Fortis Insurance Netherlands to acquire William Properties

Fortis Insurance Netherlands is one of the biggest institutional investors in the Netherlands. It has built up a well diversified, high-grade EUR 4.2 billion investment portfolio in rural, residential and commercial property in the Netherlands. Its investment policy is to extend the portfolios managed on behalf of third parties. The acquisition of William Properties will transform Fortis Vastgoed Ontwikkeling into a full-scale developer able to operate efficiently in the rapidly consolidating Dutch real estate development market. As before Fortis Vastgoed Ontwikkeling will continue to develop high-grade real estate projects for third parties as well as for the real estate portfolios managed by Fortis.

Jos Baeten, CEO of Fortis Insurance Netherlands stated: 'This acquisition is in line with our strategy to grow our presence on the Dutch real estate market and to further improve our competences and scale in these areas. We will benefit from the combination of complementary expertise: Fortis Vastgoed Ontwikkeling specialises in private housing projects and long-term area development, while William Properties has developed unique expertise in offices, shopping centres and multi-functional inner-city development. By acquiring William Properties, we are gaining a developer with extensive experience in various real estate sectors. We expect growth from developing projects in city centres as well as area development.'

Gerard de Greef, Managing Director of William Properties, added: 'The take-over opens up opportunities for our organization to achieve our ambitions in large, multifunctional city centre projects. Partners like municipalities and institutional investors are looking for creative, experienced developers who have the stamina and the financial clout to take on such projects. In the past few years, William Properties has developed a fantastic retail pipeline, which the acquisition will enable us to realize more quickly.'

William Properties will be integrated into the Fortis Vastgoed Ontwikkeling business unit and will in the future operate from Utrecht. The FVO management team will consist of Tie Liebe, Gerard de Greef and Foppe Kooistra, the latter as General Manager of FVO. The present managers and key shareholders of William Properties, Ing. W. Persy and Mr. J.W. Klinkenberg, will leave the company and will focus on other activities. The transaction will be finalised subject to the customary closing conditions including the Workers Council of Fortis Insurance Netherlands. The transaction will have no material impact on Fortis's solvency or net earnings per share.

Fortis Insurance Netherlands
Fortis Insurance Netherlands is the parent company of Fortis's Dutch insurance companies, i.e. Fortis ASR, De Amersfoortse, De Europeesche, Falcon Leven and Ardanta. Fortis Insurance Netherlands (FIN) is one of the biggest institutional investors in the Netherlands with an investment portfolio of EUR 30 billion. Fortis's real restate portfolio amounts to more than EUR 10 billion; FIN manages EUR 4.2 billion, of which EUR 1 billion on behalf of clients. The investment portfolio is spread across rural properties, shopping centres, residential property, and office buildings.

Fortis Vastgoed Ontwikkeling
Fortis Vastgoed Ontwikkeling is a wholly owned subsidiary of Fortis Insurance Netherlands. It employs 30 people and specializes in private housing projects, long-term area development and strategic land investments. Fortis combines its development expertise with local market knowledge and its vision on sustainable real estate solutions. Fortis Vastgoed Ontwikkeling is developing real estate projects at Leidsche Rijn in Utrecht, Mahler4 in Amsterdam, Oosterheem in Zoetermeer and Duinvallei in Katwijk. At the end of 2005 the development pipeline was estimated to generate revenues of approximately EUR 2.6 billion.

William Properties
Incorporated in 1988 and based in Rotterdam, William Properties has built up a portfolio of successful projects such as Piazza Centre in Eindhoven and IJ Dock in Amsterdam, where the Hall of Justice will be housed. William Properties ranks among the top developers in (mixed-use) retail projects in city centres and residential areas and in office projects. At the end of 2005, its portfolio was valued at approximately EUR 1.4 billion. The company employs 34 people.

Fortis
Fortis is an international provider of banking and insurance services to personal, business and institutional customers. The company delivers a complete package of financial products and services through its own high-performance channels and via intermediaries and other partners. Fortis ranks among Europe's top 20 financial institutions, with a market capitalisation of EUR 38.7 billion (30/04/2006). With excellent solvency, a presence in 50 countries and a dedicated, professional workforce of 57,000, Fortis combines global strength with local flexibility. More information is available on www.fortis.com