DRC Savills Investment Management (“DRC SIM”) has held the final close of its fourth fund in DRC SIM’s high yield debt strategy; European Real Estate Debt IV (“ERED IV”). The Fund successfully reached its target fundraise of c.EUR600 million (cUSD680 million/GBP500 million). DRC SIM is the real estate debt financing arm of Savills Investment Management, the EUR25 billion global investment management platform of Savills plc (LSE: SVS).
The Fund has successfully closed sixteen institutional investors, allocating from their real estate and fixed-income allocations. Six of these investors were new to DRC SIM with capital commitments coming from several global locations including Asia, the U.S., the Middle East and Europe.
ERED IV is the first fund in DRC SIM’s flagship high yield debt series to offer investors the opportunity to commit capital in either GBP or EUR.
ERED IV has already invested over fifty percent of its available capital and will continue to deploy capital across all major European jurisdictions including the UK, Netherlands, Germany, France, Spain, and Italy. The Fund ensures strong asset class diversification with investments in most core, liquid assets classes including Industrial, Logistics, Multi-family Residential, Student Accommodation, Office, Food Retail and Hotels.
The Fund focusses on providing strong income-based returns for investors with a Gross IRR range of 10.0 per cent-12.0 per cent with consistent quarterly cash distributions to investors.
New investments made to date include newly originated mezzanine debt, senior loans and whole loans. The Fund aims to create diversification across regions, asset class, loan type and number of investments.
DRC SIM is a market leading commercial real estate debt platform dedicated to lending across the capital structure in the UK and Western Europe and was one of the first non-bank lenders in the European debt space to emerge following the Global Financial Crisis. The platform has one of the largest dedicated CRE lending teams in Europe and has originated over 150 loans in the mid-market space across its High Yield, Whole Loan and Senior Core Plus debt strategies.
Source: savillsim.com on the 15th of February
https://www.savillsim.com/2022/drc-savills-im-holds-final-close-of-its-fourth-pan.aspx