5 May 2023
Promoter – Financial Intermediary
WIRO WOHNEN IN ROSTOCK WOHNUNGSGESELLSCHAFT MBH
The operation concerns the financing of affordable housing in the City of Rostock. The borrower is the municipally-owned housing company WIRO (Wohnen in Rostock Wohnungsgesellschaft). The investments will include construction of new municipal rental housing.
Additionality and Impact
The proposed project will contribute to (i) the increase in housing supply for low and modest income households, (ii) the delivery of modern and energy efficient new social and affordable housing, and (iii) urban regeneration and transformation of neighbourhoods to make them more sustainable.
The Project is expected to increase the supply of social and affordable housing for rent and to increase the market flexibility to respond to the current social and affordable housing needs. This is particularly acute in current circumstances with high inflation and market volatility, making the projects riskier and less profitable. The overall environmental and social impact of the Project is expected to be positive, with high environmental standards and notable social externalities. The provision of new social and affordable housing will contribute towards improving the social mix across the city and will promote greater social inclusion. The modernisation of the existing housing stock will improve the resident's living conditions and their overall quality of life. More widely, the Project is expected to contribute to urban regeneration and renewal with improvements to the quality and attractiveness of the built environment including climate mitigation and adaptation measures.
The Bank's loan provides an important contribution to the funding of WIRO's housing investment programme and to the Borrower's long-term funding base. It allows the Borrower to draw down funds over a period of several years and offers a repayment structure that reflects the long-term nature of the investments. The loan offers an advantageous long-term fixed rate that contributes to keeping rents affordable.
The proposed operation is expected to comprise a comprehensive investment programme aiming at alleviating the shortages in municipal social and affordable housing supply. The investments will address existing need from low and modest income groups, thus contributing to social inclusion of deprived households. The new construction shall achieve contemporary living standards, in particular as regards energy efficiency, safety/security and accessibility.
The investments will need to satisfy the EIB's eligibility criteria for urban renewal and sustainable communities. The housing investments concerned are envisaged to form part of specific local integrated urban development plans
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
EUR 205 million
National environmental legislation has been harmonised in line with the relevant EU Directives: 2014/52/EU amending 2011/92/EU (EIA) and 2001/42/EC (SEA). The Bank's appraisal will focus on the Promoter's environmental management capacity to properly apply the EU SEA Directive 2001/42/EC, the EU EIA Directive 2014/52/EU, as well as the requirements of the EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC, where appropriate. The status of any environmental studies and public consultations related to the housing investments will be reviewed during project appraisal. Applicable energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings (2018/844/EU) will also be further assessed during project appraisal.
The Promoter is subject to the public procurement regime. The Bank will require the Promoter to ensure that contracts for the implementation of the Project will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.
Signed - 21/11/2023