GEWOBAG LIFE CYCLE HOUSING AND CARE BERLIN

Promoter – Financial Intermediary

GEWOBAG WOHNUNGSBAU-AG BERLIN

Location

• Germany

Description

The project will finance the construction of four residential areas comprising different housing and care solutions for low and moderate-income households. The promoter is Gewobag, the State of Berlin's housing company.

Additionality and Impact

The Project contributes to the achievement of numerous UN Sustainable Development Goals and is in accordance with the provisions of the 2016 EU Urban Agenda, the new Leipzig Charter for sustainable urban development, and the 2022 Nice Declaration on affordable, sustainable and resilient housing. The operation is fully aligned with the EU Energy Performance of Building Directive (EPBD) and with Energy Efficiency Directive (EED). The Project is eligible under the Bank's Urban Lending Review and supports the Bank's lending priority objectives on Energy Efficiency, Health and Education and the transversal objectives on Climate Action (mitigation and adaptation).

The Project addresses social inclusion as well as a more equitable access to housing and care for low- and medium-income households and vulnerable groups. It will generate positive externalities through an improved provision of housing and care and education facilities. It will address sub-optimal investment situations (in the health care and educational sectors and in relation to energy efficient new buildings) as well as information asymmetries.

The Project is expected to increase the supply of social and affordable housing for rent and to increase the market flexibility to respond to the needs of low- and medium-income households. With the provision of kindergartens, the Project ensures the provision of language and other skills to ensure that all children can follow the curriculum once admitted to school. In addition, the Project will increase the supply of sheltered housing and all degrees of care.

EIB financing will contribute to a better social mix, intergenerational exchanges and social inclusion and more widely, it will support sustainable urban development with improvements to the quality and attractiveness of the built environment. The Project is expected to contribute to the provision of high-quality and energy efficient buildings, which will also lead to lower operating costs and energy bills for low and moderate-income households. 

The Bank's loan provides an important contribution to the funding of Gewobag's ambitious housing investment programme and to the Borrower's long-term funding base. It allows the Borrower to draw down funds over a period of several years and offers a repayment structure that reflects the long-term nature of the investments. The loan offers an advantageous long-term fixed rate that reduces the Borrower's funding costs and thereby contributes to keeping rents affordable.

Objectives

The aim is to meet the residents' needs throughout their different life stages and circumstances. The schemes under the project comprise the new construction of kindergartens, student accommodation, social and affordable housing for rent, assisted accommodation for vulnerable groups and care facilities.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 300 million

Total cost (Approximate amount)

EUR 686 million

Environmental aspects

Compliance with the relevant EU Directives will be required throughout the Project's implementation: EU Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations as well as the alignment of energy efficiency requirements with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be required.

Procurement

Gewobag is a publicly owned company subject to EU rules on public procurement. However, the schemes to be funded under the Project will be implemented by separate project development entities in which the Promoter participates, initially with a minority stake and eventually it will take over the full ownership of all schemes under the Project. If as part of its due diligence, the EIB were to conclude that the project is subject to the EU public procurement legislation then Gewobag will have to ensure that contracts for implementation of the project are tendered in accordance with the applicable EU procurement legislation, Directives 2014/23/EU and 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 30/03/2023