continue to act as sole managers of the portfolio
transferred to AEGON N.V, mentioned earlier in
this report, as well as with respect to the
activities referred to below.
With the object of contributing to the
result of FGH, further activities, albeit to a lim
ited extent, were developed in 1986 with the
acquisition of a number of excellently situated
smallscale new construction/renovation projects,
on some of which lease contracts have already
been signed. In addition, construction started on
phase 1 (approx. 3,600 m~ of rentable office
space) of the Daelse Kwint office development at
Utrecht, which completes the Hoog Catharijne
district. In consultation with AEGON N.V, as
well as partly in anticipation of the expected
imposition of further restrictions by De Neder-
landsche Bank N.V concerning real estate invest
ments, it has since been decided, however, not to
undertake any new development activities.
The commercialization of the WTC at
Amsterdam, developed in conjunction with Alge
meen burgerlijk pensioenfonds, has been a suc
cess, although the initial returns are low. The
transfer of part of our interest in this project to
Algemeen burgerlijk pensioenfonds has not yet
been completed.
International Activities
When exchange rate fluctuations and internal
movements have been discounted, our finance
portfolio did not alter materially in size com
pared with the previous year. There were, how
ever, some shifts of emphasis. These manifest
themselves particularly in a successful expansion
of the portfolio in the United States.
Portfolio Movements:
FGH FGH
Finance Ltd. RCC
Opening position 27,682,500 105,952,712
Production 2,820,000 142,820,000
Repayments 5,325,000 37,500,000
Closing position 25,177,500 211,272,712
Further growth in the finance portfolio is
expected only in the USA (FGH RCC). For the
time being we shall not be developing any new
finance activities in the UK, this restraint being
largely due to the slowing-down of the UK mar
ket.
It is in the light of the above that the reor
ganization of New England Properties (NEP),
which handles our UK property interests, must
be seen.
However, FGH did acquire a 10% interest in
a new mortgage institution, Household Mortgage
Corporation Plc. (HMC), set up in the UK in
1986. HMC specializes in granting mortgages to
home owners. As soon as a certain volume of
mortgages has been reached, these are funded by
issuing mortgage secured notes (securitization).
The possibility that this type of product might
have a part to play in the Dutch mortgage market
cannot be ruled out.
In the USA, despite the weakened rental
market, good occupation levels were maintained
on the remaining projects operated by FGH. The
last unit of the 49th Street development project
in New York was sold.
After the successful sales results on the first
phase of the Marina Benalmädena project on the
south coast of Spain, a decision was taken in the
fourth quarter to start on a follow-up phase. In
1986, an office building in Jakarta, Indonesia, and
the housing project in the south of France were
transferred to Transveer B.V Incidentally, we are
able to report the achievement of good sales
results in the south of France in 1986.
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