Spain: Juncker Plan - EIB signs loan with Lar España to support urban regeneration

• EU bank provides firm with loan of up to EUR 70 million
• Corporate loan will help to finance development of Lagoh commercial centre as part of Palmas Altas urban plan and regeneration of neighbouring port area
• New commercial centre will be sustainable and low energy consumption building with BREEAM certification and will create over 3 400 direct and indirect jobs

The European Investment Bank (EIB) is supporting the urban development of the Palmas Altas district of Seville by financing the construction of a new commercial centre involving the conversion of unoccupied land between the port and the A4 motorway that is frequently used for fly tipping into a new service area. The EU bank is granting a EUR 70 million loan to Lar España Real Estate, the company tasked with implementing the project. The finance agreement was signed today in Madrid by EIB Vice-President Emma Navarro and Lar España’s CEO José Luis del Valle in an operation backed by the Investment Plan for Europe, known as the “Juncker Plan".

Lar España will be able to make flexible use of this corporate loan to ensure the development and implementation of this investment and the achievement of its business plan, one of the main pillars of which is sustainability.

At the signing ceremony at the EIB’s offices in Madrid, EIB Vice-President Emma Navarro said: "This agreement demonstrates the EIB’s commitment to working in support of urban regeneration in the European Union, in this instance assisting the development of sustainable amenities ensuring more efficient energy use. We are delighted to be supporting a project that will foster cohesion and economic growth and have a direct positive impact on job creation in the Andalusian capital".

In the words of the EU Commissioner for Climate Action and Energy, Miguel Arias Cañete: "This is great news for the city of Seville. This new commercial centre, which is backed by the Juncker Plan, will generate new job opportunities for the city’s inhabitants and give a boost to the local economy. And I am also pleased to know that the building to be constructed will provide a benchmark for sustainability and contribute to the achievement of our renewable energy use objectives. This agreement once again proves the success of the Juncker Plan in Spain, which has already seen more than EUR 39 billion worth of new investment mobilised around the country".

José Luis del Valle, CEO of Lar España Real Estate, added that “we are proud that the EIB is backing our business plan and we are encouraged to persist in our endeavours to foster the use of more sustainable technologies and social improvements in the districts in which operate. At Lar España we are putting our money on more environmentally friendly assets that make better use of energy resources and are more accessible to visitors, as these are what will create greater value for our shareholders. Sustainability has therefore become one of the pillars of the asset development and reform strategy that we are implementing in our portfolio”.

The Lagoh commercial centre has a surface area of over 120 000 square metres and is a so-called third generation commercial centre designed in accordance with state-of-the-art technologies. It will house around 190 shops, entertainment facilities and outside leisure areas. The project includes the construction of additional necessary infrastructure such as pedestrian and vehicle access routes, plus new bus stops linking it to the urban public transport system. As a commercial centre granted BREEAM (Building Research Environmental Assessment Technology) international sustainability certification, it will be equipped with renewable energy technologies such as solar panels and geothermal systems.

The project will also contribute to the development of the district’s economic and social fabric by providing new services and facilities in this future urban district of Seville, encouraging new private investment and fostering entrepreneurship and job creation in an EU convergence region. Its planned implementation in 2019 will create jobs for around 1 400 people. Apart from this direct employment, the project will generate around 2 000 indirect jobs.

This EIB loan to Lar España is backed by the Investment Plan for Europe, which enables the EU bank to finance projects that present particular value added and foster innovation and job creation owing to their structure or nature.

Today’s loan represents a new step in the EIB’s close relationship with the Andalusian capital, where the EU bank has supported the implementation of other projects transforming the city. Among others, the EIB provided the necessary finance for the extension of the AVE high-speed train service to Seville, the construction of Seville Metro lines 1 and 2, and the development of a range of municipal water treatment facilities.