Nrep backed by Novo Holdings to make real estate better

May 5, 2020

The leading, Nordic real estate investor, Nrep, is strengthened as Novo Holdings joins to back the company as minority investor. Nrep will now accelerate ventures into technology, sustainability and organization, aiming to become an international frontrunner.

It is a visionary team combined with solid, sustainability-focused investments that has convinced Novo Holdings to back Nrep, one of the largest Nordic real estate investors. Nrep has developed a series of innovative real estate products within co-living, student housing, care homes and modern logistics. Novo Holdings joins as the first external investor in the partner-based company. With the backing from Novo Holdings, Nrep will now accelerate further development of customer-centric, sustainable real estate concepts with the aspiration to improve the built environment and become an international frontrunner within real estate.

”Novo Holdings is well-reputed and one of the world’s largest privately-held, independent investors. Like us, they believe that the best businesses are those that solve problems, and their desire to make a positive contribution to society has been decisive for us, now that we welcome an external, minority shareholder to our family. With their backing, we will accelerate our vision to make real estate better and become a world-leader with customer-centric concepts, benefitting all our stakeholders. We will invest even more in sustainability, technology, and deepen our understanding of tomorrow’s real estate,” says Mikkel Bülow-Lehnsby, partner and co-founder of Nrep.

Novo Holdings made its first investment into one of Nrep’s real estate funds in 2018. The solid business model and a strong 2025 strategy, combined with the innovative approach to real estate, is behind the decision to invest in Nrep as a company as well.

”We have worked closely with Nrep and we are convinced of the long-term sustainability of the company’s concepts, financially as well as socially and environmentally. We also expect to be able to contribute our financial expertise and international networks to support Nrep in the next stage of the growth journey. Real estate risks facing some challenging years, but it is under such conditions that Nrep’s innovative business concepts, combining financial performance, customer focus and sustainability, will be able to stand out and exploit the opportunities that will arise,” says Morten Beck Jørgensen, Managing Partner for Financial Investments at Novo Holdings, who now joins Nrep’s Board of Directors.

Claus Mathisen, Nrep’s CEO, shares current macro-economic concerns, yet he remains confident when looking further ahead.

”We see real estate as the largest product category in the world, with a vast potential across the value-chain, also in the current situation. We deliver value by creating more customer-centric products, and we aspire to make real estate greener, healthier and more digital. With Novo Holdings’ support, we can now accelerate our investments into capabilities and organization to deliver on our long-term ambitions,” says Claus Mathisen, partner and CEO.

Novo Holdings becomes a 25 percent minority shareholder in Nrep and will in addition increase its commitment to future Nrep real estate funds, including the new Nordic Strategies Fund IV, which Nrep is currently raising. There will be no change to Nrep’s day-to-day management or Investment Committee.

Across funds, Nrep has a total footprint above 2.5m square meters, primarily within the three strategic focus segments; residential, logistics and care. Assets under management are close to €5bn, and the company has pioneered several sustainability solutions – including the world’s first 100% recycled concrete building and the development of ‘UN17 Village’ in Copenhagen, the world’s first large-scale building to align to all of UN’s 17 Sustainable Development Goals. Nrep has committed to a 100% transition to green electricity supply in all buildings by 2025, and energy projects include the largest ever rooftop solar panel system in the Nordics, just outside Gothenburg, as well as the world’s first ultra-deep geothermal well in Finland.

Published: May, 5 2020