SCOR Investment Partners, the fund management arm of French reinsuer SCOR, has raised €500m for its latest value-added real estate debt fund.
It has completed an initial closing for SCOR Real Estate Loans III, the latest in a series of funds that have invested €1.2bn in real estate debt markets since 2013.
Like its predecessors, the French fonds de prêt à l’économie (FPE) – or ‘loan fund for the economy’ – will lend to assets under development, restructuring or repositioning with a particular focus on environmental and welfare considerations.
SCOR Investment Partners has deployed more than €690m between 2014 and the first half of 2017 on construction projects and value-added assets undergoing repositioning or renovation.
The real estate loan team, headed by Gilles Castiel, has set a target of 21 months to deploy the capital raised and construct a balanced portfolio of 10 to 15 assets.
At least 65% of the gross commitments of the portfolio will be backed by buildings benefiting from environmental certification.
Several European institutional investors are investing alongside SCOR.
François de Varenne, chief executive of SCOR Investment Partners, said: “Value-added has become the trademark of SCOR Investment Partners’ real estate investment strategy.
“The commercial success of the SCOR Real Estate Loans III fund confirms the relevance of our positioning on the real estate loan market and the renewed appetite of institutional investors for placements offering a recurring yield, risk diversification with risk control and environmental considerations.”