The fresh funds are split into two tranches: 13,8 million euros will mature in 2028, while the remaining 59,7 million euros will have to be repaid by 2030. The loan is secured by 61 retail properties in Poland that are let to the Biedronka retail chain. Most of the properties had previously been part of a long-term finance leasing structure, and are very well suited to serve as collateral because they are let to a retail company with impeccable credit ratings on long-term leases.
“Despite the currently difficult market cycle, we managed to conclude yet another cross-border financing arrangement. We are planning to use the funds primarily for our development activities”, comments Matthias Schultz, CFO of Trei Real Estate.
The financing arranged by pbb brings the company’s debt ratio up to 33 percent. “We are planning to take out further loans this year so that our LTV ratio will be around 40 percent by the end of 2023″, adds Matthias Schultz. “In the long term, we continue to aim for a maximum LTV of 50 percent. While borrowing costs have gone up significantly over the past year and a half, we have not revised our expansion strategy.”
“We are glad we were able to support Trei, one of the biggest portfolio owners of retail real estate in Poland, in the expansion of its activities on the Polish market once again. Given such a robust portfolio of discount supermarkets led to good conditions, we are willing and able to arrange financing deals in Central and Eastern Europe even in difficult market cycles”, adds Dieter Knittel, Head of CEE, RE Finance Intern. Clients, UK, CEE & USA at pbb.
The first time that Trei took out a cross-border loan from pbb was in 2020. The collateral provided at the time consisted of 40 Biedronka supermarkets in Poland. In addition, the company repeatedly signed large-volume facility agreements in the recent past. For instance, it borrowed around 40 million euros in December 2022 to refinance its retail parks in Poland. Just a few months later, in March 2023, Trei secured a credit line of over 43 million euros.