EIB Commits €100 Million to Boost Affordable and Sustainable Housing in Rostock

EIB Commits €100 Million to Boost Affordable and Sustainable Housing in Rostock

(IN BRIEF) In a significant development, the European Investment Bank (EIB) has approved a €100 million loan to support WIRO Wohnen in Rostock Wohnungsgesellschaft mbH, the municipal housing company in Rostock, Germany. This funding will aid WIRO in constructing 561 apartments, including 118 social housing units, while adhering to stringent energy efficiency standards set by the European Union and Germany. These projects, spanning various locations in Rostock, aim to address the rising housing demand in the city and maintain affordable rental prices. Furthermore, the energy-efficient buildings will play a pivotal role in advancing climate goals and enhancing social inclusion, marking a substantial investment in the region’s housing infrastructure.

(PRESS RELEASE) LUXEMBOURG, 13-Dec-2023 — /EuropaWire/ — The European Investment Bank (EIB) is granting a loan of €100 million to the municipal housing company WIRO Wohnen in Rostock Wohnungsgesellschaft mbH. The EIB loan will support WIRO’s ongoing construction programme to build affordable, climate-friendly housing in Rostock, in line with the European Union’s high energy efficiency standards and Germany’s KfW 55 standard.

In total 561 apartments, including 118 social housing units, are being built as part of the two major construction projects Möllner Straße and Thierfelder Straße, the third construction phase of the Kuphalstraße project, and the new residential building Warnowallee 23a.

As the owner of around 35 000 apartments, WIRO is the only municipal housing provider in Rostock and the largest company of its kind in the German federal state of Mecklenburg-Western Pomerania. Almost one in three residents of Rostock live in WIRO-owned housing. The company’s primary mission is to provide socially responsible housing for broad segments of the population. The EIB-co-financed construction projects will create new, modern housing.

With 211 000 inhabitants and a Baltic port, Rostock is the largest city in Mecklenburg-Western Pomerania. After German reunification, the population initially declined. This trend has reversed over the past decade, and with growing numbers of people, demand for housing has also grown. Like in many other urban areas in Germany, rental prices have risen in recent years. However, as a municipal landlord, WIRO has kept prices under control, with an average basic rent (without charges) of €6.23 per square metre and an average rent for new contracts in existing homes of €6.65 per square metre (as of 31 December 2022).

The high energy efficiency standards of the new buildings will contribute to the European Union’s climate action and environmental sustainability goals. They will help limit carbon emissions from buildings and will support Rostock on its path to climate neutrality. They will also promote social inclusion, for example through accessibility measures, and create more housing opportunities in the city for people on low and middle incomes.

EIB Vice-President Ambroise Fayolle, who oversees financing in Germany, said: “Together with WIRO, we are showing that new, energy-efficient rental apartments do not have to be expensive. The project will help to ensure that this vibrant city can continue to grow.”

Ralf Zimlich, chair of the WIRO Management Board, said: “This €100 million makes up a significant portion of the overall financing, on top of funding from the federal government and the state of Mecklenburg-Western Pomerania, own funds and loans from our partner banks. We are very pleased to be cooperating on this project with the European Investment Bank. The fact that WIRO is receiving such a large project financing from the EIB in Mecklenburg-Western Pomerania also serves as recognition of our hard work.”

Background information

The EIB’s key priorities are climate and the environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion. It works closely with other EU institutions to foster European integration, promote the development of the European Union and support EU policies in more than 140 countries worldwide.

WIRO Wohnen in Rostock Wohnungsgesellschaft mbH is one of the largest and most successful housing companies in northern Germany, with around 35 000 apartments and commercial units and more than 650 employees. About a third of all people in Rostock live in housing owned by WIRO. Our portfolio covers all districts of the Hanseatic city. With top-quality services, contemporary housing at fair rental prices and a strong customer focus, we strive to uphold our economic and social responsibility as a municipal landlord.

Media Contact:

Donata Riedel
d.riedel@eib.org
+352 4379 – 86192

Press Office

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SOURCE: European Investment Bank