UPC II is a whole loan fund focused on investing in senior secured real estate loans across the real estate value chain in the Nordics, specifically Sweden, Denmark and Finland, as well as Germany. The fund’s investment strategy is designed to complement existing financing offerings in its target markets while serving growing demand for alternative, flexible financing solutions.

“The first close for UPC II reflects continued investor interest in our approach to real estate credit and the opportunities we see across the Nordics and Germany. By combining local market access with disciplined underwriting and active loan management, we believe Urban Partners’ credit team is well positioned to provide flexible financing solutions in markets where traditional lending capacity has become more constrained. Alternative credit has an important role to play in today’s market, and UPC II is intended to build on that focus,” says Jens Stender, Co-CEO of Urban Partners.

With approximately EUR 25 billion in assets under management, Urban Partners is a leading European urban investor. The credit platform leverages the firm’s long-standing local market presence and knowledge across its core geographies to support sourcing, diligence and ongoing loan management, ensuring a personalised, hands-on approach to each investment throughout the loan lifecycle.

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

The investors participating in the EUR 200 million first close are Industriens Pension and Lægernes Pension, two leading Danish institutional pension funds, reflecting interest from long-term institutional investors in Urban Partners’ credit approach. Fundraising for UPC II is ongoing, with Urban Partners expecting further closes in due course.

“This milestone reinforces the strength of our credit platform – combining disciplined underwriting, local insight and an experienced team with longstanding local presence and deep networks in all target markets. Through UPC II, we will continue to back high-quality sponsors bringing forward sustainable urban projects, aiming to contribute positively to urban environments while seeking to deliver attractive risk-adjusted returns for our investors,” says Emanuele Bena, Head of Credit, Urban Partners.

Urban Partners' previous credit fund has invested across mezzanine and whole loan strategies, establishing the firm's offering in alternative real estate financing solutions.