The European Investment Bank (EIB) and the Banque des Territoires (Caisse des Dépôts) are investing EUR 100m each in a platform dedicated to investments in key property operations to promote urban development throughout France. This platform, which will be managed by Banque des Territoires, will invest in equity and quasi-equity in large-scale environmentally friendly projects. The Urban Development Platform will be part of Banque des Territoires' investment offering, helping to make regions more attractive, inclusive and sustainable. The EIB's contribution is guaranteed by the European Fund for Strategic Investments (EFSI), also known as the Juncker Plan.
Caisse des Dépôts CEO Eric Lombard and EIB Vice-President Ambroise Fayolle have signed an agreement to set up a shared Urban Development platform. This platform is the result of cooperation between the two institutions, which began in 2013. This platform will be endowed with EUR 200m (half provided by Banque des Territoires and the other half by the EIB) and operationally managed by the investment management teams at Banque des Territoires. The EIB funds will be guaranteed by the European Fund for Strategic Investments (EFSI), also known as the Juncker Plan.
“This new partnership demonstrates the excellent relationship between the EIB and Caisse des Dépôts,” remarked EIB Vice-President Ambroise Fayolle. “It meets a genuine need for equity capital in urban developments. For the EU bank, it is a chance to demonstrate its commitment to the vitality and growth of medium-sized towns and cities throughout the country.”
Paolo Gentiloni, European Commissioner for Economy, said: “The Urban Development Platform will be able to finance new urban development projects, a key sector for renewing, modernising and developing structures to meet today’s environmental and societal challenges. The platform is supported by the European Fund for Strategic Investments (EFSI), and will enable investments in projects that tackle the issues of healthcare, ageing and the needs of young people throughout France.”
“This first investment platform is a new phase in the partnership between our two institutions, demonstrating our shared capacity to innovate,” added Eric Lombard, CEO of Caisse des Dépôts. “The Urban Development Platform will facilitate access to European Union financing throughout the country. It will be made available to project leaders by Banque des Territoires, which will also be acting on behalf of the EIB, in recognition of its expertise and consolidated presence on the ground.”
This investment vehicle is intended to take minority shares in major environmentally friendly property projects that are part of collective urban development schemes undertaken at neighbourhood or local-authority level. Such property operations undertaken by Banque des Territoires will help to make regions more attractive, inclusive and sustainable.
The core targets of the projects financed by the platform are commercial property and business property programmes that are located primarily in urban areas and that are key projects in terms of regional development or business support. The platform will also be able to invest in projects tackling issues related to healthcare, ageing, the needs of young people (accommodation for students and young workers), as well as projects intended to improve and diversify regional tourism by means of the modernisation or creation of accommodation and facilities (hotel sector).
The impetus provided by the platform, which will participate as a minority shareholder, will be essential to financing property projects, alongside private investments and bank loans. This will enable some 15 projects to be supported throughout France during the first three years.
This partnership will provide a new source of financing for the property sector throughout France, attracting more private equity funds and, more generally, stimulating urban renewal projects that sometimes suffer from a lack of financing, in particular in the form of equity.
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About Banque des Territoires
Set up in 2018, Banque des Territoires is one of the five arms of the Caisse des Dépôts. It brings in-house regional expertise together within a single structure. It is a single point of entry for clients, providing made-to-measure advice and financing solutions for loans and investments to meet the needs of local authorities, social housing associations, local public enterprises and legal professionals. It is aimed at all French regions, from rural areas to large cities, with the objective of eliminating social and regional inequalities. Banque des Territoires is represented by 16 regional offices and 35 local branches of Caisse des Dépôts to enhance visibility and proximity to its client base.
For more attractive, inclusive, sustainable and connected regions.