ING Real Estate Entertainment Fund (IEF)

ING Real Estate Entertainment Fund (IEF) is a publicly listed property trust that invests in entertainment and leisure venues throughout Australia and New Zealand, and receives income from long-term leases to experienced hotel operators. Since listing on the Australian Securities Exchange in July 2004 with five assets, IEF has acquired a further 34 hotels and 14 clubs located across New South Wales, Queensland, Western Australia and New Zealand. The Fund currently owns a diversified portfolio with total assets of approximately A$480 million (as at 31 December 2008).

Strategy

Since its inception in July 2004, IEF has pursued a value-based investment strategy, ensuring its new acquisitions provide sustainable, long-term earnings growth for investors. The Fund’s management focuses on properties with demonstrable earnings growth potential.

In implementing our strategy, we combine the depth, experience and resources of ING Real Estate with the trading experience of proven operators in the hospitality and leisure sector.

Key operational outcomes for the period to 31 December 2008:

We have actively managed the Fund's portfolio and engaged with our operators to maximise the trading performance and customer appeal of the assets in the Fund. As a result, portfolio quality has consistently improved, as demonstrated by recent industry awards received:

• Brisbane Hotel, Perth won "Australian Hotel of the Year" – Australian Bar Awards
• 3 Weeds, Rozelle won "Gastronomic Hotel of the Year" (NSW) - Australian Hotel Association
• Terrey Hills Tavern, Terrey Hills won "Hotel Redevelopment of the Year" (NSW) - Australian Hotel Association

In addition to these results, works have now been completed on the refurbishment and expansion of the Exchange Hotel in Brisbane. This CBD pub has re-opened with a new second floor and roof top terrace.