The “Deka Realkredit Klassik” debt fund has acquired a senior €10 million tranche of a real estate loan from DekaBank. The tranche is part of the financing provided by DekaBank as the sole arranger for the purchase of the “Galleria Borromea” shopping centre in Milan by Europa Capital’s pan-European investment fund, Europa Fund IV.
The premium two-storey shopping centre was built in 2011 and has 18,270 m² of leasable retail space and 1,508 car parking spaces. It is almost fully leased and offers good access to the transport network. The rental space is currently divided into small areas, with 88 retail units.
The investment is another example of fund management’s strategy of quickly taking advantage of attractive market opportunities for “Deka Realkredit Klassik”. The Milan region has one of the strongest regional economies in Europe, and a per capita GDP that is among the highest in Europe.
“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 investment fund’s share until repayment of the loan. “Deka Realkredit Klassik” has fund assets amounting to approximately €470 million (as at 31 December 2014). Independent rating agency Scope rated the fund management of Deka Realkredit Klassik AA+ or very good.
Source: Dekabank
