The real estate debt financing arm of Savills Investment Management has raised €600 million for its fourth European real estate debt fund.
DRC Savills Investment Management (DRC SIM) said its high yield fund European Real Estate Debt IV (ERED IV) received capital commitments from 16 institutional investors globally, six of whom were new to DRC SIM.
DRC SIM said that ERED IV has already invested over 50% of its available capital and will continue to deploy capital in all major European jurisdictions, including the UK, the Netherlands, Germany, France, Spain and Italy.
The fund‘s target assets include industrial, logistics, multi-family residential, student residences, offices, food retail and hotels that can produce a gross internal rate of return of 10% to 12%.
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 €600 million in capital. This was achieved despite having one of the toughest markets to attract new investors, which has been around for some time.
Lattanzio said the fund is currently over 50% invested with 7 loans.
“We have already seen a significant increase in loan opportunities this year and with a number of opportunities already underway, we can expect to be invested in significantly by the end of the year,” Lattanzio said. .
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