Nordic real estate investor NREP entered the credit market with the acquisition of a company specializing in mortgage lending from M3 Capital Partners.
Established in 2013, M3’s Flins Capital Partners focuses on the German real estate market with more than € 1 billion in assets under management.
The credit business comprises three funds which invest in mezzanine loans and full loans for prime real estate assets in the largest cities of Germany. New strategies to be launched in the new year include a fund focused on green and sustainable loans and a fund exclusively focused on full loans.
NREP has announced its intention to first acquire a minority 49% stake in M3’s mortgage business. After a prolonged transition phase and the full integration of M3’s mortgage team into NREP’s business, the remaining stake will be acquired by early 2024, giving NREP full control.
The deal will bring NREP’s assets under management to € 14 billion.
Claus Mathisen, CEO of NREP, said: “This transaction marks an important milestone for NREP in our continued efforts to address urban ecosystem challenges across geographies.
Mathisen said that following NREP’s entry into Poland, this latest expansion into Germany with a focus on green finance solutions further strengthens the company’s non-Nordic footprint while realizing its plan to to provide clients with exposure to a diverse range of real estate investment products.
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