management will contribute to growth in assets under management. The development of owner-
occupied houses and of real estate development, as well as real estate finance and investment will be
defined further in selected countries.
Changed market conditions in real estate
The effects of the deteriorating economic outlook also manifested itself in the real estate market. As a result
of the crisis, consumers were cautious. This created a mismatch between supply and demand and the
number of new houses for sale increased. In addition, owner-occupied houses in the Netherlands became
less affordable, partly as a result of higher mortgage interest rates. For the development activities, this
resulted in a decline in the number of owner-occupied houses sold and, to a lesser extent, pressure on
margins. In France, economic conditions likewise caused deterioration of the housing market.
For the financing activities, the uncertainty in the real estate market resulted in a decline in both the
number and the volume of transactions. FGH Bank nevertheless succeeded in maintaining its leading
position in the Dutch real estate financing market. Because of the higher price of risk, FGH Bank's interest
margin on new financing improved. Furthermore, there was a lower market demand for traditional real
estate investment products, and this depressed results for Bouwfonds REIM.
New brand policy
The real estate division reviewed its brand policy in 2008. The label Rabo Bouwfonds was changed into
Rabo Real Estate Group and, for the foreign markets, into Rabo Real Estate Group. To improve services
to the various customer groups, the Development division was split up into Bouwfonds Property
Development and MAB Development. Bouwfonds Property Development develops integral housing areas
and smallscale multifunctional projects. As a developer of commercial real estate, MAB Development
focuses on the development of shops, offices, hotels and large-scale multifunctional projects.
Through FGH Bank, the Finance division serves professional real estate clients including investors,
traders, project developers, construction companies and real estate funds. Besides financing, FGH Bank,
through its subsidiary FGH Vastgoed Expertise, also offers real estate advisory services.
The Asset management division structures, places and manages predominantly non-listed real estate
funds and real estate related financial products. Bouwfonds REIM offers services to private and
institutional investors.
Expanded collaboration with Rabobank
In 2008, Rabo Real Estate Group further intensified its collaboration with other Rabobank Group entities,
working even more closely with the local Rabobanks in the sale of new housing projects. This is very
important for growth of Rabobank's market share in mortgages in large cities. It also built on the Eigen
Steen real estate project, which was started in 2007.Through this project, Rabo Real Estate Group relieves
the local Rabobanks from all their real estate activities. For the purpose of development projects for new
bank office buildings, a large number of agreements were made with local Rabobanks. In addition, a
number of initiatives together with Rabobank were launched through the Asset management division,
including the establishment of investment funds with an agri related character.
After the integration of the three employment packages, Rabo Real Estate Group achieved a single
Collective Labour Agreement (CLA) for all employees of Rabo Real Estate Group in 2008. The new CLA
comprises an employment package that fits its ambition to be an attractive real estate employer in the
Netherlands and includes the introduction of a new,'green'lease arrangement and study agreements
on teleworking. In 2008, official reports were filed against a number of suspects, including former
employees, in connection with a real estate fraud (the so-called 'Klim-Op'affair). In 2008, the existing
codes of conduct of the various divisions, both national and international, were harmonised into a
single, uniform code of conduct within Rabo Real Estate Group.
Fewer houses sold, particularly in the Netherlands
The number of owner-occupied houses sold by Bouwfonds Property Development declined due to a fall
of sales, particularly in the Netherlands and to a lesser extent in France as well. In 2008,8,746 (13,173)
owner-occupied houses were sold, of which 68% was in the Netherlands.
so
Rabobank Group Annual Report 2008
