Trei Real Estate GmbH (Trei), a property developer and portfolio manager for residential and commercial properties across Europe, has increased its development volume to around EUR 500 million in H1 2018. This represents a rise of approx. 25% on the previous year’s figure of EUR 403 million. The current development volume is spread between about EUR 400 million in residential properties and around EUR 100 million in retail. Alongside development business, Trei manages a portfolio of residential and commercial properties in Germany, Poland, the Czech Republic, Slovakia and Portugal. As at the reporting date 30 June 2018, the portfolio comprised properties to the tune of approximately one billion euro.
Pepijn Morshuis, CEO of Trei Real Estate, said: “The upturn in the development volume is thanks in particular to the expansion of our residential development activities in Germany. There are currently around 750 residential units being developed in Berlin alone, with an investment volume of approximately EUR 250 million. All these units are either under construction or in advanced planning stages.” In addition, specialist retail parks are being developed under the Vendo Park brand in Poland, the Czech Republic and Slovakia. Morshuis added, “In total, the Trei portfolio has 17 operational Vendo Parks in these three countries and twelve more that are currently being developed, two of which are set to open in 2018.”
Trei’s transaction volume was EUR 143 million in the first half of 2018, of which EUR 28 million was for purchases and EUR 115 million for sales. René Westerheider, Head of Transactions at Trei, commented, “When looking at these figures, it should be borne in mind that Trei only acquires plots for its own development projects, not portfolio properties. Nevertheless, the focus in recent months has clearly been on the sales side. The strategic realignment of our German portfolio is already far-advanced. Here, we took advantage of the continued favourable market conditions in the commercial properties segment, which is characterised by rising price-to-rent ratios and seller-friendly contract terms.”
In H1 2018, Trei had a total of 380 properties in its portfolio. The majority (130) were in Germany, with a further 125 properties in Poland. These are followed by the Czech Republic and Slovakia (75 properties) and Portugal (50 properties).