SCOR Real Estate Loans V secures €260m for value-add debt

SCOR Investment Partners has completed an interim closing for its SCOR Real Estate Loans V fund, raising €260 mln.

Pierre Saeli

This fund, the fifth of its kind since 2013, focuses on financing the renovation, restructuring, repositioning, and development of real estate assets.

With SCOR Group as an anchor investor, the fund has attracted both new and existing institutional investors. Fundraising is ongoing, with a target of €500 mln.

The raised capital is already being actively deployed, with four projects in student housing, life sciences, and office assets already financed. SCOR Investment Partners acts as the sole senior lender for three of these transactions. The fund has a strong and diverse investment pipeline, indicating a recovery in financing activity and rising real estate investment.

The fund aims to provide investors with an attractive risk-return profile, leveraging favourable market conditions for real estate debt lenders. It finances multi-sector projects in major European metropolitan areas through senior and whole loans.

The fund prioritises improving the energy efficiency of existing buildings. SCOR Real Estate Loans V is classified as an Article 9 fund under the European SFDR and has achieved LuxFLAG ESG – Applicant Fund Status.

Pierre Saeli, head of Real Estate Loans at SCOR Investment Partners, commented: “Investment volumes in the real estate market have started to increase again and, in our view, should continue to rise, supporting a strong pipeline of debt transactions. In addition, the structural trend towards higher ESG standards across all assets represents a powerful investment driver for value‑add strategies and is set to persist. This enables us to deploy capital efficiently while maintaining portfolio diversification.”

Alexandre Jaeglé, head of Business Development at SCOR Investment Partners, added: “Investors are returning to real estate, notably through debt strategies, which offer greater downside protection than equity. In the current market environment, we anticipate running yields above 5% on value‑add real estate debt and an IRR of around 6%.”

Over the last ten years, SCOR Investment Partners' real estate debt strategy has invested a total of €2.3 bn across 91 deals.