The partnership will meet the demand of more flexible and tailored financings from borrowers, providing significant capital support for acquisitions and refinancings across all real estate asset classes. These financing solutions serve as an alternative to traditional bank lending, which historically dominated this market but has decreased as banks face higher regulatory burdens, thus improving the availability of loans.
As a first significant milestone, Castlelake and Niam Credit are pleased to announce the successful closing of a transaction involving the financing of a portfolio of over 30 prime properties situated in central Oslo. The portfolio includes a mix of residential, commercial and medium-stay assets. Castlelake and Niam Credit provided senior secured financing facility of NOK 1.9 billion.
"The partnership with Castlelake represents Niam Credit's first joint venture and we are thrilled to combine our local market expertise with their global reach," said Pontus Sundin, CEO of Niam Credit. "We are also excited to announce our first joint project in Oslo that demonstrates our ability to support leading sponsors with substantial capital and tailored financing structures. We believe this transaction will provide a stable foundation as the Norwegian lending market has experienced difficulties during the last years."
"Our partnership with the Niam Credit team will provide critical financing solutions tailored specifically to the needs of the Nordic market," said Eduardo D'Alessandro, Partner at Castlelake. "This venture reflects our relationship-oriented approach to the European real estate market and commitment to providing investors with exposure to compelling opportunities across regions."
Castlelake has been active in asset-based opportunities across Europe since 2006, having both acquired assets and provided asset-based private credit solutions. The firm has invested more than EUR 7.2 billion and acquired or financed more than 8,000 assets across 18 European countries since that time.