Deka fund hits €400m

The Deka Realkredit Klassik fund has purchased a senior slice of the debt used to buy Parisian office building Tour Prism.

Credit fund Deka Realkredit Klassik increased its assets to €400 million, after purchasing a €30 million senior tranche of commercial real estate debt from Frankfurt-headquartered DekaBank.

The latest investment by the fund is the senior slice of a €79 million financing round that DekaBank arranged for investor Invesco Real Estate for its acquisition of an office building in Paris, the firm said in a statement.

Tour Prism was built in 1996 and modernised in 2011. The office building is located in La Defense business district and is fully leased.

Deka Realkredit Klassik was launched in 2009, becoming the first credit fund under German investment law. The fund only buys senior commercial real estate debt and DekaBank is obliged to hold a junior tranche of at least 50 percent of the loan until it is paid off.

The fund is managed by Deka Immobilien Investment, a subsidiary of DekaBank, on behalf of institutional investors, mostly comprised of German Sparkassen (savings banks).

The number of loans in the fund backed by buildings in France now amounts to eleven in total.