Tranio Investment Platform

Tranio.com is looking to establish online investment platform which will provide mediation, investment and asset management services and supply investment products to high net worth individuals and retail investors through separate accounts, club deals and crowdfunding.
2.6 mln
Visitors per year
1000
Requests per month
80 000
Available listings
4,2 mln Euro
Net Revenue 2018
Tranio.com is an international real estate broker providing its services through the online platform. Tranio provides various services to retail clients and private banks including property search, investment strategy advice, due diligence, tax structuring, bank financing, post sales service and management, permanent residence in Europe and the USA, property sales.
As of Q3 2018, Tranio attracts more than 2.6 million visitors per year on its online brokerage platform and processes 1,000 requests each month.

Separate Accounts & Club Deals
Tranio provides investment management services to single investors and group of investors who seek to invest in European real estate market generally in Germany, Austria, Spain, UK and Greece.
Through its brokerage platform Tranio has a direct access to developers and off-market opportunities which provide attractive returns to investors.
Tranio services include full cycle of deals origination, execution and asset management as well as fundraising services, debt financing structuring with banks, tax structure optimization and compliance services.
Tranio will also provide opportunities for High Net Worth Individuals to participate in pre-funding of CrowdFunding deals at attractive rates with lower risk profile.
  • Investor Type: Ultra High Net Worth Individuals and High Net Worth Individuals
  • Products: Equity Mezzanine Senior Debt
  • Product Type: flexible
  • Minimum Investment: from €2 million for Separate accounts, from €100,000 for Club Deal
  • Avg. Project Size: €10 million to €50 million
  • Target Returns: 10-15% p.a.
  • Leverage: yes – up to 80% (incl. mezzanine)
  • Entry fee: 1.5-2.0% of paid-in capital
  • Management fee: 2.0-3.0% p.a. of paid-in capital
  • Performance fee: 20% of profit
  • Structure: SPV
Investment Process
1
Deal Sourcing
Developers, brokers, investment firms
2
Due Diligence
  • KYC
  • Title Survey & Permits
  • Commercial DD
  • Financial, legal & technical
3
Structuring
Agreement with Developer, Agreement with Partner Bank Investment Package
4
Marketing
Market sounding to WIPI, Family offices, Private Banks, Investment Banks, Web-site posting, public advertisement, broker Platforms
5
Investment
Negotiations with interested parties Data room access, KYC process. Bank negotiations.
Drafting and execution of offering • memo/SPA. Signing & closing of transaction
6
Syndication and Crowdfunding
Negotiations with interested parties, drafting and execution of joint venture agreements. Signing & closing of transaction. Arrangement of Crowdfunding


7
Monitoring
Investment management, monitoring and controlling
Accounting and reporting to club investors
Bank Reporting
8
Exit
Sale. Distribution to investors

CrowdFunding
Tranio is going to become a financing partner for developers who seek capital at reasonable costs. With the help of Tranio's CrowdFudning platform developers will be able to optimize their financial structure and decrease risks.

Launching CrowdFunding platform Tranio will unlock quality real estate for the individual investors. This will give attractive opportunities for small investors to get higher returns in Euros at a level of 5.5% to 10.0% compare to 0.1% - 2.0% for US$ and Euro savings accounts that is offered by Sberbank as of Sep-2018.

Tranio will manage the entire sourcing and financing process to ensure that risks for investors are mitigated. Separate accounts and club deal investors will also have access to syndication through CrowdFunding platform subject to conflict of interest checks. The major investment products offered to individual investors will be subordinated loans and non-listed notes.
  • Investor Type: Retail Investors
  • Products: Subordinated loans Non-listed Notes
  • Product Type: standard
  • Minimum Investment: €500 to €10,000
  • Avg. Project Size: €10 million to €30 million
  • Target Returns: 5-10% p.a.
  • Leverage: on the project level
  • Fees: all fees are curried by developer
  • Structure: Direct or SPV
Investment Process
1
Request
Online enquiries, Organised acquisition, Events, Network
2
Pre-Due Diligence
Query of the main figures and first documents. Project plausibility check. Background check of the developer and acting persons. Online / Internet check
3
Due Diligence
• Query of all project and company documents
• Economic DD by real estate experts. Personal meeting
• Discussions with local real estate experts
• Draft resolution in case of a positive result.
4
Board Approval
Decision of each project by the managing board
5
Conclusion of Contract
6
Pre-Financing
7
Start of funding
8
End of funding
9
Payment
10
Quarterly Update
11
Repayment
Locations
Germany – Time for Developmen
  • The German economy generated the strongest growth since 2011 with a sound plus of 2.2% in 2017, whereby dynamic private household consumption, favorable financing conditions, a stable employment market, construction investments and other public spending measures served as the main drivers.

  • The German federal government is projecting real GDP growth of 2.3% in 2018 and 2.1% in 2019 (2017: 2.2%). The working population grew by 638,000 year-on-year in 2017 according to the Federal Statistical Office and has now reached the highest level since reunification. In May 2018, the domestic economy presented a solid picture with stable unemployment of only 3.4% and low inflation of 0.6%.
  • A CBRE market study of the residential property investment market in Germany showed an increase in residential portfolio transactions (> 50 units) to the highest level since 2011 with a plus of 11% to EUR 15.2 billion in 2017 (2016: EUR 13.7 billion).

  • The stable economic environment in Germany and the growing political uncertainty in other European countries will lead to a further influx of international investors on the German residential property market in the coming year. The current interest rate policies of the European Central Bank (ECB) are continuing to supply the financial markets with sufficient liquidity at historically low rates.

  • Germany has been witnessing significant population growth since 2011 as a result of regular migration by workers, students and family members and an increased influx of refugees and asylum seekers. A total of 3.7 million persons relocated to Germany from 2011 to 2016, roughly 52% through regular migration. According to estimates by the Federal Statistical Office, the population totalled 82.8 million at yearend 2016 (no updates available; 2015: 82.2 million).
Austria – Urbanization Opportunities
  • The solid 1.5% increase in 2016 was followed by a near doubling of real GDP growth to 2.9% in 2017 and also led to an upward revision in the European Commission's forecasts for 2018 and 2019 to 2.8% and 2.1%. In its mid-year forecast, the economic research institute WIFO is projecting GDP growth of 3.2% in 2018, with weaker momentum for 2019.

  • The positive development of the Austrian economy in 2017 was supported, above all, by public and private sector spending. Investment activity, rising public (+1.4%) and private (+1.6%) consumption, not least due to the additional expenditures for refugees, and the 2015/16 wage tax reform will be the main drivers for the projected acceleration of growth over the coming years.

  • The unemployment rate fell substantially to 4.6% at the end of May 2018 and, according to the Austrian calculation method, the seasonally adjusted unemployment rate equaled 7.7% in May 2018.

  • The annual inflation rate, based on the consumer price index, is projected to remain relatively constant at 2.1% in 2018 (2017: 2.2%), before declining slightly to 1.9% in 2019.

  • The residential market is still influenced by steady population growth, a continuous decline in the average household size and ongoing urbanisation. Statistik Austria reports an increase in the nation's population to 8,772,865 in 2017 (approx. 38% of this growth is attributable to the capital city of Vienna). The number of private households totaled 3.86 million, including 1.43 million single person households.

  • According to Statistik Austria, the average ownership rate on the Austrian housing market was comparatively low in international comparison at 57% in 2016. There is a substantial difference between regions: in rural areas (e.g. Burgenland) ownership ranges up to 80%, while in urban regions, especially Vienna, 79% of the population lives in rented housing.
Spain — Development Opportunities Outside Barcelona
  • European Commission forecasts Spain GDP to fluctuate between 2.4 and 2.8% in 2018–2019.

  • According to Trading Economics data, unemployment in Spain will decrease from around 15% in 2018 to 13% by 2020.

  • Residential property demand is on the rise. A total of 464,423 residences were sold in Spain during the financial year 2017 (+16.4% compared to 2016). The property market has continued to grow throughout 2018 so far with 217,539 properties exchanging hands in the first five months of the year (+13% over the same period in 2017). According to the Spanish Property Registry (Registradores), almost 17,000 homes were sold to foreigners in the first quarter of 2018, representing just over 13% of total sales, compared to just under 15,000 in the same period in 2017.

  • Spanish property market still has a potential for prices growth, although Barcelona may be already too hot. According to Idealista, the sales price for housing in Barcelona in Q3 2018 was €4,388/sqm, reaching an inter-year rate of increase of 1.2%, while Madrid recorded an inter-year increase of 21.3%, reaching an average price of €3,834/sqm.

  • As for price development in the rental sector, the average price in Spain is €9.7/sqm/month, registering an annual increase of 18.4%. The annual increase in Madrid was 7.2%, recording an average rental rate of €16.4/sqm. As for Barcelona, it maintained its leading position as the most expensive city in Spain despite having recorded a 5.5% drop in prices, with an average rent of €17.3/sqm/ per month.
UK: Investment Opportunities Among Brexit Concerns
  • Most estimates predict ongoing low levels of UK GDP growth in the next couple of years in the order of 1.0% to 1.7% pa, as Brexit and political uncertainty continue to weigh on business decisions. There was a first increase in base rates in over 10 years when the Bank of England raised them 0.25% to 0.5% and stated that it expected to continue to move these up gradually over a number of years as the economy recovers. According to Trading Economics data, unemployment in the UK will increase from 4% in 2018 to 5% by 2020, although still remaining relatively low.

  • Investment activity rose 26% last year to £16.4bn reversing three years of decreases, but all of the last six years have witnessed very liquid markets with significant foreign investment.

  • There is a persistent shortage of new housing in the UK, with supply consistently falling short of the annual requirement, estimated at a minimum of 210,000. This is likely to worsen as the UK population expands. Despite UK Government initiatives to help people buy houses, the demand for new affordable houses will continue, as will the need to maintain the existing social housing stock of 4.1m homes.

  • According to the data from the HM Land Registry, in July 2018 the average property cost £231,422, which was 3.1% higher than a year previous. However, annual price growth is slowing: in April, for example, it ran at 3.6 %. Property in London is twice more expensive. In summer, analysts observe a seasonal growth, but prices are falling year-on-year: in May 2018, the average property cost £478,900, which was 0.1% higher than in April but 0.4 % lower than a year before.

  • Brexit remains a source of uncertainty in the UK and has a potentially distorting effect on the UK's political and economic cycles. Given the delay in the start of the UK/EU negotiations, it remains too early to assess the effects, although we continue to monitor developments closely. It is likely that the UK will see a period of change and uncertainty that will go beyond the scheduled exit date of March 2019.
Greece: Price Growth Potential
  • Greece's GDP grew in four consecutive quarters in 2017, and the European Commission predicts 2.5% growth per year in 2018 and 2019.

  • The unemployment rate improved from 27.5% in 2013 to 21.5% in 2017. IMF forecasts unemployment to decrease to 18.8% by 2020.

  • Foreign investors are attracted by cheap golden visas which are granted to to the buyers of property totalling at least €250,000. According to Enterprise Greece, between the programme's launch and late July 2018, the country issued 2,968 investment-based residence permits (7,565 including those awarded to investor family members).

  • In early 2018 residential property in Greece grew in price for the first time. According to data from the Bank of Greece, in Q2 2018 apartment prices grew 0.8% v the same period of 2017. In Athens, the price per square metre increased 1.2%. Still, Greece is one of the last real estate markets in Europe still seeing a dearth of capital inflow and has not recovered since 2008. Property prices in Athens are 42% below the pre-crisis level, and the average price per square metre is only €1,500 –2,000.

  • Property prices benefit from growing tourism volume. According to the Bank of Greece, the number of international tourists in the country grew from 16.9 million in 2009 to 30.2 million in 2017. The WTTC predicts that the number of international arrivals to Greece will rise to 42.5 million by 2028. According to the Euromonitor International, the number of international tourists in Athens will increase by 30% to 6.5 million by 2025.
Tranio team
George Kachmazov
Founder and managing partner
Julia Morozova
Senior Investment Consultant
Helen Milishenkova
Development Consultant
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