I NG OFFI CE FUND ANNUAL UNI THOLDER MEETI NG 16 November 2007 2 0 - PowerPoint PPT Presentation

I NG OFFI CE FUND ANNUAL UNI THOLDER MEETI NG 16 November 2007

2 0 0 7 RESULTS SUMMARY 1

KEY STATI STI CS June 2 0 0 7 June 2006 Twelve month total return 3 2 .8 % 19.0% 14% Total assets $ 3 .5 b $2.6b 35% Distributable income $ 1 2 4 .3 m $111.7m 11% Total distributions (per unit) 1 1 .5 5 cents (1) 10.35 cents 12% Gearing 39.4% 2% 3 7 .6 % Net asset value (per unit) $ 1 .7 3 $1.42 22% (1) I ncludes one-off special distribution of 1¢ 2

PORTFOLI O & FUND ACHI EVEMENTS ► Leased over 46,000 sqm during the year or 7% of portfolio ► Secured $19.4m annual rental income ► Maintained high portfolio occupancy at 96% ► Sustained long average lease term of 5.5 years ► Established new $1.4b unsecured debt facility 3

ACQUI SI TI ONS & DI SPOSALS Acquisitions Price Neuilly Victor Hugo Building (50% ) A$129.5m Paris FRANCE ING Dutch Office Fund (20% ) A$446.0m THE NETHERLANDS NVH Building, Paris Price Disposals 40 Cameron Ave A$60.2m Belconnen ACT 1 Adelaide Tce A$87.0m Perth WA WTC Building, Netherlands 4

POST 3 0 JUNE 2 0 0 7 ACTI VI TY 5

PERFORMANCE TO SEPTEMBER 2 0 0 7 25% 22.6% 21.9% 21.1% 20.4% 19.8% 20% 17.6% 16.5% 15.3% 15% 10% 5% 0% YTD 1yr 3yrs 5yrs IOF UBS Comm 200 Source: UBS ► I OF has consistently outperform ed its office trust peer group 6

POST 3 0 JUNE 2 0 0 7 - ACQUI SI TI ONS Acquisitions Price Wellington Central A$81.5m Negotiated off market Perth, WA Wellington Central, Perth Verizon Tower (50% ) A$59.0m Negotiated off market Virginia, USA Bastion Tower (50% ) A$111.2m Negotiated off market Brussels, BELGIUM Verizon Tower, Virginia Bastion Tower, Brussels 7

W ELLI NGTON CENTRAL, PERTH ► Acquired for A$ 8 1 .5 m Sept 2 0 0 7 Artist’s impression ► New generation A grade building ► 8 levels office space, 3 levels parking ► Fully leased to Fed. Gov. for 1 0 years from Artist’s impression com pletion ( est. March 2 0 0 9 ) ► Yield of 6 .2 5 % after costs w ith fixed annual increases 8

VERI ZON TOW ER, VI RGI NI A ► Acquired 5 0 % for US$ 5 2 .5 m Sept 2 0 0 7 ► Located in prem ier business park ► 1 4 levels office accom m odation, 5 ½ levels parking ► Value add and repositioning opportunity ► Stabilised yield of 7 .6 % after costs 9

BASTI ON TOW ER , BRUSSELS ► Acquired 5 0 % for € 7 1 .2 m Oct 2 0 0 7 ► Rare, landm ark, high-rise office building ► Located in prestigious ‘European Quarter’ ► Stable office m arket – ‘W ashington DC of Europe’ ► Yield of 5 .4 % after costs 10

GEOGRAPHI C DI VERSI TY EUROPE 2 3 % Amsterdam 6% Paris 4% Utrecht 4% Brussels 3% USA 2 4 % The Hague 2% Washington DC 12% Prague 2% New York 8% Rotterdam 2% Boston 2% Dallas 2% AUSTRALI A 5 3 % Sydney 26% Melbourne 10% Brisbane 14% Perth 2% Canberra 1% ► W ell diversified across core global office m arkets 11

RI SK MANAGEMENT – I NTEREST RATES US$ Debt € Debt 100% 100% 90% 90% 80% 80% % of debt hedged (fixed) % of debt hedged (fixed) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 ► W ell protected from interest rate m ovem ents Note: Excl. current 900 Third Ave refinance which will increase % of debt hedged 12

RI SK MANAGEMENT - CURRENCI ES US$ I ncom e € I ncom e 100% 100% 90% 90% % of income hedged (fixed) % of income hedged (fixed) 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 ► W ell protected from currency m ovem ents 13

OFFI CE MARKET VACANCY RATES Vacancy rates - overseas office m arkets Vacancy rates - Australian office m arkets 20% 18.2% 10% 9.4% 18% 16.5% 9% 16% 8% 7.5% 14% 7% 12% 5.9% 5.6% 6% 10.0% 9.5% 9.2% 10% 8.9% 5% 7.6% 8% 4% 3.5% 6.1% 5.9% 6% 4.8% 3% 2.3% 2.1% 4% 2% 1.3% 1.2% 2% 0.7% 1% 0% 0% New York Washington Amsterdam Paris Brussels Sydney Melbourne Brisbane Canberra Perth D.C. Jun-06 Jun-07 Jun-06 Jun-07 Source: PCA Source: JLL, PMA, ING Real Estate ► I m proving vacancy rates globally

PORTFOLI O LEASE EXPI RY PROFI LE 80% 67% 70% 60% 50% 40% 30% 20% 13% 8% 8% 10% 4% 0% Vacant FY08 FY09 FY10 FY11+ ► Long average lease term to expiry of 5 .5 years

I NGRE GLOBAL PLATFORM: A COMPETI TI VE ADVANTAGE Globally… ► Corporate strength & support for transactions ► Ability to invest as locals ► Strong research capability ► Efficient cross border communication I n Australia… ► Highly experienced, stable management team ► Disciplined investment approach ► Personal approach to tenant relationships ► Strong performance culture 16

GROW TH STRATEGI ES Strategies to increase total returns include: ► Active asset m anagem ent to capture rental grow th opportunities ► Repositioning and value add strategies for new and existing assets ► Further expansion into strong office m arkets ► Continue recycling of capital through the sale of non core assets 17

OUTLOOK ► Portfolio is in great shape w ith m inim al expiry risk ► W ell positioned to benefit from im proving office m arkets ► Strong balance sheet to capitalise on global investm ent opportunities ► Com petitive advantage via extensive I NG Real Estate global platform ► Com m itted to delivering sustainable and grow ing distributions w ithout com prom ising security of incom e “Delivering on strategy” 18

FREQUENTLY ASKED QUESTI ONS ► Can distributions be paid earlier? ► Can the year end tax statem ents be provided any earlier? ► W hat sustainability initiatives is I OF undertaking? ► W here w ill I OF be looking for future investm ent opportunities? 19

THANK YOU A copy of this presentation w ill be m ade available on w w w .ingrealestate.com .au/ investm ent This presentation was prepared by ING Management Limited (ABN 15 006 065 032) (the "Responsible Entity") in respect of ING Office Fund ("IOF"). This presentation is provided for information purposes only and does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Accordingly, no action should be taken on the basis of, or in reliance on, this presentation. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation. By receiving this presentation and to the extent permitted by law, the Recipient releases the Responsible Entity its affiliates or any of their respective directors , officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any recipient relying on anything contained in or omitted from this presentation. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Responsible Entity. In particular, they speak only as of the date of these materials, they assume the success of IOF's business strategies, any they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. Without limiting the above, this document may not be distributed in the United States or to any US Persons. 20

21