Trei RE defies the slowdown with €1.6 billion resi pipeline

Trei Real Estate has defied challenging market conditions to grow development volumes by  €100 million in H1 2022 and now has a pipeline of  €1.8 billion focused on the residential sector.

Matthias Schultz, CFO, and Pepijn Morshuis, CEO, Trei Real Estate

The international developer and asset manager has a €1.6 billion residential pipeline and  €200 million invested in retail projects. Trei’s development activities focus on residential real estate in Germany, Poland and the United States. Overall, the company currently has 6,450 residential units under development.

“The first half of 2022 has exposed many developers to extraordinary hardships but we managed to keep expanding our development activities”, said Pepijn Morshuis, CEO, Trei Real Estate. “But the pace of our growth has clearly slowed compared to the time before the war in Ukraine and the inflation surge”.

He attributed the company’s resilience to the fact that it has a strong balance sheet and needs to borrow less, as the debt ratio across the entire portfolio amounts to about 34% 

Currently the United States are the most important market: the company is developing a total of 2,400 units, spread across eight different multi-family housing projects in the south-eastern states. 

Poland is the second-most important market, with 2,200 units in the development pipeline in cities that include Wroclaw, Lodz, Poznan and Warsaw. Half of the units are earmarked for the rental market that is growing very strongly, Morshuis said. Trei is also building retail parks in CEE under the Vendo Park brand.
In its home market of Germany Trei is currently developing 1,850 residential units.

“Our projects on Winsstrasse and Fürstenberger Strasse in Berlin are nearing their completion, and we will celebrate the topping-out ceremony at our Zollhafen development in Mainz in September”, Morshuis said. “We have noted serious delays on the German developer market lately. Many market players have adopted a wait-and-see attitude and have shelved projects for the time being. But general contractors are freeing up capacity again and gradually rolling back their prices as a result”.