Trust acquires strategic industrial properties

NEWS RELEASE I N G P R O P E R T Y T R U S T Auckland • 5 June 2007

ING Property Trust acquires strategic industrial properties

ING Property Trust (the “Trust”) today announced the acquisition of two strategic industrial properties in Albany and East Tamaki for $26.9 million in aggregate.

The off-market acquisition for $17,130,000 of a strategic industrial property at 211 Albany Highway on Auckland’s North Shore, involves swapping three of the Trust’s smaller industrial properties for the larger single asset. The value attributed to the three smaller properties is $16,651,500, with the remainder of the purchase price being paid in cash. Settlement is scheduled to occur in June 2007.

The new property is a well-located site contained within the Albany Industrial Estate and immediately adjacent to the Trust’s largest industrial asset on the North Shore, being the Home & Leisure building at 1 Rothwell Avenue. It comprises a substantial manufacturing and warehouse complex, originally leased to Amcor Packaging and now assigned to HP Packaging under a lease that runs to July 2013.

The acquisition of 211 Albany Highway results in a combined overall land holding for the two properties in excess of 5.3ha and an aggregated property value of over $30 million. The $17,130,000 purchase price reflects a yield of 8.05%.

As mentioned above, three smaller Auckland industrial properties – 10 Cawley Street, Ellerslie; 27 Zelanian Drive, East Tamaki; and 306 Neilson Street, Onehunga – are to be swapped to satisfy part of the purchase price. The combined book value of the three properties is $14,790,000, resulting in a sale margin above book value of $1,861,500. On an aggregate basis, this represents a sale yield of 7.75%.

ING Property Trust’s General Manager, Peter Mence said, “In a strongly competitive acquisition market, this ‘swap’ transaction is an excellent example of leveraging off the attraction of our smaller disposal properties, to achieve our desired target of larger individual assets of approximately $10 million or more. To combine this with the future benefits achieved from ownership of an existing adjacent property is an added bonus”.

In a separate transaction, the Trust has acquired a further industrial property at 80 Springs Road, East Tamaki. The acquisition, for $9,802,500, is a sale and leaseback arrangement with Fisher & Paykel Appliances. Settlement is scheduled to occur in July 2007.

This property is also a strategically located site, again immediately adjacent to three Trust-owned properties at 90 Springs Road, 106 Springs Road and 2 Allens Road. It enjoys access to the main Allens Road arterial, which links directly into the new Highbrook motorway interchange. These four significant sites now represents a total industrial landholding of approximately 4ha, with an aggregated property value approaching $24 million.

The property comprises a substantial distribution warehouse for Fisher & Paykel’s Appliances division, with the lease term of five years including a break provision after two years. The acquisition, at $9,802,500, reflects a purchase yield of 8.2%.

ENDS

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