Houlihan Lokey Advises GTC
Houlihan Lokey is pleased to announce that Globe Trade Centre S.A. (GTC) has successfully structured financing for the acquisition of a €448 million residential real estate portfolio in Germany previously held by Peach Property Group AG. The transaction involves the acquisition of 5,165 residential units and 47 commercial spaces in Kaiserslautern, Helmstedt, and Heidenheim.
GTC, a leading real estate investor and developer, is known for its strong presence in Central, Eastern, and Southern Europe. This acquisition marks a significant step in GTC’s strategy to diversify into the German residential market, positioning the company to benefit from strong market fundamentals, including economic stability and increasing housing demand in Germany.
To fund the transaction, GTC secured a combination of financing, comprising (i) the rollover of €185 million in existing mortgage loans on a propco level, (ii) the raising of a €190 million senior secured loan from two debt funds, and (iii) the issuance of €42 million in participating notes that qualify as equity according to IFRS and rating agencies methodologies. As a result, Fitch confirmed GTC’s BB+ rating, while the structure provides the financial flexibility needed for future growth to further develop the residential portfolio.
Houlihan Lokey acted as the financial advisor for the raising and structuring of the acquisition financing, advising GTC on key commercial aspects of the financing transaction. Houlihan Lokey’s role involved structuring a tailored financing solution that aligned with GTC’s long-term strategy, enabling the company to enter the German residential market with a robust financial foundation. Through this transaction, GTC has expanded its portfolio and strengthened its position as a player in the European real estate market.