DekaBank finances Dubai investment bank’s entry into German logistics

The German lender has provided a €94m, five-year loan at 65% LTV to finance Rasmala’s purchase of assets including an Amazon distribution hub.

DekaBank has written a €94 million senior debt facility to support Dubai-based Rasmala Investment Bank’s entry into the German logistics property market, including the purchase of Amazon’s new logistics centre in Dortmund.

The loan, understood to have a loan-to-value ratio of 65 percent and a term of five years, will finance the acquisition of three newly built assets in the logistics park of Westfalenhütte in Dortmund.

“This transaction reflects the type of lending that DekaBank wishes to mainly focus on in Germany – that being to primarily let core assets to experienced sponsors. We are very much focused on growing our loan book with similar financings in 2018,” said Amar Latif, head of origination for DekaBank’s German platform.

This month, Rasmala announced the acquisition of two assets in Germany for €154 million. The first facility is a major new Amazon logistics centre spanning 88,000 square metres, acquired for €121 million. Rasmala simultaneously acquired a second facility, a €33 million logistics centre let to a subsidiary of Decathlon, the sports goods retailer.

These acquisitions add to Rasmala’s portfolio of investments in the logistics sector, which looks set to benefit from the continued growth of e-commerce. In March 2017, Rasmala purchased for £61 million (€70 million) Amazon’s biggest UK fulfilment and distribution centre, which covers 1 million square feet, in Dunfermline, Scotland.

The latest acquisitions of logistics assets demonstrate Rasmala’s “appetite for stable income-yielding assets”, said Zak Hydari, the group’s chief executive.

“Well-sited logistics centres let to the right tenants have become a critically important part of any large real estate portfolio,” he added.

Rasmala has said it is planning to invest $1 billion in logistics assets, with a focus on warehousing facilities for e-commerce platforms.