Real estate
Increase in earnings at Real Estate Group despite late
market recovery
The real estate market is at the tail end of the economic cycle, therefore
Rabo Real Estate Group was still suffering the consequences of the credit
crisis in 2010. Bouwfonds Property Development sold 8,982 homes, a 22%
rise on 2009. MAB Development saw the construction of new commercial
real estate increase by 17% to EUR 288 million. In addition, MAB
Development sold 296 homes as part of multifunctional developments.
Lending at FGH Bank rose by 3% to EUR 17.8 billion. Managed assets were
up 3% at Bouwfonds REIM, rising to EUR 7.2 billion. Thanks in part to lower
administrative expenses, Rabo Real Estate Group's net profit was up 18%
to EUR 106 million. Bad debt costs stood at 36 basis points of average
lending. In 2010, Rabo Real Estate Group signed another contract to stay
on as the main sponsor of Open Monumentendag (Heritage Day), one of
the largest cultural events in the Netherlands, for the next three years.
Rabo Real Estate Group has revised its foreign strategy, shifting its focus
to controlled growth in France and Germany.
Strategy for Rabo Real Estate Group
www. ra bo rea lestateg ro u p.co m
Rabo Real Estate Group is Rabobank Group's centre of expertise in real estate; it is active in the
areas of property development, property finance and investment management. Outside the
Netherlands, Rabo Real Estate Group operates mainly in France and Germany. Rabo Real Estate
Group manages the labels Bouwfonds Property Development, MAB Development, FGH Bank
and Bouwfonds REIM. The international strategy was revised in 2010, with focus being shifted
to controlled growth in France and Germany.
Rabobank Group strategy Contribution to group strategy
All-finance market leader in the Netherlands
- Maintaining and strengthening the leading position in the markets for owner-occupied
homes and commercial real estate
- Increasing sales of Rabobank mortgages for new build developments
- Maintaining the market lead in property finance
- Increasing knowledge of real estate
- Offering various real estate-related funds to Rabobank customers
- Being Rabobank's centre of expertise in real estate
International food and agri bank
- Setting up and expanding agricultural real estate funds through Rabo FARM
Share in Rabobank Group's
net profit for 2010
Real estate 4%
52
Annual Report 2010 Rabobank Group
