estate market orientation matched with the great expertise of our staff.
In our market approach, we have placed an emphasis on specializing
with careful consideration given to construction financing. Not surpris
ingly, we feel this area is of particular importance. The more difficult
economic conditions become, the more important it is to have planned
investments remain within their budgets. It is here that our services are
of special value to our clients. But all too often because of different
reasons, it still happens that planned building costs are exceeded. Also
financing costs may exceed budget if an unfavorable method of raising
money is chosen. This is another area where we assist our clients in
making the correct decision. It goes without saying, however, that we
are not attempting to overshadow the role of our clients' professional
advisers.
In summary, we look forward with confidence to the future of our
activities despite a currently unfavorable market.
FGH real estate in the Netherlands
After what was indicated earlier in this report about the Netherlands'
real estate market, it is obvious that we took few new initiatives with
private dwelling construction projects. Our activities were limited to
starting about one hunderd government subsidized rental dwellings
in Amsterdam, a relatively small office and residential project in
Hilversum and about 40 government subsidized rental dwellings in
Lelystad. It is also worth mentioning that projects in process include an
87 units service apartment project in Rotterdam.
In the industrial sector we continued to process a number of projects
which already were underway. Our most important new projects are
two office developments in The Hague (total area of approximately
13,000 square meters of office space and a number of apartment units).
Projects underway include a 6,000 square meter office and retail facility
in Amsterdam, a 12,000 square meter office project in Leeuwarden, and
a 25,000 square meter office industrial development with a stadium
expansion in Utrecht. All these projects are being developed with
partners. The office project in The Hague has had 10,800 square meters
of the space sold already. A computer-office center in Lelystad was
completed during the year 1981 and was included in our rental portfolio.
Special mention should go to the construction in cooperation with
Bredero of three office buildings together with parking facilities in
Utrecht's Hoog Catharijne complex. We expect delivery of this
extensive project towards the end of 1982. One of the buildings will be
partially used as our new head office and the remainderwill be leased.
One of the others has been sold and the other was leased. As to the retail
and office center itself, leasing is going according to plan with little sign
of any economic setbacks. That cannot be said of the Hoog Brabant
Restaurant, located within the complex, where sales fell by several per
cent because of the affects of the economy. The construction of the
Holiday Inn Hotel was completed this year, along with the recon
struction of the upper floors which were destroyed by fire. Because of
changes in plan and our being at a preliminary stage, comparisons with
1980 are difficult. The cutting back in consumer spending is also being
felt here.
21