Deka debt fund acquires share of €678m loan for London's HSBC Tower

DekaBank’s debt fund Deka Realkredit Klassik has acquired a €20 mln tranche of the €678 mln loan funding the purchase of the HSBC Tower in London.

The 1.1 million m2 building, London’’s largest tower, was bought by the Qatar Investment Authority (QIA) last year with debt financing provided by Lloyds Bank, Qatar National Bank and DekaBank in the form of a five-year senior loan.

In a statement, DekaBank said the sustainable loan interest service and low loan-to-value ratio reflected the conservative investment strategy of Deka Realkredit Klassik and made it an ‘attractive investment’ for its portfolio. The property, which serves as HSBC’s international headquarters, is fully leased to the bank until May 2027.

Deka Realkredit Klassik was the first debt fund to be established under German investment law when it was launched in 2009. The fund acquires first-ranking tranches of commercial real estate loans and had net assets of around €540 mln at end-December 2015.