Our strategy & approach
Our goal is to generate long-term, stable and attractive returns for our shareholders. Our investments therefore cover a widely diversified selection of properties in different sectors – from apartments, offices, hotels, logistics and retail facilities through garages – in Germany as well as other areas of Europe and the USA. This strategy for the distribution of risk allows Terrania to remain independent of developments on individual markets and supports the stable growth of the company.
Broad sector diversification
Terrania has developed a portfolio that is widely diversified across the major sectors of the property market: offices, residential, retail, logistics, hotels, and garages. This structure increases the stability of earnings and the value of the property portfolio because the cyclical developments in the various sectors are generally not comparable and submarkets with favourable conditions are able to offset weakness in other areas of business. However, not only the stability but also the mid- and long-term earning power of the entire portfolio is strengthened by this sector diversification. This, allows Terrania to make optimal use of the many opportunities offered by booming markets. Property companies that concentrate on only a single sector are limited in their range of activities and, for this reason, react much more slowly to market developments.
Combination of investment properties, development projects and investments in other companies
Terrania also utilises different methods to invest in properties. The traditional approach to acquiring objects for the portfolio has now been complemented by investments in development projects. This shift in focus is a reaction by Terrania to the declining returns on most of the markets in which it invests. Although these declines have reduced the prospects for earnings on the purchase of completed objects, they have also led to a significant increase in the earnings potential of successful development projects. The well-planned combination of investments in completed properties and development projects will make it possible for Terrania to match the high level of earnings recorded in previous years in spite of the changing market conditions. Strategic investments in property companies also form an integral part of the Terrania investment strategy.
Focus on strategic Asset-Management
Conscious of a more demanding market, the Terrania has shifted its focus toward the strategic Asset Management of its portfolio. This includes both the purchase and sale of residential and commercial properties, as well as the assessment, optimisation and analysis of our portfolio.