futurepf : annual report 2009

TRANSLATION

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

AAANNNNNNUUUAAALLL RRREEEPPPOOORRRTTT 1 JANUARY 2009 – 31 DECEMBER 2009

FFUUTTUURREE PPAARRKK PPRROOPPEERRTTYY FFUUNNDD

Annual Report

For the Period of 1 January 2009 – 31 December 2009

Future Park Property Fund

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.

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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

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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)

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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.

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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.

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PORTFOLIO VALUATION

As at 31 December 2009

ASSETS Market Value (Baht)

% of Total Asset

1. BANK DEPOSIT 179,195,274.97 3.64% 2. P/N, B/E, T-BILL AND BOND PROMISSORY NOTES AND BILLS OF EXCHANGE - DIRECT ISSUE - 0.00% PROMISSORY NOTES AND BILLS OF EXCHANGE - AVAL - 0.00% BOND 29,997,164.65 0.62% TREASURY BILL - 0.00% TOTAL 29,997,164.65 0.62% 3. INVESTMENT IN PROPERTY PROPERTY - 0.00% LEASEHOLD RIGHTS 4,964,300,000.00 100.88% TOTAL 4,964,300,000.00 100.88% 4. OTHER ASSETS RECEIVABLES FROM RENTAL 39,317,758.84 0.80% OTHER RECEIVABLES 492,262.44 0.01% ACCRUED INTEREST 251,666.60 0.01% DEFERRED CHARGES - 0.00% OTHER ASSETS 4,840,927.88 0.09% TOTAL 44,902,615.76 0.91% TOTAL ASSETS 5,218,395,055.38 106.05%

5. LIABILITIES OTHER PAYABLES (9,138,572.96) -0.19% ACCRUED FEES AND EXPENSES (33,229,884.54) -0.68% RENTAL RECEIVED IN ADVANCE (3,867,363.00) -0.08% SECURITY DEPOSIT (247,102,827.37) -5.02% OTHER LIABILITIES (3,846,051.61) -0.08% TOTAL LIABILITIES (297,184,699.48) -6.05%

TOTAL NET ASSET VALUE 4,921,210,355.90 100.00%

NO OF UNITS 473,316,100.0000 UNITS NET ASSET VALUE PER UNIT 10.3973 BAHT

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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

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Project Area and Area Invested by the Fund

Details Total Area

of the Project (square meters)

Area Invested by the Fund

(square meters)

1. Areas within the shopping mall are

divided into:

- Leasable areas

- Common areas

- Income generating area

- Non-income generating area

- Service areas

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

2. Indoor parking space

(for parking of about 4,500 cars)

115,325.61

3. Outdoor parking space

(for parking of about 1,500 cars)

100,314.98

Total area

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 Baht 4,536,443,000

Related acquisition cost Baht 42,695,493

Renovation Cost Baht 304,282,603

Total Baht 4,883,421,096

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

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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


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 None

Net Profit (Loss) from Property Disposal or Leasehold Rights Transfer None

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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.

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Total Expenses as called from Property Fund


Fund's Direct Expense 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

Property Management Fee* 66,978.73 1.34

Auditing Fee* 779.14 0.02

Insurance Premium* 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

Other Expenses* 404.78 0.01

Total Expenses 186,297.78 3.73

Remark * Included VAT

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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)”

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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.

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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.

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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

Annual Report



ING FUNDS (THAILAND) COMPANY LIMITED

Background

The Asset Management Company was registered on November 4, 1996 with a fully paid-

up 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

futurepf : annual report 2009

Documents

fund project

details of property

immovable property

list of fund manager

property disposal

lease andor sale andor

property market outlook

rangsit plaza