Bouwfonds and MAB join forces (NL)

ABN AMRO Bouwfonds Nederlandse Gemeenten NV (Bouwfonds), with its head office in Hoevelaken, Hofima BV, with its head office in The Hague, have reached agreement on the acquisition by Bouwfonds of all shares in MAB Group BV (MAB). The portfolios of both organisation are almost entirely complementary. The activities of MAB will become part of Bouwfonds Property Development.

The alliance creates a strong property development organisation with an excellent market position and complementary activities in the fields of living, working and shopping in the Netherlands and various other European countries. In 2003, the combination realised approximately 7,000 residential properties and 200,000 m2 of commercial property in the Netherlands .

Henk Rutgers, chairman of the Bouwfonds Executive Board explains: “This joining of forces is entirely in line with the strategy of Bouwfonds Property Development: strengthening its position in commercial property in general and in the retail field in particular. The name recognition, reputation and expertise of MAB as a creative concept developer will make an important contribution to the further expansion of our activities. In addition, together with MAB we will be able to respond even more effectively to inner-city (re)development and integrated area development, two important trends which will certainly play a major role in the future property development market.”

Ton Meijer, CEO of MAB Group commented: “The cooperation between MAB and Bouwfonds Property Finance, another Bouwfonds subsidiary, which has already been in place for several years, has demonstrated that the working methods of both organisations fit well together. Our partnerships have already yielded several successful and award-winning projects. Together with a financially strong partner such as Bouwfonds, MAB will be able to benefit even more effectively from the increasing demand in the field of integrated solutions for inner-city projects combining living, working and shopping. This step moves MAB into a new phase. Although I will stand down as chairman of the board, I will remain active for several more years as an advisor to the organisation.”

Strength of the new combination
Bouwfonds Property Development and MAB currently already have a strong position in the markets in which they are active. Bouwfonds is the largest supplier of owner-occupied property in the Netherlands and has a strong market position in the field of commercial property. It is also successful with residential and commercial property in France, Germany, Belgium and the Czech Republic. In addition to the mono-functional development of homes, shopping centres and offices, Bouwfonds increasingly focuses on integrated (inner-city) area development. The international portfolio and expertise of MAB, the largest independent developer in the Netherlands with proven strength in the field of multifunctional developments, will significantly strengthen the activities in this field. The cooperation creates an attractive partner for public and private parties, with a focus for the time being on the Netherlands, France and Germany as key market areas.

The transaction will be structured as an acquisition by Bouwfonds of all shares in MAB. Following this acquisition, all development activities in the Netherlands, France and Germany will be combined. A number of MAB projects will be excluded from the transaction. These include projects in which Bouwfonds already participates via its subsidiary Bouwfonds Property Finance via a joint venture. Bouwfonds/MAB will continue to act as the projectmanager of these projects. The MAB subsidiaries Shopping Center Management BV and MAB Investment BV and the development companies in the United Kingdom and Belgium will also be excluded from the transaction. They will continue their activities as subsidiaries of Hofima BV. The acquisition is subject to the approval of the supervisory bodies.

Bouwfonds and MAB intend to complete the transaction in the coming months. The subsequent period will

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