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$500 million (as at 30 June 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.

Investment performance

In the period to 30 June 2008 IEF:

• increased distributable income by 39% over the prior year to A$15.8 million;
• increased distributions per unit by 3.6% to A10.05 cents per unit;
• entered the Western Australia market with the acquisition of the Brisbane Hotel in Perth; and 
• successfully completed redevelopment works to enhance venue quality and performance and minimise the impact of smoking bans.