Scor IP raises €300M for fifth value-add real estate debt fund
What's the deal? SCOR Investment PartnersDealroom has a profile for this one. Try Dealroom →, the investment arm of French reinsurer Scor, has raised just over €300 million for Scor Real Estate Loans V, the fifth vintage of its value-add real estate debt strategy. The fund provides senior- and whole-loan financing for value-add projects, with a focus on energy-efficiency upgrades. It concentrates on France's Île-de-France region but also plans to lend in neighbouring countries.
Why now? The fund launched nearly two years ago with €100 million in seed funding from the reinsurer, reached a €260 million interim close in March, then brought in a new investor in July that pushed it past €300 million. It is targeting €500 million and remains in its investment period until the end of 2027.
What's the endgame? Scor IP runs only closed-end funds, raising from institutional investors and deploying over roughly three years before each fund goes into run-off. A sixth vintage will follow, likely towards the end of the fifth fund's investment period. "If we stop raising new ones we'd have no more activity," said Pierre Saeli, the manager's head of real estate loans.
By the numbers: The fifth fund has financed eight deals so far, with average loans of €20 million to €22 million and maturities of four to five years. Scor IP targets a gross internal rate of return of three-month Euribor plus 4%, with loan-to-cost around 60% on average.
Since setting up its real estate debt unit in 2013, Scor IP has completed 91 deals and invested about €2.3 billion across its strategies. The business manages roughly €900 million, within a €2.4 billion real asset financing platform. Scor IP as a whole oversees €27.6 billion, including €8.5 billion for third-party institutional investors.
The signal: As banks pulled back after the market turned in 2022, debt funds have stepped into mid-market, value-add lending that pairs capex-heavy asset work with energy-efficiency upgrades. Saeli points to Paris as the firm's conviction play, citing "a diversity you don't find in other European cities."
Read more: greenstreetnews.com
Image credit: Ami's
