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IMP announces Napier lease extension

Tuesday, 18 May 2010

ING Medical Properties Limited (IMPL), the Manager of ING Medical Properties Trust (NZSX ticker: IMP) today announced it had unconditionally secured a lease extension with the Hawkes Bay District Health Board (HBDHB) at the Napier Health Centre. The extension has been agreed some 18 months prior to the current lease expiry and will see the HBDHB continue its 100% occupation of the property until 2019.

Bill Thurston, Chairman of IMPL said that “this is a great outcome as it has mitigated one of the Trust’s largest lease expiries over the next five years and secures the HBDHB’s exceptional lease covenant for an extended period, providing the contracted rental income security investors are seeking in the current economic environment. We are also pleased to be able to continue our longstanding partnership with the HBDHB.”

HBDHB Chief Executive Officer Kevin Snee said he was pleased with the outcome and is looking forward to further developing the centre’s capability.

“It has taken nearly 24 months of review and negotiation to achieve this result. We have been through a diligent, methodical process that has meant looking at a number of options, including a complete new facility as well as other site options. The decision to remain at [the ING Medical Properties Trust site at] Wellesley Rd is a prudent one” said Dr Snee.

David Carr, General Manager of IMPL said that “the HBDHB occupies 4,300 square metres, or 7% of the Trust’s total net lettable area, and with the lease now secured to 2019 the Trust’s aggregate lease expiry profile drops to just 5% over the next two years.”

As at the commencement of the lease extension on 1 July 2010 the Trust’s weighted average lease term (WALT) will improve from approximately 8.2 years to 8.6 years.

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