f 415,000,000
f 293,000,000
a well-balanced real estate portfolio. The
total property of f 120 million is financed
for 1/3 part with borrowed capital, for
f 80 million with share capital. About f 20
million of the total share capital will, for
the time being, be kept by our real estate
business. The other f 60 million -including
the block of shares amounting to
f18,360,000.- on which our shareholders
will receive a preferential right-is already
owned by third parties.
In the operations sector, good progress
was made with the rejuvenation of the
portfolio. An amount of 33.2 million of
old property was sold.
On the other hand, real estate with a
value of f 186 million was taken into
operation, including our interest in real
estate that we operate in cooperation
with third parties. Over 75% of our total
real estate is not yet five years old; our
interest in dwellings is now no more than
10%.
It turns out that the expectations, earlier
expressed concerning the shopping centre
Hoog Catharijne, Utrecht, which has now
already been in operation for over a year,
have been exceeded. Not only do the
numbers of visitors exceed the forecasts
considerably, but the investigations made
also showed that the region from which
the visitors come, is much larger than was
estimated.
Although the expectation is justified that
this favourable development will in due
course be expressed in the return, the
operating profit will still be depressed
during the next few years, partly as a
result of the high maintenance and
watching charges.
In September 1974 the additional shopping
facilities at Vredenburg (city centre) were
opened; the building over of the area in
direction of Moreelsepark makes
satisfactory progress. Of the part to be
opened in the spring of 1975, the shopping
facilities are virtually entirely let; the
letting of the office space makes steady -
be it slow - progress. About half of it is
now let.
The operation of the hotels, restaurants
and cafe’s business Noord Brabant and
Hoog Brabant in which our institution has
a 40% stake, still experienced in 1974 the
teething troubles of the considerable
enlargement of the activities; however,
the sales growth is satisfactory and
justifies the expectation of an improve
ment in the results. The Hotel Maat
schappij Utrecht B.V., in which we have a
30% stake, registered a gratifying result
in 1974.
In 1974, the following changes in our
aggregate real estate in operation
occurred
market value
January 1,1974 f 229,000,000
purchases (incl. our own
development projects
taken in operation 186,000,000
sales 122,000,000
change in market value as
a result of a new valuation 22,000,000
market value as at
December 31,1974 f315,000,000
The rental income was f 28.8 million as at
December 31, 1974.
Personnel and personal notes
The number of employees showed a slight
increase in the year under report. Staff
turnover was small, while, moreover, a
falling trend was noticeable. In our
business, where the composition of staff
as to age-groups is well-balanced, 85% of
the employees is over 24 years old and
consequently falling under the pension
scheme. Because of the continuing salary
increases due to the regular adjustment to
a fast rising cost level, considerable lump
sums have to be paid every year in order
to cover the backservice pension rights
always fully by capital.
