Trianon is a real estate company that owns, manages, acquires and develops properties in and around Malmö, Skåne. The property portfolio is largely concentrated on rental apartments, but also includes some community service, retail and office properties. Current CEO and Malmö local Olof Andersson acquired Trianon in 2006. From three properties in the portfolio at acquisition, Trianon has grown into what we know it as today.
Trianon sees renovation potential for more than half of its portfolio and a typical renovation increases rents by just below 15%. The company has also established a significant project portfolio which serves potential for cash earnings growh and EPRA NRV growth through project profits. Having become a larger player within the Öresund region, we argue its capacity to close value-adding acquisitions has increased.
Real estate companies are subject to macro risks, supply of premises risk, supply of capital risk, debt availability risk, forex risk, regulatory risk, rental income risk, property cost risk, property value risk and ownership risk. We argue that specific risks related to Trianon are ownership risk, geographical risk and dependency on certain individuals in the business.