Savills IM’s real estate debt specialist DRC Savills Investment Management (DRC SIM) has raised over €200 mln for its new Pan-European Whole Loan Fund.
The latest addition to the Whole Loan fund series merges its UK and European lending programs into a unified offering accessible to investors in both GBP and EUR.
Attracting commitments from seven institutional investors across North America, Europe, and Asia, the fund underscores the appeal of DRC SIM’s lending strategy and its expertise in sourcing and investing in European real estate-backed loans.
The fund will focus on providing loans to leading developers for the acquisition and capital expenditure-driven enhancement of real estate assets across Europe. DRC SIM will address a critical market gap by targeting property improvement projects that traditional lenders often overlook. These projects are vital for creating valuable core assets.
Leveraging recent price corrections and the favourable investment climate, DRC SIM anticipates strong credit performance and attractive risk-adjusted returns for investors.
Dale Lattanzio, managing partner at DRC Savills IM, commented: ‘We are pleased to see strong institutional interest in our Pan-European Whole Loan Fund, reflecting the continued demand for tailored financing solutions across Europe. In the current market, many traditional lenders are unable to meet the needs of sponsors seeking to enhance real estate through capital expenditure. Our long track record and the ongoing supply-demand imbalance position us to deliver strong, risk-adjusted returns for our investors. We remain confident in the fund’s ability to meet its objectives and support key lending opportunities in the months ahead.’
Viola van der Bosch, director Business Development at Savills IM, added: ‘Institutional investors are increasingly familiar with real estate debt and its positive contribution to their portfolio diversification. Given the current market conditions - bottlenecks on the financing side on the one hand, and an increased need for capital and investment on the other - the demand for real estate debt is growing steadily. In addition to the large number of financing opportunities, the interest of institutional investors in participating in this growing market is also increasing. High demand for our products also comes from Germany.’
DRC SIM’s Pan-European Whole Loan Fund has already made two loan investments and is projected to allocate a substantial portion of its initial capital by the end of 2024.
