Trei borrows €42m from Helaba to develop in Poland and Germany

German property developer-investor Trei Real Estate (Trei) has obtained a €42 mln unsecured loan from lender Helaba to finance its development activities in Poland and Germany.

The facility, with a four-year maturity, involves an innovative financing structure including corporate finance elements, on the one hand, and the characteristics of a mortgage loan, on the other hand.

’The loan is a direct financing arrangement that Trei Real Estate carries in its books, but that is based on the cash flows of ten Vendo Parks in Poland,’ explained Matthias Schultz, CFO of Trei Real Estate. ‘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.’

Trei holds a portfolio of 28 Vendo Parks in Poland and Germany.

The operation is part of Trei’s strategy to raise its loan-to-value ratio substantially in the long run, said Pepijn Morshuis, CEO of Trei Real Estate. ‘The financing arrangement is part of our long-term development strategy. Our medium-term target is a 50% 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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