Albany acquisition unconditional

NEWS RELEASE

Auckland • 4 July 2007

Albany acquisition unconditional

On 28 May 2007, ING Property Trust (the "Trust") announced its intention to acquire a perpetual leasehold interest in a 4.8 hectare undeveloped site in Albany, for $24.44 million, from Albany City Holdings Limited (“ACHL”). ACHL is associated with the St Laurence and Symphony groups. The terms of the lease have been agreed and the transaction is now unconditional. Completion of the acquisition of the leasehold interest by the Trust is scheduled to occur today.

Following completion, the Trust will enter into a development agreement with Symphony Projects Management Limited (“SPML”). SPML intends to submit to the Trust three separate but complimentary development proposals for the land. The Trust has the right, but not the obligation, to proceed with any development proposed by SPML. If the Trust elects not to proceed with a development, the Trust’s leasehold interest in the land will be repurchased by ACHL. Development of the land is expected to commence shortly and would continue over the next three to five years.

The development arrangements between the Trust and SPML provide for the development profit (appraisal based end value less cost) from each of the three developments to be distributed 30% to the Trust and 70% to SPML. Any profit beyond the level agreed in the feasibility study for each project will be split 50/50 between the Trust and SPML. The leasing, construction and delivery risk rest primarily with SPML.

A concessionary ground rental has been negotiated so that ground rental costs prior to development are minimised, as well as in times of vacancy.

Entry into these transactions by the Trust did not require the prior approval of unitholders as a waiver from NZX Listing Rule 9.2 was obtained from NZX Regulation. The waiver was subject to certain conditions which have been fulfilled.

ENDS

© Scoop Media