Internationalization
In the year under review we continued inquiring into the possibilities of
establishing our own organization to monitor both our finance and real
estate activities in the countries where business volume and prospects
are such that a self-operated organization is deemed to be attractive.
When establishing our own financing entities in local markets we
adhere to the principle of not running currency risks and accordingly a
decision to that effect is not taken until the outlook of attracting
sufficient passive finance in the country in question is reasonably clear.
In the United States we have progressed to the point where steps are
being taken to form a financing subsidiary.
In connection with our international money flows we have recently
opened a branch and a separate financing corporation under the name
FGH Finance nv, established in Willemstad (Netherlands Antilles).
A further goal to be realized this year is the setting up of a financing
corporation in Switzerland.
The Jakarta-based P.T. Papan Sejahtera mortgage bank, founded in
1980 in cooperation with the World Bank and the Bank of Indonesia, is a
mortgage bank in which we have a 15% participation. We give general
assistance to the bank which promises to have a good future. The bank
is developing according to plan, having already started its financing
activities. The market forthe products of this institution looks extremely
favorable.
The following review may be useful to give an insight into our real
estate activities.
In France we are engaged with partners in constructing apartments in
St. Raphaël on the Cöte d'Azur (3 blocks of flats making up more than
500 dwelling units) and in Mandelieu 'Cannes Marina' (3 blocks of flats
making up more than 600 dwelling units).
The sale of the units, which is principally directed towards the French
market, is progressing according to plan. Our portfolio also includes a
partly leased office block and a fully leased industrial building complex
in Strasbourg and a fully leased office block in Paris.
In Belgium our real estate activities are comprised of the building of
apartments and offices in Brussels and Uccle, a residential
landsubdivision in Halle, and the building of 48 villas in Waterloo.
Furthermore, we have interests in apartment complexes in de Haan
(50%), Strombeek Bever (50%), and De Panne (33%%)» in a
landsubdivision in Hergenrath (50%), in an industrial building complex
in Nossegem (50%), and in a resort development in Stavelot (50%)
which has now been completed and is in operation. In view of the lack of
a flourishing situation in the Belgian market no new development
projects have been started in the year under review.
In Germany the construction of 250 dwellings was started in
Neu Wulmstorf, near Hamburg. Our interest in this project is 50%.
In the United Kingdom we have a 50% participation in the development
of industrial buildings in Basingstoke which will be completed in 1981
It is our intention to sell these buildings to investors after successful
leasing. In the United Kingdom we also participate in the development
of office space in Aberdeen and Newcastle (50% interest in each), as
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