to Transveer B.V Earnings on sale of real estate
totaled NLG 6.4 million (1985: NLG 46.6 mil
lion). They relate mainly to properties in The
Netherlands. A diminution of NLG 3.2 million in
the value of development projects was deemed
necessary, NLG 0.2 million of this being
accounted for in Results of participating inter
ests.
The following movements took place in
1986 in the market value of our real estate assets
(including minority interests on a pro rata basis):
(NLG x 1,000,000)
under
development
Market value, January 1
224.9
Purchases and investments
40.8
Taken into operation
(10.7)
Market value of sales
(31.7)
Revaluation due to exchange
Change in market value
differences 32
following new valuations
(3.2)
Transferred to Transveer B.V
(120.8)
Market value, December 31
96.1
operated
1986
1985
by the company
total
total
906.2
1,131.1
1,125.4
16.5
57.3
304.1
10.7
(58.5)
(90.2)
(268.7)
(3.1)
(6.3)
(10.3)
(1.8)
(5.0)
(19.4)
(452.1)
(572.9)
417.9
514.0
1,131.1
Place and Future within the AEGON Group
It is gratifying that, despite the setbacks we have
reported, AEGON N.V has such confidence in
the company and its prospects that it was pre
pared to make a public offer for the common
stock in issue. In addition, AEGON N.V has
guaranteed FGH mortgage bank bonds and other
liabilities in respect of FGH loans, both past and
future, so that our capacity to fund our opera
tions is assured.
Within the scope of the amended structural
policy which came into effect on January 1, 1987,
FGH remains a capital market institution with an
increased, albeit still limited, short money facility
For other reasons, too - product innovation and
product differentiation - it might well be worth
aiming for an expansion of the present status.
In the future, proceeding from the com
pany’s core activity, the mortgage business, FGH
has plans to develop broader activities on the
finance market, in which context the com
plementary nature of the finance business of
AEGON N.V and the mutually beneficial effect
this will have are expected to result in growth in
the volume of business. We expect these various
factors to enable us to achieve profitable results.
18
