Tranio: Developing value-added projects, club deals, and derivatives
In 2019, we closed our 1000th transaction, while our revenue grew by 25% compared to 2018. We closed a total of 171 transactions over the course of last year – several commercial transactions were closed fully in-house through Tranio's infrastructure.
We created a product matrix
We have created an automatic investment vehicle selection model. By asking our clients 7-10 questions we can understand their risk profile, show them what yields they can expect in Europe, and explain the characteristics/features of the products corresponding to their risk profiles. As a result, investors are shown what goals they can achieve with Tranio in greater clarity.
We were developing value-added projects
In 2019, we launched products that gave our clients favourable prices and high annual euro-denominated yields of 8-10%:
- we launched bonds in Greece for our own projects;
- we enhanced our presence in Europe. We now have seven agents working in our German and Greek offices who find and manage renovation projects as well as property portfolios for Tranio and our clients;
- we have been organising renovation projects in Bavaria for the last three years. In 2019, as many as five of our clients bought apartments for renovation in Bavaria — all the properties have already been renovated and some are already sold, while the others remain on the market. The average yield rate ran at 10-15% per annum;
- we are putting the finishing touches to apartment buildings we constructed in Barcelona and Hamburg. These properties have already been built and are commissioned in Q1 and Q2 of 2020, and 90% have already been sold.
We have strengthened our team
In 2019, Tranio's team became stronger: we hired more talented investment experts, analysts and marketing specialists, and expanded our regional offices in Berlin, Athens, Samara, and Bryansk. We have also launched an education project to train young talented professionals interested in property investment. We plan to employ several programme graduates in the future while helping others to find jobs with major Russian and foreign property companies.
We attended European fairs
Last year we participated in 25 European fairs including Expo Real in Munich, MIPIM in Cannes, the Monaco International Luxury Property Expo, Europe-Asia NPL Summit in Stockholm, and the Prodexpo Real Estate Conference in Athens. We also supported several fairs as media partners.
We are developing value-added projects, club deals, and derivatives.
In 2019, we closed three mezzanine transactions. Mezzanine loans are a form of financing that combines debt and equity – lenders provide subordinated loans and they potentially receive equity interests as well. Our clients invested amounts over €1M remotely, taking many factors into account before parting with their money including location, project documentation, financial plan, and the experience of each project team. The project euro-denominated yields for these clients will be about 10% per annum.
We conducted real estate market surveys.
In 2019, we conducted surveys that gave us a clearer picture of what investors want so we can offer them suitable investment strategies. These surveys investigated the investment attractiveness of German and Spanish hotels, and the buying preferences of Russian real estate investors.
Comments for the media. Tranio understands cross-border real estate investments like no one else. This is why articles and comments by our experts are published by Russian-language and English-language media outlets:
We improved the performance of Tranio’s website
Our website is a vital source of information for investors. We provide analysis, advice, property listings, and news about real estate markets on a daily basis from around the world. We are always updating the catalogue pages with more properties.
In 2019, tranio.com topped Google’s English-language search results for requests featuring real estate and investments. Our websites attract half a million visitors every month. Traffic increased by 33% compared to 2018 for our English-language website (tranio.com) and by 25% for our Russian-language site (tranio.ru).
Tranio Capital is creating a platform where investors with budgets from €500,000-1M will be able to invest jointly with us in equity interest and loan projects. We have formed a managing team headed by our Operations Director George Kachmazov to focus on land plot sales, development investment transactions, property construction, and renovation projects.
Priority segments are micro-living, apartment hotels, and retirement homes in Europe. Investors will be able to invest in projects fully or participate in club deals. Tranio Capital targets the following projects:
- Equity capital volume €3-15M
- 60–70% LTC
- Yield guidance ~15% IRR
- The project delivery time – 2-4 years
- Joint ventures with local developers
We are interested in new projects and financial partners. Please contact one of our managers with any inquiries about cooperating with Tranio.