Reinsurer's investment arm launches new debt fund to drive sustainable investments

Reinsurer’s investment arm launches new debt fund to drive sustainable investments | Insurance Business Asia

Reinsurance

Reinsurer’s investment arm launches new debt fund to drive sustainable investments

It targets renovation and energy-efficient projects

Reinsurance

By
Kenneth Araullo

SCOR Investment Partners, the asset management subsidiary of reinsurer SCOR Group, has announced the launch of SCOR Real Estate Loans V, the fifth iteration in its series of senior value-add debt funds.

The new debt fund aims to capitalize on market shifts and address the energy transition within the real estate sector. This is driven by European regulatory changes and increased demand for new or restructured assets that meet certification standards. The fund seeks to ensure the ongoing functionality of assets through strategic investments.

This new fund offers an attractive risk/return profile for investors by taking advantage of favorable lending conditions in the real estate debt market. It will finance projects in major European cities, utilizing a multi-sector approach, which includes top-tier, senior, and whole loans.

Aligned with SCOR Investment Partners’ focus on sustainable investment, SCOR said that the fund prioritizes enhancing energy efficiency in existing buildings. SCOR Real Estate Loans V is classified as an Article 9 fund under the European Sustainable Finance Disclosure Regulation (SFDR) and has received LuxFLAG ESG – Applicant Fund Status.

The fund, designed for institutional investors, has already secured a €100 million investment commitment from SCOR Group. The total fund size is expected to range between €500 million and €700 million.

Pierre Saeli, head of real estate loans at SCOR Investment Partners, noted that the launch is intended to address structural changes in the real estate market.

“This fund highlights our unique expertise in the value-add real estate debt market, which offers historically attractive returns,” Saeli said.

Louis Bourrousse (pictured above), CEO of SCOR Investment Partners, said that the firm’s real estate debt strategy continues to evolve with market trends.

“Our team has an in-depth knowledge of the sector which allows for a diversified portfolio construction. We are convinced that real estate debt is an ideal vehicle for investors looking to gain or regain exposure to the underlying real estate via levels of leverage that allow to absorb eventual fluctuations of the value of the assets,” Bourrousse said.

Over the last decade, SCOR Investment Partners has deployed €2.2 billion through 87 transactions, spanning senior, whole loan, junior, and mezzanine debt.

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