tu-pf : 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

TT..UU.. DDOOMMEE RREESSIIDDEENNTTIIAALL CCOOMMPPLLEEXX PPRROOPPEERRTTYY FFUUNNDD

Annual Report

For the Period of 1 January 2009 – 31 December 2009

T.U. DOME RESIDENTIAL COMPLEX PROPERTY FUND

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 6

Details of Property Investment / Disposal 7

Property Disposal or Leasehold Rights Transfer 7

Dividend Payment and Capital Reduction History 8

Property Market Outlook 9

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 17

ING Funds (Thailand) Co., Ltd.

Annual Report


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

Annual Report


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.

Annual Report


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.

Annual Report


5



Portfolio Valuation

AS at 31 DECEMBER 2009

ASSETS Market Value (Baht)

% of NAV

1. BANK DEPOSIT 17,551,644.40 1.78%

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 14,998,582.33 1.52%

TREASURY BILL - 0.00%

Total 14,998,582.33 1.52%

3. INVESTMENT IN PROPERTY

PROPERTY - 0.00%

LEASEHOLD RIGHTS 970,000,000.00 98.34%

Total 970,000,000.00 98.34%

4. OTHER ASSETS

ACCRUED INTEREST 136.36 0.00%

OTHER RECEIVABLES 14,454,640.00 1.47%

DEFERRED CHARGES 11,003,966.64 1.12%

OTHER ASSETS 923,881.01 0.08%

Total 26,382,624.01 2.67%

TOTAL ASSETS 1,028,932,850.74 104.31%

5. LIABILITIES

ACCRUED FEES AND EXPENSES (8,815,350.41) -0.89%

RENTAL RECEIVED IN ADVANCE (9,079,590.00) -0.92%

SECURITY DEPOSIT (7,588,400.00) -0.77%

OTHER LIABILITIES (17,058,867.77) -1.73%

TOTAL LIABILITIES (42,542,208.18) -4.31%

TOTAL NET ASSET VALUE 986,390,642.56 100.00%

NO OF UNITS 104,229,800.0000 UNITS NET ASSET VALUE PER UNIT 9.4636 BAHT

Annual Report


6


T.U. Dome Residential Complex Property Fund Details of Property Invested by the Fund

As of 31 December 2009

Location Chiang Rak Road, Tambon Tha Khlong, Khlong Luang District, Pathum Thani Province Project Features Four buildings of residential buildings, i.e. one building of 10-storey serviced apartment,

together with basement, three buildings of 9-storey student dormitories, with basement Land Title deed number 1388, total area of 12-2-50 rai Purpose of Use Dormitory, Serviced Apartment and Plaza Project Area and Area Invested by the Fund

Serviced Apartment Dormitory 1-2 Dormitory 3

Basement – Car-parking area Floor 1 – Shopping area and toilets Floor 2 – Large convention rooms, exercise rooms, and serviced rooms Floor 3 – Shopping / office area, serviced rooms Floor 3 A – 20 serviced rooms Floor 4 – Swimming pool and serviced rooms Floors 5-10 – Serviced Rooms Total 240 serviced rooms Basement – Car-parking area Floor 1 – Shopping area Floor 2 – Shopping area and food court Floors 3-9 – 784 student rooms Basement – Car-parking area Floor 1 – Shopping area Floors 2-9 – 448 student rooms

Lease Period From 26 December 2008 to 25 December 2038 (Approximately 30 years) Investment in Property

Cost of leasehold right Baht 985,000,000 Related acquisition cost Baht 12,446,137 Renovation cost Baht 20,700,000 Total Baht 1,018,146,137

Appraisal Value C.I.T. Appraisal Co., Ltd., as of 1 December 2009 : 970,000,000 Baht Under Income Approach

Income per year From January 1, 2009 to December 31, 2009 : Baht 4.078 million Obligation None

Annual Report


7


TU Dome Residential Complex Property Fund

Details of Property Investment / Disposal

For the Period from January 1, 2009 – December 31, 2009

- None -


Property Disposal or Leasehold Rights Transfer

For Period from 1 January 2009 to 31 December 2009

Transaction (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

Annual Report


8


T.U. Dome Residential Complex Property Fund Dividend Payment and Capital Reduction History

Dividend Payment History

Dividend Payment No. Performance Period Total Amount Per Unit

Book Closing Date Payment Date

1 11 Oct 06 - 31 Mar 07 13,028,725.00 0.125 30 May 07 12 June 07

2 1 Apr 07 - 30 Sep 07 11,465,278.00 0.110 30 Nov 07 12 Dec 07

3 1 Oct 07 - 30 Sep 08 4,481,881.40 0.043 28 Nov 08 12 Dec 08

4 1 Oct 08 - 31 Mar 09 8,129,924.40 0.078 29 May 09 12 June 09

5 1 Apr 09 - 30 June 09 2,084,596.00 0.020 31 Aug 09 14 Sep 09

6 1 Jul 09 - 30 Sep 09 7,296,086.00 0.070 30 Nov 09 14 Dec 09

Capital Reduction History

Registered Capital before Capital Reduction

Capital Reduction Registered Capital after Capital Reduction

No. Performance Period

Total Amount Per Unit Total Amount Per Unit Total Amount Per Unit

Book Closing Date

Payment Date

1 1 Oct 09 –

31 Dec 09

1,042,298,000.00 10.00 8,025,694.61 0.077 1,034,272,305.39 9.923 19 Mar 10 31 Mar 10

Reasons for Capital Reduction

Since the Fund has excess liquidity from

(1) Unrealized loss from revaluation of leasehold right

(2) Amortization of deferred expenses

Annual Report


9



Property Market Outlook

Dormitory and Service Apartment Market

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,

i.e., the number of students studying in Matthayom Suksa 6, the final year in high school, in 2009 increased to 308,147

students, rising 10,096 students or 3.4% from 2008.1

Thammasat University is one of the top public universities of Thailand, with its student enrollment records being

among the highest in this country at 30,455 students in Academic year 2/2009. Of these, 194 persons are students at a

diploma level, 23,498 Bachelor Degree students, 6,444 Master Degree students, and 319 Ph.D. candidates as follows.2

Level of Study 2/2009 Academic Year

TU Students TU Students in Rangsit Campus

Bachelor Degree

Diploma

Master Degree

Ph.D.

23,498

194

6,444

319

19,367

-

1,239

163

Total 30,455 20,769

Students’ residential units in Thammasat University and nearby have shown high occupancy rates each year,

being unable to accommodate all of its students. Recent survey results showed there are 24 students’ residences

nearby University, with approximate total capacity to accommodate of 10,000 rooms. Furthermore, there also are

unofficially operated dormitories, rooms and houses for rent. Almost all available residences still have limited facilities

for students, comparable to those services as offered in our residential project, i.e., TV set, water heater, air-

conditioner, telephone and Internet service in every room.

1 Source: Office of the Basic Education Commission, Ministry of Education, http://www.bopp-obec.info/ 2 Source: TU Registration and Processing Office, Academic year 2/2009

Annual Report


10


There were about 11 comparable students’ residences in the neighborhood area, within 3 kilometres from

Thammasat University and Bangkok University, with total available rooms of 4,291 rooms. The overall occupancy rate

was rather high at 94%. The rental rates were also above average, with the proportion of 36% being more than 4,500

baht, 46% within 3,600 - 4,500 baht range and 18%* being less than 3,600 baht per month.

From the above information, it is expected that students’ residence and apartment business would still grow

continuously. Demand will vary in accordance with the growing in university enrollment records.

Retail Property Market

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 2010.3

For the future 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 better expectation resulting from 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, 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.

As for the retail market in Rangsit area, the Hyper-mart recorded the highest retail space, followed by shopping

center and community mall respectively, most of which located in easy-to-access or high population density area. The

occupancy rates were ranged between 80% - 100% with the rent rates stay within 500 - 2,000 baht/sq.m./month range.

The main factor affecting the rent rates is the location while other inner factors were types of renting business, total

renting size and position of the space within the project.

* This proportion is comprised mostly by TU dormitories, of which rental rates are relatively low. 3 Source – Bangkok Retail Market Report, CB Richard Ellis (Thailand) Co.,Ltd.

Annual Report


11



Total Expenses as called from Property Fund

For Period from 1 January 2009 to 31 December 2009

Fund's Direct Expense Amount (Thousand Baht)

% of Net Assets Value

Management Fee* 2,980.51 0.29

Trustee Fee* 389.04 0.04

Registrar Fee* 661.42 0.06

Property Management fee* 2,771.64 0.27

Fund's Setting Up Expenses -Written Off* 6,198.22 0.60

Auditing Fee* 368.20 0.04

Legal Fee* 77.37 0.01

Listing Fee -Written Off* 107.00 0.01

Cost of Rental and Service* 27,451.87 2.67

Insurance Premium* 1,164.29 0.10

Advertising Expenses* 145.26 0.01

Operating Expenses * 52.59 0.01

Other Expenses* - -

Total Expenses** 42,367.41 4.11

Remark * Included VAT

Annual Report


12


T.U. Dome Residential Complex 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)”

Annual Report


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 brokers 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.

Annual Report


14


Thanachart Securities Public Company Ltd.

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 Public Company Ltd.

Barclays Capital Securities (Thailand) Ltd.

Commercial Banks - Domestic

Bank of Ayudhya Public Company Ltd.

Bangkok Bank Public Company Ltd.

Bankthai Public Company Ltd.

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.

Annual Report


15


Commercial Banks – Foreign 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 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 Tower1, 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

tu-pf : annual report 2009

Documents

fund project

property disposal

list of fund manager

property manager annual

property market outlook

subleasing andor

securities laws andor

service apartment project