Trei Real Estate, the German real estate developer and asset manager, is signalling for more partners to approach it for JVs to help its project programme.
The Dusseldorf-headquartered compant is seeking JV partners mainly for the residential segment in Germany, Poland and the US, with a current 5,900 residential units and 16 retail parks under construction, and wants to speed up.
Pepijn Morshuis, CEO, said: 'At this time, we are examining and preparing a number of residential real estate developments in the United States, Poland and Germany, and we identified opportunities in all three of these markets. We want to speed up the process of scaling up this business line but need third-party capital to do so. For the coming year, we already identified six developments in our core markets that are particularly well-suited for partnership-based equity investments.'
But the company also headed off any suspicion it might be in difficulty. Stephan Heinen, head of institutional investment, added: 'We are an equity-rich developer who is backed by a strong conglomerate. For the time being, we therefore remain unaffected by the crisis on the development market. In addition, we have a robust track record in the mentioned countries and asset classes. This inspires confidence and convinces institutional investors of our integrity.'
Morshuis added: 'The approach itself is not entirely new for Trei. For the development of our Vendo Park retail parks in Poland, we already entered into a joint venture with Patron Capital that has an equity capital base of €50 mln euros.'
'In summer of 2023, we set up a partnership with Kingstone Real Estate for the purpose of developing rental apartments in Poland within the framework of joint venture structures. Furthermore, we sold a residential project in Mainz to a German institutional investor via a forward deal in June 2022. We would welcome opportunities to engage in comparable projects again in the future.'
It currently has under developmet 1,400 units in Germany, another 2,200 in the US, and 2,300 in Poland. In a parallel move, the company will probably open another two retail parks in Poland in addition to the four Vendo Parks it already opened, while a further 14 Vendo Parks are in the development pipeline.