DRC Capital holds £700m final close for first DRC U.K. Whole Loan Fund
DRC Capital, an independent investment adviser focusing on the commercial real estate debt sector in Europe, has held a final close for DRC U.K. Whole Loan Fund, with total commitments of £700 million ($896 million), hitting its hard cap and surpassing its target fund size of £500 million ($640 million).
DRC U.K. Whole Loan Fund raised fully discretionary capital from an investor base consisting primarily of public and private pension schemes based in the United Kingdom. The fund held its first close in December 2017 and received approved capital commitments totaling £700 million ($896 million) in under 10 months.
DRC Capital expects to deploy a significant portion of the fund’s capital by end of 2018.
DRC U.K. Whole Loan Fund has created a diversified portfolio of unlevered whole loan investments in major cities and strategic regional locations across the United Kingdom. The fund deploys capital across all major commercial real estate asset classes, focusing on value-add properties that create income and de-risk investments through proactive asset management by experienced real estate borrowers. All investments have a stable risk profile with full control over the underlying assets through first-ranking mortgage security.
Dale Lattanzio, managing partner for DRC Capital said, “This is the first in what will become a series of Whole Loan focused products in the DRC range of investment programs and is our seventh overall debt investment vehicle.”
Savills Investment Management, the international real estate investment manager, announced it had acquired an initial 25 percent stake in DRC Capital in July this year. The deal included an option to acquire the remaining 75 percent in 2021. 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.
