Looking back on the 2018 horticultural year, many of Royal ZON's products' prices fluctuated or were disappointing. There were a few exceptions. ZON will continue to follow the course of the past years in the coming years. This Dutch Fruit and Vegetable Growers Cooperative will keep working on offering added value for their growers and clients. This added value includes marketing, innovation, and product development. Recruiting new members will then also remain an important focal point in the coming year.
ZON made a historic decision in 2018 concerning Fresh Park Venlo (FPV). On the one hand, increasingly specific knowledge is needed for real estate development. On the other, the possibility of fragmentation of the business park was on the cards. Real estate development was also no longer one of ZON's core tasks. At the end of 2018, this company, therefore, sold its right on further development and its buildings at FPV. The American company, Hines purchased these. ZON again improved its balance sheet, thanks to this transaction. Now, ZON is an even more solid partner for its members. It can also offer the security needed for its stakeholders.
For its normal business practices, for ZON, 2018 ended with a moderate positive financial result. However, last year, ZON executed its plans to strengthen Fresh Park Venlo. A strategic alliance was made with a powerful real estate and project developer. In this transaction, ZON transferred most of its assets in FPV to Hines. This company is based in Houston, USA. Hines also received the rights for further (re)development on this site. This deal took the form of issuing a perpetual leasehold of ZON's land to Hines. Part of this transaction also made it clear that ZON has been able to expand its land position at FPV.
In conclusion, the Management, Directors, and Supervisory Boards are of the opinion that, for ZON, 2018 was generally satisfactory. Important strategic, commercial, and organizational steps were taken. These boost the company's confidence in the future.
Find the complete annual report here: www.royalzon.com/nl/downloads