DRC Savills Investment Management raises €600m for high-yield debt strategy

DRC Savills Investment Management (DRC SIM), the real estate debt financing arm of Savills Investment Management, has completed a final close of its fourth fund in its high-yield debt strategy, European Real Estate Debt IV (ERED IV).

The fund hit its target with €600 million ($680 million) of capital commitments with backing from 16 institutional investors. The firm said six of these investors were new to DRC SIM, with capital commitments coming from Asia, the United States, the Middle East and Europe.

ERED IV will focus on most core, liquid assets classes including industrial, logistics, multifamily residential, student accommodation, office, food retail and hotels across all major European jurisdictions such as the United Kingdom, the Netherlands, Germany, France, Spain and Italy.

New investments made to date include newly originated mezzanine debt, senior loans and whole loans.

“This is our first fund with multiple currency offerings in both GBP an