Loan portfolio Stability in loan portfolio at FGH Bank
Turbulent year for Bouwfonds REIM
Klimop case
The retail trade suffered the consequences of the decline in consumer purchasing power.
Because consumers shop online more frequently, growing vacancy rates and falling rents
arose, particularly in secondary locations. High-quality central urban areas with a broad
offering of facilities and attractive public spaces do, however, provide opportunities for new
retail development or redevelopments. International retailers entering the Dutch market are
also looking to rent space in these locations and rents are hardly suffering there. By undertaking
projects such as Raaks in Haarlem and Achter de Lange Stallen in Breda in the Netherlands,
and developments in Solingen and Ulm in Germany, and in Valenciennes in France, MAB
Development focuses primarily on these types of opportunities. In addition, there is scope for
redevelopment of strong district shopping facilities to meet consumers'daily needs, such as
Colmschate in Deventer and Anklaar in Apeldoorn, and for new facilities in new districts such
as Vathorst in Amersfoort and Terwijde in Utrecht. All these development projects are located
in the Netherlands.
Commercial developments completed by MAB Development represented a value of EUR 248
(650) million in total in 2012. The value of new commercial real estate was EUR 218 (269)
million. At year-end 2012, MAB Development had 4 (6) new developments under construction.
A specialist team was put together to ensure the best possible focus on MAB Development's
three largest developments. This team is responsible for the completion and streamlining of
these developments.
FGH Bank is a commercial real estate financier. It focuses on
in billions of euros funding office space, retail space, business premises and property
investments, particularly in the Netherlands. Serving local property
,2°markets from eight regional branches across the country, FGH Bank
15 T| keeps close track of developments in local markets. The local
Rabobanks call in FGH Bank's knowledge and expertise when
dealing with property issues. FGH Bank supports the local
5 I Rabobanks by analysing the existing property portfolio and new
loan applications, and carrying out market and location surveys.
o EjS3E23E|IJE1|1 E23 FGH Bank also offers support in the form of opinions and
valuations via the FGH RaboTaxatieDesk. In 2012, this desk played
a key role in monitoring the quality of external valuers and in writing valuation reports for
valuations starting from EUR 5 million and other large or special projects and developments.
At EUR 19.2 (19.0) billion, the loan portfolio was more or less stable in 2012.
A real estate investment manager, Bouwfonds REIM offers unique investment products to
institutional and private investors, based on principles for responsible investment, in areas such
as residential and commercial real estate, parking solutions, communication infrastructure
and the agricultural sector. Bouwfonds REIM was successful at increasing its parking funds
in 2012. Funds for institutional and private investors were launched in Germany. The funds
invest in car parks in Europe. Other funds managed by Bouwfonds REIM also broadened their
portfolios in 2012. The Bouwfonds European Residential Fund, for instance, saw its managed
assets rise to over EUR 500 million in the year under review and the Rabo Bouwfonds
Communication Infrastructure Fund and the Rabo Farm Fund continued to grow their
portfolios. There were also a number of fund sales in 2012. Owing to the outflow of assets, total
assets under management by Bouwfonds REIM fell by EUR 0.4 billion to EUR 5.5 (5.916) billion.
Rabo Real Estate Group continued working on the real estate fraud case referred to by FIOD-
ECD, the Dutch national fiscal and economic investigation service, and the Public Prosecutor's
Office as the Klimop case in 2012, focusing increasingly on recourse against the accused
parties. The case also provides constant input for our Customer Due Diligence (CDD) policy.
This investigative work was done with the assistance of external parties, and EUR 28 million
has been spent on forensic investigations and outside legal assistance since 2007. The court
issued a ruling in the criminal case against the accused early in 2012, which found most of
them guilty of fraud. The other accused were convicted at the end of the year. The Public
Prosecutor's Office and the accused lodged appeals in almost every instance. The appeals will
be heard in the course of 2013. With the approval of the Public Prosecutor's Office,
16 The comparative figure has been
settlements were reached in the year under review between the accused and the aggrieved
restated to reflect the new inter- 7 •J~J
national standard for calculating parties, i.e. Philips Pension Fund and Rabo Real Estate Group. Talks are still ongoing with the
assets under management first accused parties about another settlement. In addition, civil proceedings are pending to
applied in 2012. recover losses from accused parties who are unwilling to reach repayment settlements.
71 Our specialist subsidiaries
