Deka Realkredit invests in London commercial premises

The German fund will take a senior slice of the £155 million loan backing 33 Holborn.

Debt fund Deka Realkredit Klassik has purchased a £26 million senior tranche of a £155 million commercial real estate loan provided by DekaBank. 

The facility backed the buyout of 33 Holborn, a nine-storey building in London’s mid-town, according to a statement from the firm.

The financing provides above-average cash flows, continued the statement, and the sole tenant of the building is supermarket chain Sainsbury’s.

Launched in 2009, Deka Realkredit Klassik, was the first debt fund established under German law. The fund targets senior debt backing completed commercial property. The fund has €400 million in assets and is controlled by German asset manager DekaBank, which in turn is owned by the country’s regional savings banks.