Nordic real estate investor NREP has entered the credit market with the acquisition of a real estate credit specialist business from M3 Capital Partners.

Established in 2013, M3’s Flins Capital Partners is focused on the German real estate market with over €1bn in assets under management.

The credit business has three funds that invest in mezzanine loans and whole loans for prime real estate assets across Germany’s largest cities. New strategies due to launch in the new year include a fund focused on green and sustainable loans and a fund exclusively focused on whole loans.

NREP said it will initially acquire a 49% minority interest in M3’s real estate credit business. Following an extended transition phase and the full integration of M3’s real estate credit team into NREP’s business, the remaining stake will be acquired by early 2024, providing NREP with full control.

The agreement will increase NREP’s assets under management to €14bbn.

Claus Mathisen, CEO of NREP, said: “This transaction marks an important milestone for NREP in our ongoing efforts to solve challenges in the urban eco-system across geographies.”

Mathisen said, following NREP’s entry into Poland, this latest expansion into Germany with a focus on green financing solutions further strengthens the firm’s non-Nordic footprint along with delivering on its plan to offer clients exposure to a diversified range of real estate investment products.

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