BF.real estate finance GmbH, assisted Globe Trade Center S.A. (GTC) with one of Germany’s biggest real estate transactions in 2024 in which GTC Paula S.A.R.L., a wholly owned subsidiary of GTC, acquired a majority interest in a portfolio of 5,200 residential units from Peach Property Group AG via a share deal with a total volume of €448m. The acquisition was funded through €185m of bank loans, a new senior secured loan for €190m from two debt funds and the issuance of participating notes of almost €42m.
During the acquisition, BF.real estate finance has been advising GTC in financing issues, analysing the portfolio and coordinating the bank financing arrangements. In addition to classic bank loans, the overall debt financing package is supposed to include subsidised loans from the KfW Development Bank.
The GTC Group is a leading real estate investor and developer focusing on Poland, Hungary and national capitals in Central, Eastern and Southern Europe. Founded in 1994, the company is domiciled in Warsaw and listed on the Warsaw Stock Exchange. By purchasing this portfolio, GTC has now entered the German market. Further acquisitions in collaboration with BF.real estate are in the planning pipeline.
Fabio Carrozza, Managing Director of BF.real estate finance, commented: “We have been noticing for some time that foreign investors are positioning themselves to invest in the German real estate market. In our opinion, real estate prices have more or less bottomed out in certain segments, and a growing number of lucrative buying opportunities for real estate investors like GTC are emerging as a result.”
Zsolt Farkas, Chief Strategy Officer of GTC, said: “By acquiring the Peach Property portfolio, we seized an opportunity to enter Germany’s residential real estate market while also expanding our real estate portfolio further and diversifying it in a pinpoint approach. With BF.real estate finance on board, we have a financing advisor on the ground who is thoroughly familiar with the market and who understands our needs. We look forward to further collaboration with BF.real estate finance.”
Image source - BF.real estate.
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