Danish pension funds Industriens Pension and Lægernes Pension have backed the €200m first close of Urban Partners Credit II (UPC II), Urban Partners' latest real estate credit fund.

UPC II is a whole loan fund focused on investing in senior secured real estate loans across the real estate value chain in Sweden, Denmark, Finland, and Germany.

It is Urban Partners’ second dedicated real estate credit vehicle, with its first close described as a significant milestone for the firm’s expanding credit platform.

The fund’s investment strategy has been designed to complement existing financing offerings in its target markets while serving growing demand for alternative, flexible financing solutions.

Industriens Pension and Lægernes Pension were the two investors participating in the €200m first close, with fundraising for UPC II still ongoing and further closes are expected in “due course”.

UPC II aims to address the structural funding gap faced by experienced sponsors and developers in the mid-market space.

It focuses on defensive sectors, 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.

“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,” said Urban Partners co-CEO, Jens Stender.

“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.”

Urban Partners partner and head of credit, Emanuele Bena, added: “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.”

---