better than in the Netherlands. Income from our international operations reached a record
high and the number of residential property transactions increased, in line with the strategy of
continuing growth in the economically strong regions of France and Germany.
Near-stability in commercial property development
MAB Development develops commercial properties in the Netherlands, France and Germany.
Its specific focus in 2011 was on redevelopment opportunities in commercial real estate, with
focus on mixed-use projects and retail developments in city centres and fringe areas. Specific
examples of this include the joint ventures with NEINVER of Spain for the development of
factory outlets and with Sonae Sierra of Portugal for the development of city centre shopping
centres. Despite the difficult economic environment, MAB Development has made reasonable
progress in signing leases for its projects. The total value of completed developments was
around EUR 650 million. The value of new commercial property developments stood at
EUR 269 (288) million. In addition, MAB Development sold 94 (296) residential properties that
formed part of mixed-use developments. By year-end 2011, MAB Development had 6 (10) new
developments under construction.
Stable position of FGH Bank
FGH Bank offers all possible forms of property finance, with a
strong focus on its home market of the Netherlands. FGH
Bank has in-house expertise in valuation, building
engineering, real estate analysis and sales, and this expertise
is leveraged across the Group, particularly by the local
Rabobanks. In 2011, FGH Bank's gross profit was satisfactory,
with the portfolio achieving a growth of 7%, rising to EUR 19.0
(17.8) billion.
Stable equity position at Bouwfonds REIM
The difficult market conditions made 2011 a challenging year for Bouwfonds REIM. Although
the volume of operations was below target, the volume of assets under management remained
stable at EUR 7.2 billion. The size of the organisation decreased in 2011 following the sale of
activities in the United States. In the existing funds, Bouwfonds REIM's focus was on active fund
and asset management, devoting full attention to letting, cash management and cost control.
In 2011Bouwfonds REIM continued its efforts towards sustainability of offices, shops and
residential properties, based on the belief that making the existing portfolio more sustainable
is a key requirement in maintaining the value of the real estate portfolio.
Klimop investigation
The activities regarding the Klimop real estate fraud investigation by FIOD-ECD, the Dutch
national fiscal and economic investigation service, and the Public Prosecutor's Office continued
in 2010, and were increasingly focused on recovery proceedings against the suspects. The case
also provided input for our Customer Due Diligence (CDD) policy. This work was conducted
with the assistance of external parties, and approximately EUR 26 million has been spent on
forensic investigations and outside legal assistance since 2007. Rabo Real Estate Group made
several formal complaints to the authorities in 2011 based on suspicions that criminal acts had
been committed. Court hearings dealing with the substance of many of the cases were held in
2011. A judgment was handed down early in 2012 and all suspects were found guilty. Criminal
proceedings in the case against a number of other suspects relating to this case are due to
start in the spring of 2012.
With the approval of the Public Prosecutor's Office, a settlement was reached in the year under
review between a number of suspects and the aggrieved parties Philips Pension Fund and
Rabo Real Estate Group. In addition, civil proceedings have been instigated to recover losses
from suspects who are unwilling to reach repayment settlements.
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2007 2008 2009 2010 2011
