Debt fund Deka Realkredit Klassik has acquired a senior tranche of a commercial property loan from DekaBank that helped finance the acquisition of a property on the Champs-Élysées in Paris.

Debt fund Deka Realkredit Klassik has acquired a senior tranche of a commercial property loan from DekaBank that helped finance the acquisition of a property on the Champs-Élysées in Paris.

The size of the fund's investment in the loan was not disclosed.

The tranche forms part of a financing facility which DekaBank and Helaba arranged for the acquisition of an office and commercial building in Paris. Completely renovated in 2005, the Haussmann-style property has a total area of 10,500 m2. Tenants include flagship stores such as sporting goods manufacturer Nike and fashion brand Tommy Hilfiger.

The financing in Paris represents a further investment by Deka Realkredit Klassik in a prime location of a European capital city. The fund's total portfolio now comprises 21 loans, eight of which relate to property in France.

Deka Realkredit Klassik was launched in 2009 as the first debt fund under German investment law. The investment fund exclusively buys senior debt relating to existing commercial property. For each prior-ranking tranche which Deka Realkredit Klassik acquires, DekaBank undertakes to hold a junior tranche equating to a minimum of 50% of the fund's fraction until repayment of the loan.

Deka Realkredit Klassik had fund assets amounting to approximately €370 mln at end-December 2013.