Rabo Real Estate Group generated a net profit of 86 million euros in 2008, compared to a net profit of 243 million euros in 2007. This decline in results is a direct consequence of the economic crisis and the ensuing deteriorating market conditions, which also severely affected the property sector in 2008. The sales of new homes in the Netherlands and abroad dropped from 13,173 in 2007 to 8,746 in 2008. The value of new loans amounted to 4.8 billion euros and the assets under management grew from 5.1 to 6.8 billion euros. The growth of financing activities levelled off considerably in the second half, while growth of assets under management came to a halt. The risks connected with our operations were monitored as closely as before, but this could not obviate downward revaluations due to the market risk arising from the situation in 2008. Rabo Real Estate Group announced a cost reduction programme at the end of 2008, reducing the total costs of the group by ten percent.
Rabo Real Estate Group’s 2008 results are consistent with the current economic situation. As a result of the credit crisis, Rabo Real Estate Group saw confidence in 2008 drop considerably in the various markets where it is active – housing and commercial property development, property finance and investment management. Rabo Real Estate Group’s solid market position and the involvement of a strong shareholder in the funding of its activities provides Rabo Real Estate Group with a good basis to operate in these turbulent markets. Innovation is a key element in this respect. Rabo Real Estate Group looks for compelling new product/market combinations, such as sustainable, affordable residential areas, theme-based shopping centres, sustainable office concepts and investment areas that are structured in the non-traditional property sector.
In 2008, the internal organisation went through several changes. First, the Development division was split up into the Residential Development division and the Commercial Property Development division. Second, the name Rabo Bouwfonds was changed to Rabo Vastgoedgroep for the Dutch market and to Rabo Real Estate Group for the foreign markets. The new name is the result of a new brand policy, under which the four divisions operate in the various markets with their own labels: Bouwfonds Property Development (development of residential areas), MAB Development (development of commercial real estate), FGH Bank (finance) and Bouwfonds Real Estate Investment Management (REIM; investment management). The management of social funds will be continued under the name Public Fund Management (‘Fondsenbeheer Nederland’).
Rabo Real Estate Group was established in late 2006, when Bouwfonds was acquired and all property activities of Rabobank Group were combined. The further integration of the different processes in the organisation was also a key element of focus in the year under review, resulting in a new Collective Labour Agreement and a new pension plan for all employees. The real estate fraud case also required our attention.
In the year under review, two members of the Board of Directors, Henk van Zandvoort en Tjalling Halbertsma, left the company. Chairman of the Board of Directors Hans ten Cate fulfilled his task and resigned after Hans van der Linden was appointed new Chairman of the Board. Mr Elco Brinkman was appointed Chairman of the Supervisory Board.
Key figures of Rabo Real Estate Group for 2008:
Net profit amounts to € 86 million
Number of homes sold in the Netherlands and abroad amounts to 8,746
Commercial real estate under construction amounts to 536,993 m2
Value of new loans at FGH Bank € 4.8 billion
Assets under management of Bouwfonds REIM grown to € 6.8 billion
Single new Collective Labour Agreement and pension plan for Rabo Real Estate Group employees