EIB approves €300m financing for Swedish real estate firm Heimstaden

WCN Editorial Team 1 Oct 2019 EUROPE BUILDINGS

The European Investment Bank (EIB) has agreed to provide SEK3bn (€300m) loan to Swedish residential company Heimstaden Bostad to finance the construction of affordable and energy efficient housing.

The real estate company will use the financing to develop eight residential properties in five cities in Sweden, comprising about 3,300 new affordable homes to rent.

European Commission vice-president Valdis Dombrovskis said: “Providing financial support for the construction of affordable homes underlines the importance of the Juncker Plan's social impact.

“Heimstaden Bostad will also ensure that these homes highly energy-efficient in line with our climate action objectives, so this is a win-win.”

Backed by the Juncker Plan's European Fund for Strategic Investments (EFSI), the new affordable housing units will benefit from high-energy performance standards, EIB said.

In addition to supporting national and European targets for energy efficiency, the proposed housing scheme aims to address the shortage of residential units in the country’s main cities.

Heimstaden CEO Patrik Hall said: “This project will create value both from a social as well as from an environmental aspect and it is with great pleasure we proceed with this important project in cooperation with the EIB.”

EIB vice-president Alexander Stubb said: “We must not underestimate the importance of energy-efficient housing in fighting climate change; our homes and office buildings are the biggest emitters of CO2, bigger even than cars.

“With the demand for affordable housing continuously on the rise in Sweden, I am glad that the EIB can contribute towards alleviating the issue – and doing so with sustainable housing units.”

Earlier this year, EIB has approved €350m financing to Northvolt for the construction of Northvolt Ett, a gigafactory for producing lithium-ion battery cells in Skellefteå, Sweden.

Set to serve as Northvolt’s primary production site, the facility will host active material preparation, cell assembly, recycling and auxiliaries.

The batteries produced at the facility will be used across automotive, grid storage and industrial and other portable applications.

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Image: EIB headquarters in Luxembourg. Photo: courtesy of Palauenc05/Wikipedia.

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