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ING Office Fund European acquisition – Prague, Czech Republic “Budejovicka Alej” 3 July 2006 Transaction summary Key benefits  Improves the Fund’s earnings and growth prospects  New, fully leased, high quality building  Blue chip multi-national and national tenants  Strategically located on key transport nodes  Attractive total return outlook  Geographic diversification into European Union (450million people) 2 Transaction summary Property details  Location: Prague 4 (midtown)  Purchase price: €37.0m  Appraisal: €37.0m  Initial yield: 5.8%  Net initial yield (after costs): 5.5%  Market rent: €174sqm (net)  Passing rent: €174sqm (net)  Occupancy: 99% Entrance to underground car park at Budejovicka Alej 3 Transaction summary Property details (ctd)  Type: Grade A (completed 2005)  Major tenants: Shell, Nissan, Deloitte, SG Equipment, AT Kearney  Leases: Western style, euro denominated, annual CPI indexation, 3-7yr terms  Average lease expiry: 4.5 years  Net rentable area: 11,673sqm (9 storeys)  Parking: 156 underground and 8 surface spaces  Land area: 6,307sqm  Ownership: Freehold 4 The Building Location  Situated in major commercial district of Prague 4 – an important centre of commerce - most sought after and established submarket - attracts high calibre multinational and national tenants  Strategically located on key transport nodes - excellent public transport access via Metro - direct private transport access from main highway connecting north & south of city - Bus arrival and departure stations adjoin the property 5 The Building Location 6 Czech Republic Overview ¾ Highly liberalised and dynamic economy growing above EU average. ¾ Abundant supply of well educated, technically skilled multilingual workers Czech Republic 10.2 mill population 4.0% GDP growth 2006 $19,311 GDP per capita $41.7billl foreign direct investment (1989 – 2004) ¾ Low company taxes complement low wages, attracting material foreign investment ¾ Western style accommodation at Central European rents Source: Business Week, Cushman and Wakefield. Note: map adapted from AFR. 7 Czech Republic Emerging Europe’s top commercial property markets Country 2005 2004 Czech Republic 1 1 Hungary 2 2 Poland 3 3 Slovakia 4 4 Estonia 5 5 Russia 6 7 Latvia 7 8 Lithuania 8 6 Romania 9 12 Bulgaria 10 10 Croatia 11 11 Slovenia 12 9 Turkey 13 13 Source: 2004 Emerging Europe report, C&W/H&B 8 Ranking by  Macro Factors – (EU accession, Politics, Economic & foreign investment)  Property Market Activity – (maturity, occupier and investment activity and values)  Property Market Structure – (transparency, foreign ownership, leases, property taxes & costs, legal structure & planning) Prague office market Overview  Total office stock of 1.8million sqm  Annual five year net absorption of 99,000sqm (5.5% of current stock)*  Net absorption expected to remain at stable and high levels  Increasing land values and construction costs have pushed up economic rents  Forecast rental growth for 2007 – 2009 of 4% p/a**  Further yield convergence with Western Europe expected * Cushman & Wakefield Healey and Baker ** PMA 9 Prague office market Key metrics 250 20% 200 15% 150 10% 100 Net absorption (left axis) Net addition (left axis)  Current overall vacancy of 12% and falling  Solid forecast net absorption Source: PMA 10 20 08 F 20 09 F 20 06 F 20 07 F 20 04 20 05 F 20 03 20 02 20 01 20 00 19 99 0% 19 98 0 19 97 5% 19 96 50 19 95 1,000 sqm Vacancy and its determinants on the Prague office market Vacancy rate (right axis) Prague office market Sub markets CBD 23% Out of Tow n 28% Edge of Centre 20% Mid Tow n 29%  CBD covers old city of Prague  Budejovicka Alej located in midtown (largest sub market)  Future growth focused in out of town locations Source: CBRE 11 The transaction Acquisition funding A$* € New property level debt 44.8m 26.0m New entity level debt 20.4m 11.8m 65.2m 37.8m 63.8m 37.0m 1.4m 0.8m 65.2m 37.8m Source of funds Application of funds Property Acquisition costs * A$/ € spot = 0.58 12 The transaction FX and interest rate hedging Hedged Rate Duration Property level debt 100% 4.8% 5.0 yrs Entity level debt 100% 4.7% 5.0 yrs EURO income hedge* 100% 0.55 5.0 yrs * €/A$ spot = 0.58 Indicative rates, incl. margins 13 Transaction summary Global diversification Boston 4% New York 8% Washington DC 15% Dallas 3% Prague 3% Perth 2% Melbourne 12% 14 Brisbane 15% Sydney 34% Canberra 4% Summary  Improves the Fund’s earnings and growth prospects  Highly sought after commercial property market in Central Europe  New, fully leased, high quality building  Blue chip multi-national and national tenants  Strategically located on key transport nodes  Solid rental growth outlook expected to deliver attractive total returns  Geographic diversification into key European Union market 15