Finance Business in the Netherlands
The reorganization of our domestic activities, aimed at completely liberating our
regional branches so that they can concentrate on the acquisition of new business,
has resulted in an improvement in our contact with the market. Our current efforts
are aimed at achieving more regular and closer contact with our customers. In the
commercial property sector in particular, we have been able to offer our customers
forms of loan specially tailored to their financial plans, closely reflecting our greater
scope in the deposit taking market.
The FGH Deposit Mortgage continues to do well; this product has proved to be the
basis of other highly customer-oriented forms of mortgage.
The total amount of acceptances in 1985 was at approximately the same level as in
1984. In 1985 we were obliged to foreclose in 185 cases (1984: 308), resulting in our
acquisition of 102 properties (1984: 167). There was an increase in number of custo
mers who were able to solve their payment difficulties by selling their homes
privately, which points to a certain amount of improvement in the housing market.
FGH Real Estate
The emphasis as regards real estate development in 1985 was on the completion of
existing projects. We expect to be able to secure a substantial number of sales In
1986 since it may be assumed that a number of properties will then be fully let.
In the meantime, in many cases in collaboration with partners, we have a number of
interesting new projects lined up. In view of the fact that advance leases on these
properties are looking good, we hope to be able to go ahead with these projects
very soon.
Our aim is that FGH Real Estate should continue to operate in the real estate market
on a limited scale but very actively and preferably in collaboration with third parties,
both as a profitable venture in its own right and as a support to the finance business.
The World Trade Center at Amsterdam, developed in collaboration with Algemeen
burgerlijk pensioenfonds, was officially opened by Her Majesty Queen Beatrix on
October 25, 1985. The WTC is currently 90% let, which far exceeds our
expectations. The dispute with our partner concerning the transfer of a part of our
interest had yet to be resolved at the end of the year under review.
International Activities
The expansion of our financing activities abroad was continued in 1985. In addition to
the good growth of the portfolio in the USA, our UK portfolio has also continued to
increase. At the end of the financial year, the total of loans and guarantees granted
outside the Netherlands was NLG 609 million, compared with an amount of
NLG 519 million at the end of 1984. In 1985, the profitability of the foreign financing
portfolio once again proved to be favorable. In light of this, we shall be attempting
to expand our financing activities in Britain and the USA in 1986. The London office
of FGH Finance Ltd. has already been opened.
The realty market in the USA was again characterized by high buying and selling
prices of profitably let properties in 1985. In this climate, we were able to secure
several good sales in the year under review. For the future, we shall be entering into
new realty deals only with the greatest of caution in view of the high purchase prices
already referred to and the weakening of the rental market due to overcapacity.
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