The internationally active property developer has taken out a loan of €38M from Berliner Sparkasse to finance the development of a mixed residential and retail building in Berlin.
The building Trei is developing on Winsstrasse in the Prenzlauer Berg district of Berlin divides into about 187 rental apartments (11,300sq m) on six upper floors and about 2,700sq m of commercial floor area on the ground floor that will be occupied by an Edeka supermarket, among other units.
The development is scheduled for completion by the end of 2022. It is the second development – after the recently completed mixed residential/retail building on Pappelallee, also in Berlin – that involves the demolition and overbuilding of a Cold-War-era supermarket in East Berlin by Trei.
Pepijn Morshuis, CEO of Trei Real Estate, commented: “Obtaining financing for Winsstrasse is part of the funding strategy for our large-scale residential developments in Germany. The idea in each case is to borrow half of the investment total – using equity capital to finance the land acquisition, the planning and development costs while using debt funding to cover the construction costs. The reason we always aim for a combination of construction and long-term financing is that we intend to keep these assets in our portfolio.”
Overall, Trei is currently developing eight residential projects in Germany, three of them in Berlin.
Image Credit: Dipl.Ing. (FH) Tomislav Ankovic, pixellab. (Gmbh).