Scor Investment Partners has raised €260m at the interim closing of Scor Real Estate Loans V, the fifth vintage of its value-add real estate debt strategy, launched in 2013.
Scor Real Estate Loans V, in which the Scor Group is an anchor investor, has attracted capital from both long-standing and new institutional investors, the manager said.
Scor Investment Partners said this reflects the growing appetite of institutional investors for real estate debt, and in particular for the value-add segment, adding that fundraising is ongoing, with a target of €500m.
The fund has already financed four projects across student housing, life sciences and office assets. For three of the transactions, Scor Investment Partners acted as sole senior lender.
Pierre Saeli, head of real estate loans at Scor Investment Partners, said: “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, said: “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 internal rate of return] of around 6%.”
Over the past decade, Scor Investment Partners’ real estate debt strategy has deployed €2.3bn across 91 transactions, covering a broad range of debt instruments, including senior loans, whole loans, junior loans and mezzanine financing.
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