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DRC SIM raises €600m for fourth European RE debt vehicle

The UK investment manager has held a final close for its latest real estate debt offering.

  • Fund: DRC European Real Estate Debt Fund IV
  • Amount raised: €600 million
  • Target size: €600 million
  • Stage of fundraising: Final close
  • Final close date: February 2022
  • Time on the road: Two years; six months

DRC Savills Investment Management has held a final close for its fourth fund in its high yield debt strategy; European Real Estate Debt IV, according to a press release from the British investment manager.

The fund, which launched in August 2019, successfully reached its target fundraise of €600 million. ERED IV attracted 16 institutional investors, with six of those new to DRC SIM. Capital commitments came from Asia, the US, the Middle East and Europe.

DRC SIM is the real estate debt financing arm of Savills Investment Management. ERED IV is the first fund in its flagship high yield debt series to offer investors the opportunity to commit capital in either GBP or euros.

ERED IV has invested more than 50 percent of its available capital and will continue to deploy capital across all major European territories including the UK, Netherlands, Germany, France, Spain and Italy. The fund ensures strong asset class diversification with investments in most real estate asset sectors, including industrial, logistics, multifamily/residential, student accommodation, office, food retail and hotels.