Residential and retail developer Trei Real Estate has struck a €73.5 mln debt financing deal with German lender pbb, and anticipates taking out further loans this year.
The latest facility, which has already been paid out, is split into two tranches: €13.8 mln, which will mature in 2028, and €59.7 mln, which is due to be repaid by 2030.
The loan is secured by 61 retail properties in Poland that are let to the Biedronka retail chain on long-term leases.
Matthias Schultz, CFO of Trei Real Estate, commented: ‘Despite the currently difficult market cycle, we managed to conclude yet another cross-border financing arrangement. We are planning to use the funds primarily for our development activities.’
The financing brings the company’s debt ratio to 33%. Schultz added that Trei plans to take out further loans this year, bringing its LTV ratio to around 40% by the end of 2023. ‘In the long term, we continue to aim for a maximum LTV of 50%. While borrowing costs have gone up significantly over the past year and a half, we have not revised our expansion strategy,’ he said.
Dieter Knittel, head of real estate finance international clients at pbb, said: ‘We are glad we were able to support Trei, one of the biggest portfolio owners of retail real estate in Poland, in the expansion of its activities on the Polish market once again.
‘Given such a robust portfolio of discount supermarkets let to good conditions, we are willing and able to arrange financing deals in Central and Eastern Europe even in difficult market cycles.’
Trei first arranged a cross-border loan with pbb in 2020, secured against 40 Biedronka supermarkets in Poland.
