government’s attempt to define such a policy, the
Board questions the feasibility of the options
recently outlined in the addendum to the Fourth
Policy Document on Physical Planning (VINEX).
Moreover, the bank’s skepticism about how such a
policy could be implemented in its present form is
shared by many other companies and organizations.
In an attempt to address some of the main pro
blems that have been identified, the government
has entered into discussions with various interest
groups. However, as yet, the status of existing
locations remains to be clarified, which is causing
great difficulty with appraisal work.
Nineteen ninety-one will also be remembered as
the year in which environmental issues shifted to
center stage. The Executive Board of FGH BANK
recognizes the importance of adopting a profes
sional approach to solving environmental problems
and takes pride in the fact that FGH BANK’s
expertise is being used to advise clients in this field.
At present, the problems associated with soil pol
lution are receiving much attention, as is the
related issue of soil remediation. It is readily appa
rent that environmental legislation scheduled to be
introduced by the government will have a signifi
cant impact on the realty market. In particular, the
government’s desire to make landowners liable for
the cost of soil clean-up measures and to make
them responsible for reclaiming any expenditure
from the original polluter is bound to make
investors more cautious. Furthermore, the
European Community is known to be preparing a
directive, which would extend the chain of liability
to companies financing real estate deals. Under the
circumstances, it is not surprising that credit corpo
rations active in the realty sector are reviewing
how they should react to such legislation.
As is the case with the government’s policy on
development locations, many questions still remain
to be answered about the implementation and
effects of projected environmental legislation. In
the coming period, it is also expected that the
commercial real estate sector in the Netherlands
will have to address a number of problems relating
to the use of asbestos in buildings, which have
already been highlighted in the USA.
The performance of the Dutch arm of FGH
BANK in 1991 was extremely encouraging, both
in terms of the volume of business and the levels of
profitability achieved.
Business in the United States was badly affected by
the economic recession in 1991. For the second
year in succession, the realty market had to con
tend with extremely difficult conditions. Market
sentiment was at a particularly low level in the
northeast of the country, where much of FGH
BANK’s lending business in America is centered.
The economic downturn in the USA has been far
more severe than the recessionary forces in Europe,
with the real estate sector being one of the chief
casualties. Although it is not expected that condi
tions will improve in the commercial real estate
market in the USA in the near future, the propects
for healthy investment yields remain good in the
longer term.
FGH BANK’s American subsidiary, FGH Realty
Credit Corporation Inc., which has offices in New
York, was unable to escape the general malaise in
the real estate sector in 1991, which badly affected
the results for the year. In order to strengthen the
company’s mid to long-term position, a number of
organizational changes were introduced. The
Executive Board of FGH BANK is pleased to
announce that FGH Appraisals Services Inc., which
also operates from offices in New York, had an
excellent year in 1991.
REPORT OF THE EXECUTIVE BOARD
Environmental aspects
WÊÊM REVIEW OF ACTIVITIES
The Netherlands
United States
