ING Real Estate Entertainment Fund

August 2011

AUSTRALIA

Penrith Panthers, Penrith, NSW

2011 Annual Results Presentation

Agenda

Overview

Key Financials

Capital Management

Portfolio Update

Strategy and Outlook

Appendices

2

3

Overview

Capital management

• 10 assets sales during the financial year with $64.4 million in proceeds applied to debt reduction

• Improved IEF’s debt position by reducing total debt by $99.1 million during the financial year, representing a 45% reduction over the prior corresponding period

• Completion of a $38.8 million capital raising in August 2010 enabled repayment of the convertible loan securities and improved LVR headroom

• No distribution was paid for the 2011 financial year

Operational

• Operating profit affected by lower rental income resulting from asset sales, one-off capital transaction costs and higher finance costs due to refinancing of debt at current market rates

• Continue to work closely with tenants as they aim to stabilise and improve their operating business

Strategic

• Following the ING Strategic review, IEF and ING Management Limited (IML) identified path to staple and restructure the Fund to accommodate operating activities

• Positioned the Fund to proceed with restructure and long-term plan for greater oversight and management of operations

Management's focus has centred on balance sheet improvement and working towards a restructure of the Fund:

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Key Financials

GPO Hotel, Fortitude Valley, QLD

Key Financials

• Statutory loss reduced substantially compared to the prior corresponding period however, trading difficulties and sector risks still weighing on asset valuations

• Property income impacted by asset sales and previously announced reduction in rent from the Fund’s major tenant

• Reduced gearing levels enabled compliance with debt covenants

1. Gearing is calculated as net debt to total look-through assets

2. Refer to Appendix 3 for further details

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Results summary – financial metrics FY 2011 FY 2010

Statutory loss - $m (21.1) (52.7)

Property income - $m 21.1 23.6

Operating income - $m 8.4 9.5

Operating income per unit - cents 1.5 5.4

Gearing1 -% 47.3 68.6

Net assets value per unit (NAV)2 - $ 0.17 0.49

9.5 (1.6)

0.6 (0.2) (0.2) 0.4 8.4

-

1.02.0

3.04.0

5.0

6.07.0

8.09.0

10.0

FY2010 Impact ofincrease infinancingmargins

Net impact ofsales

Increase inCLS interest

Increase in REfees

Other FY2011

Key FinancialsOperating income comparison to prior year

• Higher finance costs associated with the refinance of the Fund’s debt facilities

• Reduction in Icon’s rent as announced 22 Feb 2010 as part of IEF’s senior debt refinancing terms

$m

6

1

1. Impact of sales includes lower rental income due to sale less interest savings through application of sales proceeds against debt and repayment of interest rate hedges

Key Financials

• Reduction to NAV per unit primarily due to a movement in asset valuation and the August 2010 capital raising

• Property valuations continue to be impacted by tenant performance and sector risks

Movement in NAV per unit

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48.9 (4.9)

0.2 1.5 0.6 (0.9) (29.0)

16.6

-

10.0

20.0

30.0

40.0

50.0

60.0

FY2010 Valuation ofInvestmentProperties

Valuation ofDerivatives

OperatingIncome

InsuranceClaim

Impairment ofreceivablesand other

Items

Issue of Equity FY2011

Cent

s pe

r uni

t

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Capital Management

Bowral Hotel, Bowral, NSW

• The Fund’s total debt has been reduced by 45% from $221.7m to $122.6m over the 12 months to 30 June 2011

• Facility 1 LVR covenant steps down from 65% to 60% limit at 31 December 2011

• The weighted average term of the Fund’s debt is 3.4yrs years

• ICR covenant remains strained due to higher debt margins and non-recurring costs

• Details of each of the Fund’s Facility covenants is at Appendix 4

Improved debt position

Capital Management

Debt maturity profile (as at 30 June 2011)

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$m

108.3

14.3

0

20

40

60

80

100

120

Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15

10

Portfolio Update

Dolphin Hotel, Surry Hills, NSW

NSW

NZ

QLD

WA

Icon Hospitality

Panther Entertatinment Group

Partners Hotel Group

Capital Investments WA

Other

Rent by Geography (%)

Portfolio Update

Fund snapshot 30 Jun 2011 30 Jun 2010

Total assets $235.6m $323.4m

Weighted average capitalisation rate 9.6% 9.4%

Weighted average lease expiry 10.0yrs 10.7yrs

Number of properties 34 44

81%

8%

5%

11

Rent by Operator (%)

13%

5%

8%

36%

38%

6%

Major tenant update – Icon Hospitality

• Receivers continue to operate Icon hotels in accordance with lease terms

• Work continues on long term strategy to restore operational performance

• Option to acquire operating business extended to 30 Sep 2011

• View to continue with previously stated strategy of acquiring the Icon operating assets -providing greater oversight and management of hotel operations

• The acquisition remains conditional on a number of factors including:

> Restructuring IEF into a stapled entity

> Execution of sale contracts

> Successful application for finance to complete the acquisition

> Exercise of the option to acquire the operating business prior to expiry

Portfolio Update

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Update on other tenants

Portfolio Update

Venue Current Position Focus

Panthers Performance remains consistent however trading headwinds continue to slow revenue growth

Panthers’ focus remains on continual improvement in trading performance, revenue diversification and cost management to improve profitability and member amenities

Partners Hotel Group Trading conditions in NZ continue to be difficult putting pressure on venue performance

IEF is continuing with sales strategy and withdrawal from this market

Courthouse Hotel, Cairns Regional downturn and reduced tourist inflows have impacted asset performance

IEF is reviewing options in relation to the site including potential for divestment

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Strategy and Outlook

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• Further assets sales will be pursued to achieve deleveraging objectives and to mitigate covenant default risk

• Management will look to reinstate distributions once the Fund’s asset value volatility stabilises and the capital position is improved

Operational • Continual monitoring of tenant performance

• Divestment strategy for NZ and regional assets continuing

Capital management

Strategic• Position the Fund in order to proceed with the long-term operation and plan to achieve

greater oversight and management of hotel operations

• Remain focus on managing a diversified portfolio of leisure and entertainment assets that deliver sustainable growth in the long-term

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Appendices

9,500

(621)

(1,619)

(17,670)

(721)

30,131

6,559

23,572

30 Jun 2010($’000s)

30 Jun 2011($’000s)

Revenue

Rental Income 21,057

Interest income 6,294

27,351Expenses

Property expenses (692)

Finance costs (15,947)

Responsible Entity’s fees (1,818)

Other (506)

Operating income 8,388

Operating Income Statement 1

Appendix 1

1. Operating income statement on a look through basis including contribution of discontinued operations. Operating income is calculated after adding back certain items recognised in the income statement including unrealised gains or losses of the funds properties and derivatives, unrealised impairments of receivables and one off extra-ordinary items.

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Appendix 2

Operating income reconciliation

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30 Jun 2011 ($’000s)

30 Jun 2010 ($’000s)

Statutory loss (21,092) (52,730)

Adjustments:Rental straight lining (571) 145Net loss on property revaluations 24,031 44,413Net (gain)/loss on derivatives revaluation (1,221) 1,585Net loss on investment properties – equity accounted 317 2,772CLS borrowing costs amortisation 16 365Write back provision for aborted due diligence costs (50) (299)Impairment loss on receivables 3,135 8,019Capital transaction costs 2,733 -Reversal of impairment loss on loans (2,409) -Insurance claim proceeds recognised as other income (3,377) -Loss from discontinued operations 4,617 2,048Operating income from discontinued operations 2,259 3,181

Operating income 8,388 9,500

30 Jun 2011 ($’000s)

30 Jun 2010 ($’000s)

AssetsCash and cash equivalents 6,272 1,696Receivables and other assets 5,028 4,853Investment properties 1 124,850 199,350Equity accounted investments 1 23,672 24,986Assets of discontinued operations 12,583 31,397Loan to associated entity 1 63,091 60,682Derivatives 95 395

Total assets 235,591 323,359LiabilitiesPayables 8,850 5,880Borrowings 120,217 219,315Derivatives 6,129 12,256Total liabilities 135,196 237,451

Net assets 100,395 85,908Unitholders interestIssued units 217,678 182,425Reserves and Accumulated losses (117,283) (96,517)

Total unitholders interest 100,395 85,908Net asset value (NAV) per unit $0.17 $0.49

Appendix 3

Balance Sheet

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1. Appendix 7 provides details of the properties held or secured via equity accounted investments or loan to associated entity respectively

Facility 1 Facility 2

Drawn amount ($m) 108.3 14.3

Loan to value ratio (LVR) actual 57.6% 53.5%

LVR bank covenant 65.0% 1 55.0%

Interest cover ratio (ICR) actual 2 1.56x 2.00x

ICR bank covenant 1.40x 3 1.50x

Facility expiry Feb 2015 Sep 2012

Debt Facilities

Appendix 4

1. LVR covenant steps down from 65% to 60% limit at 31 December 2011

2. ICR is calculated in accordance with the provisions of each of the Fund’s debt facility agreements. This calculation excludes certain non-recurring and unrealised costs, including fair valuation adjustments to the Fund’s assets and capital transaction costs.

3. ICR covenant increases to 1.5x on facility 1 for the period to 31 December 2011

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Appendix 5

Valuation Summary

Revaluations in the six months to 30 Jun 11 Proportion of portfolio

30 Jun 2011 Book value

($m)

30 Jun 2011Weighted Ave Cap Rate (%)

30 Jun 2010Weighted Ave Cap Rate (%)

Externally revalued 78.3% 107.5 9.4% 8.8%

Externally valued (NZ) 9.1% 12.6 13.0% 12.1%

Internally revalued 12.6% 17.3 11.1% 9.7%

Total 100.0% 137.4 9.9% 9.2%

Note: Valuation summary details direct investment properties including properties classified as discontinued operations

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18.61,93112.42,800NZWaikanae34 Main RoadWaikanae Hotel & Super Liquor 110.35,20011.14,800NSWMount Druitt13 Mount StreetUncle Bucks Retail Centre

9.210,5009.710,000NSWMount Druitt13 Mount StreetUncle Bucks Hotel

7.014,7008.113,000WAPerth292 Beaufort StreetThe Brisbane Hotel

9.385,6679.286,763NSWVarious locations14 sitesPanthers

Property Address SuburbState /

Country

30 Jun 11Valuation

($’000s)30 Jun 11

Cap rate (%)

30 Jun 10 Valuation

($’000s)30 Jun 10

Cap rate (%)

Ambarvale Tavern 57 Woodhouse Drive Ambarvale NSW 11,700 11.6 13,000 10.6

Bowral Hotel 408-412 Bong BongStreet Bowral NSW 5,400 10.4 6,400 8.7

Central Hotel 18 Targo Street Bundaberg QLD 3,100 12.2 3,350 10.7

Commodore Hotel 206 Blues Point Road North Sydney NSW 11,800 9.1 12,500 8.6

Courthouse Hotel 38 Abbott Street Cairns QLD 5,200 11.5 6,100 9.3

Dolphin Hotel 412-416 Crown Street Surry Hills NSW 11,050 8.1 10,500 8.7

El Toro Hotel 6 Homepride Avenue Liverpool NSW 13,950 9.2 15,500 8.3

Five Dock Hotel 74 Great North Road Five Dock NSW 17,600 7.9 17,400 8.0

General Gordon Hotel 20 Swain Street Sydenham NSW 10,050 12.4 11,500 11.0

GPO Hotel Ann & Ballow Streets Fortitude Valley QLD 2,900 10.2 3,000 8.0

Hibernian Hotel 145 Auburn Street Goulburn NSW 1,300 11.2 2,000 7.5

Lawson Park Hotel 1 Church Street Mudgee NSW 3,000 7.9 3,000 8.8

Portfolio overview

Appendix 6

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Property Address SuburbState/

Country

30 Jun 11 Valuation

($’000s)30 Jun 11

Cap rate (%)

30 Jun 10 Valuation

($’000s)30 Jun 10

Cap rate (%)

Alberts Sports Bar 1 692 Main Street Palmerston North NZ 2,359 9.9 2,918 8.3

Murphy’s Law 1 479 Main Street Palmerston North NZ 866 18.5 1,318 12.6

Exchange Hotel 1 132 Queens Drive Lower Hutt NZ 2,970 13.7 3,078 13.7

The Office 1 514 Main Street Palmerston North NZ 1,361 16.2 1,318 17.4

Realm Hotel 1 9-17 Mosham Ave Hataitai NZ 2,227 12 2,418 11.5

Total 224,196 9.7

Portfolio overviewAppendix 6 (cont’d)

10.83,029-NZPalmerston North532 Main StreetEmpire Hotel

10.05,711--NZWellington28 Cambridge TceCambridge Hotel

9.06,000--NSWWoolwich2 Gale StreetWoolwich Pier Hotel

9.06,100--NSWRozelle193-199 Evans RoadThree Weeds Hotel

9.511,500--NSWKings Cross26 & 28 Darlinghurst Road

Sydney Aussie Rules Social Club

7.53,800--NSWBroadmeadow1 Brunker RoadPremier Hotel

9.519,300--QLDBrisbane131 Edward StreetExchange Hotel

11.218,000--NSWKings Cross22-26 Darlinghurst RoadBourbon Hotel

Properties divested during 12 months to 30 June 2011

Turks Bar 5 Napier Road Havelock North NZ - - 1,116 20.6

Tote Hotel 74 Ararino Street Trentham NZ - - 2,887 9.9

Total 310,726 9.4

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1. NZ Properties are disclosed as discontinued operations within the Fund’s accounts for financial years ended 30 June 2011 and 30 June 2010

Property Address Suburb State30 Jun 2011

($’000s)

Properties secured against convertible loan to associated entity

Panthers Bathurst 132 Piper Street Bathurst NSW

Panthers Bathurst City Bowling Club William Street Bathurst NSW

Panthers Cardiff Cnr Munibung & Pendlebury Roads Cardiff NSW

Panthers West Epping 17 Mountain Street Epping NSW

Panthers Glenbrook 8 Hare Street Glenbrook NSW

Panthers Lavington 795 Centaur Road Lavington NSW

Panthers Newcastle Cnr King and Union Streets Newcastle West NSW

Panthers North Richmond 33 Beaumont Ave North Richmond NSW

Panthers Port Macquarie 1 Bay Street Port Macquarie NSW

Panthers Port Macquarie Sports Boundary Road Port Macquarie NSW

Panthers Triglav 80-84 Brisbane Road St Johns Park NSW

Panthers Wallacia 13 Park Road Wallacia NSW

Loans to associated entity – Panthers Investment Corporation Pty Ltd 63,091

Properties held through investment in associated entity

Panthers Penrith Mulgoa Road Penrith NSW

Panthers Mekong 117 John Street Cabramatta NSW

Equity accounted investments – Panthers Property Unit Trust 23,672

Panthers Portfolio

Appendix 7

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A copy of this presentation will be made available on www.ingrealestate.com.au

This presentation was prepared by ING Management Limited (ABN 15 006 065 032) (the "Responsible Entity") in respect of ING Real Estate Entertainment Fund (ARSN 108 982 627) (“IEF"). Information contained in this presentation is current as at 26 August 2011. This presentation is provided for information purposes only and has been prepared without taking account of any particular reader's financial situation, objectives or needs. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Accordingly, readers should, before acting on anyinformation in this presentation, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase orsale of any security, nor does it form the basis of any contract or commitment.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation. By reading this presentation and to the extent permitted by law, the reader releases the Responsible Entity and its affiliates, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any reader relying on anything contained in or omitted from this presentation.

Disclaimer

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Responsible Entity. In particular, they speak only as of the date of these materials, they assume the success of IEF's business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place reliance on such forward looking statements.

The Responsible Entity, or persons associated with it, may have an interest in the securities mentioned in this presentation, and may earn fees as a result of transactions described in this presentation or transactions in securities in IEF.

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