Distribution of portfolio by nature of real estate at end of 1979:
Dwellings
Offices
Shops
Industrial halls
Combined objects
173.700,000
236.700.000
33.300.000
36.700.000
172.700.000
653.100.000
Annualized rents, including minority participations, amounted
to 60,4 million at 31st December 1979
Internationalisation
The year 1979 was characterised as a period in which in particular an
inquiry was made into the various possibilities of rendering services
from the Netherlands. This has resulted in the development of a number
of forms of mortgage which - although on a limited scale and for a
limited group of clients - can be applied in France, the United Kingdom
and the United States. Where the provision of finance in guilders is
concerned great care is taken that the client can bear or has covered the
currency risk, if any. With regard to currency risks within our own
business we adopt the rule that they may only be taken in a very small
degree.
The further extension of the activities of FGH logically follows the real
estate developments that have already been initiated in several countries.
As appears from what is mentioned under the heading Real Estate, the
accents for the real estate participations lie on France, the United
Kingdom and the United States. The acquisition of projects in the U.S.A.
in 1979 was made partly in collaboration with DPI (Dutch Property
Investments) and partly by the Brefries combination, in which FGH and
Bredero each participate for 50%.
At the end of the year our foreign interests (mortgages and participations
in real estate) amounted to 172,3 million (Europe 132,9 million,
U.S.A. 39,4 million).
In addition to rendering services to third parties from Holland, there is
also the possibility for further extending our real estate and finance
activities from the country concerned. To take this course successfully
there should be a practicable basis in the country involved, which as
regards clients and know-how follows the pattern of the parent company
in the Netherlands. Only in that case investments in an own organisation
outside the Netherlands are justified. In the meantime the interests of
FGH in some countries have assumed such proportions that further
developments in this direction, whether or not in permanent
collaboration with local partners, might be warranted. Although we think
that internationalisation of our company is an important pillar for the
future, the necessary attention will still have to be given to the phasing
of these developments. The internal organisation of our company will
have to keep pace with the continuing progressive internationalisation.
In 1980, too, wide attention will be given to this aspect.
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