Market and clients
Further integration of activities
Real estate development
Number of houses sold 6% lower, at 13,173
In 2007, 13,173 houses were sold by Rabo Bouwfonds, 69% of
which in the Netherlands. In the previous year, Rabo Vastgoed
and Bouwfonds Property Development had sold 14,073 houses.
In 2007, Rabo Bouwfonds completed 223,782 (188,585) m2 of
commercial real estate, with 570,970 (714,565) m2 of commercial
real estate under construction.
Despite increased insecurity in the financial markets, the European market for real estate
remained strong in 2007. Due to the structural scarcity in the Dutch housing market,
demand for houses in the Netherlands remained high. At the same time, the building sector
in the Netherlands and in the other European countries was hindered by the effects of the
rising costs of materials and labour. This results in longer tendering procedures, making it
more difficult to put projects on sale. The higher costs had little impact on Bouwfonds
Property Development's profitability, however.
Benefiting from the positive sentiment in the real estate market and from its market
dominance, FGH Bank saw significant growth in new production. Increasingly, FGH Bank
supplies tailored finance to its clients.
The internationalisation of the real estate investment market is making itself clearly felt.
The presence of foreign investors in the market is increasing as a result of a constant capital
flow into real estate, mainly from institutional investors. This capital flow is driven by investors
seeking investments offering stable income. This fits the profile of real estate. Several surveys
indicate that institutional investors are looking to increase their weight in real estate.
After the acquisition of parts of Bouwfonds late in 2006, a great deal of attention was paid in
2007 to the integration of a number of units within Rabo Bouwfonds. The successful integration
ensured that several synergy opportunities were realised, with the collaboration between the
different divisions and with Rabobank Group showing a strong increase on several fronts in
2007. An example is the Eigen Steen real estate project, which was established in 2007.
Through Eigen Steen, Rabo Bouwfonds relieves the local Rabobanks from all their real estate
worries, enabling the local Rabobanks to focus more on banking.
In its new set-up, Rabo Bouwfonds has opted for a strong central holding, in combination
with a maximum of decentralised accountabilities.
Within the Development division, Bouwfonds Property Development was merged with
Rabo Vastgoed. From mid-2008, this division will operate under the Rabo Bouwfonds
Development label. In the Finance division - i.e. FGH Bank - work was done on the
integration of Rijnlandse Hypotheekbank and Nederlandse Hypotheekbank. Since the
second half of 2007, FGH Bank's asset management activities - i.e. FGH Asset Management -
have been integrated with Bouwfonds Asset Management. In 2008, this division will operate
as Rabo Bouwfonds Real Estate Investment Management (REIM).
Number of houses sold
in 2007
The Netherlands
70%
France
22%
Germany
5%
Other
3%
The Development division's core activity comprises area development of projects with
combined residential, labour and shopping facilities as well as multifunctional projects.
Its experience in complex, cost-efficient project development and its participation in public/
private collaboration projects are some of the distinguishing features of Rabo Bouwfonds'
development division in the market. Another strength of the development unit is managing
comprehensive area development and complex inner-city redevelopment.
Most of the development activities are steered from the Netherlands.
Additionally, the Development division operates in several
European countries.
69
Report of the Executive Board
