Trei Real Estate GmbH (“Trei”), an international developer and asset holder for residential and retail real estate, just presented its financials for the first half of 2021. As of 30 June 2021, it had 1.3 billion euros worth of real estate assets under management. The proprietary portfolio accounts for 1.2 billion euros out of the total, while roughly another 100 million euros are managed on third-party mandates. Developments currently in the pipeline added up to 1.2 billion euros. The three figures quoted above experienced no changes during the first half of 2021. The development pipeline of 1.2 billion euros breaks down into 1.0 billion euros earmarked for the residential type of use and 200 million euros intended for retail units. Assets under management plus the development pipeline add up to a total of 357 properties (-4 in H1). The number of completed residential units rose to 648 (+142 in H1).
Pepijn Morshuis, the CEO of Trei Real Estate, elaborated on the mid-year figures of 2021: “In the residential segment, the first half-year of 2021 was defined by the preparation of new developments. Specifically in the United States, we acquired plots of land and moved forward with new residential projects that we will start to develop in the second half of the year. The situation is similar in regard to our residential activities in Poland. In addition to the developments already under way, we are now preparing our next projects in that country.”
Trei Develops Residential Accommodation in the US and in Poland
When weighted by fair market values, the assets under management in Germany top the list, followed by the assets in Poland. Out of 1.3 billion euros, 49 percent (84 properties) are located in Germany, 28 percent (147 properties) in Poland, 12 percent (67 properties) in the Czech Republic, and 8 percent (49 properties) in Portugal. The remaining properties are located in Slovakia and the United States.
Poland is currently a very important market for Trei. Pepijn Morshuis had this to say on the subject: “We are aware of a particularly strong demand in the rental apartment segment because there are barely any properties that satisfy modern requirements. Our two projects already under development, one in Wrocław (third construction stage) and the other in Łódź (second construction stage), are making good progress, while another three projects in Warsaw and Poznań are in preparation. Overall, Trei is currently planning and developing 1,320 residential units in an investment volume of 125 million euros.”
Meanwhile, Trei’s first multi-family development in the United States is rapidly nearing its completion in Charlotte/North Carolina. A second, comparable development is under way in Charleston/South Carolina, and already in an advanced state of completion. “Moreover, we acquired several plots of land in the United States, and are negotiating our next developments with our joint venture partners. We will announce the start of additional projects shortly,” said Morshuis.
In Germany, Trei’s home market, the company focused on the development of residential real estate. Its first development, involving 240 apartments on Pappelallee in Berlin, has nearly achieved full occupancy, while the other developments in Berlin, one on Winsstrasse and the other on Fürstenberger Strasse, are making swift progress. Both buildings are in an advanced state of their structural engineering phase. In a parallel move, the company is pushing forward with developments in Mainz, Hamburg and Munich, with further developments in preparation in Berlin and Wiesbaden.
Trei Opened Four New Vendo Parks during First Half of 2021
In addition to the development of residential real estate, the construction of retail parks of the Vendo Park brand represents one of Trei’s main lines of business. Overall, Trei currently holds a portfolio of 36 completed and operational Vendo Parks, of which 26 are located in Poland and the remaining ones in Slovakia and the Czech Republic. During the first six months of 2021 alone, four new Vendo Parks were opened in Poland (in Zielonka, Piekary Śląskie, Koszalin and Myślibórz). A fifth retail park was opened in Oświęcim in August. It is planned to complete another three Vendo Parks before the end of the year (in Inowrocław, Chorzów and Radzymin). Pepijn Morshuis commented: “Our Vendo Parks have proven to be a recipe for success. The pandemic has barely slowed our activities, and the same is true for demand on the side of tenants and shoppers. We have also realised that the need for modern retail premises in small and mid-size towns is larger than we assumed when we launched our activities.”