FGH Bank
Rabo Vastgoed
45 Rabobank Group Annual Report 2005
Core activities: real estate
FGH Bank specialises in financing commercial real estate. With its nation
wide office network, the bank focuses on institutional and private inves
tors in commercial real estate and on building enterprises and project
developers. Through its subsidiary 'De Nederlandse Hypotheekbank' and
local intermediaries, FGH Bank focuses on real estate financing for small
business use (mainly shops and industrial space).
FGH Bank had an excellent year. After 2004, the bank realised yet another
record production which reached EUR 2.7 billion. As a result, FGH Bank's
loan portfolio grew by 16% to EUR 7.8 (6.7) billion. The repayments in the
year amounted to EUR 1.4 billion, which was relatively high compared
with previous years. This was mainly due to the increased competition,
which resulted in a higher number of loan switches. Investment financing
makes up approximately 71% of the loan portfolio.
Of the remainder of the loan portfolio, 10% relates to property for own
business use, 6% to 'uitpond' financing (sale of rented property to sitting
tenants), 7% to building and land financing and 6% to other lending
(housing and trade financing).
FGH Bank also offers other services besides real estate financing.
Clients can turn to FGH Vastgoed Expertise for advice, portfolio analysis,
market research and plan assessments as well as for commercial real
estate appraisals. Appraisal orders have shown particularly strong
growth over the past years.
FGH Asset Management acquires Dutch real estate and manages real
estate funds and real estate properties. Interest in real estate funds (CV's)
was again high in 2005. High-quality properties are in short supply,
however, and this calls for prudence. Due in part to the strict selection
of properties, the returns achieved on real estate CVs have so far been in
line with budgeted returns or higher. It is also in the clients' interest, that
FGH Asset Management wishes to maintain its high quality criteria for
these investment constructions.
Rabo Vastgoed is among the largest housing developers in the
Netherlands. In addition, it increasingly participates in inner-city redeve
lopment and in the development of shopping centres. Rabo Vastgoed
has shown significant growth in the past years. In order to stay close to
the client, five new business units operating in the regional markets
were created in the year under review. Rabo Vastgoed develops projects
with respect for the surrounding environment, in which people and
corporate social responsibility are key issues.
The land portfolio grew by 210 hectares to 2,000 (1,790) hectares in
2005. This portfolio has a potential for 32,000 houses and 721.000 m2
of industrial space. The number of houses sold was 1,767 (1,144),
corresponding to a market share of more than 5% for owner-occupied
housing projects. The order portfolio, which comprises approved and
current projects in the areas of housing and industrial space, increased
by 7% to EUR 3.8 (3.6) billion. The rise is due mainly to increased
demand from housing projects. The industrial properties portfolio
showed a decline because Rabo Vastgoed operates very prudently in
the difficult office market.
To Rabo Vastgoed, growth in the redevelopment of town centres is an
important new activity. In 2005, the first larger projects were started.
Agreement was reached with the municipality of The Hague on the
redevelopment of the Binckhorst area, which with its 125 hectares has
potential for around 6,000 houses and 15.000 m2 of commercial real
estate.
In Amsterdam, Rabo Vastgoed together with housing corporations
created the Stedenfonds. This fund of EUR 275 million, with 85%
participation by institutional investors, offers the opportunity for direct
investment in middle-segment rented houses developed by Rabo
Vastgoed in selected areas in Amsterdam.
The City Campus MAX to be built by Rabo Vastgoed in Utrecht will con
tribute to the flowthrough in student accommodation. Cost-conscious
design allows Rabo Vastgoed to offer affordable and independent
accommodation to students. City Campus MAX will comprise around
1,000 homes plus additional facilities such as a launderette and sports
facilities. Construction is to begin in 2006 and project delivery is expected
for the end of 2008.
Breakdown by financing type at year-end 2005
Investment financing 71%
Property for own business use 10%
Construction and land financing 7%
Uitpond financing 6%
