Trei Real Estate, the developer and asset manager for residential and retail real estate, has raised €40 mln in a financing arrangement to help it expand on the development front.
Matthias Schultz, CFO said: ‘It is the second time that we succeeded in securing a cross-border financing arrangement between Germany and Poland – and this despite the currently difficult market phase.’
‘At the same time, it was our first financing transaction with Berlin Hyp, and we would like to say how much we appreciated the uncomplicated and professional way in which it was handled.’
The funds will be disbursed in two tranches: the first of €27.8 mln was paid out in December 2022, with the second tranche of €12.2 mln to follow by December this year.
An agreement for a five-year maturity has been settled on, collateralized with eight retail parks of the company’s Vendo Park brand in Poland. These assets were either completed during the past twelve months or else will be during 2023. The debt facility is earmarked for the construction of additional Vendo Parks in Poland as well as for further residential developments in Germany and Poland.
Its debt ratio now stands at 34%. Schultz added: ‘We are planning to take out further loans this year, so that our LTV ratio will be somewhere near 40% by the end of the year. In the long term, we are aiming for an LTV of 50%.’
Teresa Dreo-Tempsch, head of markets at Berlin Hyp, said: ‘Trei is one of the biggest developers of retail parks in Poland and was able to keep expanding its portfolio last year.’
Trei currently holds a portfolio of 42 Vendo Parks, some 32 being in Poland and the others in the Czech Republic and Slovakia. Another 20 sites are already under development. The retail parks serving as collateral for the new loan are located in the Polish cities of Inowroclaw, Koszalin, Oswiecim, Radzymin, Mielec, Krakow, Gorzow Wielkopolski and Wroclaw.
