German investor Deka Immobilien said on Tuesday that its Deka Realkredit Klassik debt fund has acquired a senior €65 mln tranche of the €625 mln loan provided by DekaBank and other lenders to finance the purchase of the Dundrum Town Centre (DTC), Ireland's largest shopping centre.
Located in the Greater Dublin area, the scheme provides over 140,000 m2 of space and 3,135 parking places. Built in 2005, the asset is almost fully leased under long-term leases to 160 tenants.
The transaction benefits Deka Realkredit Klassik by providing a higher net margin for a similar level of risk compared to Germany and France, Deka said.
The €620 mln fund was launched in 2009 as the first debt fund to be established under German investment law. The vehicle only acquires first ranking tranches of loans for existing commercial real estate. DekaBank has commited to holding a subordinate tranche equal to at least 50% of the fund's share in the loans.