"We usually do not choose REITs that own expensive, exceptional office buildings. We choose minor locations that would turn out more profitable," Tel says.

Dutch TKP Pensioen Real Estate Fonds (TREF), which claims to be the biggest property fund in Europe with investments of more than one billion euro, has declared its interest to invest in Bulgaria, investor.bg quoted the head of real estate investment at TKP Investments, Robert-Jan Tel, as saying.

TREF has started researching investment opportunities offered by Bulgarian funds, but also in other South East European countries. The fund already has put money in real estate investment trusts (REITs) in Hungary, Poland and Czech Republic, such as the US based AEW and a fund specialised in office properties, managed by Orco Properties.

But now TREF was looking to the East, Tel said, highlighting Ukraine and Russia as areas of interest.

TREF plans to focus on funds specialised in retail and logistic projects. These segments are the first to be  influenced by the positive economy development in countries with underdeveloped property market. Office properties sector is not a matter of interest to TREF because prices of class A offices in some of the CEE countries have reached those of established markets such as Paris and Munich.

"We usually do not choose REITs that own expensive, exceptional office buildings. We choose minor locations that would turn out more profitable," Tel told investor.bg.

TREF, owned by insurance and pension group AEGON, manages pension funds with a portfolio mix of securities, real estate and commodities. It's real estate strategy is to combine investments in REITs that deal with project management and REITs that develop their own projects. TREF invests 15 per cent of its profits in development funds.