No signs of recovery in real estate
The continuing adverse economic conditions have had a major impact on property markets.
Whereas the market appeared to stabilise early in 2011it experienced a sharp downturn later
in the year. In the residential property market in the Netherlands, this translated into a reduction
in the value of existing real estate and a decline in the number of transactions. Similarly, the
negative sentiment was tangible in the market for residential new-builds in the Netherlands,
which suppressed the number of transactions. The residential property market in France
performed better than in the Netherlands, but the effects of the European debt crisis were still
visible there too. The residential property market in Germany is in good health.
The supply of office space in the Dutch commercial property market remained high, although
the increase in vacant office space has slowed compared to 2010, in part due to a reduction in
new-builds. In the retail sector, demand for prime locations remained, and it was the secondary
locations in particular that faced difficulties.
Property investors remained cautious, and economic conditions meant that investment
volumes in many countries and across most of the property sector were low. Given these
market conditions, FGH Bank increased its focus on active management of the existing finance
portfolio. Projects and positions with a higher risk profile were monitored and controlled
closely at all levels of the organisation.
Close collaboration between Rabo Real Estate Group and Rabobank
Collaborative ties between Rabo Real Estate Group and other Rabobank Group entities were
tightened further in 2011The introduction of Bouwfonds Connect, a digital lead management
system designed to support the sale process for residential new-builds by Bouwfonds Property
Development, is a good example of teamwork that produces clear synergy gains for Rabobank
Group.The system provides the local Rabobanks with information on potential house buyers
who might be interested in a Rabobank mortgage.
Bouwfonds Property Development and Rabobank Nederland have together updated their
WoonlastenCalculator, a tool to help people work out the cost of running their home, not just
by including the parameters recommended by the Dutch National Institute for Family Finance
Information (NIBUD), but also by factoring in the type of residential property and its energy
needs. Including these aspects in the calculations improves the likelihood of obtaining finance
for energy-efficient new-builds.
In 2011, Rabobank Nederland's Executive Board decided to step up the partnership between
FGH Bank and the local Rabobanks. FGH Bank is a property finance specialist and, in the
difficult times in which the real estate market currently finds itself, is particularly well placed to
demonstrate its added value. Furthermore, FGH Bank supports the local Rabobanks by analysing
property finance applications, performing valuations via the FGH RaboTaxatieDesk and
conducting reviews of financial interests. FGH Real Estate Expertise advises the local Rabobanks
on matters such as market and location surveys, and portfolio and accommodation analyses.
Bouwfonds REIM strengthened its cooperation with Robeco Germany for the sale and
distribution of its Bouwfonds European Residential Fund.
Rabo Eigen Steen now has a portfolio of 91 properties. Bouwfonds REIM, FGH Real Estate
Expertise and MAB Development contribute their expertise to Rabo Eigen Steen, enabling them
to manage and operate real estate in use by Rabobank branches themselves. Local Rabobanks
sell their real estate to Rabobank Eigen Steen and then lease it back. Rabobanks can also
involve Rabo Eigen Steen in new-build projects or in the redevelopment of properties.
Finally, the continuation of the Rabo Real Estate Desk is another good example of teamwork
between Rabo Real Estate Group and other Rabobank Group entities. The Rabo Real Estate
Desk offers Rabobank Group employees answers to any questions they have about real estate.
This initiative has improved access to the business units of Rabo Real Estate Group.
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Annual Report 2011 Rabobank Group
