Nrep makes first real estate investment in Germany

Nrep, an urban investor with €18 billion of assets under management, announces the continued extension of its impact into Northern European countries following its first real estate investment in Germany and the establishment of a dedicated team of eight initial employees. Two offices have been opened, in Frankfurt and Munich, completing the existing on-the-ground presence consisting of the German real estate credit specialist acquired by Nrep last year.

With a plan to invest c. €500 million over the next three years, Nrep will pursue opportunities mainly within the company’s two largest and longstanding real estate strategies, modern logistics and customer-centric rental housing, both of which have demographically driven demand characteristics and are structurally undersupplied with old stock, presenting an obvious need for more modern and sustainable buildings. There is a clear housing shortage throughout many of Germany’s largest cities, while the need for high-quality homes is rising. Within logistics, the supply-demand deficit is expected to continue as parcel shipment is forecast to grow above the historic trendline for the next few years.

Rune Kock, Real Estate CEO at Nrep, said: “Germany has Europe’s strongest economy and presents clear trends of urbanization, which makes it particularly receptive to Nrep’s expertise in improving the built environment of cities. We have capabilities to create more customer-oriented products and implement ESG initiatives more broadly, which has proved a successful approach when expanding into new Northern European territories.”

For its debut German investment, Nrep has entered a long-term joint venture with Artisa Group, a major Swiss real estate developer operating across European markets. The joint venture plans to deliver 5,000 co-living apartments by 2025, and the first investment is an acquisition of two co-living assets offering a total of 314 individual apartments. One of the assets located in proximity to the new business district Mediaspree in Berlin, will be DNGB Gold certified once completed in 2024. The second property comprises a standing office-to-residential conversion, which is currently undergoing light refurbishment whilst already being in operation, centrally located in Essen, within walking distance of the main train station.

The buildings’ sustainability performance will continuously be improved through their life cycle, and further initiatives include exploring new methods for construction materials and ways of enabling more conscious consumer behavior through digital tools. The joint venture has a strong pipeline, including immediate opportunities comprising 670 units in Frankfurt. All properties will be operated under Artisa’s established co-living platform, City Pop, offering fully furnished apartments with attractive communal facilities on flexible lease terms.

Alain Artioli, President of Artisa Group, said: “The undersupplied housing sector in Germany is partly driven by having one of the highest shares of single households in Europe, which is expected to further increase to 44% by 2035. City Pop’s consumer-orientated concept is enhanced by a digital app, with significant emphasis placed on resident events and activities to create a strong sense of community, connectedness and social interaction. Each building offers vibrant living spaces alongside a comprehensive suite of on-demand services and facilities, with convenient access to public transportation.”

Jani Nokkanen, Real Estate CIO at Nrep, added:“Almost 80% of inhabitants in larger German cities rent their homes, yet there remains a significant supply-demand imbalance for high quality accommodation in well-connected urban areas. We have identified where these pressures are most acutely felt and see an immediate opportunity to apply Nrep’s proven perspectives on livability, sustainability, customer-centricity and urban design to the German market, innovatively packaged through City Pop’s co-living concept.”

Having built a clear leadership position in the Nordics, Nrep extended its presence beyond its home region in 2021 by entering the Polish market. The business subsequently further expanded both vertically and geographically through the acquisition of a German real estate credit specialist, Flins Capital Partners.

Nrep is recognized as a pioneer within the area of sustainability and has committed to decarbonizing its real estate portfolio already by 2028. Initiatives to date including the use of CO2 neutral geothermal heating, the largest rooftop solar plant in the Nordics, projects such as the world’s first 100% upcycled concrete building and ‘UN17 Village’, the first large-scale project to align with all of the UN’s 17 Sustainable Development Goals.

About Nrep

Nrep is an urban investor that seeks to improve the built environment of cities, to the benefit of all stakeholders. Nrep takes a sustainable, long-term approach when investing across real estate segments, primarily residential, logistics, care homes and offices. Activities also include green real estate credit solutions as well as investments in climate technologies serving urban environments.

Nrep manages 7 million square meters of real estate projects across Denmark, Finland, Sweden, Norway, Poland, and Germany, and has committed to achieving a Net Zero real estate portfolio by 2028. Nrep is recognized as a pioneer within the area of sustainability and has more than 600 employees across Europe, and €18bn of assets under management.

About Artisa GroupAG

Founded in 1968, Artisa Group AG is a Swiss real estate development company active on the Swiss and European markets. In its projects, it analyses real estate trends, intercepts people's living needs and satisfies them by creating, identifying and offering living spaces that have and maintain a high added value. With 135 employees and 8 locations in Zug, Zurich, Lugano, Lausanne, Frankfurt, Milan, Prague and Paris, the Group concentrates its business in the areas of Real Estate, Co-Living and Senior Living.

City Pop is the Artisa Group's partner company that concentrates its business in the co-living sector; already active in Switzerland and Europe, it aims to realise 15,000 flats in major European cities over the next five years, helping to create a community of people who love a smart and innovative lifestyle.