Novo Holdings said this week that it has invested a ‘triple-digit’ amount to acquire a minority interest in Nordic investment manager NREP.
Novo Holding - the holding company of Novo Nordisk Foundation, a Denmark-based international foundation focusing on medical treatment and research – has taken a 25% stake in the business, lured by NREP’s ‘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.
‘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. 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,’ said 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. It will now also 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.
NREP manages close to €5 bn of assets and has pioneered several sustainability solutions – including the world’s first 100% recycled concrete building and the development of ‘UN17 Village’ in Copenhagen.
‘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,’ added 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 his macro-economic concerns, yet 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.'