DekaBank has completed the financing of Thames Court with a £61.875m, five-year loan. The all-in cost of finance was 3.75% for Korean investor Public Officials Benefit Association, which bought the grade A office building in the City of London from Apollo Real Estate for £165m.
The leverage on the deal is just under 40% and in terms of credit quality, the low debt capital per square foot made it attractive. The building is let to Dutch Bank Rabobank Group and Royal Bank of Canada, with a break option after five years, in line with the loan maturity.
Deka is waiting to sign off and agree terms on three other deals in the office and retail sectors. Its last deals were in January, when it provided £60m for Tishman Speyer’s £171m Eland House acquisition in Victoria; and £69.1m for Segro’s and Moorfield’s £314.7m purchase of the UK Logistics Fund.