Trei Real Estate GmbH (Trei) just secured another cross-border financing arrangement from pbb Deutsche Pfandbriefbank AG (pbb). The loan of over €38m has a five-year maturity. The collateral provided to back the loan consists of ten retail parks of the Vendo Park brand in Poland, located in the towns of Chelm, Konin, Lapy, Lodz, Lubin, Milanówek, Minsk Mazowiecki, Nysa, Skierniewice and Swidnica. The financing arrangement provides follow-up financing for seven of these sites after the facility from another bank that had financed them so far was repaid in early November. Three of the Vendo Parks, which are new and just opened for business, have not previously been used as collateral.
Matthias Schultz, the CFO of Trei Real Estate, commented: “The cross-border financing arrangement enables us to release further equity which we will use for investments in Poland and the United States. It is not the first time pbb proved a reliable partner for us. In fact, the bank is one of our most important finance partners in Poland, having previously made long-term loans available to us in 2020 and 2023 toward the refinancing of certain retail properties.”
The new financing arrangement raises the company’s debt-to-equity ratio to around 38%. Matthias Schultz added: “We assume that we will reach a quota close to 40 percent by the end of the year. Our long-term goal remains to use debt-financing prudently and without exceeding a LTV ratio of 45% to 50%.”
Dieter Knittel, Head of CEE at pbb, said: “Trei has developed into a major client, and we are glad to be able to support the company in its expansion strategy once more. The Vendo Park brand has proven to be a retail trade concept that is fit for the future, making it an attractive financing base.”
Trei Real Estate has negotiated several large-scale debt funding arrangements lately. The last time the company borrowed was in the spring of 2024, when it took out c. €35.5m to finance property developments in Germany, Poland and the United States.
The development pipeline in Poland currently includes around 2,500 rental and ownership apartments, while around 2,000 rental apartments are under construction in the southeastern United States, and around 1,150 rental apartments are in Germany. In Poland, the company has also developed the aforementioned retail parks of the Vendo Park brand. Its portfolio currently consists of 39 Vendo Parks, with another two to open for business before the end of the year.
Image source - Pexels.
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