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Money Management

Savills Investment Management takes stake in real estate debt firm

Savills Investment Management acquired a 25% stake in commercial real estate debt investment adviser DRC Capital.

The deal also includes an option for Savills to acquire the remaining 75% of the firm in 2021. DRC is 100% owned by its management team, said a spokesman. Financial details were not disclosed.

DRC Capital was founded in 2012 and has arranged more than 2.6 billion ($3.4 billion) in debt investments. It has 2 billion in assets under management across senior debt, high-yield and whole loan strategies.

The spokesman said this is the first time that Savills IM will offer debt lending strategies. There will be no changes to the teams on either side, and new strategies will be jointly promoted.

Dale Lattanzio, a founder of DRC Capital, will join the Savills IM global executive committee. Members of Savills IM's senior leadership team also will be appointed to DRC's management committee. Details on other DRC Capital executives and strategies could not be learned by press time.

"DRC has been an innovator in the real estate debt space and has rapidly built an enviable position in a competitive environment," said Nick Cooper, chairman at Savills IM, in a news release. "The DRC team is highly regarded in the industry with an impressive track record and the combination with Savills Investment Management will enable us to provide our investors with product access to the entire real estate capital structure."

Savills IM has €16.2 billion ($19 billion) in assets under management.