Savills Investment Management’s real estate debt financing arm has raised €600m for its fourth European property debt fund.
DRC Savills Investment Management (DRC SIM) said its European Real Estate Debt IV (ERED IV) high yield fund received the capital commitments from 16 institutional investors globally, six of which were new to DRC SIM.
DRC SIM said ERED IV has already invested over 50% 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’s target assets include industrial, logistics, multi-family residential, student accommodation, office, food retail and hotels that can produce a 10% to 12% gross internal rate of return.
Dale Lattanzio, managing partner at DRC Savills IM: “I am delighted to confirm that we have achieved the final close of ERED IV with over €600m in capital. This was achieved in spite of one of the most challenging markets for attracting new investors, that has existed for some time.”
Lattanzio said the fund is currently over 50% invested with 7 loans.
“We have already seen a significant increase in lending opportunities this year and with a number of opportunities already in the pipeline, we can expect to be significantly invested by year-end,” Lattanzio said.
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