Deka Realkredit Klassik, a debt fund, has invested in the senior tranche of a commercial property loan granted by DekaBank. The tranche volume amounts to US $20 million (approx. €15 million). The loan is a component of all-in financing totalling $500 million (approx. €376 million), which HSBC and DekaBank are providing as arrangers jointly with two American banks to support refinancing and partly revitalisation of New York’s Empire State Building.
Originally constructed in 1931, the Empire State Building has been undergoing a comprehensive modernization since 2008. The property boasts total lettable floor space of some 260,000 m².
Deka Realkredit Klassik was launched in 2009 as the first debt fund under German investment law. The investment fund exclusively buys senior debt relating to existing commercial property. In respect of each prior-ranking tranche which Deka Realkredit Klassik acquires, DekaBank undertakes to hold a junior tranche equating to a minimum of 50% of the fund´s fraction until repayment of the loan. Deka Realkredit Klassik has fund assets amounting to approximately €370 million. The investment fund has bought and holds a total of 21 loans in its portfolio (as of 30 June 2013).