Construction News

Fri April 03 2020

Deal signed to speed up housing recovery in France

23 Mar The European Investment Bank (EIB) has signed a €250m (£230m) financing agreement to expedite the construction of affordable housing in France, in parallel with its commitment to coronavirus measures.

“Since the coronavirus pandemic reached Europe the EIB has been fully mobilised with the European Commission to deploy a support plan of up to €40 billion in aid for the hardest hit SMEs,” said EIB vice-president Ambroise Fayolle. “Nonetheless, the EIB's long-term financing of the economy aimed at kick-starting the eventual economic recovery continues in parallel, with a focus on climate action.”

The loan provided to Action Logement Group subsidiary In’li is for the construction of 2,580 housing units in Île-de-France over four years. Construction is expected to generate 5 000 person-years of employment during the implementation phase.

 “In this context, supporting the housing and construction market in Île-de-France via this loan to In’li addresses three priorities: improving the job situation, reducing the energy consumption of homes, and providing SMEs in the building sector, in particular, with enough business to facilitate their recovery.”

In’li has set a goal of building nearly 80,000 new housing units over the next 10 years, including 37,200 in the first five years, for a total investment amount of €4.3bn. Construction will be concentrated in Paris and 76 neighbouring municipalities.

The EIB loan granted under the European Fund for Strategic Investments (EFSI) will further In’li’s ambitions by financing the initial tranche, in particular by providing In’li with the sources of finance it needs to support the launch of its programme.

Each home is to be built to strict environmental criteria, in accordance with the EIB’s commitment to finance projects only with the highest climate action performance targets.

European commissioner for economy Paolo Gentiloni said: “In big cities, young workers and middle-income professionals have difficulty finding a place to live. Thanks to this €250 million loan supported by the Investment Plan for Europe, Action Logement’s subsidiary In’li will be able to build 2,580 affordable homes which will benefit nearly 6,000 people living in Île-de-France. This is an excellent initiative that will improve the daily lives of middle-income households in Île-de-France, facilitate professional mobility and contribute to urban renewal in compliance with the latest environmental standards.”

Chairman of the executive board of In’li Benoist Apparu added: “Despite the global pandemic that is especially impacting us here in Europe, In'li is actively preparing for the end of the crisis to meet the ambitious target set by Action Logement. For two years now, we have been diversifying our sources of financing to this effect. We are delighted with this agreement with the EIB as it will enable us to develop new affordable homes for workers in Île-de-France as close as possible to their workplaces, which will maintain their purchasing power thanks to rents on average 20% lower than on the private market.”

Got a story? Email news@theconstructionindex.co.uk

Latest News

Click here to view more construction news »