. One 8,204sqm warehouse building has been Minto NSW built, and a second 9,200sqm building will be completed in late 2007.

MINTO DISTRIBUTION CENTRE

This modern and functional warehouse building has a lettable area of 10,711sqm, with additional covered loading space of over 3,000sqm.

42 Airds Road, Minto NSW For personal use only use personal For

PAGE 51 FUND REVIEW ING INDUSTRIAL FUND

GREENHILLS INDUSTRIAL ESTATE

Moorebank is an established industrial area situated on the M5 Motorway corridor, near its junction with the Westlink M7 Motorway. This locality appeals to a wide range of users, with superior road and passenger rail access to all parts of Sydney and the amenities of neighbouring Liverpool town centre. Port Botany is within 15km via the M5 Motorway.

The property consists of two freestanding 11 Greenhills Avenue, Moorebank NSW office/warehouse buildings totalling 10,781sqm, constructed in 1997.

MOOREBANK BUSINESS PARK

This estate occupies a high profile position CornerCorner Rose Moorebank Payten &Avenue Pembroke & Anzac Roads, Road, Minto adjacent to the Moorebank interchange of the M5 Moorebank NSW Motorway. Acquired as a vacant 26 ha site in 2003, the site now accommodates Criterion, Electrolux

For personal use only use personal For and Toyota Industrial, with a new facility for BMW currently under construction and some 31,000sqm of development capacity remaining.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

MOOREBANK DISTRIBUTION CENTRE

This property is a modern high clearance 5 Helles Avenue, Moorebank NSW 27,407sqm warehouse with offices and amenities over two levels.

NEWINGTON BUSINESS PARK

Newington and neighbouring Silverwater are two of the most popular industrial precincts in Sydney’s Inner West, 18km from Sydney CBD and within 2km of the M4 Motorway.

2 Holker Street comprises an 8 unit industrial complex, and 4 Avenue of Americas comprises a 21 unit industrial complex, with the total building area amounting to 26,669sqm. Each unit has a high clearance warehouse, mezzanine office, and ground floor office/showroom space in a high 2 Holker Street & 4 Avenue of Americas,

quality business park environment. Newington NSW For personal use only use personal For

PAGE 53 FUND REVIEW ING INDUSTRIAL FUND

BD CAMPUS

North Ryde is Sydney’s premier high tech / business park precinct, situated in Sydney’s northern suburbs some 14km northwest of Sydney CBD. This locality is home to a wide range of household names particularly in the areas of technology, food and pharmaceuticals.

This property is situated within Macquarie Research Park, a master planned estate adjacent to the Macquarie University campus. The building 4 Research Park Drive, North Ryde NSW is a 5,364sqm four level office building with basement car parking, constructed in 1998.

CATALYST BUSINESS PARK

The property occupies a high profile site on North Ryde’s main traffic artery, Epping Road. The building is a modern office/warehouse facility of

65 Epping Road, North Ryde NSW 14,126sqm with 591 car parking spaces. For personal use only use personal For

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CITY VIEWS Artist impression BUSINESS PARK

67 Epping Road is a development site upon which a new 7,457sqm A grade Greenstar/4 star rated campus building is being constructed. 71 Epping Road is a four level office building, and 75 Epping 67-75 Epping Road, North Ryde NSW Road is a two unit office/warehouse building. Both buildings are suited to medium term redevelopment, capable of providing a further 26,820sqm of new campus space.

EVERGLADE CAMPUS

Everglade is a 10,415sqm four level campus office building with 300 car spaces. Developed by the Fund in 2002, this property occupies a prime position within 300 metres of Macquarie Shopping 82 Waterloo Road, North Ryde NSW Centre, Macquarie University and a passenger rail station. Hitachi, McGraw Hill and Olympus are For personal use only use personal For amongst the occupiers of this property.

PAGE 55 FUND REVIEW ING INDUSTRIAL FUND

Artist impression GLOBAL BUSINESS PARK

The property is a 1.76 ha redevelopment site prominently located at the gateway to North Ryde, 27-37 Delhi Road, North Ryde NSW with expansive views. The site will be developed in several stages commencing in late 2007, and upon completion will provide some 32,000sqm of new campus office space.

MICROSOFT CAMPUS

This property forms part of Riverside Corporate Park, a 27 ha hi-tech R & D business park developed progressively since the mid-1990’s. 1 1 Epping Road, North Ryde NSW Epping Road is a high quality five level 12,982sqm office building developed by the Fund for Microsoft in 2001. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

THE PARK

The Park comprises two older style office/ warehouse buildings, totaling 23,077sqm. The 6,242sqm building fronting Lane Cove Road 5 Talavera Road, North Ryde NSW has an approved Development Application for redevelopment to provide 12,860sqm of new campus office space. A third building comprising 4,275sqm of campus office space C is currently under construction and will be completed by November 2007.

UNISYS CAMPUS

Rhodes is a recently developed precinct for campus style office accommodation in Sydney’s Inner West, 16km west of Sydney CBD. Adjacent to Rhodes Shopping Centre, this locality has a high level of amenity and excellent accessibility via road and passenger rail.

The property is situated on the most prominent road frontage site within Rhodes Corporate Park, which upon completion will provide over 80,000 square of high quality office space. The building 1G Homebush Bay Drive, Rhodes NSW provides 12,271sqm of high quality office space over six levels, with 267 secure underground For personal use only use personal For parking spaces. Unisys occupy the entire building under a 12 year lease.

PAGE 57 FUND REVIEW ING INDUSTRIAL FUND

RIVERWOOD BUSINESS PARK

Riverwood is an established industrial precinct on the M5 Motorway corridor in Sydney’s Southwest, 24km from Sydney CBD and 12km from Port Botany.

Developed by the Fund in 2004, this 35,422sqm property is divided into 16 high quality office/ warehouse units ranging from 900sqm to 4,300 sqm in size. 92-100 Belmore Road, Riverwood NSW

GREEN CENTRAL

Rosebery, Alexandria and Mascot form the northern part of the South Sydney industrial area, within 5km of Sydney CBD. This locality is undergoing substantial change, with new campus office properties, retail and medium density residential progressively replacing industrial estates and warehouse properties.

Constructed in 2001, the property comprises a high quality four level office building with 61 Dunning Road, Rosebery NSW a total lettable area of 11,083sqm and 251 car parking spaces. The complex offers a high level of amenities for employees with views to Sydney CBD,

For personal use only use personal For an on-site cafe, gymnasium and tennis court.

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HARCOURT BUSINESS PARK

Rosebery, Alexandria and Mascot form the northern part of the South Sydney industrial area, within 5km of Sydney CBD. This locality is undergoing substantial change, with new campus office properties and medium density residential progressively replacing industrial estates and warehouse properties.

This modern office/warehouse complex comprises 17 units totaling 15,288sqm in area. The property 809-821 Botany Road, Rosebery NSW enjoys a prominent corner site with three street frontages and excellent truck access.

ROSEHILL INDUSTRIAL ESTATE

Rosehill is an Inner West industrial suburb situated at the geographic centre of metropolitan Sydney, 3km east of Parramatta CBD and adjacent to the M4 Motorway corridor.

Developed by the Fund between 2003 and early 2007, this is one of the Fund’s premier estates and was the inaugural winner of the Property Council of Australia’s Property Investment Award for Business and Industrial Parks in 2007. The estate comprises six freestanding buildings totalling Corner Unwin & Shirley Streets, Rosehill NSW 80,591sqm and includes an on site café. Occupiers

include Bunnings, Ryobi, Miele and Linfox. For personal use only use personal For

PAGE 59 FUND REVIEW ING INDUSTRIAL FUND

SEVEN HILLS INDUSTRIAL ESTATE

Seven Hills is an established industrial suburb in Sydney’s Outer West. This precinct is conveniently located at the junction of the M2 and M7 Motorways and 6km north of Parramatta CBD.

The property comprises eight modern warehouse units in two separate buildings, totalling 15,575sqm, with generous yard and circulation space. 17 Stanton Road, Seven Hills NSW

NEWINGTON DISTRIBUTION CENTRE

Silverwater and neighbouring Newington are two of the most popular industrial precincts in Sydney’s Inner West, 18km from Sydney CBD and within 2km of the M4 Motorway.

Leased to Metcash, this substantial 33,022sqm distribution complex includes a high clearance warehouse, cool room and freezer areas together with a three level office building of 5,500sqm constructed in 2003.

4 Newington Street, Silverwater NSW For personal use only use personal For

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SOMERSBY DISTRIBUTION CENTRE

Somersby is an industrial precinct adjacent to the F3 Freeway, 30km north of metropolitan Sydney. This locality services the rapidly growing Central Coast area..

The property is a 21,147sqm distribution centre with generous truck circulation space, on a 6.1 ha site.

Lot 11 Kangoo Road, Somersby NSW

VILLAWOOD INDUSTRIAL ESTATE

Villawood is a traditional industrial locality situated on the Hume Highway between Parramatta and Moorebank in Sydney’s Central West, 4km from the M4 Motorway.

This estate comprises two freestanding well presented office/warehouse buildings constructed in 1998 and totaling 16,529sqm lettable area.

70-82 Marple Avenue, Villawood NSW For personal use only use personal For

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WINGFIELD DISTRIBUTION CENTRE

Wingfield is located in Adelaide’s northern suburbs, 12km northwest of Adelaide CBD. This premier industrial precinct provides accommodation for a number of national and international tenants, particularly those related to the transport industry.

The property is a high clearance 13,751sqm distribution facility incorporating a single level 112 Cullen Avenue, 6Eagle Senna Farm Road, QLD Wingfield SA office/showroom area, leased for 12 years to Repco. The original 9,509 sqm facility was expanded by 4,242sqm in 2004, with additional yard and parking areas.

PARKWEST INDUSTRIAL ESTATE

Derrimut and Laverton North form the nucleus of Melbourne’s West, a preferred location for a large number of warehousing and distribution users. Located only 13km west of Melbourne CBD, this growing area has superior road access with direct connections to the Western Ring Road, West Gate Freeway, and Princes Freeway.

This 54ha property is the Fund’s premier estate in Corner ParkWest Drive & Boundary Road, Victoria, comprising 15 high quality freestanding office/warehouse facilities located along a 1km Derrimut VIC private roadway with extensive frontage to the Western Ring Road. Occupiers include DHL/Exel,

For personal use only use personal For Fedex, John Deere and Fisher & Paykel, and upon completion of the last development project in late 2007 the estate will have a total lettable area of 200,500sqm.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

BRAESIDE DISTRIBUTION CENTRE NORTH

Braeside is located in Melbourne’s manufacturing heartland in the southeast. This locality is characterised by larger manufacturing and distribution users.

Constructed in 1985, this 32,388sqm office/ warehouse facility has a long term lease to CPI Paper.

41-51 Mills Road, Braeside VIC

BRAESIDE DISTRIBUTION CENTRE SOUTH

Braeside is located in Melbourne’s manufacturing heartland in the southeast. This locality is characterised by larger manufacturing and distribution users.

This property comprises 29,770sqm of high clearance manufacturing and distribution space on a 9.7 ha site.

82 Mills Road, Braeside VIC For personal use only use personal For

PAGE 63 FUND REVIEW ING INDUSTRIAL FUND

KNOXFIELD DISTRIBUTION CENTRE

Knoxfield and neighbouring Scoresby occupy a sought after position in Melbourne’s southeast, at the junction of two major arterial roads and adjacent to the soon to be completed Eastlink (Scoresby Freeway). This locality has a number of high quality business park properties, along with more traditional distribution facilities.

This property is a development site comprising an 1464 Ferntree Gully Road, Knoxfield VIC older style distribution centre. Management expect to redevelop the site upon expiry of the existing lease in May 2008, to provide approximately 77,000sqm of new office/warehouse space.

LAVERTON DISTRIBUTION CENTRE

Laverton North and Derrimut form the nucleus of Melbourne’s West, a preferred location for a large number of warehousing and distribution users. Located only 13km west of Melbourne CBD, this growing area has superior road access with direct connections to the Western Ring Road, West Gate Freeway, and Princes Freeway.

Leased to Metcash until 2017, this 73,813sqm 63-83 Fitzgerald Road, Laverton VIC distribution complex comprises four interconnected warehouse buildings with a two storey office wing, plus two new warehouse buildings of 24,000sqm completed in May 2002,

For personal use only use personal For with generous heavy vehicle circulation and substantial car parking areas.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

DOCKSIDE BUSINESS PARK

Port Melbourne is a rapidly changing locality, combining traditional industrial uses with newer business park space, offices and retail showroom uses. This precinct combines immediate access to Melbourne CBD (2km to the east) with excellent accessibility to the Citylink motorway and West Gate Freeway.

This property has three high quality office/ warehouse facilities developed by the Fund 111 Turner Street & 770 Lorimer Street, between 1998 and 2002 and totalling 29,670sqm in area. The site faces Melbourne’s Docklands and Port Melbourne VIC has dual street frontages. BMW, Corporate Express and Merck Sharp Dohme occupy this property.

PORT MELBOURNE INDUSTRIAL ESTATE

This estate comprises 9 warehouse buildings in 11 separate tenancies totalling 96,525sqm. 437-481 Plummer Street, Port Melbourne VIC Housewares International and Brambles/Recall account for over 50% of the estate, with leases

extending to 2015, 2017 and 2019. For personal use only use personal For

PAGE 65 FUND REVIEW ING INDUSTRIAL FUND

SEAFORD INDUSTRIAL ESTATE

Seaford is situated at the southern end of Melbourne’s southwest industrial belt, at the junction of the Frankston Freeway and the soon to be completed Eastlink (Scoresby Freeway). This locality has both older style and modern medium industrial properties and will further improve as a result of these infrastructure projects.

Occupied by Nylex, this property currently comprises 80 Hartnett Drive, Seaford VIC 16,767sqm of factory, warehouse and office space on a 4.3 ha site. With a high exposure position, this property is a medium term redevelopment prospect.

ACACIA PARK

Acacia Ridge is a tightly held industrial locality, 14km south of Brisbane CBD. The Ipswich Motorway can be accessed within 3km, and the Gateway and Pacific Motorways within 7km.

The property is adjacent to the Acacia Ridge intermodal facility, and comprises an 8.0 ha container handling depot with rail sidings, leased to Bluescope Steel for a term of 20 years.

60 Gay Street Acacia Ridge QLD For personal use only use personal For

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KINGSFORD SMITH CORPORATE PARK

Eagle Farm is a warehouse and heavy industrial suburb of Brisbane, within the Gateway precinct, 8km east of Brisbane CBD and 5km southwest of Brisbane Airport. This locality is bisected by the Gateway Motorway, which connects to Brisbane’s other key motorways.

The property is a functional 12,007sqm industrial unit complex subdivided into nine tenancies. The buildings are of tilt slab construction; warehouses 112112 CullenCullen Avenue,Avenue, EagleEagle FarmFarm QLDQLD are high clearance with two level offices attached. The Gateway Motorway is accessible within 0.5km of the property.

FOREST LAKE DISTRIBUTION CENTRE

Forest Lake is a recently developed distribution hub in Brisbane’s South, on the Logan Motorway corridor. This locality accommodates modern facilities for Woolworths, Hills Industrial, Kimberly Clark and Southcorp.

The property was the first and premier development in 1999 in Brisbane South Industrial Park. It comprises a grocery distribution centre of 55,739sqm with over 90 docks, and extensive Stapylton Road, Forest Lake QLD vehicle marshalling areas. This property serves as a regional distribution centre for Coles supermarkets, and has further expansion capacity

For personal use only use personal For of a further 24,000sqm.

PAGE 67 FUND REVIEW ING INDUSTRIAL FUND

LOGANLEA DISTRIBUTION CENTRE

Loganlea is situated on the Logan Motorway corridor in Brisbane’s southeast, midway between the Pacific and the Gateway Motorway junctions, 26km south of Brisbane CBD.

Leased to Metcash until 2015, this 39,987sqm grocery distribution centre occupies a high profile 9.2ha island site immediately adjacent to the Loganlea interchange on the Logan Motorway. 628 Kingston Road, Loganlea QLD

RICHLANDS DISTRIBUTION CENTRE

Richlands, along with Wacol and Carole Park are popular localities which form an industrial belt on the Ipswich Motorway corridor in Brisbane’s southeast, 17km from Brisbane CBD.

Parmalat occupy this 8,267sqm temperature controlled warehouse facility, which has expansion capability of a further 3,000sqm.

36 Fulcrum Street, Richlands QLD For personal use only use personal For

CREATING VALUE PARKWEST INDUSTRIAL ESTATE, AUSTRALIA HANNOVER-SEHNDE DISTRIBUTION CENTRE, GERMANY GROßBEEREN DISTRIBUTION CENTRE, GERMANY

VILLAWOOD INDUSTRIAL ESTATE, AUSTRALIA PARKWEST INDUSTRIAL ESTATE, AUSTRALIA PORT MELBOURNE INDUSTRIAL ESTATE, AUSTRALIA For personal use only use personal For FUND REVIEW ING INDUSTRIAL FUND BELGIUM GERMANY PUURS DISTRIBUTION CENTRE

Puurs is situated 12km from the Port of Antwerp, Europe’s third largest container port by volume, within the Antwerp/Brussels/Gent triangle. Over half of all modern logistics space in Belgium is concentrated in this locality, including operators Frans Maas, TNT, Fiege and Prologis.

The Puurs property comprises a 9.75 ha site, with a 20,460sqm warehouse/logistics facility constructed in 2006 and occupied by Fiege and client Ingersoll- Brabantstraat, Puurs Rand. The remaining site can accommodate a further 20,000sqm facility.

FRANCE LES TULIPES DISTRIBUTION CENTRE

The property is located in a prime logistics locality on France’s A1 motorway corridor only 15km northeast of the Paris CBD, between Charles-de- Gaulle and Le bourget airports. This location is one of the most sought after logistics locations in the Paris market.

Constructed in 2004, the property comprises a 22,108sqm distribution centre constructed to a ZAC du Parc des Tulipes Sud, Gonesse very high quality. The offices are set over two

levels and feature an impressive glass facade. For personal use only use personal For

CREATING VALUE BELGIUM GERMANY FUND REVIEW ING INDUSTRIAL FUND ERFURT PDLZ DISTRIBUTION CENTRE

Erfurt is a regional city in Central Germany, situated near the junction of the A4 and A9 Autobahns, an ideal location for national distribution facilities. The A4 is one of Germany’s primary east-west arterial roads, connecting to Frankfurt and the Rhine/Ruhr region in the west, whilst the A9 extends to Berlin in the north.

This 22,526sqm property was constructed in 2000 and is located 15km southwest of the 112 Cullen Avenue, Eagle Farm QLD Erfurt within the Niederwiese Business Park at Sülzenbrücker Straße 7, Apfelstädt Apfelstädt, adjacent to the Autobahn A4. German pharmaceutical chain Kd Kaiser occupy the property until 2015.

HUCHTING DISTRIBUTION CENTRE

In Northern Germany, Bremen is Europe’s fourth largest port by container tonnage, and its importance will further increase with completion of more port development at nearby Wilhelmshaven. This region benefits from good road, rail, sea and air transport infrastructure.

The property is located within the industrial suburb of Huchting, 12km from the Bremen CBD, and comprises an older style mid clearance Bauerland Straße 7-9a, Bremen warehouse property with a total lettable area

of 11,581sqm. For personal use only use personal For

PAGE 71 FUND REVIEW ING INDUSTRIAL FUND

PORT BREMEN EAST DISTRIBUTION CENTRE

The property is located within the Güterverkehrszentrum Niedervieland (“GVZ”) logistics park, an industrial precinct dominated Ludwig-Erhard-Straße 2-4, Bremen by freight forwarders and logistics providers 7km from Bremen CBD and 3km from Bremen Port. Buildings consist of one free standing and seven interconnected warehouse spaces with a total lettable area of 34,640sqm, situated directly opposite a substantial intermodal terminal.

PORT BREMEN WEST DISTRIBUTION CENTRE

The property is located within the Güterverkehrszentrum Niedervieland (“GVZ”) Ludwig-Erhard-Straße 22, Bremen logistics park, an industrial precinct dominated by freight forwarders and logistics providers 7km from Bremen CBD and 3km from Bremen Port. Buildings total 21,566sqm and include a three

For personal use only use personal For storey detached office building, two conventional warehouse areas, and a high bay (25m) storage area constructed in 1996.

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

BRIESELANG DISTRIBUTION CENTRE

Brieselang is an outer suburb of Berlin, 30km west of Berlin CBD and adjacent to the Autobahn A10 “Berliner Ring”. This locality is ideal for logistics use, as the A10 circumnavigates Berlin and provides access to six other autobahns radiating from Berlin (A2, A24, A11, A12, A13 & A9) to all other parts of Germany.

The property is located within the Warenwirtschaftszentrum Havelland (“WWZ”) 112Havellandstra Cullen Avenue,ße 5, Brieselang Eagle Farm QLD a dedicated logistics park. Constructed in 1999, this impressive modern distribution facility boasts high quality warehouse and office space totalling 66,154sqm, generous truck access, parking and container storage. Brieselang Distribution Centre includes additional land capable of accommodating a further 24,000sqm.

GROßBEEREN DISTRIBUTION CENTRE

Großbeeren is an industrial locality in Berlin’s South, 13km from the CBD. Großbeeren GVZ is one the largest logistics estates in Berlin, with an intermodal terminal and a favourable location close to Tempelhof and Schönefeld airports.

The property comprises a substantial warehouse building and attached office wing over three levels, completed in 1997 and totaling 31,701sqm. The remaining site area provides loading and Märkische Allee 15, Großbeeren circulation areas and dedicated car and

truck parking. For personal use only use personal For

PAGE 73 FUND REVIEW ING INDUSTRIAL FUND

GROß MACHNOW DISTRIBUTION CENTRE

Groß Machnow is situated in the outer South of Berlin, 25km from Berlin CBD and 3km from the Autobahn A10 “Berliner Ring”. The A10 circumnavigates Berlin and provides access to six other autobahns radiating from Berlin (A2, A24, A11, A12, A13 & A9). The property also has a good proximity to the airports of Tempelhof and Schönefeld.

The property comprises warehouse complexes Birkenweg 4, Groß Machnow amounting to 47,887sqm, plus a number of ancillary buildings. The total lettable area is 51,412sqm.

SEHNDE DISTRIBUTION CENTRE

Hannover is an affluent city in Germany’s North, situated near the junction of the A2 and A7 Autobahns, two of the most important motorway corridors in Germany. One third of the EU’s population lives within a one day truck drive of this location.

This 6.4ha site accommodates two attached buildings in a “T” configuration, constructed in 1997 and Im Schnedebruch 12, Hannover-Sehnde totalling 17,745sqm in area, along with surplus land capable of accommodating a further 6,000 sqm. The

site has a direct rail connection. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

LAHR DISTRIBUTION CENTRE

Lahr is situated in southern Germany, near the French and the Swiss borders and adjacent to the A5/E35 Autobahn and the Rhine River. This location is becoming increasingly popular for pan European logistics providers due to its excellent motorway connections.

Black Forest Business Park is a new logistics park within 2 km of the A5 and adjacent to an airport with 24/7 airfreight operations. Both DHL and TNT 112Archimedesstra Cullen Avenue,ße, Black Eagle Forest Farm QLDBusiness Park have facilities in the locality. Lahr DC comprises a 36,230sqm logistics facility on a 10.0ha site, Lahr constructed in 2006 and occupied by Fiege and client Bridgestone. The site can accommodate a further 17,000sqm facility.

BAUTZENER DISTRIBUTION CENTRE

The regional centre of Leipzig is increasingly gaining importance as a logistics centre due to its excellent transport infrastructure. Since the eastward expansion of the EU in May 2004, Leipzig has become an ideal hub for trade between central and eastern Europe due to its geographic location. Berlin is 145km to the northeast, and Prague 195km southeast.

The property comprises an older style 16,466sqm Bautzener Straße 69, Leipzig warehouse/distribution property site on a 3.1 ha

site, leased for ten years to Fiege. For personal use only use personal For

PAGE 75 FUND REVIEW ING INDUSTRIAL FUND SPAIN DAGANZO II INDUSTRIAL ESTATE

Daganzo is situated in the Henares corridor, Madrid’s most sought after industrial precinct, which forms a 40 km long band around the A2 motorway and extending northeast of Madrid from Madrid-Barajas International Airport to Guadalajara.

The property is a modern 24,270sqm warehouse building subdivided into four tenancies. Unidad de Ejecucion 15 Daganzo

GREAT NORTHERN DISTRIBUTION CENTRE

Quer is situated in the Henares corridor, Madrid’s most sought after industrial precinct, which forms a 40 km long band centred on the A2 motorway and extending northeast of Madrid from Madrid- Barajas International Airport to Guadalajara. The A2 is the primary road link between Madrid and Barcelona and on to the south of France, and is one of the most important truck routes in Spain.

E-19209 Quer Constructed in 2004, the property comprises a 67,441sqm logistics facility which serves as Carrefour’s largest distribution warehouse in the

Madrid region. For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

QUER II DISTRIBUTION CENTRE

Quer is situated in the Henares corridor, Madrid’s most sought after industrial precinct which forms a 40 km long band centred on the A2 motorway and extending northeast of Madrid from Madrid- Barajas International Airport to Guadalajara. The A2 is the primary road link between Madrid and Barcelona and on to the south of France, and is one of the most important truck routes in Spain.

The property is a 22,085sqm logistics facility 112Avennida Cullen del Avenue, Majuelo, Eagle Quer Farm QLD constructed in 2005.

VALDEMORO DISTRIBUTION CENTRE

Valdemoro is an industrial suburb 27km south of Madrid CBD, and adjacent to Madrid’s A4 motorway. This locality benefits from immediate access to Madrid’s radial motorway system, providing fast access to all parts of metropolitan Madrid.

This 7,805sqm warehouse/logistics facility was constructed in 2005, and is leased to an

established Madrid logistics provider. Poligono Industrial La Postura, Valdemoro For personal use only use personal For

PAGE 77 FUND REVIEW ING INDUSTRIAL FUND

CANADA

Ontario

Greater Toronto Area

The Greater Toronto Area (GTA) is the largest metropolitan market in Canada and the fourth largest urban region in North America, accounting for one-half of Canadian industrial activity. The GTA incorporates the City of Toronto and the regions of Peel, Halton, York and Durham. The GTA is within one day’s truck drive of 60% of North American consumer markets via a network of Canadian and US interstate routes including the Trans-Canada highway. Ontario is the largest provincial economy in Canada with 65% of Canada’s trade with the United States crossing at the Ontario border points. In terms of other infrastructure Toronto International Airport is the busiest airport in Canada and the fourth busiest in North America.

The Port of Toronto services Ontario, Northwestern Quebec, upstate New York and Ohio. The GTA is also served by the two transcontinental national rail systems – the Canadian National Railway and the Canadian Pacific Railway – which operate within Canada, providing rail freight access to Canada and North America.

Ottawa

Ottawa is the capital of Canada and is a mature and stable market with the fortunes of the economy closely tied to the federal government. Ottawa is an established warehousing centre connected to the markets of Montreal and the GTA via the Trans-Canada Highway and both national transcontinental national rail systems.

ING Summit - Ontario portfolio as at 30 June 2007

% of Portfolio (by value) 48%

Lettable Area (000 sqft) 16,827

Rent ($ per sqft fully let basis) 6.18

Occupancy 95%

WALTE 3.9 For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

125 Maple Grove, Cambridge

6275 Northam Drive, Mississauga

1235 Ormont Road, Scarborough

2 Lone Oak Court, Toronto

2335 Speers Road,

Oakville For personal use only use personal For

239 Chrislea Road, Woodbridge

PAGE 79 FUND REVIEW ING INDUSTRIAL FUND

Alberta

Edmonton

Edmonton is the capital of Alberta with a geographical position which provides it with the strategic ability to serve a vast market region taking in the oil sands, natural gas and mining areas to the north. Edmonton, like other major markets within Alberta has benefited from the strengthening resources sector in Western Canada and the flow on economic benefits of resource based investment including paper mills and petro-chemical plants. Edmonton is serviced by the two transcontinental rail systems, including a link to the container terminal in Port of Prince Rupert which offers direct access to the North Pacific shipping lanes and is the shortest land-sea route between Asia and the North American consumer market.

Edmonton sits on the Yellowhead Highway which is the major east-west highway connecting the four western Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba. Access to Calgary is via the QE2 Highway due south and the area is served by Edmonton International Airport.

Calgary

Located in the province of Alberta, Calgary is Western Canada’s business centre and Canada’s fifth largest city. The Calgary region is Canada’s fastest growing economic region and with GDP growth at 4% it is forecast to lead Canadian economic growth into the future. Calgary is positioned as a warehouse and distribution hub for Western Canada given its location at the crossroads of two of North America’s major Highway systems, the Trans-Canada Highway which stretches from the Atlantic to the Pacific and Highway 2 (QE2 Highway) which is part of the Canamex Corridor, which extends from Northern Canada to Mexico. Calgary is also served by both transcontinental rail systems. The Canadian Pacific Railway is headquartered in Calgary and provides direct access to the Western Canadian markets, the United States and Mexico. It is estimated up to 50,000 rail cars pass through Calgary each week. The industrial market in Calgary is driven by transportation, warehousing and distribution, with strong connections to the oil and gas industry.

ING Summit - Alberta portfolio as at 30 June 2007

% of Portfolio (by value) 29%

Lettable Area (000 sqft) 9,330

Rent ($ per sqft fully let basis) 6.03

Occupancy 98%

WALTE 4.4 For personal use only use personal For

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

Alberta Park II, Edmonton

Capilano Business Centre, Edmonton

50th Street Development, Edmonton

Roper Industrial Park, Edmonton

Westminister Business Park,

Edmonton For personal use only use personal For

Papaschase Industrial Park, Edmonton

PAGE 81 FUND REVIEW ING INDUSTRIAL FUND

Quebec

Montreal

Located in the province of Quebec, Montreal is an international hub for business and industry, in particular manufacturing and high technology industry. Weak economic growth over the past few years has been largely tied to the sluggish manufacturing sector, now showing signs of recovery. Montreal is serviced by the Montreal-Pierre Elliot Trudeau International Airport and the Port of Montreal, which situated 1,600 kilometres from the Atlantic, is the international port closest to North America’s industrial heartland and is a major container freight hub for the North American Eastern Seaboard. Both transcontinental rail systems and the Trans-Canada Highway service Montreal.

ING Summit - Quebec portfolio as at 30 June 2007

% of Portfolio (by value) 13%

Lettable Area (000 sqft) 5,031

Rent ($ per sqft fully let basis) 6.40

Occupancy 97%

WALTE 4.7

1355 32nd Avenue, Lachine

For personal use only use personal For 4075 Industriel Boulevard, Laval

CREATING VALUE FUND REVIEW ING INDUSTRIAL FUND

Other Major Markets

Halifax, Nova Scotia

Located in the province of Nova Scotia, Halifax is the economic hub of Atlantic Canada, accounting for 20% of Atlantic Canada GDP. With a landscape dominated by industrial and business parks, there are currently 12 business and industrial parks within Greater Halifax which are home to 1,300 enterprises. Halifax is serviced by Halifax International Airport and the Port of Halifax, which is the second largest port in Canada. It is also the first inbound and last outbound port on the North American eastern seaboard, resulting in the shortest operating distances to Europe and Asia through the Suez Canal. Halifax is also serviced by both Canadian transcontinental rail systems and inter-provincial and US interstate roads.

Winnipeg, Manitoba

Located in the province of Manitoba, Winnipeg lies at the geographical centre of Canada. Given its strategic location within the North American Mid-Continent trade corridor, Winnipeg is home to many of Canada’s top inter-provincial general freight carriers. The Winnipeg International Airport is Canada’s most central international airport and has the highest number of scheduled freighter departures of all airports in Canada. Winnipeg is serviced by both Canadian transcontinental rail systems offering direct rail connections to the United States and by the Trans-Canada Highway and major US interstate routes.

Vancouver, British Columbia

Located on the Canadian west coast, Vancouver is the largest city in the province of British Columbia. Vancouver benefits not only from its location within Western Canada, but also from its location as the export/import gateway to the Pacific Rim. Vancouver experiences the largest port traffic in Canada per year, complimented by one of Canada’s largest industrial centres. Vancouver’s industrial focus is on warehousing and logistics, it is the western terminus of both transcontinental rail systems and the Trans-Canada highway, with most North American consumer markets being between 72 and 96 hours by road from Vancouver.

ING Summit - Other major markets as at 30 June 2007

% of Portfolio (by value) 10%

Lettable Area (000 sqft) 3,803

Rent ($ per sqft fully let basis) 6.20

Occupancy 96%

WALTE 3.7 For personal use only use personal For

2101 Nobel Boulevard, 10001-100091 Renaude-Lapointe, Ste Julie Montreal

PAGE 83 Glossary of terms Property / portfolio terms

$ All amounts are in Australian dollars unless specified

Average lease expiry Refer to WALTE

Average current rent Total current rent divided by the total lettable area

Total market rent for this property divided by the total Average market rent lettable area

Floor space ratio. Building area as a percentage of site FSR area.

Property specific stocks included in the S&P/ASX 200 S&P/ASX 200 Property index index

WALTE Weighted average lease term to expiry

Asset types

The rate which is applied to the market rental of the Capitalisation (“cap”) rate property to determine current capital value.

Current rent Actual rental income

The rate which is applied to forecast future cash flows Discount rate (including notional sale at the end of the forecast period) to determine current capital value.

The anticipated total return (income and capital IRR returns) over a forecast period (usually 10 years)

Current income return as a percentage of current Passing yield value.

Returns inclusive of distributions and growth of capital Total returns value

Net income return as a percentage of the cost of a Yield on cost

property or project. For personal use only use personal For ING Real Estate Investment Management Australia Level 6, 345 George Street Sydney NSW 2000 T : + 61 2 9033 1035 F : + 61 2 9033 1060

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