Urban Partners expands its European real estate credit platform

Urban Partners has completed the first close of Urban Partners Credit II, its latest real estate credit fund, marking a significant milestone in the expansion of its European credit platform. 

Urban Partners central Copenhagen mixed use asset

UPC II is the firm’s second dedicated real estate credit vehicle and builds on more than two decades of real estate investing across Europe.

UPC II is a whole‑loan fund focused on senior secured real estate lending across the Nordics, specifically Sweden, Denmark and Finland - as well as Germany. The strategy is designed to complement existing financing options in these markets and meet growing demand for alternative, flexible funding solutions as traditional lending capacity becomes more constrained.

Jens Stender, Co‑CEO of Urban Partners, said the first close reflects sustained investor interest in the firm’s credit approach and the opportunities emerging across the Nordics and Germany. He noted that combining local market access with disciplined underwriting and active loan management positions the credit team to provide flexible financing in a market where alternative credit is playing an increasingly important role.

Urban Partners manages approximately €25 billion in assets and leverages its long‑standing local presence across core geographies to support sourcing, diligence and loan management. The firm’s credit platform emphasises hands-on oversight throughout the loan lifecycle.

In a market shaped by increased regulation and macroeconomic uncertainty, UPC II aims to address the structural funding gap facing mid‑market sponsors and developers. The fund will focus on defensive sectors supported by long‑term tailwinds, including residential, logistics and social infrastructure, with selective exposure to other asset classes. A key priority will be financing brown‑to‑green transitions. UPC II is classified as SFDR Article 8 and targets at least 80% of investments aligned with the CRREM 1.5°C pathway.

The €200 million first close was backed by Industriens Pension and Lægernes Pension, two leading Danish institutional investors. Fundraising for UPC II is ongoing, with further closes expected.

Emanuele Bena, Partner and Head of Credit at Urban Partners, said the milestone reinforces the strength of the firm’s credit platform, combining disciplined underwriting, local insight and an experienced team with deep networks across target markets. He added that UPC II will continue to support high‑quality sponsors delivering sustainable urban projects while aiming to generate attractive risk‑adjusted returns.

Urban Partners’ previous credit fund invested across mezzanine and whole‑loan strategies, establishing the firm’s position in alternative real estate financing.