The resort housing park in Horst developed with Vroom Dreesmann
appears to be a success. Based on experience to date, it looks likely that
an occupancy level above 90 per cent is attainable. We believe this is
due to both good design and people desiring to have holidays nearerto
home. A second park is in the planning stage in Zettingen, West
Germany, also in cooperation with Vroom Dreesmann.
Sales in residential projects, developed mostly with partners, did
experience a softening but fortunately only to a limited extent. We
expect that the 60 dwellings still in inventory will be sold during 1982.
As a result of the sale of around 65,000 square meters of office and
industrial space and a substantial number of houses, the size of our
rental portfolio was reduced. This was partly offset by the transfer of
three projects from our development portfolio and by the purchase of a
number of foreclosed properties.
International activities
The organization of our Foreign Department proceeded well during
1981 and was filled out in certain respects. Our real estate financing
company in New York was officially started on February 1,1981 under
the name FGH Realty Credit Corporation and has developed according
to plan. Drexel, Burnham, Lambert Incorporated owns a 10 percent
share in the company. In Curasao, FGH Finance nv increased its
business. Loans and guarantees in North America stood at the equi
valent of 214 million guilders at the end of 1981.
The Indonesian mortgage bank P.T. Papan Sejahtera (in which we have
a 15 per cent stake), is growing steadily under Indonesian management.
Our intention to set up a financing corporation in Switzerland hasyetto
materialize since it appears inopportune at this time in view of develop
ments in the European market. In France, the setting up of FGH France
SA has been completed with the company dealing primarily with
administration for the time being.
Our other real estate activities abroad can be summarized in the
following manner:
In Belgium, we are faced with the problems similar to those in the
Netherlands but on a larger scale. We are reducing activities in that
country, but that does not mean we intend to withdraw completely.
We are reporting that our venture with ABN bank in the form of the
ABN/FGH België Projekt nv has stopped. This does not however affect
continuing co-ventures in other countries.
The Domaine Longpré resort park at Stavelot which was completed in
1981 has been added to our rental portfolio. We expect to be able to
substantially reduce the 120 unsold apartments and the building plots
in Belgium that are still in our possession. Construction commenced on
10,000 square meters of office space situated in a prime location in
Brussels.
In the United Kingdom, office projects located in Aberdeen and
Newcastle were completed. Although the rental market is best
described as quiet, we feel that the nature of the projects will allow them
to be easily leased. The office building in Aberdeen was sold to an
English investor at the beginning of 1982.
The effects of recession were also apparent in France in the last months
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