REPORT OF THE EXECUTIVE
BOARD
The year 1990 was special for FGH BANK, not at
least for the fact that it marked the bank’s one
hundredth anniversary. This landmark in the bank’s
history was commemorated in true style, with
generous tributes being paid to the foresight of those
who founded the Friesch-Groningsche Hypotheek
bank in the Dutch city of Groningen on
October 16, 1890.
The year 1990 was also important for FGH BANK
in that it marked the end of a major reorganization
program aimed at transforming the bank’s business
base from that of a traditional mortgage lender to
that of a specialized realty bank. This change is seen
as fundamental to the bank’s future development.
The new organization will allow FGH BANK to
offer a much broader range of services than those
provided by conventional building and loan associa
tions. Accordingly, greater emphasis will be placed
on the provision of professional services tailor made
to meet individual clients’ needs. The completion of
the restructuring program was symbolically marked
with the bank changing its name from “FGH
Hypotheekbank” to “FGH BANK, the realty
bank”.
In recognition of the bank’s close ties with the real
estate industry, FGH BANK has instituted an award
for outstanding contributions in the field of com
mercial property. The first FGH Real Estate Award
was presented to Multi Vastgoed of Gouda at the
FGH autumn meeting held at Zeist Castle on
October 25, 1990.
The Chairperson of the independent awards commit
tee, the Mayor of Utrecht, Mrs M.W.M Vos-van
Gortel, paid tribute to the important role played by
Multi Vastgoed in developing the new headquarters
of Nederlandse Dagblad Unie, one of the
Netherlands’ leading publishing companies, based in
Rotterdam. The FGH Real Estate Award, a bronze
designed by the sculptress Ella van de Ven, will be
presented every two years. Nominations for the 1992
award close at the end of this year.
The prospects for the Dutch commercial property
market declined significantly in the course of 1990,
due to the general malaise in international real estate
markets brought on by the Gulf War and the econo
mic downturn in the United States and the United
Kingdom. As yet, there are few signs of the market
recovering its composure and further corrections
cannot be ruled out.
Particular concern is currendy being expressed
about the amount of oversupply in the office sector
despite the record level of lettings in recent years.
One of the main reasons for the distorted supply
position has been the growth in speculative develop
ments. The willingness of certain banks and financial
institutions to provide investment finance for new
projects without seeking adequate pre-letting guaran
tees has exacerbated the situation. Many of these
institutions have been made acutely aware of gaps in
their knowledge of the Dutch commercial property
market in recent months and are now having to pay
the price for their overambitious lending program.
A further factor which the realty market is
having to contend with is the downturn in demand,
particularly from Scandinavian investors. Until
recently this group of investors was extremely active
in the Dutch market, which had tended to
I fgh’s first centennial
FGH BANK, THE REALTY BANK
FGH REAL ESTATE AWARD
MARKET CONDITIONS