ANNUAL REPORT 11 OCTOBER 2006 – 31 DECEMBER 2007
T.U. DOME RESIDENTIAL COMPLEX 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 11 October 2006 – 31 December 2007 1
Table of Contents
Page
Statement from the Asset Management Company
1
T.U. Dome Residential Complex Property Fund
2
Portfolio Valuation
5
Details of Property Invested by the Fund
7
Details of Purchasing and Leasing of Properties
7
Property Disposal or Leasehold Rights Transfer
7
Property Market Outlook
8
Total Expenses as called from Property Fund
10
List of Related Persons having transactions with the Funds managed by ING Funds (Thailand) Company Limited
11
Details of the Return on Investment Receipt
12
Supervisor Report
15
Auditor Report
16
ING Funds (Thailand) Co., Ltd.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 2 T.U. Dome Residential Complex Property Fund Abbreviation as “TU-PF” 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 objective of the project is to raise funds from general investors, both individuals and juristic persons, locally and internationally. The funds raised will be used to purchase, rent, sub-rent or acquire immovable property and/or leasehold right and/or sub-leasehold right and acquire benefits from such immovable property, including improvement, change, enhancement and/or disposal of assets that the Fund has invested in or acquired, including leasing, subleasing and/or selling or doing any other thing for the benefits of the assets, so as to generate income and remuneration to the Fund and the unitholders, including investment in other properties and/or securities and/or acquisition of other legal fruits thereof by any other means under the securities laws and/or any other applicable laws. Investment of the Fund First Investment The Fund plans to raise funds to invest in the dormitory and service apartment project, which are being constructed on land owned by Thammasat University (Rangsit Campus). The Fund expects that the project will be able to accommodate residential demands of students, lecturers and scholars that have been increasing every year, and to organize dormitories and residence of students and personnel up to standard suitable for control of environment and security. After completion of the construction of the dormitory and service apartment project, the Fund will rent the leased properties from Thammasat University for a tenor of approximately 30 years so as to acquire benefit thereof mainly by subleasing the properties and servicing to students, lecturers and scholars. Preliminarily, Thammasat University will act as the property manager of the dormitories and service apartments for the Fund. The Fund may appoint other property manager
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 3 to manage the commercial areas for shops and recreation areas (if any), e.g. retail shops, supermarkets, restaurants, theater or bowling hall (if any) etc. During the time the dormitory and service apartment project has not yet completed, the Fund will invest money in the government instruments, debt instruments and/or deposits as it may deem appropriate. (Please see the details of “Investment Policy” in the Prospectus) Dividend Payment Policy The project has a policy to pay dividend to the unitholders at least twice a year. (1) In the event that the Fund has net profit in each year, the Management Company will pay the dividend to the unitholders not less than 90 percent of the annual net profit. (2) In the event that the Fund has accumulated profits, the Management Company may pay dividend to the unitholders from the accumulated profit. Net profit and accumulated profit mentioned above are net and accumulated profit actually occurred but exclude the following items: 1. Profit or loss that has not yet occurred from the appraisal of the immovable property, securities and/or assets of the Fund. 2. Expenses arising out of the initial offering and following offering, if any, that are recorded as deferred expenses and to be amortized throughout the period which is expected to receive benefits from such expenses. The Management Company will pay such dividend to the unitholders within 90 days from the last date of the accounting period or any other period for payment of dividend. If the Management Company cannot pay the dividend within the given period, the Management Company will notify the unitholders and the Office of the SEC in writing. In consideration of paying dividend, if value of the dividend to each unit to be declared for payment during an account year is lower than or equals to Baht 0.10, the Management Company reserves right to hold payment of such dividend and carry forward to pay such dividend altogether at the end of the accounting year.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 4 Capital of the Fund Project
:
1,065,000,000 Baht
Number of Investment Units
:
106,500,000 million units
Type of Investment units
:
Holder name specified
Supervisor
:
Siam City Bank Plc.
Investment Units Registrar
:
ING Funds (Thailand) Co., Ltd.
Fund Advisor
:
-None-
Property Manager
:
Thammasat Property Management Office Interzone Building, 99 Moo 8, Klong Nueng Sub-District, Klong Luang District, Patumthani 12120 Tel (02) 151-2999
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.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 5
T.U. Dome Residential Complex Property Fund Portfolio Valuation AS at 31 DECEMBER 2007 Market Value (Baht)
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 ACCRUED INTEREST SECURITY DEPOSIT FOR LONG-TERM LEASED AGREEMENT DEFERRED CHARGES OTHER ASSETS Total TOTAL ASSETS
% of NAV
2,491,771.24
0.24%
-
0.00%
-
0.00%
829,573,737.45
79.80%
-
0.00%
829,573,737.45
79.80%
-
0.00%
-
0.00%
-
0.00%
10,819,298.15
1.04%
173,500,000.00
16.69%
23,417,391.97
2.25%
411,657.70
0.04%
208,148,347.82
20.02%
1,040,213,856.51
100.06%
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 6
ASSETS 5. LIABILITIES ACCRUED FEES AND EXPENSES
Market Value (Baht)
% of NAV
(646,893.87)
-0.06%
SECURITY DEPOSIT
-
0.00%
OTHER LIABILITIES
(15,284.97)
0.00%
(662,178.84)
-0.06%
TOTAL NET ASSET VALUE
1,039,551,677.67
100.00%
NO OF UNITS
104,229,800.0000
UNITS
9.9736
BAHT
TOTAL LIABILITIES
NET ASSET VALUE PER UNIT
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 7
T.U. Dome Residential Complex Property Fund Details of Property Invested by the Fund As of 31 December 2007 - None -
T.U. Dome Residential Complex Property Fund Details of Purchasing and Leasing of Properties For Period from 11 October 2006 to 31 December 2007 - None -
T.U. Dome Residential Complex Property Fund Property Disposal or Leasehold Rights Transfer For Period from 11 October 2006 to 31 December 2007
Transaction Property Disposal or Leasehold Rights Transfer Less Book Value on Property Disposal or Leasehold Rights Transfer Transfer Fee and Selling Expenses Net Profit (Loss) from Property Disposal or Leasehold Rights Transfer
Profit (Loss) (Thousand Baht) None None None None
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 8
T.U. Dome Residential Complex Property Fund Property Market Outlook Industry and Competition Analysis At present, demand for students’ residences has been rising continuously in accordance with national development and growing number of population. Education has been among the top policy issues for government in these recent years. The number of students, passing Mathayom Suksa 5 to Mathayom Suksa 6, the final year in high school, has increased by approximately 48,900 persons, from the number of students in Mathayom Suksa 6 in 2007 school year, totaling 363,551 persons to 421,543 persons.
Number of Students
2007 School Year
(Countrywide) Mathayom Suksa 6
363,551
Mathayom Suksa 5
412,543
Source: Office of the Basic Education Commission, Ministry of Education www.moe.go.th
Thammasat University is among the top public universities of Thailand, and their student enrollment records are among the highest in this country, or 28,917 students (as of March 2008). Of these, 322 persons are students at a diploma level, 22,716 Bachelor Degree students, 5,739 Master Degree students, and 140 Ph.D. candidates. In 2008, Thammasat University is anticipating total students enrollments for more than 3,900 persons at BA level, and more than 2,000 persons at graduate levels. Their student enrollment records have been increasing each year. Level of Study
TU Students
2007 Academic Year Bachelor Degree
22,716
Diploma
322
Master Degree
5,739
Ph.D.
140
Source: TU Registration and Processing Office, as of March 18, 2008
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 9 Students’ residential units in Thammasat University and the neighborhood have shown the high occupancy rates each year, being unable to accommodate all of their students. An average rent for air-conditioned units in TU residential units stand at Baht 2,000 per person a month. An average rent for air-conditioned rooms among nearby apartments is between Baht 3,000-10,000 per room, per month. The recent survey results showed there are 28 students’ residences in the University, with total capacity to accommodate 9,000 students, all of which have been fully occupied. There were 7-8 students’ residences in the neighborhood, able to accommodate approx. 2,000-5,000 students. These include some dormitories, as well as rooms and houses for rent, which have not been registered officially as students’ residences. Almost all available residences still lack complete facilities for students, comparable to those services as offered in our residential project, especially swimming poll, and the complete facilities, i.e., TV set, water heater, air-conditioner, telephone and Internet service in every room.
Nearby Residences
Types of Room
Rent/room/month
Deposit
1. U-HOUSE
Air-conditioned
5,900-7,400
2 months
2. Twin Town Apartment
Air-conditioned
4,500
10,000 Baht
3. INTER PARK
Air-conditioned
5,000-5,500
3 months
4. Song Pichet
Air-conditioned
4,200
2 months
5. TU Mansion
Air-conditioned
4,800
10,000 Baht
6. Sitthi Dorm
Air-conditioned
2,500-3,000
5,000 Baht
7. Brownie Apartment
Air-conditioned
5,500-10,000
3 months
Source - TU Property Management Office, as of December 2007 - Survey results
From the above information, it is evident to note that students’ residence and apartment business still have chances for continuing growth. Demand will vary directly with the growing enrollment records at universities, following the government’s continuing support for education to improve our human quality.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 10
T.U. Dome Residential Complex Property Fund Total Expenses as called from Property Fund For Period from 11 October 2006 to 31 December 2007 Amount
% of
(Thousand Baht)
Net Assets Value
6,860.02
0.65
Trustee Fee*
486.62
0.05
Registrar Fee*
823.20
0.08
7,590.69
0.72
173.00
0.02
98.44
0.01
114.47
0.01
64.41 16,210.85
0.01 1.55
Fund's Direct Expense Management Fee*
Fund's Setting Up Expenses -Written Off* Auditing Fee* Legal Fee* Listing Fee -Written Off* Other Expenses* Total Expenses** Remark * Included VAT ** Not included brokerage fee
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 11
T.U. Dome Residential Complex Property Fund List of Related Persons having transactions with the Funds managed by ING Funds (Thailand) Company Limited For the period from 11 October 2006 to 31 December 2007 No.
List of Related Persons having transactions with Mutual Funds
1
Unitholders whose investment units exceeding 10% of the total units sold of the Fund
2
Other funds which are under management of the Asset Management Company
3
Property Manager
4
The Company Limited owned by the property manager holding in aggregate at least 10% of the total outstanding investment units of the Fund Project
5
Other Management Companies where there are shareholder of ING FUNDS exceeding 5% of total shares sold
“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)”
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 12
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 Servicer who create the yield in favour of the Fund •
Securities Companies Adkinson Securities Public Company Ltd. 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. TMB Macquarie Securities (Thailand) Ltd. KGI Securities (Thailand) Public Company Ltd. Credit Suisse Securities (Thailand) Ltd. Kim Eng Securities (Thailand) Public Company Ltd. Thanachart Securities Public Company Ltd.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 13 TISCO Securities Company Ltd. Trinity Securities Company Ltd. Phatra Securities Public Company Ltd. SCB Securities Company Ltd. Syrus Securities Public Company Ltd. UBS Securities (Thailand) Ltd. 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 Pubilc Company Ltd. Barclays Capital Securities (Thailand) Ltd. •
Commercial Banks - Local Bank of Ayudhya Public Company Ltd. Bangkok Bank Public Company Ltd. Bankthai Public Company Ltd. Kasikornbank 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. The 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.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007 14 •
Commercial Banks - Foreign Bank Branches ABN-AMRO Bank N.V. JPMORGAN Chase Bank, N.A. Oversea-Chinese Banking Corp., Ltd. The Bank of Tokyo-Mitsubishi Ufj, Ltd. Citibank, N.A. Calyon Corporate and Investment Bank 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 Pubilc Company Ltd.
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND
Annual Report For the Period of 11 October 2006 – 31 December 2007
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 Tower1, G Floor, and Sindhorn Building Tower 3,15th and 17th- 18th Floor, Wireless Road, Lumpini, Patumwan, Bangkok 10330. Tel: (02) 688-7777 Fax: (02) 688-7707-8 www.ingfunds.co.th
T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND