Castlelake has joined forces with European credit provider Niam Credit to provide €1bn (£0.83bn) in financing for the Scandinavian real estate market.

The partnership will focus on whole loan lending in Sweden, Norway, Finland, and Denmark. The first transaction has already been closed. It involves the financing of more than 30 prime residential, commercial and medium-stay assets in central Oslo.

Castlelake and Niam Credit provided a senior secured financing facility of NOK 1.9bn (£0.13bn) for this project.

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“The partnership with Castlelake represents Niam Credit’s first joint venture and we are thrilled to combine our local market expertise with their global reach,” said Pontus Sundin, chief executive of Niam Credit.

“We are also excited to announce our first joint project in Oslo that demonstrates our ability to support leading sponsors with substantial capital and tailored financing structures.

“We believe this transaction will provide a stable foundation as the Norwegian lending market has experienced difficulties during the last years.”

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The partnership was formed to meet the region’s demand for more flexible and tailored financing solutions, and to provide significant capital support for acquisitions and refinancings across all real estate asset classes, the two companies said.

“Our partnership with the Niam Credit team will provide critical financing solutions tailored specifically to the needs of the Nordic market,” said Eduardo D’Alessandro, partner at Castlelake.

“This venture reflects our relationship-oriented approach to the European real estate market and commitment to providing investors with exposure to compelling opportunities across regions.”

Castlelake has been active in asset-based opportunities across Europe since 2006. To date, it has invested more than €7.2bn and acquired or financed more than 8,000 assets across 18 European countries.

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