- €250 million loan to subsidiary of Action Logement focused on affordable housing in Île-de-France
- 2 580 housing units planned in four years for 6 000 Île-de-France residents
- Operation guaranteed by the European Fund for Strategic Investments (EFSI)
The European Investment Bank (EIB) today announced the signature of a €250 million financing agreement with in’li, the Action Logement Group’s subsidiary focused on affordable housing in Île-de-France. This maiden operation between the EIB and in’li is an important step in speeding up the construction of affordable housing in the region.
In’li has set its goals particularly high, with nearly 80 000 new housing units to be built over the next 10 years, including 37 200 in the first five years, for a total investment amount of €4.3 billion. These new constructions will mainly be concentrated in Paris and 76 neighbouring municipalities.
The EIB loan granted under the European Fund for Strategic Investments (EFSI) will further these ambitions by financing 2 580 new constructions, in particular by providing in’li with the sources of finance it needs to support the launch of its extensive programme.
Overall, this project will help create a more balanced local residential market, with a sufficient number of homes to meet the current needs of middle-income households, in most cases key professionals for a functioning society. In addition, it will make a significant contribution to urban renewal, cohesion and improving living standards for middle-income households. Around 6 000 Île-de-France residents will benefit from these homes whose construction will generate 5 000 person-years of employment during the implementation phase. Lastly, each home built will meet the strictest environmental criteria, in accordance with the EIB’s commitment to finance projects with the highest climate action performance targets.
“Since the coronavirus pandemic reached Europe the EIB has been fully mobilised with the European Commission to deploy a support plan of up to €40 billion in aid for the hardest hit SMEs. Nonetheless, the EIB's long-term financing of the economy aimed at kick-starting the eventual economic recovery continues in parallel, with a focus on climate action”, said EIB Vice-President Ambroise Fayolle. “In this context, supporting the housing and construction market in Île-de-France via this loan to in’li addresses three priorities: improving the job situation, reducing the energy consumption of homes, and providing SMEs in the building sector, in particular, with enough business to facilitate their recovery.”
European Commissioner for Economy Paolo Gentiloni stated: “In big cities, young workers and middle-income professionals have difficulty finding a place to live. Thanks to this €250 million loan supported by the Investment Plan for Europe, Action Logement’s subsidiary in’li will be able to build 2 580 affordable homes which will benefit nearly 6 000 people living in Île-de-France. This is an excellent initiative that will improve the daily lives of middle-income households in Île-de-France, facilitate professional mobility and contribute to urban renewal in compliance with the latest environmental standards.”
Chairman of the Executive Board of in’li Benoist Apparu stressed: “Despite the global pandemic that is especially impacting us here in Europe, in'li is actively preparing for the end of the crisis to meet the ambitious target set by Action Logement. For two years now, we have been diversifying our sources of financing to this effect. We are delighted with this agreement with the EIB as it will enable us to develop new affordable homes for workers in Île-de-France as close as possible to their workplaces, which will maintain their purchasing power thanks to rents on average 20% lower than on the private market.”
The Action Logement Group’s subsidiary in’li is the leading affordable housing operator in Île-de-France, with a portfolio of more than 43 000 homes throughout the region. The remit for in’li is to enable middle class professionals and young workers to access housing to optimise their commute, facilitate professional mobility and help make local areas more dynamic.