Real estate
Results of Rabo Real Estate Group affected by harsh
market climate
www.raborealestategroup.com
The continued economic downturn had great impact on the property markets.
Although the financial results of Rabo Real Estate Group were affected by the crisis,
it managed to maintain its market positions. Bouwfonds Property Development,
which operates as Bouwfonds Ontwikkeling in the Netherlands, sold 8,112
residential properties and MAB Development sold 94 residential properties.
Sales of residential properties were up in France and Germany, unlike in the
Netherlands where a decline was seen. For the first time, more residential properties
were sold outside the Netherlands than in that country. MAB Development focused
specifically on redeveloping commercial properties. Completed developments
represented a value of about EUR 650 million. MAB Development developed
commercial properties for an amount slightly below EUR 269 million. FGH Bank
could not escape having to add to its provision for loan losses either in this market.
Managing the lending portfolio continues to be a priority. The real estate bank
managed to maintain its stable position despite the challenging market. The loan
portfolio was up EUR 1.2 billion, rising to EUR 19.0 billion. Bouwfonds REIM's
managed assets were virtually stable at EUR 7.2 billion. Rabo Real Estate Group's
profit fell to EUR 31 million due to impairments on land and an increase in bad
debt costs, which corresponded to 69 basis points of average lending. Rabo Real
Estate Group focuses on maintaining its leading position in the Netherlands
and on achieving controlled growth in economically strong regions in France
and Germany.
Strategy for Rabo Real Estate Group
Rabo Real Estate Group operates the following labels: Bouwfonds Property Development,
MAB Development, FGH Bank, Bouwfonds REIM and Fondsenbeheer Nederland. Bouwfonds
Property Development develops comprehensive residential areas and small mixed-use
projects. MAB Development is a leading commercial property developer. FGH Bank specialises
in property finance. Bouwfonds REIM manages real estate investment funds. Fondsenbeheer
Nederland is an independent manager of seven community funds that actively strive to
improve the quality of our living environment.
Rabo Real Estate Group is Rabobank Group's in-house centre of expertise in real estate and is
one of the largest real estate enterprises in Europe. Besides its home market in the Netherlands,
Rabo Real Estate Group is also a prominent player in France and Germany.Through real estate
development (residential areas and commercial properties), property finance and investment
management, Rabo Real Estate Group aims, in a socially responsible way, to help its clients
achieve their ambitions for living, working, shopping and leisure. In doing so, Rabo Real Estate
Group seeks to maintain its national and international markets positions, with controlled
growth of its activities in France and Germany.
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