Reinsurance company’s investment arm launches new bond fund to promote sustainable investments | Insurance Business Americas Reinsurance Reinsurance company’s investment arm launches new bond fund to promote sustainable investments
Targets renovation work and energy-efficient projects
reinsurance
Written by Kenneth Arauro
SCOR Investment Partners, the asset management subsidiary of reinsurer SCOR Group, announced the launch of SCOR Real Estate Loans V, the fifth installment in its senior value-added bond series.
The new bond fund aims to capitalize on market changes and address the energy transition within the real estate sector. This is being driven by regulatory changes in Europe and increasing demand for new or rebuilt assets that meet certification standards. The fund aims to ensure the continued functioning of its assets through strategic investments.
This new fund takes advantage of the favorable financing terms of the real estate bond market to offer investors an attractive risk/return profile. The company will finance projects in major European cities using a multi-sector approach, including first class loans, senior loans and overall loans.
In line with SCOR Investment Partners’ focus on sustainable investing, SCOR said the fund is prioritizing energy efficiency improvements in existing buildings. SCOR Real Estate Loans V is classified as a Chapter 9 fund under the European Sustainable Financial Disclosure Regulation (SFDR) and has achieved LuxFLAG ESG – Applicant Fund status.
The fund is designed for institutional investors and has already secured a €100 million investment commitment from SCOR Group. The total amount of the fund is expected to be in the range of €500 million to €700 million.
Pierre Saeli, Head of Real Estate Loans at SCOR Investment Partners, said the launch aims to address structural changes in the real estate market.
“This fund highlights our unique expertise in the value-added real estate debt market, which has historically offered attractive returns,” Saeli said.
Louis Bourse (pictured above), CEO of SCOR Investment Partners, said the company’s real estate debt strategy continues to evolve in line with market trends.
“Our team has deep sector knowledge that allows us to build a diversified portfolio. Real estate bonds provide exposure to the underlying real estate through a level of leverage that can absorb fluctuations in ultimate asset values. We believe it is an ideal vehicle for investors looking to gain or recover.”
Over the past 10 years, SCOR Investment Partners has deployed €2.2 billion through 87 transactions spanning senior debt, whole loans, junior debt and mezzanine debt.
What do you think about this story? Feel free to share your comments below.
Check out the latest news and events
Join our mailing list, it’s free!
