ING Property Trust details upcoming disposals

Auckland • Tuesday 15 November 2005

ING Property Trust details upcoming disposals

As the result of a full review of the recently combined ING Property Trust and Urbus Properties Limited property portfolios, the Board of ING Property Trust has identified a number of properties, which, due to their size, do not fit the long-term strategy or ownership position of the Trust. In the last annual report, the Trust identified six properties on its disposal list, with a combined value of $27.5 million.

The Trust has now advised that the Placemakers property on Semple Street, Porirua will be retained to form part of a bulk retail redevelopment scheme, together with the Spotlight building recently acquired by the Trust.

The Placemakers property has a current book value of $2.4 million. However, the redevelopment – scheduled for completion in the 2006 financial year – will result in a bulk retail property with an estimated value in excess of $20 million. Of the remaining five properties on the disposal list, the semi-industrial building at 169 Montreal Street, Christchurch has been unconditionally sold for $3.0 million, with settlement on 31 March 2006.

Four properties from the Urbus portfolio are to be added to the disposal list and put to market immediately. These properties have a current book value of $12.4 million. The Board has identified a further 12 properties (11 from the Urbus portfolio), with a book value of $36.8 million, which are unlikely to fit the long-term goals of the Trust.

The Board is reviewing the options for these properties and the properties that remain on the disposal list. The Trust’s asset management team has a proven track record in acquiring large property portfolios and adding value through any subsequent portfolio rationalisation.

ENDS

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