Trei Real Estate GmbH has taken out an unsecured loan in a volume of €42 million from the German bank Helaba. It involves an innovative financing structure that Trei employed in similar form for the first time when taking out a loan from the same lender in late 2019. The successful model includes corporate finance elements, on the one hand, and the characteristics of a mortgage loan, on the other hand. The loan has a four-year maturity. Trei intends to use the borrowed capital to finance its growth trajectory.
Matthias Schultz, CFO of Trei Real Estate, elaborated: “The loan is a direct financing arrangement that Trei Real Estate GmbH carries in its books, but that is based on the cash flows of ten Vendo Parks in Poland. The Vendo Parks selected were completed and opened during the past two years, and they are free of mortgage liens. The concept for the financing deal was created together with Helaba last year.” All things considered, Trei holds a portfolio of 28 Vendo Parks, thereof 18 in Poland.
In the longer context, the loan moves Trei a step closer toward its objective to raise its loan-to-value ratio substantially in the long run. Pepijn Morshuis, CEO of Trei Real Estate, commented: “The financing arrangement is part of our long-term development strategy. Our medium-term target is a 50-percent ratio relative to our overall portfolio. We intend to use the capital thereby released to continue our development activities in Poland and Germany.”
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