France: With the “Commerces Nanterre Cœur Université” project, Banque des Territories and the EIB kick off their joint urban investment programme, with both parties contributing equal amounts to the deal
7 April 2021
A joint investment of €15.7 million in an urban regeneration area located in one of the city’s priority neighbourhoods.
The first transaction from the joint Urban Development Platform endowed with €200 million to finance key property operations.
As part of their joint Urban Development Platform launched at the end of 2019 to finance key development operations throughout France, the European Investment Bank (EIB) and Banque des Territories have just signed their first investment of €15.7 million, with each contributing 50% of the amount.
Commerces Nanterre Cœur Université is a ground-floor operation belonging to an extensive programme intended to develop an eco-district and drive urban regeneration in a priority neighbourhood of the city of Nanterre in the Paris region. The scheme is run by property developer Bouygues Immobilier. The project enjoys a strategic location facing the new Nanterre University RER A train station and will provide its beneficiaries and residents with new local services, including a multiplex cinema operated under the CGR brand, restaurants and neighbourhood shops on a new shopping street.
This commercial property complex with a surface area of 15 600 m² will be certified BREEAM VERY GOOD – the most widespread environmental certification. Delivery is scheduled for the first quarter of 2021.
Thanks to the EIB loan and the equity investment by Banque des Territoires, the Urban Development Platform has invested alongside Bouygues Immobilier in the dedicated project company for the operation. The platform holds a 49% stake in the project company.
With a project total north of €60 million, 50% of the financing comes from a loan provided by a banking syndicate made up of Banque Palatine, Crédit Coopératif and Caisse d’Epargne.
This is the first investment to be signed by the Urban Development platform whose aim is to ensure that regions across France can access EU funding and implement key, high-quality urban projects.
Marianne Louradour, Banque des Territoires’ regional director for Île-de-France, welcomes this first investment which “demonstrates the agility of the partnership between the EIB and the Banque des Territoires to support regional projects and make regions more attractive.This operation contributes to the urban renewal of the city of Nanterre by developing a diverse range of commercial activities.”
For EIB Vice-President Ambroise Fayolle, “launching a joint platform with Banque des Territories strengthens our long-standing partnership with Caisse des Dépôts to make EU financing available to the most diverse regions.This initial investment in a rapidly changing area of Nanterre dovetails perfectly with the dynamic for supporting sustainable cities committed to improving their inhabitants’ quality of life that the EIB seeks to foster with its financing.”
On 16 December 2019, the EIB and Banque des Territoires each invested €100 million in this platform dedicated to investments in key property operations to promote urban development throughout France. This platform is supported by the Investment Plan for Europe, also known as the Juncker Plan, set up in 2015 with a total amount of €500 billion. The platform is managed by Banque des Territoires and is intended to carry out equity and quasi-equity investments in large-scale environmentally friendly projects. The urban development platform forms part of Banque des Territoires’ investment services, helping to make regions more attractive, inclusive and sustainable.
Set up in 2018, Banque des Territoires is one of the five arms of 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.
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