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ANNUAL REPORT 1 JANUARY 2009 – 31 DECEMBER 2009

FUTURE PARK PROPERTY FUND

TRANSLATION This Annual Report is executed in a text using the Thai language which shall be the governing language.


Annual Report For the Period of 1 January 2009 – 31 December 2009

Table of Contents

Page

Statement from the Asset Management Company

1

Future Park Property Fund

2

Portfolio Valuation

6

Details of Property Invested by the Fund

7

Details of Purchasing and Leasing of Properties

9

Property Disposal or Leasehold Rights Transfer

9

Property Market Outlook

10

Total Expenses as called from Property Fund

11

Name List of Fund Manager

12

List of Related Persons having transactions with the Funds managed by ING Funds (Thailand) Company Limited

12

Details of the Return on Investment Receipt

13

Supervisor Report

16

Auditor Report

18

ING Funds (Thailand) Co., Ltd.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 2 Future Park Property Fund Abbreviation as “FUTUREPF” The Asset Management Company ING Funds (Thailand) Co., Ltd Type of the Fund Project Closed-end Property fund Fund Maturity Not Specified Objectives of the Fund Project The purposes of the Fund are to mobilize funds from the investors, natural persons of Thai and foreign nationals and local and overseas juristic persons which are used to purchase and/or take on lease immoveable properties. The Fund will accept the transfer of ownership and/or leasehold rights and derive benefits from the immovable properties by letting out on lease or sublease, transferring and/or disposing of immovable property invested or acquired by the Fund, and by improving, changing, developing and/or disposing of the various properties invested or acquired by the Fund, whether by the granting of a lease and/or sale and/or by other means relevant and necessary to make use of the immovable properties in return for income and yields for the Fund and its unit holders, including to invest in other properties and/or securities and/or to acquire other fruits by any other means stipulated by the Securities Law and/or other relevant laws Investment of the Fund 1st Investment: On November 24, 2006, Future Park property Fund has acquired leasehold rights of immovable properties which is a commercial center, in 1 project, certain of Future Park Rangsit Project Building of about 52,573.09 square meters, and the right to seek benefits by means of granting lease or area utilization rights, providing services and others in respect of certain of the Common Area having an area of 48,190.51 square meters and the areas on the outside walls of the Future Park Rangsit Project Building, the details being as follows: (1) Certain leasehold rights of the Future Park Rangsit Project building to be acquired from Rangsit Plaza Co., Ltd. covers an area of approximately 52,573.09 square meters, i.e. between the date on which the Fund enters into the Building Lease agreement with Rangsit Plaza Co., Ltd. and 31 December 2026. Rangsit Plaza Co., Ltd. has undertaken to extend Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 3 the Building Lease Agreement with the Fund so that the leasehold rights are extended from the date of its expiry for another period equal to that by which Pipatanasin Co., Ltd. agrees to extend the Land Lease Agreement. In addition, the Fund has the right of first refusal regarding the whole or a part of the Area under a Lease Agreement whereby a Consideration is payable for Leasehold Rights to be acquired from Rangsit Plaza Co., Ltd. when the former tenants’ leaseholds expire. As of 30 June 2006, the total Area under a Lease Agreement whereby a Consideration is payable for Leasehold Rights are 122,741.05 square meters. (2) The right to apply the Common Areas of the Future Park Rangsit Project Building, totaling 48,190.51 square meters, and the areas on the outside walls of the Future Park Rangsit Building under the Agreement Granting Rights for Area Utilization and Benefit Seeking, to benefit seeking by means of providing lease or services or granting right to area use or by any other means. However, such area use and benefit seeking must be consistent with the business operation of Rangsit Plaza Co., Ltd. during the period before the Fund makes an investment, and must have regard for the convenience of other tenants to make use of the Common Areas of the Future Park Rangsit Project Building. On the date prior to the Fund’s investment, a total of 7,582.79 square meters of the Common Areas were subject to the benefit seeking activity, and other portion of the Common Areas was being used for purposes of convenience to the service users of Future Park Rangsit Project Building, such as for walkway. Further the Fund will have such right during the period from the Date of the Fund’s Investment to 31 December 2026. Rangsit Plaza Co., Ltd. has undertaken to extend the Agreement Granting Rights for Area Use and Benefit Seeking with the Fund so that the Fund will be entitled to acquire benefits from the Common Areas and the areas on the outside walls of the Future Park Rangsit Building, for an additional period equal to the extension of the Building Lease Agreement under Clause 1.1 from the expiry of the Fund’s right to utilize the space areas. In order to give the Fund a valid, lawful right to the Fund’s 1st Investment Area, the Fund and Rangsit Plaza Co., Ltd. will arrange for the registration with the Land Department of the leasehold rights under the Building Lease Agreement and of the right to utilize the area of 7,582.79 square meters of the Future Park Rangsit Project Building under the Agreement Granting Rights for Area Use and Benefit Seeking. (For more details, please see the Summary of Prospectus) Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 4 Dividend Payment Policy The Project has the policy of paying dividends to the unitholders at least twice a year. (1) In case the Fund has net profits in each year, the Management Company shall pay dividends not less than 90% of the annual net profits to the unitholders. (2) In case the Fund has retained earnings, the Management Company may pay dividends based upon the retained earnings to unitholders. However, the afore-mentioned net profit and retained earnings are actually gained and are exclusive of: (1) unrealized profit or loss from the appraisal of the immovable properties, securities and/or assets of the Fund, (2) expenditures in the initial and subsequent offerings (if any) which are recorded as deferred expenses amortized over an expected period of benefits derived from such expenditures. The Management Company shall pay the said dividends to the unitholders within 90 days from the end of the accounting period or any other operating period. If the Management Company cannot pay dividends during such period, the Management Company shall notify the unitholders and the Office of the SEC in writing. Additional Conditions: In consideration of dividend payment, if the dividends per investment unit to be paid during an accounting period is lower than or equal to Baht 0.10, the Management Company reserves the right not to pay such dividends for that period, in which case such dividends shall be brought forward for payment at the end of the accounting period. The Management Company shall comply with the criteria on dividend payment as stipulated. Provided that where it is otherwise amended, added, announced, prescribed, ordered, approved and/or relaxed by the SEC, the Office of the SEC, and/or any other competent authorities under the law, the Management Company shall proceed accordingly, in which case it shall be deemed that approval has been obtained from the unitholders.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 5 Capital of the Fund Project

:

4,733,161,000 Baht

Number of Investment Units

:

473,316,100 units

Type of Investment units

:

Holder name specified

Supervisor

:

Thai Military Bank Plc. (Effective till 28 February 2009)

:

The Hongkong and Shanghai Banking Corp Ltd. (Effective from 1 March 2009)

Investment Units Registrar

:

ING Funds (Thailand) Co., Ltd.

Fund Advisor

:

-None-

Property Manager

:

Rangsit Plaza Co., Ltd. No. 94, 3rd Floor, Future Park Rangsit Building Phaholyothin Road, Tambon Prachathipat, Amphur Thanyaburi, Pathum Thani Province Tel. (02) 958-0011

The Asset Management Company has prepared and gathered information on the Fund, e.g., prospectus, general information of the funds, properties invested by the Fund, performance results, press releases and dividend payments record, etc., for dissemination to investors. More information can be viewed at www.ingfunds.co.th. Any expenses for preparation and dissemination of said information will be collected from the Fund.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 6

Future Park Property Fund PORTFOLIO VALUATION As at 31 December 2009 ASSETS 1. BANK DEPOSIT 2. P/N, B/E, T-BILL AND BOND PROMISSORY NOTES AND BILLS OF EXCHANGE - DIRECT ISSUE PROMISSORY NOTES AND BILLS OF EXCHANGE - AVAL BOND TREASURY BILL TOTAL 3. INVESTMENT IN PROPERTY PROPERTY LEASEHOLD RIGHTS TOTAL 4. OTHER ASSETS RECEIVABLES FROM RENTAL OTHER RECEIVABLES ACCRUED INTEREST DEFERRED CHARGES OTHER ASSETS TOTAL TOTAL ASSETS 5. LIABILITIES OTHER PAYABLES ACCRUED FEES AND EXPENSES RENTAL RECEIVED IN ADVANCE SECURITY DEPOSIT OTHER LIABILITIES TOTAL LIABILITIES TOTAL NET ASSET VALUE NO OF UNITS NET ASSET VALUE PER UNIT

Market Value (Baht)

% of Total Asset

179,195,274.97

3.64%

29,997,164.65 29,997,164.65

0.00% 0.00% 0.62% 0.00% 0.62%

4,964,300,000.00 4,964,300,000.00

0.00% 100.88% 100.88%

39,317,758.84 492,262.44 251,666.60 4,840,927.88 44,902,615.76 5,218,395,055.38

0.80% 0.01% 0.01% 0.00% 0.09% 0.91% 106.05%

(9,138,572.96) (33,229,884.54) (3,867,363.00) (247,102,827.37) (3,846,051.61) (297,184,699.48) 4,921,210,355.90

-0.19% -0.68% -0.08% -5.02% -0.08% -6.05% 100.00%

473,316,100.0000 10.3973

UNITS BAHT

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 7

Future Park Property Fund Details of Property Invested by the Fund As at 31 December 2009 The Fund invested in certain leasehold rights of Future Park Rangsit Project Building covering an area of approximately 52,573.09 square meters, and the right to use the common area of Future Park Rangsit Project Building, totaling 48,190.51 square meters, and the areas on the outside walls of Future Park Rangsit Project Building to seek benefits. Project Location

No. 94 Phaholyothin Road, Tambon Prachathipat, Amphur Thanyaburi, Pathum Thani Province.

Project Feature

Future Park Rangsit Project Building consists of a five-storey building measuring 500 meters in length, a seven-storey car parking building situated behind the shopping mall, three outdoor parking areas that can accommodate about 6,000 cars (Rangsit Plaza Co., Ltd. is the holder of the ownership of the building)

Land

Land under Title Deeds No. 310 and 92118 having an area of 108 rais, 1 ngarn, and 67.5 square wahs (Pipatanasin Co., Ltd. owns the property and has entered into a leasehold agreement in respect of the land with Rangsit Plaza Co., Ltd.)

Purpose of Use

Retail shopping center

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 8 Project Area and Area Invested by the Fund

Details

Area Invested by the Fund (square meters)

Total Area of the Project (square meters)

1. Areas within the shopping mall are divided into: - Leasable areas - Common areas - Income generating area - Non-income generating area - Service areas 2. Indoor parking space (for parking of about 4,500 cars) 3. Outdoor parking space (for parking of about 1,500 cars) Total area

179,156.61 48,190.51 7,582.79 40,607.72 56,281.33

52,573.09 48,190.51 7,582.79 40,607.72

115,325.61 100,314.98 499,269.04

Total income generating area

60,155.88

Lease Period

From November 24, 2006 to December 31, 2026 (20 Years 1 Month 7 days)

Investment in Property

Cost of leasehold right and right for using areas Related acquisition cost Renovation Cost Total

Appraisal Value

Baht 4,964,300,000 (As at December 31, 2009) by C.I.T. Appraisal Co., Ltd. The Appraiser utilized Income Approach Method

Income per Year

From January 1, 2009 to December 31, 2009 : Baht 661.09 million

Obligation

None

Baht Baht Baht Baht

4,536,443,000 42,695,493 304,282,603 4,883,421,096

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 9

Future Park Property Fund Details of Property Investment / Disposal For the period from 1 January 2009 to 31 December 2009 -None -

Future Park Property Fund Property Disposal or Leasehold Rights Transfer For the period from 1 January 2009 to 31 December 2009 Transaction

Profit (Loss) (Thousand Baht)

Property Disposal or Leasehold Rights Transfer

None

Less Acquisition of Property Disposal or Leasehold Rights Transfer

None

Transfer Fee and Selling Expenses Net Profit (Loss) from Property Disposal or Leasehold Rights Transfer

None None

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 10

Future Park Property Fund Property Market Outlook Retail Market View The total retail supply of retail space increased to 5.38 million sq.m. in 2009, rising by 6.7% on a yearly basis. It is expected to increase by 2.6% to 5.52 million sq.m. at the end of the year 2010. Among these expansions, the suburban area saw the highest growth, with total retail space rising 9.6% on a yearly basis. More than half of the retail centers were in the shopping mall format. On the demand side, the net take-up slew down drastically in the first half of the year 2009. However, the improvement in the second half of the year brought the total occupied retail space to 4.97 million sq.m., rising by 6.4% on a yearly basis, almost matching the pace of the supply growth. The overall occupancy rate of Bangkok retail properties also fell sharply in the first half and recovered afterward, resulting in a mildly dropped to 92.5%, down 0.1% on a yearly basis. Suburban retail space recorded the highest occupancy at 94.9%, increasing by 0.2%. In the midtown area, occupancy rates remained the same at 89.3%, whereas retail in downtown areas dropped by 1% to 93.7%. Nevertheless, overall rents increased slightly, in line with the economic recovery. For future retail developments, the trend for new retail centres in Bangkok is evolving from one-stop mega shopping complexes to more focused community malls, medium-sized lifestyle and entertainment complexes such as Esplanade Rattanathibet. New shopping experiences and new formats are also being introduced into the market. These things force the key players to constantly reassess their approaches in order to stay strong in the dynamic-changing environment. Maximizing rentals may prove difficult without the presence of an anchor tenant. The problem is that some of the main supermarket operators, such as Tops and Tesco Lotus, are also developers themselves. Therefore, they normally choose to anchor on their own developments rather than leasing from third party developers. As for the retail outlook, the Confidence index, which is highly correlated with the local retail trade, has risen for 5 out of 6 months in the second half of the year 2009. This reflects the better expectation of the government economic stimulus package, the extension of the 5 measures for living cost subsidy, minimum wage rate adjustment and stable oil price. The Retail sales index rose strongly as well, by 8.45% on a yearly basis. Overall, including the demand surge, there are signs of improvement in the retail sector in the second half of the year 2009. Nonetheless, continued improvement further would still depend on the speed of global and local economic recovery coupled with a stabilized political environment.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 11

Future Park Property Fund Total Expenses as called from Property Fund For the period from 1 January 2009 to 31 December 2009 Amount (Thousand Baht)

% of Net Assets Value

Management Fee*

9,618.54

0.19

Trustee Fee*

1,155.56

0.02

Registrar Fee*

2,404.63

0.05

66,978.73

1.34

779.14

0.02

6,030.07

0.12

Property Tax*

10,378.28

0.21

Fund's Setting Up Expenses -Written Off*

43,310.76

0.86

Property Marketing And Administrative Expenses*

44,239.70

0.89

Asset Appraisal Fee*

184.20

0.01

Listing Fee -Written Off*

107.00

0.00

Form & Other Printing Expense*

132.31

0.00

Advertising Expense*

574.08

0.01

404.78 186,297.78

0.01 3.73

Fund's Direct Expense

Property Management Fee* Auditing Fee* Insurance Premium*

Other Expenses* Total Expenses Remark * Included VAT

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 12 Future Park Property Fund Name List of Fund Manager For the Period from 1 January 2009 to 31 December 2009 No.

Name List of Fund Manager

Property Fund Manager 1 Mr. Maris Tarab* 2 Ms. Chavinda Hanratanakool 3 Ms. Siriphen Wangdumrongves 4 Mr.Pairaj Migasena 5 Mr.Khematat Saradatta Mutual Fund Manager (Liquidity Portion) 1 Mr. Maris Tarab* 2 Mr. Jaruwat Preepreamkul 3 Ms. Monchaya Rachatakul 4 Ms. Linda Ubolriabroy 5 Ms. Ruedee Patiarayakul 6 Ms. Siripun Sutharoj 7 Ms. Patcharapa Mahattanakul 8 Mr. Tara Vanalabpattana 9 Mr. Verayuth Halilamien * Termination Date : 15 December 2009

List of Related Persons having transactions with the Funds managed by ING Funds (Thailand) Company Limited For the period from 1 January 2009 to 31 December 2009 No.

List of Related Persons having transactions with Mutual Funds

1

Other management companies where there are shareholders of ING Funds exceeding 5 % of total sold shares

“The investor can inspect the transactions entered into with the related persons of the mutual fund at the management company directly or at the website of the management company (www.ingfunds.co.th) and the Office of SEC (www.sec.or.th)”

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 13

Details of the Return on Investment Receipt Research paper including in-depth report of listed company, industry analysis, trend and outlook, economic and political situation both in domestic and foreign those influence the investment decision. Specific inquiry including the information further than the released research paper that support the investment decision Conference call direct to analyst Pay a visit to present the remarkable issue Report issue or concern of the market and securities during trade hour Organize seminar, related to the remarkable company. In addition, issue and concern situation at that moment, hosted by direct officers including lawyer, government representatives, or management. They all would provide in-depth information in order to make further investment decision. Arrange company visit as request in order to follow the progress of operation or any change that alter the fundamental. The company management would provide the latest information of business and the development of industry. List of the persons who provide Soft Commission for the Fund Securities Companies Country Group Securities Public Company Limited Asia Plus Securities Public Company Ltd. Ayudhya Securities Public Company Ltd. Bualuang Securities Public Company Ltd. CLSA Securities (Thailand) Ltd. Capital Nomura Securities Public Company Ltd. DBS Vickers Securities (Thailand) Company Ltd. KGI Securities (Thailand) Public Company Ltd. Credit Suisse Securities (Thailand) Ltd. Kim Eng Securities (Thailand) Public Company Ltd. Thanachart Securities Public Company Ltd. TISCO Securities Company Ltd. Trinity Securities Company Ltd.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 14 Phatra Securities Public Company Ltd. SCB Securities Company Ltd. Finansia Syrus Securities Public Company Ltd. UBS Securities (Thailand) Ltd. KT Seamico Securities Public Company Ltd. Siam City Securities Company Ltd. Citicorp Securities Thailand Ltd. TSFC Securities Ltd. Finansa Securities Ltd. BT Securities Company Ltd. United Securities Public Company Ltd. Barclays Capital Securities (Thailand) Ltd. Commercial Banks - Domestic Bank of Ayudhya Public Company Ltd. Bangkok Bank Public Company Ltd. CIMB Thai Bank Plc. Kasikorn Bank Public Company Ltd. Kiatnakin Bank Public Company Ltd. Krung Thai Bank Public Company Ltd. Thanachart Bank Public Company Ltd. Land and Houses Retail Bank Public Company Ltd. Siam Commercial Bank Public Company Ltd. Standard Chartered Bank (Thai) Public Company Ltd. Tisco Bank Public Company Ltd. TMB Bank Public Company Ltd. United Overseas Bank (Thai) Public Company Ltd. Commercial Banks – Foreign Branches ABN-AMRO Bank N.V. JPMORGAN Chase Bank, N.A.

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009 15 Oversea-Chinese Banking Corp., Ltd. The Bank of Tokyo-Mitsubishi Ufj, Ltd. Citibank, N.A - Bangkok Credit Agricole Corporate & Investment Bank Bangkok Branch The Hongkong and Shanghai Banking Corp., Ltd. Deutsche Bank AG. Mizuho Corporate Bank, Ltd. Sumitomo Mitsui Banking Corporation BNP Paribas The Bank of Nova Scotia Others Companies Thanachart Capital Public Company Limited

Future Park Property Fund


Annual Report For the Period of 1 January 2009 – 31 December 2009

ING FUNDS (THAILAND) COMPANY LIMITED Background The Asset Management Company was registered on November 4, 1996 with a fully paidup registered capital of Baht 100 million. It was granted a license to operate asset management business from the Ministry of Finance under the license number 011/2539 dated January 2,1997. After ING group, a financial services conglomerate with Dutch origin, became the major shareholder; the name of the Asset Management Company was changed to “ING Mutual Funds Management (Thailand) Co., Ltd.” in April 1999 and to “ING Funds (Thailand) Co., Ltd.” in May 2003. At present, ING Funds (Thailand) Co., Ltd. is a member of the ING Group of Netherlands Network - a global banking, insurance, and investment management business operator. Location of the Office ING Funds (Thailand) Co., Ltd. is located at 130-132 Sindhorn Building Tower 1, G Floor and Sindhorn Building Tower 3,15th and 17th Floor, Wireless Road, Lumpini, Patumwan, Bangkok 10330. Tel: (02) 688-7777 Fax: (02) 688-7707-8 www.ingfunds.co.th

Future Park Property Fund

FUTUREPF : Annual report 2009  

Annual report 2009

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