siripf : 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

BBAAAANN SSAANNSSIIRRII PPRROOPPEERRTTYY FFUUNNDD

Annual Report

For the Period of 1 January 2009 – 31 December 2009

Baan Sansiri Property Fund

Table of Contents Page

Statement from the Asset Management Company 1

Baan Sansiri Property Fund 2

Portfolio Valuation 5

Details of Property Invested by the Fund 6

Details of Property Investment / Disposal 8

Property Disposal or Leasehold Rights Transfer 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 18

ING Funds (Thailand) Co., Ltd.

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Abbreviation as “ SIRIPF”

The Asset Management Company

ING Funds (Thailand) Co., Ltd

Type of the Fund Project

Closed-end Property fund in which the Asset Management Company will submit the

application to Stock Exchange of Thailand to list the investment units to be categorized as

the listed securities

Project Life

Not Specified

Objectives

To mobilize fund from both general investors who are natural person and juristic person

inside and outside Thailand. The mobilized fund will be utilized in purchasing and/or taking

lease the immovable property, accepting the transfer the immovable property and/or the

right to take lease on the immovable property including to benefit the immovable property,

to improve, change, improve potential and/or to distribute various properties invested or

acquired by the Fund regardless whether or not for leasing out and/or purchasing or to

manage in any other manner for the benefit of the property in order to generate income

and return for the Fund and the unitholders including any other interest by mean of any

method according to the laws on securities and/or any other relevant laws.

Investment of the Fund

As of September 12, 2005, Baan Sansiri Property Fund has completed the purchase of

land and residential house as specified in “Detail of Purchasing and Leasing of Properties”

containing all items of 25 houses of Sansiri House – Sukumvit 67 located in Tambol

Prakanong-nua, Amphoe Wattana, Bangkok of Sansiri PCL with the details of land and

structures, price and appraised price appeared in “Detail of Purchasing and Leasing of

Properties”

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3


Dividend Payment Policy

The Fund project has a policy to pay dividends to the unitholders at least 2 times per annum

(1) In the event that the Fund has net profit in each year, the Asset Management Company

shall pay dividends to the unitholders of not less than 90% of the annual net profit.

(2) In the event that the Fund has retained earning, the Asset Management Company may

pay dividends to the unitholders based upon the retained earning.

Provided that the above-mentioned net profit and retained earning is actually gained,

excluding unrealized profit or loss from appraisal of immovable properties, securities,

and/or the properties of the Fund

The Asset Management Company shall pay the said dividends to the unitholders within

90 days as from the date of ending accounting period or any other operating period.

Additional Conditions:

In consideration of dividend payment, if the dividends per investment unit to be paid

during the accounting year is lower than or equal to 0.10 Baht, the Asset Management

Company reserves its right not to pay the dividends at that period but to bring forward

the dividend payment to pay in the end of accounting year.

For criteria on dividend payment, the Asset Management Company shall observe the

criteria as stipulated, unless otherwise altered, added, announced, specified, ordered,

approved, and/or relaxed by the SEC, the Office of the SEC, and/or any other legally

authorized agency, which the Asset Management Company shall conform thereto and

be deemed having already been approved by the unitholders.

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4


Project Capital : 865 million Baht

Number of Units : 86.50 million 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 : -None-

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 2009

ASSETS Market Value

(Baht) % of NAV

1. BANK DEPOSIT 26,295,946.91 2.88%

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 1.64%

TREASURY BILL - 0.00%

TOTAL 14,998,582.33 1.64%

3.INVESTMENT IN PROPERTY

PROPERTY 881,300,000.00 96.59%

LEASEHOLD RIGHTS - 0.00%

TOTAL 881,300,000.00 96.59%

4. OTHER ASSETS

ACCRUED INTEREST 83,393.47 0.01%

DEFERRED CHARGES 1,933,673.88 0.21%

OTHER ASSETS 53,060.15 0.01%

TOTAL 2,070,127.50 0.23%

TOTAL ASSETS 924,664,656.74 101.34%

5. LIABILITIES

ACCRUED FEES AND EXPENSES (548,377.63) -0.06%

SECURITY DEPOSIT (11,666,666.67) -1.28%

OTHER LIABILITIES - 0.00%

TOTAL LIABILITIES (12,215,044.30) -1.34%

TOTAL NET ASSET VALUE 912,449,612.44 100.00%

NO OF UNITS 86,500,000.0000 UNITS NET ASSET VALUE PER UNIT 10.5485 BAHT

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Details of Property Invested by the Fund

As of 31 December 2009

Assets : 25 Plots of land and single house of Sansiri House – Sukumvit 67

Located at Soi Sukumvit 67, Sukumvit Road, Kwang Prakanong-nua, Khet Wattana, Bangkok

No. House No. Land Area

(Square Wah)

House Area

(Square Meter)

Details of Building

Appraisal Value *

(Baht)

1 32/29 96.8 394 2-storey single house with the level decoration art 32,300,000



4 32/28 133.0

490

2-storey single house with the level decoration art

together with swimming pool

43,100,000





9 32/31 176.0

490



50,000,000





14 32/42 90.0

437



32,000,000

15 32/37 90.0

437



32,000,000

16 32/26 114.7

490



38,900,000

17 32/23 91.9

437



32,400,000

18 32/24 113.8

437



36,600,000


20 32/51 129.2 560 2-storey single house with the level decoration art


45,600,000

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No. House No. Land Area

(Square Wah)

House Area

(Square Meter)

Details of Building

Appraisal Value *

(Baht)

21 32/43 113.4

560



42,100,000

22 32/20 116.1

560



42,700,000

23 32/27 129.9

560



45,700,000

24 32/36 91.6

437



32,400,000

25 32/13 110.5

490



38,100,000

Total 2,569.8 11,113 881,300,000

Purpose of Use : 2-storey single house with the level decoration art for rent

Rental Income : Start from January 1, 2009 - Desember 31, 2009 at 70,000,000 Baht

Commitment : -

* Details of Asset Revaluation

1. Appraiser : N&A Appraisal Co., Ltd.

2. Revaluation Date : November 5, 2009

The appraiser utilized market comparison approach in assessing the properties. Investors may request for more details of the appraisal

report at the management company.

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Details of Property Investment / Disposal

For the period from 1 January 2009 to 31 December 2009

- None -

Baan Sansiri Property Fund Property Disposal or Leasehold Rights Transfer


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

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Property Market Outlook

Low-rise Property for rent market in the Sukhumvit area

The economic and social situation in 2009 has affected the property market reasonably, especially, those for sale. The sales of the low-rise property, i.e., single house and townhouse, in the first half of 2009 dropped from the second half of the 2008. However, the sales were recovered once again in the second half of 2009, which might result in the reduction in rental supply. However, the rent market for foreigners, including both apartment and service apartment, was little changed. There were also some supply increments in this market as demand was quite stable. One of the reasons the demand hold steadily was that the contracts were usually made on a yearly basis. The survey from the research and development department of Sansiri Plc. for the single house and townhouse for rent in Sukhumvit zone, where there were high density of foreigners, in the first quarter found that;

The rental supply was 102 units, increasing 6 units or 6% from the first quarter of 2008. However, the rental sizes and rental rates differed from last year. The survey was divided into 3 zones, inner Sukhumvit (Soi 1-21), middle Sukhumvit (Soi 21-71) and outer Sukhumvit (Beyond Soi 71). The rental sizes varied between 22-363 sq.wah or 76-1,452 sq.m. (Table 1). The majority of the tenants’ contracts were 1 year; however, there are some cases that have the discount for those with 2-year tenants’ contracts (at lease 6% discount). There were some differences from last year that the large proportion, 80%, was furnished by full set of furniture whereas the less of 20% only provided only pieces of furniture. The number of bedrooms ranged between 2-6 bedrooms, with the majority having 3 bedrooms. The townhome and townhouse for rent were the large components compared to the single house. The main selling points would be the location and the ability to modify the buildings, i.e., offices. The rental supply was in middle Sukhumvit area, having 75 units (54 units were single houses), outer Sukhumvit, having 19 units (15 units were single houses) and inner Sukhumvit, with 8 units (2 units were single houses) respectively. Out of these 71 single houses, the size ranges from 100-1,452 sq.m., with the majority lied in middle Sukhumvit area. (Table 2)

Table 1: Sizes and Rental Rates in Sukhumvit Area

Size (sq.wah)

Size (sq.m.)

Rental (Baht per month)

Average Rental (Baht per month)

Area

Q1/10 Q1/10 Q1/10 Q1/10

Inner Sukhumvit (Soi 1-21) 25-400 100-400 35,000-60,000 49,167

Middle Sukhumvit (Soi 21-71) 22-363 76-1,452 20,000-250,000 57,639

Outer Sukhumvit (from Soi 71) 25-300 100-1,200 15,000-70,000 31,500

Total Projects Surveyed 102

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Table 2: Average Rental Rates for Single House in Sukhumvit Area

The rental rates for single house and townhouse were still at the high level, i.e., the rental rates in middle Sukhumvit area ranged the highest between 20,000-250,000 baht (average of 57,639 baht), followed by those in inner Sukhumvit area which ranged between 35,000-60,000 baht (average of 49,167 baht) and those in outer Sukhumvit area which ranged between 15,000-70,000 baht (average of 31,500 baht) per month (Table 1). Considering only the single house for rent, the average rental rates in middle Sukhumvit area were the highest at 70,000 baht per month; followed by those in inner Sukhumvit area at 55,000 per month and those in outer Sukhumvit area at 38,000 baht per month.

For single-house-for-rent projects sizing between 400-600 sq.m. in the middle Sukhumvit area, which were our direct competitors, there were 12 projects, of which sizes ranged between 400-480 sq.m., with the rental rates between 40,000-160,000 baht per month (average rental rate at 73,182 baht per month). The rental rates were below those of our projects, of which sizes ranged between 394-560 sq.m., with the rental rates between 180,000-260,000 baht per month.

Comparing to the apartment rental rates in Sukhumvit area in 2009 with average rental rate of 79,891 baht per month (average rental rate for Grade A apartment of 111,409 baht per month and average rental rate for Grade B apartment of 66,507 baht per month), it is clear that the low-rise rental rates are only comparable to Grade B apartment rental rates. This is in contrast with the previous that the rental rates for low-rise property were in the same ranges as Grade A apartment rental rates. This reflects lower rental rates for low-rise property, which may result from two possible reasons; firstly, the economic slow down and unemployment situation; and secondly, there might be demands for premium grade, i.e., units with higher rental rates making the rental rates for available units lower. Considering the apartment market in 2009, the occupancy rates stayed at 89%, slightly dropped 1% from the previous year. Of these, the apartment occupancy rate in Sukhumvit area showed the highest occupancy rate at 92% (decreased 1% from 2008 to 92% for Grade A, and decreased 4% from 2008 to 86% for Grade B).

Based on the apartment market, there is a high probability that Grade A foreign customers still have good responses to the high-end market. However, the demand in medium-end market saw a decrease, partially due to the calling back of foreigners to their own hometown.

Although the value of the rental market decreased from previous year and there is additional supply from condominiums for rent invested by retail investors, the demand is still expected to be high. Furthermore, the single house rental market has some advantages, i.e., competitive rental rates and higher privacy, over the condominium rental market.

Size (sq.wah)

Size (sq.m.)

Rental (Baht per month)

Average Rental (Baht per month)

Area

Q1/10 Q1/10 Q1/10 Q1/10

Inner Sukhumvit (Soi 1-21) 87.5-100 350-400 50,000-60,000 55,000

Middle Sukhumvit (Soi 21-71) 25-363 100-1,452 20,000-250,000 70,000

Outer Sukhumvit (from Soi 71) 26-300 100-1,200 15,000-70,000 38,000

Competitors in Middle Sukhumvit 100-120 400-480 40,000-160,000 73,182

Total Projects Surveyed 12

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Total Expenses as called from Property Fund


Fund's Direct Expense Amount

(Thousand Baht) % of

Net Assets Value

Management Fee* 2,996.33 0.32

Trustee Fee* 240.73 0.03

Registrar Fee* 599.26 0.07

Auditing Fee* 459.95 0.05

Fund's Setting Up Expenses -Written Off* 2,811.92 0.30

Listing Fee -Written Off* 107.00 0.01

Form & Other Printing Expense* 86.95 0.01

Advertising Expense* 152.73 0.02

Asset Appraisal Fee* 133.75 0.01

Other Expenses* 20.51 0.00

Total Expenses** 7,609.13 0.82

Remark * Included VAT

** Not included brokerage fee

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Baan Sansiri 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

siripf : annual report 2009

Documents

end property fund

fund project

mobilized fund

property disposal

immovable property andor

list of fund manager

property market outlook

annual net profit