Spain: EIB and Gmp join forces to promote investment in sustainable buildings in Madrid

The European Investment Bank (EIB) and GMP PROPERTY SOCIMI (Gmp), one of Spain's biggest real estate groups, are set to finance green investments in Madrid, reducing energy consumption and CO₂ emissions in office buildings. To this end, the EU bank will provide the Spanish company with €28 million in financing for the development of near zero energy buildings (NZEBs) and for refurbishments works aimed at improving energy efficiency. The operation is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

Thanks to the EIB support, Gmp will finance energy improvements in the flagship 38 346 m² Castellana 81 building, and will develop new near zero energy projects such as the ARQBÓREA building in Las Tablas. The primary energy savings in the buildings covered by the EIB financing will be an estimated 3 420 megawatt hours per year (MWh/year), implying CO₂ emissions savings equivalent to the average emissions produced by 124 EU households a year.

The EIB financing will support national and European energy efficiency targets, will help mitigate climate change and aims to lead to a catalytic effect for the growth of highly energy-efficient buildings in Spain. At the same time, these investments will boost the economic recovery following the COVID-19 crisis and will drive the employment of 280 people during the implementation phase.

“The real estate sector is one of the major energy users in Europe and, therefore, the modernisation and energy rehabilitation of our buildings is essential to achieving the European goal of reaching climate neutrality by 2050. For this reason, we are delighted to sign this agreement with Gmp to encourage investments in sustainable buildings needed for the transition to a low-carbon economy that will also contribute to the economic recovery and job creation in Spain”, said EIB Vice-President Ricardo Mourinho Félix, who is responsible for the Bank’s operations in Spain. “One of the EIB's key objectives is promoting sustainable and inclusive growth while combating climate change”, he added.

Paolo Gentiloni, European Commissioner for the Economy, said: “Good news for the climate and for the construction sector in Madrid, which has been hit hard: the Investment Plan for Europe is supporting Gmp's investments in the construction of new office buildings and the renovation of old ones to meet the latest emissions and energy standards. Buildings are still the origin of 40% of our emissions, so their renovation is key to meeting our climate targets and is also a major source of new jobs. I hope to see many, many more investments of this kind in Spain in the coming years as part of the recovery effort.”

For José Luis García de la Calle, Gmp Corporate Managing Director and Chairman of the CSR Committee, “I am very pleased we have reached this agreement with the European Investment Bank, which reaffirms our commitment to sustainable corporate governance. As a property-owning promoter and investor for high quality office buildings in Madrid, environmental responsibility is among our key strategic values, implemented via investment plans for our buildings aimed at mitigating climate change by incorporating low-carbon and renewable energies and promoting energy efficiency and savings. ARQBÓREA, one of the projects covered by this financing, will be a near zero-energy building, with the highest levels of environmental sustainability, accessibility, health and well-being for its occupants.”

The EU bank is assisting this operation via a green energy loan, the features of which are fully in line with the requirements set out in its Climate Awareness Bonds programme. As a result, it is likely to be allocated to its portfolio of loan operations financed via the issuance of these bonds.

The EU climate bank

The EIB is the world’s largest multilateral provider of climate finance. Its goal is to be a leader in mobilising the finance needed to limit the average global temperature increase to 1.5°C compared to pre-industrial levels in order to meet the Paris Agreement objectives. On 14 November 2019, the EIB Board of Directors approved its new climate objectives and the new energy lending policy. The Bank will gradually increase its financing for climate and environmental objectives up to 50% by 2025, with the goal of ensuring that the EIB Group mobilises at least €1 trillion in the critical decade between 2021 and 2030 to promote investments helping to meet these objectives. It also announced its intention to align all EIB Group activities with the Paris Agreement. To this end, the EIB will cease financing fossil fuel-based projects from late 2021.

The EIB is the world’s largest issuer of green bonds and was the first organisation to make an issue on this market in 2007.

About Gmp

Founded in 1979, Gmp is one of the leading property-owning real estate groups in Spain. From the outset, Gmp has followed a firm property-owning approach. This focused strategy has allowed it to achieve a solid position in the Spanish real estate market as a specialist in the developing, investing and managing high-end offices and business parks in Madrid. Its corporate vision includes sustainability as a strategic value. This covers both environmental sustainability and sustainability in the process of value creation, via quality and innovation in management, processes and products, with special emphasis on the promotion of the health and well-being of the users of its buildings. As an example of the above, Gmp has been a pioneer of the LEED and WELL BUILDING STANDARD certifications in Spain. It has buildings that stand out for their level of environmental sustainability, health and well-being for people, such as the flagship Castellana 81 building, the first LEED Platinum building on Paseo de la Castellana, the first WELL in Spain and the fifth WELL Gold in Europe.