EBRD loan to fund two residential rental projects in Warsaw to address housing shortage

EBRD loan to fund two residential rental projects in Warsaw to address housing shortage

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has approved a loan equivalent to €50 million to NREP Nordic Strategies Fund IV’s Polish subsidiaries for two residential rental projects in Warsaw. The loan includes an uncommitted tranche for future residential projects. The project aims to address the shortage of rental accommodation in Poland, particularly after the influx of 1.5 million Ukrainian refugees since the Russian invasion. The project is backed by the EBRD’s Resilience and Livelihoods Framework (RLF) to support Ukraine and other affected countries. The EBRD has invested more than €12.6 billion in Poland since its inception over 30 years ago.

(PRESS RELEASE) LONDON, 27-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has announced the approval of a loan denominated in Polish zloty, equivalent to €50 million, to fund two residential rental projects in Warsaw, operated by NREP Nordic Strategies Fund IV’s Polish subsidiaries.

The agreement includes the initial committed tranche of PLN 63.2 million (around €13.5 million), with an uncommitted tranche to finance future residential projects. The EBRD Board of Directors has authorized the total loan amount of PLN 229 million (€50 million).

The project aims to address the shortage of rental accommodation in Poland and help the country tackle the influx of 1.5 million Ukrainian refugees since the Russian invasion. The project is endorsed under the EBRD’s Resilience and Livelihoods Framework (RLF) to support Ukraine and other countries affected by the Russian invasion. This is the second residential project in Poland under the RLF initiative.

EBRD President, Odile Renaud-Basso, visited Poland and Ukraine last week to discuss economic support for both countries.

NREP is one of the largest real estate investors in Northern Europe, managing over €19 billion in assets. The company offers contemporary and fully furnished apartments to a diverse tenant base and prioritizes equitable access to rental accommodation. NREP’s leasing policies include specific provisions to support refugees, such as Ukrainian lease agreements and streamlined vetting processes.

Vlaho Kojakovic, EBRD Director for Property and Tourism, said: “The demand for medium- and long-term housing in Poland was already high prior to the influx of refugees from Ukraine. By financing new residential housing, the Bank is supporting both the host community and the refugees.”

Maciej Piotrowicz, NREP Head of Living Investments in Poland, said: “As renting becomes an increasingly popular way of meeting housing needs in Poland, those seeking to rent an apartment face a shortage of available units. With the EBRD loan, NREP will be able to increase the supply of modern rental apartments to benefit tenants from a variety of backgrounds, including young professionals, families with children, and people from abroad.”

The EBRD has invested more than €12.6 billion in Poland since its inception over 30 years ago.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD