DRC Savills Investment Management 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 €600 mln, through 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 US, the Middle East and Europe.
Dale Lattanzio, managing partner at DRC Savills IM, said: 'I am delighted to confirm that we have achieved the final close of ERED IV with over €600 mln in capital.
'This was achieved in spite of one of the most challenging markets for attracting new investors, that has existed for some time.
'This is our first fund with multiple currency offerings in both GBP and Euros and will lead to further innovations in currency offerings as we move forward.
'The fund is currently over 50% invested with seven loans forming an attractive income base for our investors. 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.'
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 Euros.
It 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 in most core, liquid asset classes.
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.
