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The Business

Traumhaus AG is a supplier of standardised terraced houses built in serial solid construction (masonry construction) and, since 2016, of two standardised types of apartment blocks. The core of the product range and the starting point for all further developments is the terraced house type. Optimised over 25 years, it has living space of 141 m² and a limited number of elements that can be individually specified (room layout, fixtures). The basis is invariably the Traumhaus basic module, from which further product variants can also be developed in the future. During manufacturing, Traumhaus uses industrial production methods to keep unit costs low. Using this combination of complexity reduction (standardisation) and serial production, the company sets itself apart from the competition, is able to offer properties below market prices and still achieve attractive margins (EBITDA margin 2018: approx. 15.4%).


The Traumhaus product provides a convincing answer to the question of affordable housing and the desire for low operating costs. The target group for the Traumhaus terraced house is young families. The apartment blocks in the programme since 2016 are primarily aimed at institutional investors, who purchase entire blocks.


Traumhaus covers the entire value chain, i.e. acquisition and project planning for sites of 3,000 m2 and more (for at least 15 terraced houses), acquisition of building rights and the marketing of the ready-for-building plots to end buyers. The construction work is performed by the subsidiary Heinrich Hildmann Baugesellschaft für energieeffizientes Bauen mbH. This company has been part of the Group since 2018. 


With the construction of around 370 residential units scheduled for 2019, the company is one of the ten largest manufacturers of terraced houses in Germany. The goal is to continue growing significantly over the next few years and to become one of the market leaders in the foreseeable future. 


Strategically, the Group has set out four areas of growth. Firstly, the existing sales territories 'Rhine-Ruhr and Rhine-Main metropolitan regions' are to be consolidated and additional territories (Rhine-Neckar metropolitan region and the federal state of Bavaria) are to be developed. In the medium term, expansion to Berlin, Hanover and Hamburg is also planned, as well as to Austria in the south. Secondly, the still young sector of multi-storey residential construction will quickly gain in importance due to strong institutional demand. Thirdly, the attractiveness of the product range is to be continuously enhanced through research and innovation (e.g. in energy management, digitalisation of processes). Lastly, construction times will be cut by setting up automated prefabrication of the Traumhaus modules. Production is scheduled to start in the second half of 2020. Capacity can then be channelled into additional projects. In addition, automated prefabrication also has quality-enhancing effects. Following a start-up phase, higher margins are also likely to be achieved.


The company has been listed in the m:access segment of the Munich Stock Exchange since August 2018. In addition, the shares are traded over-the-counter on the Frankfurt Stock Exchange and, since 2 May 2019, also on XETRA. For the listing, 88,646 shares were placed as part of a private placement with institutional investors and a Friends & Family programme. The capital increase brought the company an inflow of EUR 4.75m. We expect further fundraising to continue in the future, both on the equity and on the debt side. With an increasing equity ratio and profitability, interest on borrowed capital is likely to fall further.
Traumhaus employs a total of around 55 people at two locations, with headquarters in Wiesbaden. 
The key factor for further growth is the site portfolio or the purchase of sites. In this respect, Traumhaus announced an important addition to the staff at the beginning of April. Michael Marienfeld, who previously spent 20 years as product manager for real estate marketing and project development at the competitor Interhomes, is now head of project development at the Wiesbaden-based firm. We are optimistic that Mr Marienfeld will contribute to the even more dynamic growth of the company.

Core Product

At the centre of the product range is the terraced house, a housing type that is being constantly developed and optimised. A basic size of 5 m x 12 m has emerged. This produces living space of 141 m2 on two full floors and a loft conversion. In addition, 26 m2 of usable space is available, of which around 21 m2 is in the pitched roof area. The houses are tailored to the "young families" target group. 


The terraced house is basically offered in three versions, which allow the buyer to choose between different materials and, above all, to choose what his own input will be. In addition to a guarantee for completion within the agreed period, building work is continuously monitored through independent construction controlling by TÜV, the inspection organisation. The buyer is granted a 7-year warranty after completion. 


The focus in masonry construction is on solid construction in serial production. The emphasis is on the modular design which, similar to the platform strategy in the automotive industry, standardises the costly core of the "product house". This enables a high proportion of series manufacturing at central production locations. From there, the prefabricated components are transported to the building sites for final assembly.

In addition, the fixtures in the houses are constantly being developed in order to increase customer convenience and reduce operating costs. At the heart of this are innovative energy concepts, combining ecological aspects with economic advantages. The use of primary energy is 65% less than the requirements of the current Energy Saving Ordinance (EnEV 2009). Even now, all houses already meet the KfW 55 and KfW 40 energy standards. In addition to the efficiency provided by the larger building site with at least 15 units, the homeowner later benefits from low operating costs. At around EUR 2.50 per m2, the monthly operating costs are well below the average for the housing stock in Germany. 


In the medium term, the aim is to achieve nominal energy autonomy. Additions to the concept could include the use of solar heat, for example. 
Other methods of optimisation with additional benefits in terms of convenience are promised by more digitalisation – Smart Home. 
 

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