Trei Real Estate (Trei), an internationally active property developer and property asset holder of residential and retail real estate, just secured another large debt financing arrangement. Overall, the company raised c. 52 million euros in new debt. The fresh funds are split into two tranches: 39 million euros have a maturity of ten years, while the remaining 13 million euros will become due after five years. The loan was collateralised with ten previously unencumbered retail properties in Germany that Trei intends to retain in its portfolio for the long term. The lending bank is Commerzbank, with the funding deal arranged by the bank’s real estate competence centre for corporate clients in Düsseldorf.
Matthias Schultz, the CFO of Trei Real Estate, elaborated: “We are planning to use the funds mainly for our property developments in the residential sector in Germany and Poland. Part of the funds are earmarked for the construction of retail parks of the Vendo Park brand in Poland.”
Schultz added: “I would like to thank Commerzbank and their real estate competence centre for corporate clients in Düsseldorf for their straightforward and professional handling of the transaction. This latest funding arrangement raises the gearing ratio of Trei Real Estate from 32 to 35 percent. And we plan to keep borrowing as the year progresses. The idea is to raise our leverage ratio to around 40 percent before the end of the year.”
It was not the first time that Trei Real Estate secured debt funding on a large scale in the recent past. In September 2020, for instance, the company borrowed c. 42 million euros from Helaba, a state-owned commercial bank. A few months later, in April 2021, it took out construction and long-term financing in the amount of c. 38 million euros from the Berliner Sparkasse savings bank.