07/03/2018 | Press release | Distributed by Public on 07/03/2018 05:05
The 'Deka Realkredit Klassik' debt fund has acquired a senior EUR 65 million tranche of a commercial real estate loan from DekaBank. The tranche is part of the total financing of around EUR 625 million provided by DekaBank and others to finance the purchase of the 'Dundrum Town Centre' (DTC) shopping centre in the Greater Dublin area.
With more than 140,000 m² of space and 3,135 parking places, the DTC is the largest shopping centre in Ireland and includes, among other things, a multiplex cinema. The property was built in 2005, steadily modernised and is almost fully leased under long-term leases to 160 tenants. The property is in an easily accessible location eight kilometres south of the city centre of Dublin.
With this investment, fund management further broadened portfolio diversification in terms of both regions and sectors. Expansion of the portfolio in Ireland increased the euro share to 48 per cent and the retail share to 24 per cent. The transaction also benefited 'Deka Realkredit Klassik' by providing a higher net margin for a similar level of risk compared to Germany and France.
'Deka Realkredit Klassik' was launched in 2009 as the first debt fund established under German investment law. The Fund only acquires first ranking tranches of loans for existing commercial real estate. DekaBank commits to holding a subordinate tranche equal to at least 50 per cent of the Fund's share for all first ranking tranches purchased by 'Deka Realkredit Klassik'. 'Deka Realkredit Klassik' has net assets of around EUR 619 million (as at 31/05/2018). The independent Scope rating agency gives the management of 'Deka Realkredit Klassik' a rating of AA+ or 'very good'.