Release date: 15 March 2025
Promoter – Financial Intermediary
NASSAUISCHE HEIMSTATTE WOHNUNGS- UND ENTWICKLUNGSGESELLSCHAFT MBHLocation
Description
The loan will finance an investment programme for high-energy efficient rented social and affordable housing (new constructions and retrofitting) as well as associated infrastructure by a large housing provider operating in towns throughout the German federal state of Hessen in 2024-2030.
Additionality and Impact
The Project is expected to increase the supply of new housing units and the refurbishment of existing ones for the benefit of low- and moderate-income households. It responds to the high demand for housing in Hesse and the need to increase housing supply for low- and middle- income households. The Project contributes to social inclusion and more cohesive communities. It improves households living conditions, the built environment and urban regeneration making neighbourhoods more sustainable. The Project is expected to provide high quality and energy efficient buildings, which will lead to lower energy bills for low and moderate-income households. At policy level, the Project supports the EU Treaty, numerous Public Policy Goals and EIB Mandate Objectives. The Project is in line with the InvestEU objective of 1 Social infrastructure and services 1.1 Affordable Social Housing (a) provision of non-segregated and accessible rental social housing, for example through construction or acquisition of housing units.
The Loan plays a crucial role in supporting the Borrower's extensive housing investment program and establishing a stable long-term funding foundation. The Bank will provide an unsecured loan, which will be effectively subordinated to the Borrower's standard mortgage loans and will thus help to optimise its asset encumbrance levels with a view towards mobilising traditional mortgage funding for its ambitious investment programme. Also, it will enable NHW to access funds over an extended period matching the project implementation period and the long-term nature of these investments. The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
Objectives
Demand and need for social and affordable housing throughout Hessen appears very robust. In particular, the Frankfurt-Rhein-Main metropolitan region has experienced a strong population growth, which is expected to continue. Frankfurt am Main is the fifth largest city in Germany and one of the country's economic hubs.
Sector(s)
- Urban development - Construction
Proposed EIB finance (Approximate amount)
EUR 465 million
Total cost (Approximate amount)
EUR 962 million
Environmental aspects
Compliance with the relevant EU Directives will be verified during the appraisal: the EU Environmental Impact Assessment (EIA) Directive 2011/92/EU, the EU Strategic Environmental Assessment (SEA) Directive 2001/42/EC, the EU Habitats Directive 92/43/EEC and the EU Birds Directive 2009/147/EC. Applicable energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed during appraisal.
Procurement
The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.