ING Real Estate Entertainment Fund Property Book 30 June 2008

investment management

ASIA / AUSTRALIA / EUROPE / NORTH AMERICA / UK ing real estate entertainment fund

ING Real Estate Entertainment Fund is a publicly traded property trust on the Australian Securities Exchange (ASX). IEF invests in entertainment and leisure properties in Australia and New Zealand. The Fund delivers value to unitholders by astute investment in quality assets that demonstrate stable income with potential for growth and enhanced returns. Our portfolio continues to increase in geographic diversity, with investments in 39 pubs and 15 clubs across Australia and New Zealand with a total asset value of $492 million.

brisbane hotel, perth wa

ING real estate entertainment Fund property book 2008 IFC INg real estate entertainment fund 2 PORTFOLIO data 4 PORTFOLIO summary 6 LOCATION maps 8 PROPERTy portfolio

about the fund

Since listing in 2004 the Fund has grown IEF has successful partnerships with to be a leading industry participant with numerous industry operators including a diversified portfolio of assets in New Icon Hospitality Management, Feros Group South Wales, Queensland, Western Australia and Panthers Entertainment Group. and New Zealand. The most notable example of the benefits Under the Fund’s traditional structure, available via this platform is the highly IEF owns the freehold interest of the successful refurbishment of the Dolphin hotels, and leases the licensed real estate Hotel in Surry Hills, NSW, which was the to experienced operators, who invest winner of ‘Hotel of the Year (NSW)’ at the significant capital alongside the Fund. Sydney BarShow awards in 2006. Other major refurbishments to date include the The Fund’s investment strategy aims transformation of the Terrey Hills Tavern to combine the depth, experience and on Sydney’s northern beaches. resources of ING Real Estate with the trading experience of proven operators In 2007 IEF formed a joint venture with within the hospitality and leisure sector. Panthers Entertainment Group, successfully Management works closely with each acquiring a significant interest in the of the Fund’s operators to identify assets property assets of the Group. offering significant potential for growth and enhanced returns.

The Fund has maintained a focus on delivering value through a clear investment strategy, disciplined acquisition programme, successful relationships with a wide variety of operators and the ability to add value through redevelopment.

1 portfolio data

portfolio key figures

30 june 2008 ief 54 property investments 18 operators 13 years walte $492 m total assets

Portfolio diversification Tenant Diversification by income

16 17 15 14 NSW 76% 13 1 ICON HOSPITALITY 31% 12 2 NZ 7% 1 ALLIED HOSPITALITY 5% QLD 14% 11 3 FEROS GROUP 5% WA 3% 10 4 STRATEGIC INVESTMENTS 2% 5 DOCKSIDE INVESTMENTS 2% 6 ALCHEMY HOTEL MANAGEMENT 3% 7 LASSETERS INTERNATIONAL 4% 8 EQUITY PARTNERS HOTEL GROUP 8% 9 9 PANTHERS ENTERTAINMENT GROUP 21% 2 10 NUTTERS HOTEL GROUP 1% 3 11 CLUB SWANS 5%

4 12 5 INDEPENDENT PUB GROUP 2% 8 6 7 13 AUST LEISURE GROUP 2% 14 CAPITAL MANAGEMENT (WA) PTY LTD 3% 15 INVESTMENT & DEVELOPMENT CORPORATION PTY LTD 1%

16 BIDWILL INVESTMENTS 2% 17 OTHER 3% lease expiry PROFILE

35% PERCENTAGE OF INCOME

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

ING real estate entertainment Fund property book 2008 courthouse hotel, cairns QLD

2 3 portfolio summary

new south wales

Current Valuation Hotel / club Location Operator ($’000) page no

Hotels Five Dock Hotel 74 Great North Road, Five Dock Icon Hospitality Management 13,700 11 Commodore Hotel 206 Blues Point Road, North Sydney Icon Hospitality Management 20,250 8 Woolwich Pier Hotel 2 Gale Street, Woolwich Icon Hospitality Management 9,700 11 Bourbon Hotel 24 Darlinghurst Road, Kings Cross Icon Hospitality Management 24,000 8 Dolphin Hotel 412 Crown Street, Surry Hills Icon Hospitality Management 11,750 10 Uncle Bucks Hotel + retail 12 Mount Street, Mt Druitt Icon Hospitality Management 23,150 12 El Toro Hotel 6 Homepride Avenue, Liverpool Icon Hospitality Management 17,500 12 Ambarvale Tavern 57 Woodhouse Drive, Ambarvale Icon Hospitality Management 16,000 13 terrey hills tavern 1 2 aumuna avenue, terrey hills feros group 13,500 General Gordon Hotel 20 Swain Street, Sydenham Icon Hospitality Management 14,800 13 Bowral Hotel 412 Bong Bong Street, Bowral Feros Group 6,800 9 Empire Hotel 103A Parramatta Road, Annandale Feros Group 6,000 14 Bidwill Hotel cnr Carlisle ave & tongariro tce, Bidwill bIdwill Investments 7,100 14 Premier Hotel 1 Brunker Road, Broadmeadow Alchemy Hotel Group 6,400 16 MJ Finnegan’s 23 Darby Street, Newcastle Alchemy Hotel Group 8,000 17 Lawson Park Hotel 1 Church Street, Mudgee aust leisure Group 4,650 16 CBD Hotel 465 Hunter Street, Newcastle aust leisure Group 5,550 18 Mattara Hotel 333 CharlesTown road, CharletstoWN lasseters International 7,650 9 Jewells Tavern 73 Ntaba road, Jewells Lasseters International 9,550 17 3 weeds 193 Evans Street, Rozelle INVESTMENT & DEVELOPMENT 6,800 10 CORPORATION pty ltd hibernian Hotel 145 auburn street, goulburn nutters hotel group 4,100

Total NEW SOUTH WALES / hotels 236,950 clubs club swans 26 Darlinghurst Road, Kings Cross sydney Aussie Rules Social Club 23,200 18 Panthers World of Entertainment lot 151, Mulgoa Road, Penrith Panthers Rugby League Club 19 Panthers Mekong Level 1, 117 St John Street, Cabramatta panthers Rugby League Club 19 Panthers Port Macquarie 1 Bay Street, Port Macquarie Panthers Rugby League Club 19 Port Macquarie Sports Club boundary road, Port Macquarie Panthers Rugby League Club 19 Panthers Newcastle cnr King & union Streets, Newcastle panthers Rugby League Club 19 Panthers Cardiff cnr Pendlebury & minibung Roads, CardIFF panthers Rugby League Club 19 Panthers Lavington 795 Centaur Road, Lavington Panthers Rugby League Club 19 Bathurst rugby league club 132 Piper Street, Bathurst Panthers Rugby League Club 19 Bathurst city Bowling Club 29 William Street, Bathurst Panthers Rugby League Club 19 Wallacia Golf and Country Club 13 Park Road, Wallacia Panthers Rugby League Club 19 Panthers St. Johns Park 80 Brisbane Road, St Johns Park Panthers Rugby League Club 19 Panthers North Richmond 33 Beaumont Avenue, North Richmond panthers Rugby League Club 19 West Epping Bowling Club 7 Mountain Street, Epping Panthers Rugby League Club 19 Glenbrook Bowling Club 4 Hare Street, Glenbrook Panthers Rugby League Club 19

Panthers total 88,528

Total NEW SOUTH WALES / Clubs 111,728

Total NEW SOUTH WALES 348,678

1) contracted for sale in April 2008

ING real estate entertainment Fund property book 2008 queensland

Current Valuation Hotel / club Location Operator ($’000) page no

GPO Hotel 740 Anne Street, Fortitude Valley Allied Hospitality 4,250 21 Exchange Hotel 131 Edward Street, Brisbane Allied Hospitality 16,772 21 Elephant and Wheelbarrow Hotel 230 Wickham Street, Fortitude Valley INdependent pub Group 9,050 22 O’Dowds Irish Pub 86 William Street, Rockhampton Dockside Investments 2,939 23 Courthouse Hotel 38 Abbott Street, Cairns Dockside Investments 8,100 20 Central Hotel 18 Targo Street, Bundaberg BUNDY CENTRAL 4,231 23 Shamrock Hotel 598 Ruthven Street, Toowoomba Strategic Hospitality 8,300 22

Total QUEENSLAND 53,642 western australia

Current Valuation Hotel / club Location Operator ($’000)

Brisbane hotel 292 beaufort street, perth CAPITAL MANAGEMENT (WA) PTY LTD 13,572 24

Total western australia 13,572 new zealand

Current Valuation Hotel / club Location Operator ($’000)

Turks Bar 9 Napier Road, Havelock North Equity Partners Hotel Group 2,435 25 Alberts Sports Bar Cnr Albert & Main Street, Palmerston North Equity Partners Hotel Group 2,578 25 Murphy’s Law Bar 241 Main Street, Palmerston NortH eQuity Partners Hotel Group 1,766 25 The Office 514 Main Street, Palmerston NortH eQuity Partners Hotel Group 2,435 25 Empire Hotel 514-532 Main Street, Palmerston NortH eQuity Partners Hotel Group 3,479 25 Waikanae hotel CNR Te Moana RD & State HWY 1, Waikanae eQuity Partners Hotel Group 3,819 25 Exchange Hotel 140 Queens Drive, Lower Hutt Equity Partners Hotel Group 4,487 25 Tote Hotel 74 Ararino Street, Trentham, Upper Hutt eQuity Partners Hotel Group 3,086 25 Cambridge Hotel 28 Cambridge Terrace, WellingtoN eQuity Partners Hotel Group 6,063 25 the realm 7 moxham avenue, hataitai, wellington equity partners hotel group 2,953 25

Total New Zealand 33,101

4 5 location maps

new south wales

18 RICHMOND SYDNEY NEWCASTLE FREEWAY

HORNSBY 11 PORT 9 PENRITH MACQUARIE 20 10 14 6 M2 BLACKTOWN MANLY 4 19 MUDGEE WESTERN FREEWAY M4 PARRAMATTA 3 5 3 2 BATHURST 2 11 M7 14 15 6 12 SYDNEY NEWCASTLE FAIRFIELD 1 12 7 16 17 10 4 13 15 5 BONDI 7 SYDNEY 9 LIVERPOOL BOWRAL M5 WOLLONGONG SYDNEY 1 AIRPORT 8 GOULBURN SUTHERLAND ALBURY HUME 13 HIGHWAY CRONULLA CAMPBELLTOWN 8

New South Wales sydney and suburbs

1 bowral hotel 1 five dock hotel 2 premier hotel 2 commodore hotel 3 mj finnegan’s 3 woolwich pier hotel 4 lawson park hotel 4 bourbon hotel 5 cbd hotel 5 dolphin hotel 6 mattara hotel 6 uncle bucks hotel 7 jewells tavern 7 el toro hotel 8 hibernian hotel 8 ambarvale tavern 9 Panthers Port Macquarie 9 general gordon hotel 10 Panthers Port Macquarie (Sports Club) 10 empire hotel 11 Panthers Newcastle 11 bidwill hotel 12 Panthers Cardiff 12 3 weeds 13 Panthers Lavington 13 club swans 14 Panthers Bathurst (City Bowling Club) 14 panthers world of entertainment 15 Panthers Bathurst (Rugby League Club) 15 panthers mekong 16 wallacia golf and country club 17 panthers st. johns park 18 panthers north richmond 19 west epping bowling club 20 glenbrook bowling club

ING real estate entertainment Fund property book 2008 WALGETT

ARMIDALE

PORT 9 MACQUARIE DUBBO 10 8 4 MUDGEE 3 5 ORANGE 2 11 14 15 6 12 NEWCASTLE 7

SYDNEY BOWRAL WOLLONGONG 1

ALBURY 13 BATEMAN’S BAY

queensland new zealand

5 CAIRNS

AUCKLAND

TOWNSVILLE HAMILTON

CHARTERS TOWERS 1

2 3 4 5 PALMERSTON NORTH HASTINGS WAIKANAE 6 8 9 7 BARCALDINE 4 ROCKHAMPTON 10 WELLINGTON

6 BUNDABERG

CHRISTCHURCH CHARLEVILLE

7 3 1 BRISBANE QUEENSTOWN TOOWOOMBA 2

DUNEDIN

INVERCARGILL

1 gpo hotel 1 turks bar 2 exchange hotel 2 alberts sports bar 3 elephant and wheelbarrow 3 murphy’s law bar 4 o’dowds irish pub 4 the office 5 courthouse hotel 5 empire hotel 6 central hotel 6 waikanae hotel 7 shamrock hotel 7 exchange hotel 8 tote hotel 9 cambridge hotel 10 the realm

6 7 property portfolio

new south wales

Bourbon Hotel Commodore Hotel 24 Darlinghurst Road, Kings Cross, Sydney 206 Blues Point Road, North Sydney

Acquired 1 July 2004 Acquired 1 july 2004 book value $24.0 million book value $20.3 million Tenant icon hospitality management Tenant icon hospitality management Lease commencement 1 july 2004 Lease commencement 1 july 2004 Lease expiry 30 june 2019 Lease expiry 30 june 2019 net passing yield on book value 8.1% net passing yield on book value 8.0%

The famous Bourbon Hotel has anchored the The leafy, modern Commodore Hotel looks out eastern end of Kings Cross since 1967. Kings Cross over Blues Point Road to Sydney Harbour. This is Australia’s liveliest 24 hour a day/seven days a well-located hotel is only a short walk away from week entertainment precinct. In recent years the trains, ferries and the bustling North Sydney CBD. Kings Cross area has undergone a renewal with The large outdoor terrace on the main level of the neighbouring Potts Point attracting many new hotel is a key feature and offers wide appeal to upmarket residential apartments. patrons. The long sleek indoor bar complements In 2003 the Bourbon was extensively refurbished the outdoor area, the highly regarded bistro and the and now features stylish bars over three levels. flexible function area.L ocals, business guests and The new-look Bourbon is popular with locals in this destination patrons are all lured to the Commodore’s densely populated area and continues to attract relaxed yet fashionable atmosphere. Down at street revellers from across Sydney, as well as domestic level, the bottle shop is also popular with residents, and international tourists. Bistro meals are served businesses and diners visiting nearby restaurants. until 10pm and drinks right through until 6am.

ING real estate entertainment Fund property book 2008 Mattara Hotel Bowral Hotel 333 CharlesTown road, Charlestown 412 Bong Bong Street, Bowral

Acquired 26 july 2006 Acquired 25 sept 2006 book value $7.7 million book value $6.8 million Tenant lasseters international Tenant feros group Lease commencement 26 july 2006 Lease commencement 25 sept 2006 Lease expiry 25 july 2031 Lease expiry 24 sept 2021 net passing yield on book value 7.6% net passing yield on book value 7.6%

The Mattara Hotel serves the rapidly growing The Bowral Hotel caters to a growing local Lake Macquarie area, 10kms south-west of population and a buoyant tourist trade. Newcastle. Prominently located on a major It is located on a prominent crossroads intersection, the Mattara enjoys high exposure on the main street of Bowral, in the scenic to passing traffic. The site’s natural advantages and historic Southern Highlands. Bowral are further increased by its close proximity to one is the area’s commercial and retail hub, of the Hunter region’s largest shopping centres. and new residential development is rapidly expanding the town’s population. After extensive refurbishments in 2004 the Mattara is now one of the foremost hotels in the region. Attractively refurbished in 2005, the two storey The three levels of bars and facilities attract a lifestyle hotel fits into the area’s strong heritage.T he main clientele keen on having an enjoyable time in a safe bar, lounge, gaming area and restaurant are all and secure environment. The large outdoor terrace, popular with locals and tourists, as is the verandah five function rooms, bistro and gaming lounge which faces the activity on the busy main street. provide a full offering to the general public and The enclosed beer garden is perfect for long summer business community. days in the Highlands. There is also a bottle shop, plenty of parking and ten motel units, for those seeking overnight accommodation.

8 9 property portfolio

new south wales

3 weeds Dolphin Hotel 193 Evans Street, Rozelle, Sydney 412 Crown Street, Surry Hills, sydney

Acquired 4 july 2007 Acquired 30 nov 2004 book value $6.8 million book value $11.8 million Tenant INVESTMENT & DEVELOPMENT Tenant icon hospitality management CORPORATION PTY LTD Lease commencement 30 nov 2004 Lease commencement 4 july 2007 Lease expiry 30 nov 2019 Lease expiry 3 july 2022 net passing yield on book value 7.3% net passing yield on book value 7.7%

The 3 Weeds has been featured in many leading The Dolphin is a local landmark in the heart of food, lifestyle and travel magazines. It is located the increasingly trendy Surry Hills commercial and a short walk from busy Victoria Road in the residential precinct. Located on a corner site on densely populated inner-West suburb of Rozelle. busy Crown Street it attracts a diverse clientele. Traditionally a working class area, Rozelle’s friendly The bright and modern refurbishment undertaken atmosphere and proximity to Sydney has led to a in 2005 retained the Dolphin’s authentic feel. As a distinct demographic shift and the establishment result it draws a vibrant crowd while still offering of a sophisticated and discerning customer base, a home to its many locals. The Dolphin is also demanding high levels of quality and service. popular with people attending events at the Established in 1881, the 3 Weeds has risen to nearby Sydney Cricket Ground and Sydney Football prominence following a significant restoration Stadium, especially as it is en route to Central in 2005, including such features as cathedral Railway Station. Contemporary bistro and fine ceilings, a sandstone fireplace, recycled timber dining, an indoor-outdoor terrace and gaming and rich fabrics. The front bar and small gaming all add to its appeal. area attracts a loyal local crowd while the various internal bars appeal to a wider clientele. Diners are drawn to the multi-award winning restaurant.

ING real estate entertainment Fund property book 2008 five dock hotel woolwich pier hotel 74 great north road, five dock, sydney 2 gale street, woolwich, sydney

Acquired 1 july 2004 Acquired 1 july 2004 book value $13.7 million book value $9.7 million Tenant icon hospitality management Tenant icon hospitality management Lease commencement 1 july 2004 Lease commencement 1 july 2004 Lease expiry 30 june 2019 Lease expiry 30 june 2019 net passing yield on book value 7.3% net passing yield on book value 8.3%

The Five Dock Hotel services the diverse inner-west The Woolwich Pier Hotel is situated on the corner suburb of Five Dock, a vibrant area 10 kilometres of Gale Street and Woolwich Road at the eastern to the west of Sydney’s CBD. The hotel is located end of the Woolwich peninsula, a well known in the heart of Five Dock on the intersection and exclusive inner suburb of Sydney, about 12kms of First Street and the busy Great North Road. from the city centre. The hotel’s location at the eastern end of the peninsula affords spectacular The hotel was originally constructed over four views across the inner harbour to the CBD. levels circa 1920, and has since been extensively refurbished and fitted out internally to a modern The hotel was originally built circa 1885 and quality whilst maintaining the external character currently occupies three levels which have been of the original façade. Facilities include a public significantly renovated and improved to make the bar, a separately managed TAB, saloon bar, most of the location and provide a high-quality separate gaming room with outdoor gaming and family atmosphere. The hotel features a stylish a basement cellar. The upper floors are used as cocktail lounge, dining area with wrap around corporate administration offices for Icon Hospitality balcony, sports bar, bistro and a large courtyard. Management. There is a drive-thru bottle shop located adjacent to the main hotel.

10 11 property portfolio

new south wales

uncle bucks hotel and retail el toro hotel 12 mount street, mount druitt 6 homepride ave, liverpool

Acquired 4 july 2005 Acquired 25 may 2005 book value $23.2 million book value $17.5 million Tenant icon hospitality management Tenant icon hospitality management Lease commencement 4 july 2005 Lease commencement 25 may 2005 Lease expiry 3 july 2020 Lease expiry 24 may 2020 net passing yield on book value 7.7% net passing yield on book value 8.1%

Uncle Bucks is conveniently located within a The El Toro Hotel is located adjacent to the major commercial centre that has experienced Hume Highway, approximately 30kms from the significant growth in recent years. It now provides Sydney CBD, and within close proximity to the a comprehensive range of facilities and services Liverpool city centre, Westfield Liverpool and leisure for the local community, including Westfield Mount facilities including the Warwick Farm Racecourse. Druitt, Western Sydney Institute College (TAFE), The hotel is surrounded by a mix of light industrial the local Police station, Mount Druitt Hospital and residential development which provides a core and swimming pool. Mount Druitt is part of the catchment of repeat customers. Blacktown city area which is the third fastest The hotel is constructed on a 1.3 hectare site growing region in NSW, and its proximity to the M7 incorporating a drive through bottle shop, arterial link is expected to further benefit this area. a 51 room motel, restaurant, bistro and swimming The hotel originally opened in 1989 and has pool. Surplus land on the large site may provide continued to trade profitably since that time, development potential for hospitality, light industrial underpinned by a large population base in the or residential use at some point in the future. nearby residential areas. The 5,750 square metre site is constructed across two levels, with public bars and gaming room downstairs and function facilities above. The hotel has ample carparking, a drive-thru bottle shop and 15 retail and office tenancies adjoining the hotel.

ING real estate entertainment Fund property book 2008 ambArvale tavern general gordon hotel 57 woodhouse drive, ambArvale 20 swain street, sydenham

Acquired 5 sept 2005 Acquired 18 nov 2005 book value $16.0 million book value $14.8 million Tenant icon hospitality management Tenant icon hospitality management Lease commencement 5 sept 2005 Lease commencement 18 nov 2005 Lease expiry 4 sept 2020 Lease expiry 17 nov 2025 net passing yield on book value 8.2% net passing yield on book value 7.9%

Ambarvale is a suburb south of Campbelltown The General Gordon Hotel is situated in Sydenham, in Sydney’s greater south western corridor. The an established suburb in Sydney’s inner west, Ambarvale Tavern was developed in the 1980s as approximately 7kms from the CBD. Surrounding part of the Ambarvale shopping complex to service development is a mix of residential and light industrial. the growing residential population in this area. The hotel was originally constructed in the 1930s The area surrounding the hotel is predominantly and is a traditional style of pub built over three residential development, with Macarthur Hospital levels. It occupies a large corner site adjacent to the and Macarthur Square Shopping Centre located Sydenham railway station, providing a convenient within 1km of the hotel. detour to local workers as well as an established The hotel provides a public bar with a large Pubtab and welcoming local for neighbouring residents. facility, a lounge bar and bistro, a gaming lounge The hotel includes a front bar facing the street, beer with an outdoor gaming area, and a large beer garden, bottle shop, renovated Poker machine area garden with children’s play area to cater to family including outdoor gaming, TAB room and restaurant. groups. The site has a total are of 7,187 square metres providing room for walk-in liquor barn adjoining the main hotel and on-grade parking for approximately 100 cars.

12 13 property portfolio

new south wales

bidwill hotel empire hotel carlisle ave, bidwill 103A parramatta road, annandale

Acquired 13 feb 2006 Acquired 15 march 2006 book value $7.1 million book value $6.0 million Tenant bidwill investments Tenant feros group Lease commencement 13 feb 2006 Lease commencement 14 march 2006 Lease expiry 12 feb 2021 Lease expiry 13 march 2021 net passing yield on book value 7.8% net passing yield on book value 7.8%

The Bidwill Hotel has operated on this site since The Empire Hotel is located in Annandale in the 1970s, however it was completely reconstructed Sydney’s Inner West, approximately 6kms from in 2004 and now offers a modern, renovated the CBD. The pub is situated at the entrance hotel for local residents of Bidwill in Sydney’s to Annandale on the corner of very busy Parramatta western suburbs. Road. The Empire draws its customer base from the high density residential development in the The hotel occupies a 4,300 square metre site, and surrounding areas. comprises a public bar, gaming room, large beer garden and play area. There is a large drive-thru The Empire Hotel was originally developed by bottle shop adjoining the hotel and the site offers Tooth & Co around 1910, with subsequent additions on-grade parking for approximately 45 cars. occurring in ensuing years. The building comprises three stories which incorporate a basement cellar/ storage area, ground floor public bar, lounge, band venue and TAB. The upper floors house 23 budget accommodation rooms with associated kitchen and bathroom amenities.

ING real estate entertainment Fund property book 2008 woolwich pier hotel, sydney nsw

14 15 property portfolio

new south wales

lawson park hotel premier hotel 1 church street, mudgee 1 brunker road, broadmeadow

Acquired 19 may 2006 Acquired 15 june 2006 book value $4.7 million book value $6.4 million Tenant aust leisure group Tenant alchemy hotel GROUP Lease commencement 18 june 2008 Lease commencement 15 june 2006 Lease expiry 18 june 2011 Lease expiry 14 june 2021 net passing yield on book value 8.3% net passing yield on book value 8.0%

The Lawson Park Hotel is a classic example of a The Premier Hotel is located in a well established country pub. It is centrally located in Mudgee next residential area near the commercial centre of to the main business centre. Mudgee is a historic Newcastle City and in close proximity to the rural town in the Central Tablelands of NSW. Broadmeadow railway station, the Broadmeadow racecourse, the Newcastle entertainment centre Originally constructed in 1860, the Lawson Park and Energy Australia Stadium - home to the continues to provide a traditional venue for the Newcastle Knights and the Newcastle Jets. people of Mudgee as well as the increasing number of tourists visiting the area. Although modern The hotel has undergone a complete refurbishment inside, the hotel retains much of its heritage appeal. which was completed in April 2008 and included Customers are well catered for with its bars, the construction of a new beer garden, remodelling 80 seat restaurant, beer garden, children’s play area, of the public bars and lounge, new kitchen and car parking and drive-through bottle shop. restaurant area and a new gaming room incorporating facilities to accommodate smoking patrons. Newcastle is Australia’s sixth largest city, located approximately 160kms north of Sydney and is the main commercial centre for the Hunter Region.

ING real estate entertainment Fund property book 2008 mj finnegan’s jewells tavern 23 darby street, newcastle 73 ntaba road, jewells

Acquired 31 july 2006 Acquired 26 july 2006 book value $8.0 million book value $9.6 million Tenant alchemy hotel GROUP Tenant lasseters international Lease commencement 31 july 2006 Lease commencement 26 july 2006 Lease expiry 30 july 2021 Lease expiry 25 july 2031 net passing yield on book value 8.0% net passing yield on book value 7.5%

MJ Finnegan’s is located in downtown Newcastle, Jewells Tavern is a family friendly hotel in Jewells in the heart of the central business district, and on the eastern side of Lake Macquarie. Located at the intersection of King and Darby streets. The adjacent to the Jewells Plaza shopping centre, the hotel is situated adjacent to the Civic Park and Town tavern is easily accessible from the Pacific Highway Hall and a short distance from the Honeysuckle and neighbouring suburbs. wharf complex. It is surrounded by a growing mix The tavern has been developed to cater to the local of residential and commercial development community, providing a relaxed venue where patrons The hotel has undergone a significant refurbishment can visit with friends or family. Child-friendly facilities which was completed in March 2008. The include the kids’ gym in the large beer garden and improvements are built over two levels, which regular family marketing events. Jewells also features include a public bar, bistro restaurant and gaming a main bar, contemporary bistro, gaming lounge, room on the ground floor, and a second bar and pool lounge, parking, bottle shop and a climate- function area on the first floor. controlled wine room.

16 17 property portfolio

new south wales

cbd hotel club swans 465 hunter street, newcastle 26 darlinghurst road, kings cross, sydney

Acquired 18 sept 2006 Acquired 1 july 2004 book value $5.6 million book value $23.2 million Tenant aust leisure group Tenant sydney aussie rules social club Lease commencement 31 july 2008 Lease commencement 1 FEB 2007 Lease expiry 30 july 2011 Lease expiry 30 JUNE 2019 net passing yield on book value 8.1% net passing yield on book value 8.0%

The CBD Hotel is located on popular Hunter Street, Formerly known as the Sydney Aussie Rules Social adjacent to the Civic railway station and one street Club, this impressive four storey venue has been back from the Honeysuckle wharf development refurbished and relaunched as “ClubSWANS”, precinct. The area around the hotel is undergoing the new home of AFL in Sydney. a large-scale urban renewal. The works involved extensive renovation over four The hotel was renovated in January 2004 to floors, and a rebranding programme to reflect provide a modern hospitality venue in the heart the new identity and presence of the Club and its of the Newcastle CBD. Facilities includes public affiliation with the Sydney Swans Football Club. and lounge bars, a substantial bistro including Now completed, the rejuvenated club has been a heated beer garden for outdoor dining and renamed ‘ClubSWANS’ and will provide a new a children’s play area, gaming lounge with home for Swans members and supporters. 15 machines, and high quality audio and visual ClubSWANS provides a modern entertainment systems for late night entertainment. venue in a vibrant, inner-city environment. The site occupied by the Club and the next door Bourbon Hotel is zoned for mixed-used development, and has a total area of 1,385 square metres with a 24m height allowance and a floor space ratio of 3:1, providing potential for the future.

ING real estate entertainment Fund property book 2008 panthers portfolio 14 club sites throughout new south wales

Acquired 13 JULY 2007 book value $88.5 MILLION 1 Tenant PANTHERS RUGBY LEAGUE CLUB LIMITED Lease commencement 24 JUNE 2007 Lease expiry 23 JUNE 2022 net passing yield on book value 8.6%

On 13 July 2007, IEF acquired a 49.9% interest in the real estate assets of Panthers Entertainment Group. Panthers retain 50.1% of the total value alongside IEF and will also continue to operate the clubs on a long term lease. This joint venture will invest in, and develop, Panthers portfolio of 14 sites. The properties are located in a diverse range of locations throughout NSW, serving a total membership base of approximately 140,000 people. Seven clubs are located within the Sydney metropolitan area, with the balance in NSW regional centres. The joint venture provides an innovative solution for the capital and property requirements of Panthers. The arrangement provides long term income for the Fund and a partner with a common objective of increasing investment returns from the assets. IEF is currently working with Panthers to achieve its vision of the Club of the Future, with long-term planning for refurbishment of the Panthers clubs. The plan is to provide a modern atmosphere for club patrons, while at the same time improving operating efficiencies by rationalising existing floorspace and improving design layouts.

1) look through basis incorporating the Fund’s 49.9% share of net assets of the joint venture

18 19 property portfolio

queensland

Courthouse Hotel 38 Abbott Street, Cairns

Acquired 11 sept 2006 book value $8.1 million Tenant dockside investments Lease commencement 11 sept 2006 Lease expiry 10 sept 2021 net passing yield on book valuE 7.9%

The Courthouse Hotel is a beautifully restored heritage building located in a prime position at the southern end of the Cairns Esplanade. The new lagoon, Pier Shopping Centre, and Marlin Marina are opposite the hotel, while the central shopping mall, casino and convention centre are all close by. This grand building was built in 1922 and remained home to the Supreme Court in Cairns until 1992. Sympathetically renovated in 2000 and again in 2004, the Courthouse is now once again a hub of activity. Outside the stand alone hotel are two large beer gardens which let guests fully appreciate tropical far north Queensland. Inside, tourists and locals alike can enjoy the stately atmosphere of the spacious central bar, bistro and gaming area.

ING real estate entertainment Fund property book 2008 gpo hotel exchange hotel 740 ann street, fortitude valley 131 edward street, brisbane

Acquired 19 august 2004 Acquired 19 aug 2004 book value $4.2 million book value $16.8 million Tenant allied hospitality Tenant allied hospitality Lease commencement 19 aug 2004 Lease commencement 19 aug 2004 Lease expiry 16 aug 2019 Lease expiry 18 aug 2019 net passing yield on book value 7.0% net passing yield on book value 7.9%

The GPO Hotel is located in Fortitude Valley, Brisbane’s The Exchange Hotel occupies a 911 square metre primary late night entertainment precinct. Fortitude landmark position in Brisbane’s CBD, ideally Valley’s vibrant bars, cafes and nightclubs are set situated in close proximity to Queen Street Mall, amidst high-density residential, retail and office Brisbane’s central shopping and retail centre. The complexes, and located approximately 1km from hotel benefits from its prime location and the high the Brisbane CBD. Fortitude Valley is one of Brisbane’s volume of passing vehicle and pedestrian traffic. fastest growing residential suburbs and the GPO The Exchange Hotel is currently undergoing Hotel is prominently located on the corner of Ann a significant refurbishment which will transform and Ballow Streets, providing substantial exposure both the ground and first floors of the hotel. to passing traffic heading into the nearby CBD. At completion the hotel will have a new centralised Originally constructed in 1887, the site was the ground floor bar with more efficient service points, location of the General Post Office, until the historic a new ground floor gaming room, and a new first two level hotel was extensively refurbished in 2002, floor bars, functions rooms, and a substantial beer while maintaining the original facade. The GPO’s garden offering distinctive views of the Brisbane four stylish bars, two VIP rooms, and resident city skyline. Works are scheduled for completion and guest DJs are an essential part of ‘The Valley in October 2008. experience’. With a venue capacity of up to 1,200 guests, the GPO hosts a wide range of events from product launches to dance parties.

20 21 property portfolio

queensland

elephant and wheelbarrow hotel shamrock hotel 230 wickham street, fortitude valley 598 ruthven street, toowoomba

Acquired 30 nov 2004 Acquired 1 march 2006 book value $9.1 million book value $8.3 million Tenant independent pub group Tenant strategic investments Lease commencement 21 nov 2004 Lease commencement 1 march 2006 Lease expiry 20 nov 2013 Lease expiry 28 feb 2021 net passing yield on book value 8.0% net passing yield on book value 8.1%

The Elephant and Wheelbarrow is situated on a prime The Shamrock Hotel is located in Toowoomba, 1,237 square metre site on the corner of Brunswick one of Australia’s largest provincial cities and the Mall, adjoining Chinatown and the Brunswick Railway major regional centre for the Darling Downs region. station, perfectly placed to cater for a mixed crowd of The Shamrock Hotel is centrally located in the towns locals and tourists. The site has a significant frontage central business area, close to the Grand Central to Wickham Street, a major thoroughfare carrying Shopping area and the Empire Theatre. traffic away from Brisbane’s CBD. Refurbished in 2004 with an Irish theme, the Built in the late 1880s, the historic character of the Shamrock has a diverse business mix. The large hotel has been well preserved in the ornate façade 3,253 square metre site comprises three bars, a of the building, however recent internal renovations restaurant, function room, car park and 29 room provide a thoroughly modern hotel facility. The motel. Apart from its hospitality, the Shamrock refurbishiments include a new bar, new fixtures is also known for its live music. and fittings throughout, improvement of essential services, and the construction of a large beer garden at the rear of the hotel. This four level hotel includes a basement bar, kitchen and cellar, with public bar, gaming room and bottle shop at ground level, and 163 bed backpacker accommodation and managers’ offices housed in the upper floors.

ING real estate entertainment Fund property book 2008 o’dowds irish pub central hotel 86 william street, rockhampton 18 targo street, bundaberg

Acquired 26 may 2006 Acquired 9 nov 2006 book value $2.9 million book value $4.2 million Tenant dockside investments Tenant bundy central Lease commencement 26 may 2006 Lease commencement 9 nov 2006 Lease expiry 22 may 2021 Lease expiry 5 nov 2021 net passing yield on book value 8.6% net passing yield on book value 8.4%

O’Dowd’s Irish Pub is centrally located in the main The Central Hotel is located on a 1,017 square commercial/retail centre of Rockhampton, a city metre site, in the heart of Bundaberg which is lying approximately 650kms north of Brisbane approximately 370km from Brisbane. with a population of approximately 60,000 people. The Central Hotel was originally constructed The city is the commercial centre for the Central in the late 1800s and has been substantially Queensland region. modified and extended over ensuing years. The hotel is a refurbished, older style two level A substantial refurbishment has recently been building constructed in iconic Queenslander style completed across the property. The two storey with a two storey wrap-around verandah. The hotel hotel comprises public and lounge bars, contains an Irish themed public bar, restaurant, a gaming room and an extensive beer garden gaming room with 20 machines, and a large with its own bar and stage area. covered beer garden in the rear of the pub. The upstairs has 16 accommodation rooms, and at the back of the site is a modern detached complex with five additional motel rooms. The site has a total area 1,524 square metres which provides ample room for car parking.

22 23 property portfolio

western australia

Brisbane hotel 292 Beaufort Street, Highgate, Perth

Acquired 1 oct 2007 book value $13.6 million Tenant capital management (wa) Lease commencement 1 oct 2007 Lease expiry 30 june 2020 net passing yield on book value 8.0%

The Brisbane is one of Perth’s favourite metropolitan hotels. Only five minutes from the CBD, it is situated on a corner site amidst other nightlife, cafes and restaurants on fashionable Beaufort Street. Patrons benefit from ample parking in the adjoining council carpark. Built in 1898, the two storey Brisbane Hotel was recently renovated to incorporate the best of modern design while still keeping its local pub character. The extensive beer garden, stone fireplace, oak bar and contemporary restaurant all add to its appeal. In 2006, The Brisbane won the prestigious ‘Hotel of the Year’ award at the Australian Bar Awards and in 2005, the ‘New Hotel of the Year’ award.

ING real estate entertainment Fund property book 2008 new zealand

new zealand portfolio

Acquired 16 April 2007 book value $33.1 million Tenant equity partners hotel group Lease commencement 16 april 2007 Lease expiry 15 april 2022 net passing yield on book value 8.6%

This quality portfolio of ten pubs in New Zealand further diversifies the geographic representation of the Fund. The pubs are located in the lower half of the North Island. They are spread from Havelock North on the wine growing east coast to Palmerston North in the farming heartland, and from the beach town of Waikanae to Wellington, the nation’s capital. The pubs in the portfolio are all well-established and well presented. By working closely with their experienced operator, Equity Partners Hotel Group, IEF intends to grow the value of the portfolio by increasing patronage and turnover. The portfolio provides a sound platform for IEF to achieve a greater presence in the New Zealand market.

24 25 registered office ING Real Estate Investment Management Australia Level 6, 345 George Street Sydney NSW 2000 T : + 61 2 9033 1035 F : + 61 2 9033 1060 E : [email protected] I : www.ingrealestate.com.au unit registry link market services limited Level 12, 680 George Street Sydney NSW 2000 investor services Toll Free: 1300 653 497 T : + 61 2 8280 7057 F : + 61 2 9287 0303 E : [email protected]

investor enquiries daniel hargraves CHIEF EXECUTIVE OFFICER The ING Real Estate Entertainment Fund is listed on ING REAL ESTATE entertainment fund the Australian Securities Exchange (ASX). The ASX Code is IEF T : + 61 2 9033 1004 Document published Tuesday, 26 August 2008

ING REAL ESTATE GLOBAL NETWORK Responsible Entity ING Management Limited AUSTRALIA HUNGARY SWEDEN ABN 15 006 065 032 BELGIUM ITALY TAIWAN AFS License 237534 BRAZIL JAPAN THAILAND CANADA KOREA THE NETHERLANDS CHINA POLAND UK CZECH REPUBLIC ROMANIA USA FRANCE SINGAPORE GERMANY SPAIN