EBRD approves loan to NREP for new housing in Poland
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- 29 May 2023
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The European Bank for Reconstruction and Development (EBRD) has approved a loan in the amount of €50 million in the Polish currency, zloty, to the Polish subsidiaries of NREP Nordic Strategies Fund IV. The loan will be used to finance two residential rental projects in Warsaw. The agreement has been signed for the first committed tranche of PLN 63.2 million (approximately €13.5 million), while the total loan amount approved by the EBRD Board of Directors is PLN 229 million (€50 million), including an uncommitted tranche for future residential projects.
The aim of these projects is to address the chronic shortage of rental accommodation in Poland, which has become even more severe due to the influx of 1.5 million Ukrainians seeking refuge from the Russian invasion. The EBRD approved the loan under its Resilience and Livelihoods Framework (RLF), which focuses on assisting countries affected by the Russian invasion, including Ukraine. This initiative represents the second residential project in Poland under the RLF.
NREP Nordic Strategies Fund IV is active in Poland's residential rental market, providing contemporary, fully furnished apartments to a diverse range of tenants. The company's leasing policies prioritize equitable access to rental accommodation, including specific measures to support refugees, such as offering leasing agreements and guidance documents in Ukrainian and streamlining the vetting process for Ukrainian citizens.
NREP is one of the largest real estate investors in Northern Europe, managing assets worth over €19 billion. The company has a strong commitment to environmental, social, and governance practices, with a progressive carbon pledge to decarbonize its real estate portfolio by 2028.
Vlaho Kojakovic, EBRD Director for Property and Tourism, stated that by financing new residential housing, the EBRD is supporting both the local community and refugees. Maciej Piotrowicz, NREP Head of Living Investments in Poland, highlighted that the loan will allow NREP to increase the supply of modern rental apartments, benefiting various groups such as young professionals, families with children, and people from abroad.
The EBRD has been operating in Poland for more than 30 years and has invested over €12.6 billion in the country during that time.
