TU-PF: Annual Report 2010 EN

TRANSLATION

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

AAANNNNNNUUUAAALLL RRREEEPPPOOORRRTTT 1 JANUARY 2010 – 31 DECEMBER 2010

TT..UU.. DDOOMMEE RREESSIIDDEENNTTIIAALL CCOOMMPPLLEEXX PPRROOPPEERRTTYY FFUUNNDD

Annual Report

For the Period of 1 January 2010 – 31 December 2010

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 Purchasing and Leasing of Properties 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 12

Name List of Fund Manager 13

List of Related Persons having transactions with the Funds

managed by ING Funds (Thailand) Company Limited 13

Details of the Return on Investment Receipt 14

Supervisor Report 17

Auditor Report 18

ING Funds (Thailand) Co., Ltd.

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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

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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 Fund Project pays dividend to unitholders at least twice a year.

(1) If the Fund reports a net profit in any accounting period, the Management Company shall

pay dividend to unitholders at the rate of no less than 90 percent of the net profit not

including unrealized profit from appraisal or reviewed appraisal of real estate or leasehold

rights to real estate for the said accounting period.

(2) If the Fund reports retained earnings in any accounting period, the Management Company

may also pay to unitholders dividend from the said retained earnings.

Provided that dividend payment under (1) shall not increase the Fund’s accumulated loss for the

accounting period when dividend is paid.

Dividend payment under (1) and (2) by the Management Company shall be completed within 90

days of the end of the accounting period when dividend is paid. In the event that the

Management Company is unable to make payment by the time specified above, the

Management Company shall inform unitholders and the Office of the SEC in writing.

In consideration of dividend payment, if the dividend per investment unit to be paid during a fiscal

year period is lower than or equal to Baht 0.10, the Management Company reserves the right not

to pay such dividend for that period whereby such dividend shall be carried forward for payment

at the end of the fiscal year period.

(Please see the details of “Terms, Policy, and Procedures for Paying Dividends to Unitholders” in

the Prospectus)

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Capital of the Fund Project : 1,065,000,000 Baht

Number of Investment Units : 106,500,000 million units

Registered Capital of the Fund Project : 1,042,298,000 Baht

Registered Number of Investment Units : 104,229,800 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.

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5



Portfolio Valuation

AS at 31 DECEMBER 2010

ASSETS Market Value (Baht)

% of NAV

1. BANK DEPOSIT 16,559,233.23 1.71%

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 - 0.00%

TREASURY BILL - 0.00%

Total - 0.00%

3. INVESTMENT IN PROPERTY

PROPERTY - 0.00%

LEASEHOLD RIGHTS 942,700,000.00 97.62%

Total 942,700,000.00 97.62%

4. OTHER ASSETS

ACCRUED INTEREST 20,329.44 0.00%

OTHER RECEIVABLES 35,075,810.00 3.63%

DEFERRED CHARGES 4,805,744.69 0.50%

OTHER ASSETS 605,947.94 0.05%

Total 40,507,832.07 4.18%

TOTAL ASSETS 999,767,065.30 103.51%

5. LIABILITIES

ACCRUED FEES AND EXPENSES (13,106,860.54) -1.35%

RENTAL RECEIVED IN ADVANCE (8,759,250.00) -0.90%

SECURITY DEPOSIT (6,526,960.00) -0.68%

OTHER PAYABLES (5,625,024.07) -0.58%

OTHER LIABILITIES (37,311.33) 0.00%

TOTAL LIABILITIES (34,055,405.94) -3.51%

TOTAL NET ASSET VALUE 965,711,659.36 100.00%

NO OF UNITS 104,229,800.0000 UNITS

NET ASSET VALUE PER UNIT 9.2652 BAHT

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Details of Property Invested by the Fund

As of 31 December 2010

Location Chiang Rak Road, Tambon Tha Khlong, Khlong Luang District, Pathum Thani Province

Project Features Four residential buildings, comprising a 10-storey serviced apartment building with plaza area

located on the 1st - 4th floor and three 9-storey dormitory buildings with plaza area located on

the 1st - 2nd floor for Dormitory 1-2 and on the 1st floor for Dormitory 3. Each building has one

basement connecting with each other being used as parking area.

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

Dormitory 2

Dormitory 3

Basement – Car-parking area

Floor 1 - 4 – Retail plaza

Floor 5 - 10 – 216 units Serviced Apartments


Floor 1 - 2 – Shopping area

Floor 3 - 9 – 392 units dormitory


Floor 1 - 2 – Shopping area



Floor 1 – Shopping area


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

Fixed Asset Baht 237,553

Total Baht 1,018,383,690

Appraisal Value Baht 942,700,000 as of 15 December 2010 by C.I.T. Appraisal Co., Ltd.,

by Income Approach

Rental and Services

Income per year

From 1 January 2010 to 31 December 2010 equivalent to Baht 64.214 million

Obligation None

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TU Dome Residential Complex Property Fund

Details of Purchasing and Leasing of Properties

For the Period from January 1, 2010 – December 31, 2010

- None -

TU Dome Residential Complex Property Fund

Property Disposal or Leasehold Rights Transfer

For the Period from January 1, 2010 – December 31, 2010

- None -

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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

7 1 Jan 10 - 31 Mar 10 3,126,894.00 0.030 31 May 10 14 Jun 10

8 1 Oct 10 - 31 Dec 10 7,296,086.00 0.070 22 Mar 11 30 Mar 11

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

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Property Market Outlook

Industry and Competition Analysis

Residential Market near Thammasat University (Rangsit Campus)

At the end of December 2010 (semester 2, academic year 2010), Thammasat University (Rangsit Campus) had total

student enrollments of 21,240, increased by 2.3% compared with the same period last year. The said numbers can be

classified as follows;

Level of Study TU Students Thammasat University

(Rangsit Campus) Semester 2/2009

TU Students Thammasat University

(Rangsit Campus) Semester 2/2010

Bachelor Degree

Diploma

Master Degree

Ph.D.

19,367

-

1,239

163

19,806

-

1,270

164

Total 20,769 21,240

As per the residential market survey near TU Dome (Chiangrak Road) as of December 2010, most of the projects had

occupancy rates of 80% - 100% with the average monthly rental rate of 5,000 – 10,000 Baht, the lowest rate was 3,800

Baht while the highest was 18,000 Baht per month. The projects with high rental rate such as Beam and Brownie with

the rates of 12,000 – 13,000 Baht and 6,000 – 9,000 Baht respectively had high occupancy rates of 90 and 100%. The

projects within the area competed with each other by their product quality and services more than entering into the

price war.

The outlook of residential market for students near Thammasat University (Rangsit Campus) remains highly demanded

and has a good potential growth as the demand for residential units varied in accordance with the number of students.

In addition, Thammasat University is one of the top government universities which students would like to register. We

can also see that the number of students’ enrollment is increasing continuously. Although new supply might enter into

the market in the future as development opportunity from high demand may be seen by the investors as well as

available land plots around this area, the factors of location, uniqueness of property management such as separated

building for male and female, property managed by Thammasat Property Management Office, having retail area and

other facilities including reasonable rental rates are still important criteria for the selection process of students and/or

their parents.

Annual Report


10 Details of Residential Projects near TU Dome

Project Name No. Description

Beam Brownie Inter Park Songpichet U-plus U-House Twin Town SUNTA Na Mor. VKP TU Dome

1 No.of Unit 91 220 * * * * * 400 150 210 1,232

2 Lettable Area (sq.m.) 35-46 24/40 28/32 24 32.5-40 24-38 35 26 24 17 30

3 Electricity Rate (Baht/unit) 6 6 6 5 7 7 6 6 6 6 6

4 Water Rate (Baht/month) 100 100 25/unit 150 25/unit 25/unit 25/unit 25/unit 25/unit 25/unit 100

5 Rental Rate 12,000-

13,500

6,000/ 9,000 5,000/ 6,000 4,200 8,300-

18,000

5,300-8,900 5,000 5,000 5,500 3,800 4,800

6 Occupancy Rate 90% 100% * * * * * 80% 100% 85% 83%

7 Facility

Air Conditioner / / / / / / / / / / /

Water Heater / / / - / / / / / / /

Free TV / / / - - - - - - - -

Free Refrigerator / / - - - - - - - - -

Cable System True True True True True True True True True Cable TV Satellite

Internet Free 6

Months

Monthly Monthly Free 256 K Monthly Monthly Monthly Free 64 K Monthly Monthly Monthly

* Due to most projects are developed by private companies, so the information is not publicly disclosed. The property manager is trying to seek more information such as

number of unit, occupancy rate of some projects.

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Retail Market near Thammasat University (Rangsit Campus)

From the market survey as of December 2010, no direct competitors in terms of size and characteristics with TU Dome,

but there were some examples of indirect competitors located around this area as follows;

Project name Occupancy Rate Rental Rate for Shop* (Baht/sq.m./month)

Rental Rates for Common Area (Baht/sq.m./month)

Tesco Lotus Rangsit 100% 1,000-1,500 3,555 Baht/month

Carrefour Rangsit 95% 1,200-1,500 n.a.

Big C Rangsit 100% 1,500-2,000 750 Baht/day

Pure Place Sammakorn 80% 500-700 n.a.

Zear Rangsit 100% 550-750 n.a.

* This is the average rent on the 1st floor of each project which has retail spaces of 50 sq.m., excluding rental rate of

anchor tenant.

Supply in this area is mainly superstores, followed by shopping centers and community malls. Most of them are located

in convenient locations which are easily accessed by main roads such as Paholyothin Road, Rangsit-Nakorn Nayok

Road and the area where comprising large communities such as area between Klong 2 to Klong 4 with a lot of housing

estate projects.

The overall occupancy rate in this area remains at high level, around 80% - 100%, with average rents between 500-

2,000 Baht /sq.m./ month depending on their locations. The variable subjected to locality within the centers. The

projects within good location with high traffic can command higher rents.

The future outlook of the retail market near Thammasat University (Rangsit Campus) is still on the bright side due to

the fact that there are a lot of nearby large scale housing estate projects and universities. In addition, several road

networks bring conveniences to this area resulting to a high level of occupancy rate, while rental rate depends on

the location, composition and anchor tenants of each project.

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Total Expen ses as called from Property Fund

For Period from 1 January 2010 to 31 December 2010

Fund's Direct Expense Amount (Thousand Baht)

% of Net Assets Value

Management Fee1 2,588.06 0.27

Trustee Fee1 365.54 0.04

Registrar Fee1 621.13 0.06

Property Management Fee1 3,156.92 0.33

Fund's Setting Up Expenses - Written Off1 6,198.22 0.64

Auditing Fee1 371.70 0.04

Engineering Consultant Fee1 457.96 0.05

Listing Fee - Written Off1 107.00 0.01

Cost of Rental and Service1 31,015.61 3.20

Insurance Premium1 1,057.14 0.10

Asset Appraisal Fee1 128.40 0.01

Advertising Expense1,2 145.64 0.02

Operating Expenses1 146.60 0.02

Total Expenses 46,359.92 4.79

Remark 1. Included VAT

2. Included the preparation and dissemination of information via the website of asset

management company

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T.U. Dome Residential Complex Property Fund Name List of Fund Manager

For the Period from 1 January 2010 to 31 December 2010

No. Name List of Fund Manager

Property Fund Manager

1 Ms. Siriphen Wangdumrongves

2 Mr. Suttipan Kreemaha

3 Mr. Ruchtana Ruchtidhum *

4 Ms. Wannapat Nomklom

Mutual Fund Manager (Liquidity Portion)

1 Mr. Jaruwat Preepreamkul

2 Ms. Siripun Sutharoj

3 Ms. Monchaya Rachatakul

4 Ms. Linda Ubolriabroy

5 Ms. Patcharapa Mahattanakul

6 Mr. Tara Vanalabpattana

7 Mr. Verayuth Halilamien

8 Mr. Arunsak Charoonwongniramol

* Termination Date : 15 February 2011

List of Related Persons having transactions with the Funds managed by ING Funds (Thailand) Company Limited For the period from 1 January 2010 to 31 December 2010

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 person who provides Soft Commission for the Fund

Securities Companies

Country Group 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.

TISCO Securities Company Ltd.

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Trinity Securities Company Ltd.

Phatra Securities Public Company Ltd.

SCB Securities Company Ltd.

Finansia Syrus Securities Public Company Ltd.

UBS Securities (Thailand) Ltd.

KT ZMICO 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 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.

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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 - Bangkok

Credit Agricole Corporate and Investment Bank - Bangkok

The Hongkong and Shanghai Banking Corp., Ltd.

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

Documents

TU-PF: Annual Report 2010 EN