ING Property Trust - Int'l Expansion Update

Auckland • 17 May 2007

ING Property Trust - International Expansion Update

ING Property Trust Management Limited (the “Manager”) wishes to update the market as to its intentions regarding international expansion.

After careful consideration and analysis, including a review of the New Zealand property environment, the Board of the Manager announced in early April that it was actively investigating expansion into Japan as an additional platform for earnings accretive growth. The expanded strategy recognised that real estate markets have become increasingly global, with cross-border property transactions now a common occurrence in other countries such as Australia. Offshore assets now comprise approximately 45% of total sector assets of Australian listed property vehicles.

Following the announcement, the Manager met with the Trust’s largest investors. It was found that some investors see the lack of exposure to offshore markets by New Zealand listed property vehicles as a weakness, limiting diversification and growth prospects. Other investors have taken the view that despite the globalisation of real estate markets, including significant cross-border and direct foreign investment, New Zealand real estate entities are best to continue investing locally.

The Board is of the view that controlled and disciplined international expansion, leveraging off the global ING Real Estate capabilities and expertise, can provide significant benefits for unitholders. However, it also recognises that there should be general consensus amongst unitholders before embarking on such a move.

Having considered the feedback from investors following the recent announcement the Board has recognised that sufficient consensus amongst unitholders does not exist at this time and made a decision to defer investment in the Japanese market.

The Board will continue to monitor international markets and trends as it believes that offshore investment will prove to be in the best interests of unitholders.

ENDS

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