Savills Investment Management has broadened its real estate investment offerings with the acquisition of an initial 25% stake in a commercial real estate debt investment adviser.
The €16.2bn investment manager said it acquired the initial stake in DRC Capital with an option to buy the remaining 75% in 2021. No financial details were disclosed.
DRC Capital was founded in 2012 by Dale Lattanzio, Rob Clayton and Cyrus Korat. It currently has assets under management of £2.0bn across a range of senior debt, high yield and whole loan products.
The acquisition will allow Savills IM to broaden its investment proposition to include a range of debt lending strategies in order to better service clients, it said.
Nick Cooper, the chairman of Savills IM, said: “With the benefit of regular income and the borrower’s equity cushion, debt is often seen as an attractive alternative to direct equity investment.
”With Savills IM primarily adopting an income style investing approach we believe that the investment fundamentals of debt investing make it attractive to offer both strategies throughout the whole cycle.”