Urban Partners raises more than €3.6 billion for new NREP fund
Investment group Urban Partners has raised more than €3.6 billion for one of the funds managed by NREP. The record amount and the number of investors have made it the largest European value-add real estate fund in history. The funds raised in the NSF V fund will be used for investments in Scandinavia and Central Europe.
The NSF V fund has received significantly more investor interest than forecast. This confirms its attractiveness and the confidence of institutions, the vast majority of which had already invested with NREP. The composition of investors was globally diversified and included mainly pension funds, insurance companies, sovereign wealth funds. The total amount raised in NSF V is €3.65 billion, while total investor demand exceeded €4.2 billion.
"The high ability to attract capital is a result of NREP's solid investment strategy, thorough knowledge of the industry and the success of previous funds in the company's portfolio. The NSF V fund enables efficient real estate investment with a focus on meeting clients' needs and decarbonization goals. We focus on sectors we know well, adapting to demographic trends and urban transformation," said Rune Kock, CEO of NREP.
Through the NSF V fund, NREP invests in rental properties, modern logistics facilities, nursing homes and offices. The company's priority is to invest capital in projects that are not only profitable, but also contribute to environmental improvements, including decarbonization. This business strategy reflects NREP's strong ESG values.
To date, the NSF V fund has invested in 33 projects including the Vällingby Centrum in Stockholm, a historic shopping center that is the cornerstone of the 15-minute city concept, and the Eteläesplanadi 2 office building in Helsinki, where NREP will carry out an ESG-focused retrofit.
Urban Partners manages €20 billion in assets. The investment group focuses its efforts on addressing the key challenges facing today's fast-growing cities. It seeks, among other things, to decarbonize, make real estate affordable, enhance public health, protect biodiversity and improve the quality of life in metropolitan areas. Urban Partners Group is made up of NREP (one of Europe's largest real estate investors), 2150 (a venture capital firm focused on innovation for green transformation), Luma Equity (a private equity investor backing companies whose activities contribute to decarbonization), and Velo Capital (a provider of green financial solutions, for real estate entities looking to accelerate their sustainable transformation).
Source: Urban Partners and ISBnews