Greece: EIB supports student housing and campus upgrades of the University of Crete

• EIB to co-finance with a €95 million loan, the construction and operation of student housing and new academic facilities
• Campuses in cities of Heraklion and Rethymno will benefit from 2,833 new rooms to accommodate up to 4,846 students
• EIB also providing technical assistance for energy efficiency, climate adaptation, PPP best practices and project management

The University of Crete in Greece will benefit from €95 million in European Investment Bank (EIB) financing to help build affordable student housing and upgrade campus facilities as part of a pioneering Public-Private Partnership (PPP) project awarded to the AKTOR Group.

The EIB financing, which is backed by the InvestEU programme, will co-finance the expansion of the university’s campuses in two locations, Heraklion and Rethymno, with 2,833 rooms and apartments to be built, creating up to 4,846 beds. In total, the project will involve the construction of more than 109,000 square meters of student housing and academic spaces, including a new 800-seat amphitheatre at the Rethymnon campus.

The new buildings created will also be highly energy efficient, performing better than the Nearly Zero Energy Building (NZEB) in Greece, as well as include climate adaptation measures.  

“Investing in university infrastructure is not just about building new facilities—it’s about shaping the future of education, fostering innovation, and strengthening the social fabric of our communities,” said EIB Vice-President, Yannis Tsakiris. “Greek universities must have the resources to attract and nurture the next generation of talent, and this project is a crucial step in that direction. At the same time, the shortage of affordable and sustainable student housing is a growing challenge across Europe. With this new financing for the University of Crete, we are not only addressing this urgent need but also delivering on our commitment to support education, sustainability, and economic growth. This investment is a tangible example of how the EIB is turning vision into action, ensuring that students have access to modern, energy-efficient spaces where they can learn, live, and thrive.

”We are envisioning, planning, and—through important synergies such as the one with the EIB and AKTOR—implementing a broad and coherent plan for the upgrading of public universities,” said Sofia Zacharaki, Minister of Education, Religious Affairs and Sports.“Ensuring access to quality, free housing for thousands of students, in both new and renovated student residences across the country, is a cornerstone of this plan. Through beneficial public-private partnerships for the Greek state, with a total budget of 700 million euros, we are creating new student residences, increasing the number of available beds to 21,000 from the current 12,457, while also undertaking extensive renovations of existing facilities. It is essential—and this is exactly what is being delivered through the project involving student residences and new academic spaces in Crete—that there is long-term provision and commitment to maintenance and technical management, so that, over time, both taxpayers’ money and the smooth functioning of the public university’s legacy are safeguarded, always for the benefit of Greek families, students, learning, and progress.”

Unlocking sustainable development via PPP

The University of Crete procured the project through a 30-year PPP agreement, with the contract awarded to the AKTOR Group of Companies and implemented through its subsidiary Talaia Estia SA. The total long-term financing of €190 million is co-financed equally by the EIB and Piraeus Bank.

Further to the financial contribution EIB has provided technical assistance focused on three pillars:

• enhancement of the technical specifications associated with energy efficiency, lifecycle global warming potential calculations, climate change adaptation measures and compliance to the EU Taxonomy technical screening criteria
• cooperation with the Greek PPP Unit in the ongoing development of the contractual framework in accordance with best practices and the experience gained from similar previous projects
• provision of best practice tools and capacity building for the University’s PPP contract management team to manage the Partnership Agreement during its 30-year tenor, delivered with InvestEU advisory funding support.

“Collaboration between public and private sectors and institutional banks, such as the EIB, can improve the daily life of citizens, produce sustainable innovations and solve important problems, supporting social progress,” explained AKTOR Group Chairman and CEO, Alexandros Exarchou. “We undertake this ambitious project with great responsibility as it will be the first of its kind in Greece and we aim to mobilize our resources to deliver state-of-the-art facilities that will stand as an example of high quality, green and modern infrastructure. Our youth is our future, and they deserve the finest environment that will allow them to evolve. At AKTOR Group, our mission is to contribute to progress and prosperity through our actions and investments, and we are committed to a sustainable future and creating value for our shareholders and society.”

”We are very proud to co-finance this project as we consider education as a key factor for sustainable development,” added Piraeus Executive General Manager, and Head of CIB, Theodore Tzouros. “Piraeus plays a leading role in supporting infrastructure projects, as part of its strategic commitment to contribute to the economic growth and the prosperity of Greek society. This student housing and academic facilities project at the University of Crete has a strong social impact as it will support the students who need affordable housing and will serve the needs of the local community.”

Tackling the affordable housing issue with concrete solutions

The lack of affordable and sustainable housing, especially for students, is a growing challenge across Europe, particularly in regions with strong tourism-driven real estate markets such as Crete. This investment will not only expand student accommodation capacity but will also enhance access to higher education for students from lower-income backgrounds, and strengthen the university’s competitiveness, as well as its academic and social impact.

The announcement comes after the EIB Group announced at the EIB Forum its action plan to support housing, which includes a new housing one-stop-shop portal to provide advice and finance to support innovation in the construction sector, build affordable homes and invest in energy efficiency and the renovation of housing stock across Europe. The EIB Group is planning investments of around €10 billion over next two years with the aim of delivering 1.5 million new or renovated housing units across Europe.

Background information  

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

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