German real estate developer and asset manager Trei Real Estate has secured a credit line worth over €43 mln with cooperative bank Mainzer Volksbank.
The loan has a three-year maturity and is not tied to any particular goal.
Six plots of land in Germany, that were not previously mortgaged, were used for collateral.
The plots of lands are planned for residential development in the longer term and, after construction, the properties will remain in Trei’s proprietary portfolio.
The latest credit line comes after Trei Real Estate negotiated a €40 mln loan last December to fund eight retail parks of its Vendo Park brand in Poland.
Matthias Schultz, CFO of Trei Real Estate, commented: ‘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. 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% by the end of the year. Ultimately, we are aiming for a maximum LTV of 50%.’
Stefan Hackbart, generally authorised agent of Mainzer Volksbank, 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 Real Estate is currently developing about 6,000 residential units in Germany, Poland and the United States, of which 2,100 in Poland (8 developments) and 1,450 in Germany (12 developments).
The €200 mln retail development pipeline consists of retail parks of the Vendo Park brand in Poland.