REAL

ESTATE

INVESTMENT

01

Why to Invest

Some key considerations to invest in Central Germany with Treuenburg

  •   Longevity and stable cash flows

    Real Estate is one of the oldest asset classes. It offers stable and easy projectable cashflows, while also being a secure protection against inflation. Its’ longevity makes Real Estate Investment a tangible and long-term path for wealth creation. Due to their predictable nature, Real Estate cashflows are also ideal for leverage.

     

  •   Pulsating germany

    Germany  combines the best infrastructure in Europe, highest GDP in the Euro zone and 4th largest global economy with the highest employment rate since unification and a growing population; highest ever German population (83 million) recorded in 2017. Housing shortage and booming economy will continue to support rental income growth and make Germany your perfect place to invest.

     

  •   attractive valuations

    Germany offers a strong corporate governance, property rights and investor protection. The Central German residential Real Estate market offers unleveraged yields from 4-8% and from 6-10% in the commercial space. The local rental market is very fluid and deep (as only 50% of people own their homes while the others rent), that is one of the lowest ratios in the world. Furthermore Real Estate valuations are still very attractive compared to a global scale.

     

  •   Central Germany

    Over 1 million people live in the area we invest in and the population is growing due to a strong urbanisation trend. Given its’ location in the heart of Germany, this region is the logistics hot spot of Germany with multiple highways (Autobahn), ICE (Intercity Express) rail hub, and regional airport. Thuringia is also a well known tourism hot spot (Wartburg, Martin Luther, Goethe, Schiller etc.) with over 4 million tourists visiting p.a.. The three main cities of Erfurt, Weimar, Jena host a combined 5 universities with over 50.000 students enrolled. Well-known companies have chosen the Erfurt region their regional headquarters, to name a few:  Siemens, Zalando, DHL, IKEA, Deutsche Bahn. As the capital of the Federal State of Thuringia, the Erfurt region hosts a parliament, ministries, and affiliated agencies as well. The area has a very low unemployment rate (below 5%, highest employment rate in all Germany) and offers all the perfect ingredients for a successful Real Estate investment. As a confirmation Erfurt was voted the most livable and attractive city in the category “Cities with up to 500k inhabitants” by Bild (largest German newspaper) in 2017.

     

  •   Local Expertise

    Erfurt is our home town and we therefore have unmatched local knowledge and connections. Our dense network helps sourcing deals before they come to the market and enables attractive positive carry opportunities.

     

  •   Unique Competence

    We offer an extraordinarily competent management team with proven track record. We are your One-stop shop - from purchase to sale, from facility management to renovations, all taken care of in-house by a team of 15 experts. We combine Real Estate and banking experience with unique access to local banks. We currently have financing relationships with more than 15 banks. We focus on Central Germany only and our business model is designed to generate positive returns if prices stay the same or even decline (disclosure or financial model upon request)

     

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02

Our Portfolio

We currently manage over 50 residential, commercial and retail properties.

11

665

68,095

CITIES

units

sqm rental space

PORTFOLIO

03

How to Invest

Co-Investment

Active Manager:

TRG

 

Title of ownership:

Existing TRG fund, investor holds a title to the individual property.

 

Financing:

Up to 100% LTV, non-recourse

 

RETURNS:

Tailor made structure allows maximum flexibility in regard of maturity and leverage. Base case: 3x capital for a 7 year and 4 x capital for 10 years investment horizon.

Own Fund

Active Manager:

TRG

 

Company:

German limited corporation, GmbH

 

Financing:

Up to 90% LTV, non-recourse

 

Title of ownership:

Newly-founded company owned by the investor

 

RETURNS:

Base case 3.5x capital for 7-10 years investment horizon.

Sourcing/ Advising

Next to direct investment in TRG projects, we can also help you source property in Germany and give you access to opportunities in the German real estate market. We will gladly advise you throughout the process, from finding a property and purchasing it to selling it at a later date.