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

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Annual Reports FGH Bank | 1990 | | pagina 10