Trei Real Estate (“Trei”), an international developer and asset manager, just obtained a credit line over 43 million euros. Granted by Mainzer Volksbank, a cooperative bank, the credit line is not tied to any specific purpose and has a three-year maturity. The loan was collateralised with six plots of land in Germany not previously mortgaged and intended for residential development in the longer term, with the properties to remain in Trei’s proprietary portfolio upon completion.
Matthias Schultz, the CFO of Trei Real Estate, elaborated: “I would like to thank Mainzer Volksbank for renewing our trust-based collaboration and for the straight-forward, professional way in which it arranged this deal. The credit line allows for a highly flexible use of its funds. It is principally earmarked for short-term liquidity needs, and enables us, for example, to act quickly and flexibly within the scope of our residential developments in Germany, Poland, and the United States as well as in the context of our retail park developments of the Vendo Park brand in Poland.”
Stefan Hackbart, generally authorised agent of Mainzer Volksbank eG, added: “Trei spent the past few years steadily expanding its development activities, and with its two Mainzer Zollhafen projects, it has made its mark in our region. So, we are glad to keep growing our partnership-based business relations.”
Trei currently has about 6,000 residential units under development in Germany, Poland and the United States. The majority of these are located in the US, with 2,450 units spread across eight different developments. It also pursues eight developments in Poland, which will deliver around 2,100 units. Third in line is Germany with 1,450 units in twelve developments. The development pipeline in the retail segment in a combined volume of 200 million euros consists of retail parks of the Vendo Park brand in Poland.
Schultz went on to elaborate: “The credit line gives us more leeway in the context of our funding strategy for the longer term, and optimally supplements our existing construction and long-term financing arrangements. Our plan is to reach a leverage ratio of around 40 percent by the end of the year. Ultimately, we are aiming for a maximum LTV of 50 percent.”
Trei Real Estate has negotiated several large-scale debt funding arrangements lately. The most recent time the company took out a loan was in December 2022 when it borrowed c. 40 million euros to finance eight retail parks of its Vendo Park brand in Poland.