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IMP announces unconditional sale of Thames Street

Thursday, 18 June 2009

ING Medical Properties Limited (IMPL), the Manager of ING Medical Properties Trust (NZX:IMP) announced today that as part of its considered portfolio and capital management strategy, it has unconditionally sold the Trust’s only property held purely for development, 116 - 118 Thames Street, Melbourne, Australia. Thames Street is also one of the Trust’s lowest value assets.

Whilst receiving a pleasing level of leasing interest in this challenging environment, there was not a sufficient level of pre-lease commitment to significantly de-risk commencement of the development, with the most prudent option in the current economic climate being the sale of the property.

The sale price of AUD$2.8m achieved was in excess of the 30 June 2008 asset valuation and in a softening real estate market the sale represents an excellent outcome for the Trust, particularly where many listed entities have recently reported valuation declines of in excess of 10% over the last 12 months and greater declines in land values.

The sale will settle in the September 2009 quarter and proceeds will be used to repay debt, further strengthening the Trust’s balance sheet. On settlement the Trust’s gearing will reduce to approximately 34.9%.

IMPL advised it has a further conditional agreement to sell another of the Trust’s lower value, non-core property assets and will continue to consider the sale of other selective non-core assets over the medium term as part of the Trust’s ongoing capital management strategy.

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