DRC Savills Investment Management has formed a joint venture with Quadrant Real Estate Advisors to launch a US-focused commercial real estate debt investment business, marking the first time the London-based manager is targeting the debt segment of the market.
The joint venture will be majority-owned by DRC Savills and will bring together the expertise of both firms, said Dale Lattanzio, managing partner.
DRC Savills, which was founded in 2012 by Lattanzio and partners Rob Clayton and Cyrus Korat, has roughly £2 billion in assets under management in a portfolio that includes senior debt, high yield and whole loan products. Atlanta-based Quadrant, owned by Kurt Wright, Jessica Eggins and Walt Huggins, was formed in 2006 and manages a portfolio of commercial real estate debt investments for institutions.
“[The joint venture] will allow our investors to take advantage of the deep combined expertise of both parties and the favorable market conditions for alternative lenders in the US,” Lattanzio added.
Alex Jeffrey, the chief executive of Savills IM, noted the US real estate debt market has increased in significance and demand over the past few years. The firm has expanded its debt platform in Europe and Australia during that time and this venture is the next logical step.
“The US is a strategic market for us and to be able to enter through our debt investment business represents a compelling opportunity,” Jeffrey added.