- EIB lends GROPYUS €40 million to accelerate building of sustainable and affordable housing.
- InvestEU-backed venture debt loan to help GROPYUS fully automate production of wooden multi-family homes.
- Wood can replace concrete in push for carbon-free residential construction.
The European Investment Bank (EIB) is lending €40 million to German-Austrian PropTech GROPYUS to spur the construction of sustainable and affordable homes in Europe. PropTechs are property technology companies that address construction and real estate industry challenges with tech-based approaches and innovative business models. GROPYUS has developed a method of producing multi-storey wooden residential buildings using a process that is digitalised, fully automated and industrialised.
The EIB financing will go towards further developing the manufacturing technique and expanding production, which is up to 86% automated. GROPYUS’s process cuts construction times almost in half, making building not only more predictable but also less expensive.
The loan will take the form of equity-type venture debt with a guarantee from the InvestEU programme, which also contributes to the European Union’s zero-carbon housing goal. The EIB’s venture debt loans are cheaper than equity and designed for fast-growing innovative companies, supplementing other forms of financing.
“Affordable housing is scarce in many European regions while energy-efficient construction poses another challenge,” said EIB Vice-President Nicola Beer, who oversees financing in Germany. “The EIB is very pleased to support innovative companies like GROPYUS that use sustainable raw materials and automated, modular construction in Germany and Austria. The result is low-cost, climate-friendly homes to rapidly advance the green transition in housing.”
“Since its founding, GROPYUS has been striving to lift the construction industry to a state-of-the-art level in product development, automation and digitalisation,” said Chief Executive Officer and Co-Founder Markus Fuhrmann. “This is the only way to provide high-quality affordable and sustainable housing in a timely manner. This challenge transcends borders, so we are pleased that the EIB not only sees the potential of our approach but is also supporting us after an intensive and thorough evaluation.”
GROPYUS set up its first production line in a former factory for structural composite lumber in Richen in the German state of Baden-Württemberg. The production plant is now being expanded and turned it into a highly automated and fully digitally integrated manufacturing facility. The new production line will enable the company to complete a wall panel in 17 minutes and a ceiling panel in 16 minutes.
GROPYUS is pursuing a new approach for the construction industry. The company views buildings as products with an integrated value chain covering digital planning, component production, on-site assembly and building operation using its own building operating system.
Its first wood hybrid residential building in Weißenthurm near Koblenz in Rhineland-Palatinate proves that GROPYUS can produce cost-effective and climate-friendly homes. Ground is about to be broken on the next project, which is located in Immendingen and consists of nine buildings with around 100 residential units with two to four rooms. Construction will be split into five phases. More projects are planned for this year.
At a time of rising building and rental costs, digital and industrialised construction can help deliver additional affordable housing – particularly in growing metropolitan areas – improving living conditions for many people.
Background information
EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Agreement. The EIB Group does not fund investments in fossil fuels. It is on track to deliver on its commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in its Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation and adaptation, and to a healthier environment.
Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
InvestEU
The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. InvestEU brings EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.
GROPYUS
Gropyus is reinventing multi-family housing: founded in 2019, the PropTech develops real estate as constantly evolving, optimisable products and digitalises all aspects of the real estate lifecycle. The multi-storey wood hybrid buildings are climate positive and digitally designed as well as manufactured in a fully automated manner. Highest standards in design, production and construction operations ensure top quality, create cost and planning security for project developers and reduce construction times by up to 50 percent. In cooperation with established players such as Vonovia, Gropyus is paving the way for a sustainable, digital future for the real estate industry. Around 400 employees work at the sites in Vienna, Berlin, Steinhaus, Richen, Dornbirn and Ruggell.
For its innovative strength, Gropyus has already received the "PropTech of the Year Award" from the industry association ZIA (Zentraler Immobilien Ausschuss e.V.), the award “Austrian PropTech of the Year” from apti (Austrian PropTech Initiative) as well as the Ernst & Young "Scale-up Award" in the categories PropTech and Real Estate.
