Borrower Overview
 

TriLinc has provided financing to a Mall Operator based in Split, Croatia. The Mall opened in February 2016 and is strategically located in the center of Split, the second largest city in Croatia and a popular tourist destination in the summer. Croatia has the third highest unemployment rate in the European Union and Split has the seventh highest unemployment rate across Croatian cities. With 95% expected occupancy in 2019, 1,600 total employees are projected to be employed by mall tenants. Of the Mall’s tenants, 43% are locally owned businesses and 30% are franchises (some of which are locally owned).

Additionally, the Mall is the only commercial facility in Croatia to be granted a Class A Energy Efficiency Certificate. The Mall uses 100% LED lighting to decrease energy consumption and was built with skylights that allow for large amounts of sunlight to enter the facility during the day. Furthermore, the Mall is equipped with a 750 m3 rainwater collection tank for watering the vegetation on the property. TriLinc’s financing will be used to complete construction for the following projects: fit-out of vacant tenant spaces, fit-out of the on-site cinema, and completion of road access to the main highway, which will ultimately drive traffic to the Mall.

Market Overview

Croatia is classified as an upper middle-income country by the World Bank.¹ Although the country has averaged a GDP growth rate of approximately -0.2% between 2010 and 2016 due to an economic recession, the country’s average GDP has risen to 2.3% between 2015 and 2016.¹ Croatia’s main exports are concentrated in transport equipment, machinery, textiles, chemicals, foodstuffs, and fuels.² Conversely, the country’s main imports are focused in machinery, transport and electrical equipment, chemicals, fuels, lubricants, and foodstuffs.²

Croatia meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.³ Ranked 14th for its Ease of Doing Business in Europe and Central Asia by the World Bank,⁴ and as the 29th largest economy in Europe and Central Asia with a 2016 GDP of $50.7 million,¹ the country benefitted from an estimated $879.7 billion in net foreign direct investment that flowed into the Europe and Central Asia region in 2016.⁵ Europe and Central Asia had a regional GDP growth of 1.5% in 2016, which is projected to strengthen to 2.8% by 2019.⁶

Additional Sustainability & Impact Highlights

• The Mall Operator provides store employees with free parking, as well as reduced pricing for monthly bus ticket fare.
• The Mall construction has revitalized and urbanized the entire zone, bringing about numerous benefits for the local community through enhanced infrastructure, including new access roads, public transportation, and waste water infrastructure.

¹The World Bank, World Development Indicators Database, Croatia, 2017. ²CIA, The World Factbook, 2017: Croatia. ³There is no assurance that our investment in this company or this market will be successful. ⁴The World Bank, Ease of Doing Business, Europe and Central Asia, 2018. ⁵The World Bank, Data, Europe and Central Asia, 2016. ⁶The World Bank, Global Economic Prospects, June 2017.

The above information is as of the initial date of investment: January 22, 2018.

RISK FACTORS
There is no guarantee that TriLinc’s investment strategy will be successful. Investment in a non-listed LLC involves significant risks including but not limited to: ownership is restricted; no secondary market; limitation on liquidity, transfer and redemption of ownership interest; distributions made may not come from income and, if so, will reduce the returns, are not guaranteed and are subject to management discretion. TriLinc selects investments and conducts operations on behalf of its clients, and will face conflicts of interest. Investment with TriLinc is not suitable for all investors. Securities Offered through CommonGood Securities, LLC, a member of FINRA and SIPC.

An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.

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