SCOR Investment Partners completes a EUR 260 million interim closing for its value-add real estate debt fund, SCOR Real Estate Loans V

Core Insights - SCOR Investment Partners has successfully completed an interim closing of EUR 260 million for its SCOR Real Estate Loans V fund, which focuses on value-add real estate debt strategies [1][2] Fund Overview - SCOR Real Estate Loans V is the fifth iteration of the fund, launched in 2013, aimed at financing renovation, restructuring, repositioning, or development of real estate assets [1] - The fund has a target size of EUR 500 million and has attracted both long-standing and new institutional investors, indicating a growing interest in real estate debt, particularly in the value-add segment [2] Investment Strategy - The capital raised allows for active deployment, with four projects already financed in sectors such as student housing, life sciences, and office assets, with SCOR acting as the sole senior lender in three of these transactions [3] - The fund is positioned to benefit from structural market trends, including European regulations and increasing demand for energy-efficient and certified assets [4] Market Conditions - The fund aims to provide an attractive risk-return profile, particularly benefiting from favorable market conditions for lenders in real estate debt, financing projects in major European metropolitan areas [5] - Investment volumes in the real estate market are on the rise, with expectations of yields above 5% on value-add real estate debt and an internal rate of return (IRR) of around 6% [7] Sustainable Investment Focus - In line with its sustainable investment philosophy, the fund targets improvements in energy efficiency of existing buildings and is classified as an Article 9 fund under the European Sustainable Finance Disclosure Regulation (SFDR) [6] Historical Performance - Over the past decade, SCOR Investment Partners has deployed EUR 2.3 billion across 91 transactions in its real estate debt strategy, utilizing a variety of debt instruments [7]