Deka Realkredit buys slice of New York property loan

The private debt fund affiliate of German lender DekaBank has bought into a senior loan used to finance a property in Manhattan.

German credit fund Deka Realkredit Klassik has acquired a senior tranche of a commercial property loan from DekaBank today as part of an overall $360 million financing which DekaBank and German lender Helaba issued earlier to re-finance a New York building.

The tranche is valued at around $20 million of the $360 million.

The office building is located at 100 Park Ave. in midtown Manhattan and is close to Grand Central Station. It was thoroughly renovated five years ago.

The purchase of this tranche by Deka Realkredit Klassik represents a continuation of its strategy in financing commercial properties that meet several requirements, such as a strong capacity to meet principal repayments, good building quality and prime location.

Deka Realkredit Klassik was started in 2009 as the first credit fund under German investment law. The fund focuses on senior debt that relates to existing commercial property. With every prior-ranking tranche which Deka Realkredit Klassik acquires, DekaBank holds a junior tranche that equals 50 percent of the investment fund’s share until the loan is repayed. Deka Realkredit Klassik has fund assets of approximately €370 million.