International real estate developer Trei Real Estate has obtained a €38 mln, five-year loan from German mortgage credit bank pbb Deutsche Pfandbriefbank.
The loan is secured by ten Polish Vendo Park retail properties, seven of which are existing and three are new. They are located in the towns of Chelm, Konin, Lapy, Lódz, Lubin, Milanówek, Minsk Mazowiecki, Nysa, Skierniewice and Swidnica. This financing replaces existing debt on seven of the properties and includes three previously unencumbered sites.
Matthias Schultz, the CFO of Trei Real Estate, commented: ‘The cross-border financing arrangement enables us to release further equity which we will use for investments in Poland and the United States. It is not the first time pbb proved a reliable partner for us. In fact, the bank is one of our most important finance partners in Poland, having previously made long-term loans available to us in 2020 and 2023 toward the refinancing of certain retail properties.’
Dieter Knittel, head of CEE at pbb, added: ‘Trei has developed into a major client, and we are glad to be able to support the company in its expansion strategy once more. The Vendo Park brand has proven to be a retail trade concept that is fit for the future, making it an attractive financing base.’
This loan increases Trei’s debt-to-equity ratio to approximately 38%. Matthias Schultz added: ‘We assume that we will reach a quota close to 40% by the end of the year. Our long-term goal remains to use debt-financing prudently and without exceeding a LTV ratio of 45 to 50%.’
Trei Real Estate recently secured significant debt financing, including a €35.5 mln loan earlier in 2024 for projects in Germany, Poland, and the U.S.
Trei is currently developing approximately 2,500 apartments (rental and for sale) in Poland, 2,000 rental apartments in the southeastern U.S., and 1,150 rental apartments in Germany. In Poland, Trei also develops Vendo Park retail properties, with a portfolio of 39 parks and two more opening this year.
