2023-09-03 19:21:33
To create an exclusive cooperative project for the development of rental housing projects in major Polish cities
The project aims to attract multiple sectors of investors and those wishing to live. The demand for modern apartments for rent is very high in Poland … and the deficit amounts to 1.5 million apartments. “KINGSTONE” sets the framework for investment and asset management… and “Trei” real estate supervises the construction
Paul Francis
International asset development and management company “Trei Real Estate” announced its cooperation with “KINGSTONE” corporate capital investment management company, to establish an exclusive long-term cooperative project for the development of rented housing projects in major Polish cities in the near term, as the project aims to create a means investment to attract interested investors.
Kingston has been tasked with managing the fundraising effort, which entails identifying and engaging potential investors. The company will establish the appropriate investment framework and responsibility for managing funds and assets. Trei will participate as co-investor and developer and its role includes acquiring plots of land and overseeing the entire construction process. and working hand in hand with KINGSTONE to facilitate the final sale of the investments upon project completion, as specific plots of land in Warsaw and Poznań have already been allocated to this cooperative project.
Rentals in Poland
says Pepijn Morshuis, CEO
“Trei Real Estate”: The demand for modern apartments for rent is very high in Poland, while the supply is very limited, and the vast majority of Poles own and occupy their homes, indicating that the younger generation prefers to rent modern and high-quality apartments for ease of movement and to avoid restricting their capital .
He explained that the demand for rental apartments exceeds the supply, especially in major cities, and the deficit in the Polish housing market is estimated at regarding 1.5 million apartments for rent, compared to a current stock of regarding 10,300 new apartments for rent, which highlights the urgent need for investments, indicating that a pipeline has already been established. It houses the first secured projects to be developed within the scope of the collaborative project.
He noted that Trei and Kingston are focusing on developing smaller apartments in inner-city locations tailored to the needs of young professionals, students, expats and young families.
With successful property apartment projects already completed and developments underway in Łódź, Wrocław and Warsaw, Trei is now taking its first rental apartment projects into the next step and may present its first two tenant housing projects in Warsaw and Poznań. To an advanced stage, the actual construction will begin in “Poznan” in the last quarter of 2023 and in “Warsaw” during the first half of 2024. Other cities with high potential for the development of apartments for rent include “Krakow”, “Wroclaw” and “Lodz”. Katowice and Gdansk.
He explained that the private rental housing market in Poland offers great opportunities for growth and the main reason behind this is that it represents only one percent of the entire housing market, and therefore it has so far played a minimal role in the country, as all housing was under the ownership of municipalities, and it was all sold. Almost like royal apartments in the 90’s.
Added value for investors
Philip Schomberg, Co-Founder and Executive Partner of “KINGSTONE” added: “The cooperation between “KINGSTONE” and “Trei”, whose head office is located in Germany, generates real added value for interested investors.
He said, “We are aware of the huge potential in the Polish rental housing market, however, there have been few projects so far that investors can actually invest in, and our plan is to offer rental housing projects in Trei as a platform for investors.
“KINGSTONE” real estate offers a range of products and strategies for investment in the German and Central European markets, covering the entire risk and return spectrum. Our focus is on environmental, social and governance (ESG) products in the residential, office and healthcare sectors. In addition, we can also provide investment solutions in Real estate debt.
Trei Real Estate is a German real estate company with a registered office in Düsseldorf that purchases, develops and manages custom and sustainable residential and retail properties. Its long-term strategy In addition to around €1.3 billion in assets under management, Trei owns around €2.0 billion worth of pipeline developments. In Poland, the company develops, raises and leases retail parks under the ‘Vendo Park’ brand.
Trei is currently developing residential neighborhoods in Berlin together with commercial buildings as well as student apartments under the “Quartillion” brand. The company’s residential activities outside Germany include development projects in Poland and the United States.
investment solutions
Schomberg said: “KINGSTONE” is an owner-managed real estate investment management group, founded by the Schomberg family and Pegasus Capital Partners, with a primary focus on Germany, Austria and Central and Eastern Europe. It also serves institutional and professional investors with innovative investment solutions and regulated fund strategies for residential, office and healthcare properties from Through our local teams in Germany and Poland and our local offices in the Netherlands and the UK, which are made up of highly qualified experts, we offer tailor-made investment solutions to our clients.
Schomberg explained that the company has a reliable advisory cooperation in the Middle East with Sattam Al-Jarallah, the senior advisor to “KINGSTONE” in the Middle East and North Africa region.
([email protected]).
Schomberg said: After living in the UAE for more than 6 years, and working for one of the sovereign wealth funds in Abu Dhabi (Abu Dhabi Investment Council), I decided to go ahead and establish a real estate investment company. The company, owned by my family, is also active in Poland as we see Poland as one of the main growth markets in Europe.
At the present time, we see that companies derive their consequences from supply bottlenecks during the epidemic, and they move their factories and production plants to Poland in order to mitigate supply chain risks, and young and well-educated people in Poland represent a very attractive environment for these companies, explaining that foreign investments lead to a significant increase In demand for rental apartments in major Polish cities coupled with steady urban progress.
He stressed that there is a supply gap of regarding 1.5 million apartments in Poland, most of which are historically in major cities, and Poland also has one of the highest rates of home ownership in Europe, but the preferences of Poles, especially young people, are shifting in favor of renting modern, good-quality apartments managed by institutional owners, Because justifications for mobility and fluidity are becoming more important.
environmental and social standards
We aim, in cooperation with our strategic partner, to meet this demand by developing modern housing units that comply with environmental, social and governance standards.
KINGSTONE has established cooperation with TREI – a well-known German developer, also subsidiary of the “Tengelmann Group” to develop modern residential properties for rent throughout Polish cities and major regional markets, with the aim of installing high-yielding assets in the “PRS” (private rental sector) that may be dispose of it or keep it for the long term.
The strategy fills a gap in the sector with products of high standards and specifications tailored to the needs of young professionals, students, expatriates and young families. The Polish market is characterized by almost no vacancies in the residential market, which together with strong demand creates a very favorable market environment for this strategy.
He explained that the long-term partner “TREI”, a well-known developer in both Germany and Poland, works as a comprehensive real estate developer, and they have acquired plots of land for “PRS” developments and carried out the entire construction, including monitoring and project management, and KINGSTONE is also the first point of contact For potential investors and those responsible for capital sourcing, structuring, ongoing financing and asset management, we together follow the “economics of scope” approach to bring together the expertise of both parties to achieve exceptional results.
Institutional investors and professional family offices can also invest via tailor-made investment solutions through the KINGSTONE platform. We are pleased to provide interested investors with this strategy in more detail. Our service covers the entire value chain of real estate investment management, including structuring, acquisition, asset management, risk management, reporting and final disposal of investments. We work on behalf of our investors to achieve the best possible risk and return.
Unique real estate designs Philip Schomberg Sattam Al-Jarallah Distinguished real estate
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