Institutional investors are returning to real estate debt for downside protection, with SCOR Investment Partners raising €260 million and targeting yields above 5% and IRR near 6%.
“Investors are returning to real estate, notably through debt strategies, which offer greater downside protection than equity,” said Alexandre Jaeglé, head of business development at SCOR Investment Partners. “In the current market environment, we anticipate running yields above 5% on value-add real estate debt and IRR of around 6%.”
The interim close relates to SCOR Real Estate Loans V, the fifth vintage of the firm’s value-add real estate debt strategy launched in 2013. The strategy has historically focused on financing renovation, restructuring, repositioning, and development projects across European real estate.
SCOR Real Estate Loans V has drawn commitments from both returning and new institutional investors, with the SCOR Group participating as anchor investor. The fund continues to raise capital toward a €500 million target, compared with an earlier target range of €500 million to €700 million disclosed at launch in October 2024.
The strategy is designed for institutional capital seeking exposure to real estate through debt instruments, including senior and whole loans, with a focus on projects in major European metropolitan areas. At launch, the fund secured a €100 million commitment from SCOR Group, aligning internal capital with third-party investors, according to earlier disclosures.
The €260 million raised has already been partially deployed across four transactions spanning student housing, life sciences, and office assets. SCOR Investment Partners acted as sole senior lender in three of the deals. The firm reported a diversified pipeline, supported by increasing financing activity and a pickup in real estate investment volumes.
“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,” said Pierre Saeli, head of real estate loans at SCOR Investment Partners.
The fund is classified as Article 9 under the Sustainable Finance Disclosure Regulation and has obtained LuxFLAG ESG – Applicant Fund Status. Its investments focus on improving the energy efficiency of existing buildings, in response to regulatory requirements and demand for certified assets across Europe.
The fundraising comes alongside continued institutional demand across SCOR Investment Partners’ platforms. The firm’s insurance-linked securities business has surpassed $5 billion in assets under management, reflecting investor appetite for alternative risk premia outside traditional reinsurance balance sheets, according to reporting in November 2025.
Within the broader SCOR Group, capital management measures include a renewed contingent capital program that can provide up to €300 million under specified conditions, supporting solvency and balance sheet flexibility, based on company disclosures.
Over the past decade, SCOR Investment Partners has deployed €2.3 billion across 91 transactions through its real estate debt strategy, covering senior loans, whole loans, junior loans, and mezzanine financing.
