Savills IM offers:
- Pooled Funds: Providing clients with a range of strategies across investment styles, markets and sectors
- Separate Accounts: Developing strategies to deliver targeted investment returns within agreed risk tolerances
- Strategic Partnerships: Providing market access for single asset purchases or specific portfolio themes
- Asset Management: Acting as local operating partner for third party capital.
Our 30-year track record of investing on behalf of our clients is based on adhering to a core set of principles: buying well with stock selection; delivering returns through asset management; and maximising performance through efficient debt and tax structuring. This approach, our global platform and multi-disciplinary teams explains our consistent delivery of innovative and successful investment services.
We believe ‘hands on’ management coupled with in-depth local knowledge is the fundamental driver of real estate performance and our platform is built to deliver it via:
- An ‘on the ground’ capability with over 300 employees in 18 offices worldwide
- Access to and the backing of Savills Group, a leading real estate services firm, which provides us with detailed ‘real time’ knowledge of the markets where we invest
- A full range of services for our customers, ranging from transactions and deal sourcing to debt and tax structuring to asset and port- folio management.
Investment principles & strategy
The key elements underlying our investment philosophy are:
- Income is a key driver in generating long-term performance in property, providing a stable and significant proportion of total returns over the long term. Securing and increasing income is therefore vital
- An understanding of tenant requirements is fundamental to maintaining occupancy
- Property is a real asset that must be actively managed to deliver sustainable returns. Rigorous investment processes are crucial to successful implementation of our investment philosophy. Our process seeks to:
- Identify risks and opportunities at each stage of the process, from stock selection to asset management
- Analyse portfolios and assets against each fund or client’s risk return profile and investment objectives on a continual basis. This process is overseen by Kiran Patel, CIO and acting CEO, and Richard Lake, Global Head of Investment Risk, who act as ‘guardians’ of the investment process.
Strategic corporate development
In July we acquired a 25% stake in DRC Capital with an option to purchase the remaining 75% in 2021.
DRC is a leading provider of European debt for the commercial real estate industry. The addition of DRC is in line with Savills IM’s strategy of being able to offer investors a range of products to match their investment needs.
Investors are actively looking at a broader range of product types as to the best method of investing in the real estate sector. Real estate debt, with the benefit of regular income and the borrower’s equity cushion, is now seen as complementary to direct equity investment and as such the acquisition of DRC is an important acquisition to meet these client needs.