futurepf: annual report 2010

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

FFUUTTUURREE PPAARRKK LLEEAASSEEHHOOLLDD PPRROOPPEERRTTYY FFUUNNDD

Annual Report

For the Period of 1 January 2010 – 31 December 2010

Future Park Leasehold Property Fund

Table of Contents Page

Statement from the Asset Management Company 1

Future Park Leasehold 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 17

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 Leasehold 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 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.

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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.

(Please see the details of “Investment Policy” in the Prospectus)

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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 : 4,733,161,000 Baht

Number of Investment Units : 473,316,100 units

Type of Investment units : Holder name specified

Supervisor : The Hongkong and Shanghai Banking Corp Ltd.

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 2010

ASSETS Market Value (Baht)

% of Total Asset

1. BANK DEPOSIT 282,754,989.17 5.57% 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 5,056,300,000.00 99.62%

TOTAL 5,056,300,000.00 99.62% 4. OTHER ASSETS

RECEIVABLES FROM RENTAL 30,265,479.38 0.60% OTHER RECEIVABLES 746,703.00 0.01% ACCRUED INTEREST 551,608.93 0.01% DEFERRED CHARGES - 0.00% OTHER ASSETS 4,438,300.50 0.09%

TOTAL 36,002,091.81 0.71% TOTAL ASSETS 5,375,057,080.98 105.90% 5. LIABILITIES

OTHER PAYABLES (11,040,222.95) -0.22% ACCRUED FEES AND EXPENSES (33,756,255.20) -0.67% RENTAL RECEIVED IN ADVANCE (4,031,873.00) -0.08% SECURITY DEPOSIT (249,554,171.41) -4.91% OTHER LIABILITIES (886,852.56) -0.02%

TOTAL LIABILITIES (299,269,375.12) -5.90% TOTAL NET ASSET VALUE 5,075,787,705.86 100.00%

NO OF UNITS 473,316,100.0000 UNITS NET ASSET VALUE PER UNIT 10.7238 BAHT

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Details of Property Invested by the Fund

As at 31 December 2010

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. Indoors 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 308,405,070

Total Baht 4,887,543,563

Appraisal Value Baht 5,056,300,000 (As at December 31, 2010)

by C.I.T. Appraisal Co., Ltd. The Appraiser utilized Income Approach Method

Income per Year From January 1, 2010 to December 31, 2010 : Baht 727.683 million

Obligation None

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Details of Purchasing and Leasing of Properties

For the period from 1 January 2010 to 31 December 2010

-None -

Future Park Leasehold Property Fund Property Disposal or Leasehold Rights Transfer


-None -

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Property Market Outlook

Retail Market View

At the end of 2010, the total retail supply of retail space in Bangkok increased to 5.46 million sq.m., rising by 1.5% y-o-y. The supply in suburban area increased the most to 2.27 million sq.m. or 2.0% y-o-y. At the end of 2011, the total retail supply of retail space in Bangkok is expected to increase by 7.1% to 5.85 million sq.m. Among these expansions, the downtown area represents the highest growth at 10.8% from two main projects, Watergate Pavillion (45,000 sq.m.) in Ratchaprarop and Terminal 21 (40,000 sq.m.) at Asoke-Sukhumvit Intersection, follows by midtown area at 9.6% from several community mall projects and suburban area at 3.1%. Currently, the retail development type can be divided into mall, department store and superstore (Lotus, Big C, Makro), accounting for 55.1%, 22.5% and 22.4% of total retail supply respectively.

On the demand side, the net take-up slew down slightly to 4.96 million sq.m. or down 0.2% y-o-y due to the closure for renovation of several centers such as Central World Plaza & Zen, Big C Rajdamri, and Future Park Bangkae etc. However, it is expected that the demand in retail spaces will be back to normal level in the near future.

The overall occupancy rate of Bangkok retail properties in 2010 stood at 91.4%, falling by 1.1% y-o-y. The suburban area saw the highest occupancy rate at 95.7% - increasing 0.8% y-o-y, follows by the midtown area at 90.6% - increasing 1.3% y-o-y, and the downtown area at 83.8% - decreasing 9.9% y-o-y. The reason for the drastic decline of the occupancy rate in the downtown area came from the political turmoil in Q2, however, it began to recover during the second half of the year. There was no significant change for the overall rents compared with the previous year.

For future retail developments in Bangkok, developers are emphasizing more on community malls to serve the changing of consumers’ behavior which needs convenience and time saving. Mixed use schemes such as the office-retail and residential-retail are also being considered for diversifying risks and adding value for the overall projects. Anyway, the selection of anchor tenants is still an important factor for drawing sufficient traffic to the centers.

The overall retail outlook is expected to be in a good condition. The Consumer Confidence Index (CCI), which is highly correlated with the local retail trade, has risen to 80.8 in December 2010 - increasing 3.1% y-o-y and the Retail Sales Index rose to 169.16 in November 2010 – increasing 7.3% y-o-y, leading to the positive consumer spending next year. However, this is based on the assumptions that there will be no adverse external shocks such as oil price. Also, hopefully, the government’s policy and economic stimulus packages, including the increase of minimum salary, will bring more money circulating into the system which we might see the opportunity for the increase of overall rents in 2011.

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Total Expenses as called from Property Fund


Fund's Direct Expense Amount (Thousand Baht)

% of Net Assets Value

Management Fee1 9,657.89 0.19

Trustee Fee1 1,073.09 0.02

Registrar Fee1 2,414.47 0.05

Property Management Fee1 71,421.53 1.42

Auditing Fee1 808.70 0.02

Insurance Premium1 5,500.72 0.11

Property Tax1 10,423.29 0.21

Property Marketing And Administrative Expenses1 46,631.51 0.93

Asset Appraisal Fee1 100.00 0.01

Listing Fee -Written Off1 107.00 0.00

Form & Other Printing Expense1 173.78 0.00

Advertising Expense1,2 524.82 0.01

Other Expenses1 351.13 0.01

Total Expenses 149,187.93 2.98

Remark 1. Included VAT

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

management company

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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.

Commercial Banks – Foreign Branches

ABN-AMRO Bank N.V.

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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 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 2010

Documents

fund project

details of property

immovable property

list of fund manager

lease andor sale andor

property disposal

certain leasehold rights

leasehold rights transfer