Urban Partners has completed the first closing of its latest real estate credit fund, 'Urban Partners Credit II' (UPC II). This fund represents the company's second specialised real estate credit fund, expanding activities that have existed in the European real estate market for over two decades. The objective of UPC II is to invest in senior secured loans placed across the entire real estate value chain in the Nordic countries – particularly Sweden, Denmark, and Finland – as well as in Germany.
The fund's investment strategy aims to complement existing financing offerings in the identified target markets and to meet the increasing demand for alternative, flexible financing solutions. In the first fundraising phase, 200 million Euros in capital was raised. Investors in this phase include the two Danish pension funds Industriens Pension and Lægernes Pension, highlighting the interest of long-term oriented institutional investors in this credit strategy. Urban Partners is continuing to raise funds for UPC II and expects further closings shortly.
Strategic Positioning in the Current Market Environment
Jens Stender, Co-CEO of Urban Partners, emphasised that the first closing of UPC II underscores continued investor interest in the real estate credit approach and in the opportunities in the aforementioned target markets. He highlighted that the Urban Partners Credit team is in an excellent position to offer flexible financing solutions in markets where the capacities of traditional lenders are increasingly limited, thanks to a combination of local market access, disciplined credit assessment, and active credit management. Alternative credit financing is of substantial importance in the current market environment, and with UPC II, Urban Partners aims to expand its commitment in this area.
The fund addresses a structural financing gap in the mid-market segment, which is relevant in the current market environment with increasing regulation and macroeconomic uncertainty. Urban Partners, as a leading European investor in urban development with approximately 25 billion Euros in assets under management, benefits from its long-standing presence and deep knowledge in its core markets for the new credit platform. Each investment is individually and actively managed throughout the entire credit cycle.
Focus on Sustainable and Resilient Projects
UPC II focuses on comparatively resilient asset classes with long-term growth opportunities. These include residential, logistics, and social infrastructure, supplemented by selective engagements in other asset classes. A specific emphasis is placed on financing brown-to-green projects. The fund is classified as an Article 8 fund under SFDR and aims to align at least 80 percent of its investments with CRREM's 1.5°C pathway.
Emanuele Bena, Head of Credit at Urban Partners, stated that this milestone underscores the strength of the credit platform. It combines disciplined lending, local market knowledge, and an experienced team with extensive networks across all target markets. With UPC II, the company intends to continue collaborating with experienced project developers to advance sustainable urban development projects. The primary goal is to make a positive contribution to the development of urban spaces while generating attractive risk-adjusted returns for investors. Urban Partners' previous credit fund had already invested in mezzanine and whole loan strategies, thereby establishing the company's offering in alternative real estate financing solutions.
