Real estate
Last year, Rabobank Group expanded its real
estate activities with the acquisition of FGH Bank.
With its Rabo Vastgoed entity, the Group was
already a major player in real estate. FGH Bank
and Rabo Vastgoed together give a boost to the
realisation of Rabobank Group's strategy aimed at
reinforcing its Allfinanz position.
Rabo Vastgoed
FGH Bank
Real estate 49
In the Netherlands, Rabo Vastgoed operates in project financing and
real estate development. FGH Bank is specialised in commercial real
estate financing. With the acquisition of FGH Bank, Rabobank Group has
considerably strengthened its position in the real estate market and
acquired knowledge and expertise in the field of commercial real estate
financing. FGH Bank will continue its activities under its own brand.The
Group aspires to further expand its position in the real estate market in
the years to come.
Rabo Vastgoed, Rabobank Group's real estate project development and
finance arm, develops a large variety of projects, either on its own
initiative or commissioned by municipal councils, building corporations
and construction enterprises. Projects range from small-scale building in
town centres to the development of entire 'Vinex' new towns, shopping
centres and office blocks. Last year, more than 1,800 houses were built,
21% more than in 2002. Project development is carried out in close
co-operation with the local Rabobanks.The local banks provide Rabo
Vastgoed with detailed knowledge of the local real estate market. In
turn, Rabo Vastgoed helps local Rabobanks to capture and retain (new)
clients at an early stage. In 2003, Rabo Vastgoed acquired a 60% majority
interest in Livingstone Building Industry and the development activities
and land positions of Gerritsen Bouwgroup. At 31 December 2003, Rabo
Vastgoed's order portfolio amounted to EUR 4.0 (3.9) billion. Operating
profit was EUR 15 (12) million.
FGH Bank, which specialises in financing commercial real estate, has
formed part of Rabobank Group since October 2003.The acquisition will
enable FGH Bank to offer a broader package of services because it now
has access to Rabobank Group's extensive knowledge and network. In
turn, FGH Bank's services complement those of the local banks, which
also operate in commercial real estate financing. Early in 2004, De Lage
Landen's real estate financing activities were integrated into FGH Bank.
The strong decline in economic activities in 2003, together with the
downsizing scenarios at many larger enterprises, caused an increase in
vacancy rates, particularly in the office market. As a result, the number of
loan applications fell in 2003, which was one of the reasons why the
financing portfolio declined in 2003 by EUR 0.3 billion to EUR 4.4 billion.
Around three-quarters of the portfolio relates to investment financing.
In addition, FGH Bank is active in project and land financing, trade
financing, 'uitpond' financing (i.e. selling rented houses to the sitting
tenants), operating lease, own use and derivatives. FGH Bank's operating
profit on ordinary activities for 2003 was EUR 53 million.
Een huis kopen tonder
eerst uw huidige huis
te verkopen,
Met de
Doorstroornhypotheek
Rabobank introduces the
Flow-through mortgage.
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