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Calan's Inherent Value Driving ING Initiative

26 January, 2006

Calan's Inherent Value Driving ING Initiative

Statement made by Bruce Davidson, Chairman, Calan Healthcare Properties Limited

The Directors of Calan Healthcare Properties Limited (CHPL) received a notice of bid for 9.7% of the units in Calan Healthcare Properties Trust on 25 January 2006. CHPL had been in discussions over a period of several months with another ING entity with a view to a possible transaction and negotiations were at an advanced stage.

Upon receipt of the served notice of bid from ING Property Trust Investment Limited (ING Property Investments) last evening the other ING entity withdrew from discussions. ING Property Investments then withdrew and re-lodged their bid.

The approach is recognition of the inherent value in Calan Healthcare Properties Trust, achieved as the result of two years of repositioning and restructuring, that is driving ING Properties Investments interest in the Trust.

On that basis we welcome their endorsement of our achievements, the quality of our assets and the strength of our distribution to unit holders.

Given the short period of time directors of CHPL have been aware of the approach, the Board is currently not in the position to make a formal recommendation in regard to the bid. The Board of CHPL has appointed Macquarie NZ Limited as financial adviser, Bell Gully as the Trust's legal adviser and if, following the stand in the market, a written offer is made for all the remaining units, an Independent Appraisal Report will be commissioned.

The Independent Directors of CHPL recommend that current Unit Holders take no action until the Independent Appraisal Report is received and a consequent recommendation made to the market by the independent directors.

Mr Davidson noted that Calan Healthcare Properties Trust is in extremely good shape with:

* high quality properties,

* excellent tenants,

* an income stream largely subject to annual increases by the consumer price index,
* extremely long leases (weighted average lease term of 11.6 years) * an occupancy of 99%,

* a strong income distribution, currently 9.2 cents per unit per annum

* the portfolio experiencing continued enhancement of property values, * the opportunity that the Ascot Clinics site presents,

* the extension at Ascot Hospital and

* the surplus debt capacity within the balance sheet.

All of the above factors point to further upside in the value of the Trust.

A committee consisting of the Independent Directors will evaluate any formal offer from ING Property Investments and make a recommendation to unit holders upon receipt of the Independent Appraisal Report and ensure that all portfolio properties have a sufficiently current valuation.

The Directors further note that since the announcement of the bid the Unit Price has undergone further strong appreciation with significant volume and purchasers being sourced from other than the bid party.


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