Real estate We have already previously observed that economic prospects and the uncertainty about tax relief, which has existed for almost two years now, have seriously disturbed the market for private dwellings. In our prior annual report we stated that we were forced to exercise great caution in accepting new residential projects. Now we have to observe that due to the growing risk of squatters and possible adverse effects of the unoccupied property act, now in the preparatory stage, we are only active in the construction of new projects if we are contractually bound to do so. Consequently, in 1980 we started the construction of only 20 dwellings. In cooperation with the contracting company of J.G. Visser bv, the construction of an office building with a floor space of 10.000 sq.m, was started in Leeuwarden. The projects in Amsterdam, namely the World Trade Centre (in participation with the Civil Servants' Pension Fund) and the combined shop/office project in the Kalverstraat (through ABN/FGH Project bv) both experienced serious procedural delays. This is also the case with the new construction plans in the Sarphatistraat where we had initially planned to locate our new head office. In Utrecht, adjacent to the Hoog Catharijne complex, the construction of three office buildings (approximately 35.000 sq.m.) together with a parking garage was started. One of these offices has been sold, while a second is destined to become our new head office. The third building has meanwhile been let. With respect to the shops and office center, it can be said that the operation is progressing according to plan; for the first time an interim dividend of 600.000 was declared for the 1980 fiscal year. The results of the restaurant Hoog Brabant were not yet as such that a dividend could be distributed. However, the growth of sales is developing satisfactorily. Operations at the Holiday Inn can be said to be prospering. The loss caused by the fire at the end of 1980 is covered by insurance. Completion and delivery of the expanded hotel will not be delayed because of the fire. The first project in cooperation with Vroom Dreesmann - a bungalow park in Horst - was completed shortly before the summer holiday period. In spite of customary start-up difficulties very satisfactory results were achieved in the second half year. The reconstruction of the seaside resort of Scheveningen experienced a delay as a result of the discussion with the municipal authorities about the further completion of the plan. We may expect that these problems will be solved definitively in 1981As stated in a previous annual report, our interest in this project is 162/3% and the property of the Consortium has been leased on a finance-rent basis. 22

Rabobank Bronnenarchief

Annual Reports FGH Bank | 1980 | | pagina 24