The European Investment Bank (EIB) has loaned German state-owned housing firm Gewobag €240m for the construction of 2,000 residential units by 2023.
The EIB says the units will predominantly meet "energy-efficient house" standards and the EU Urban Agenda for livable and innovative cities, and will boost affordable housing in Berlin.
Markus Terboven, a Gewobag board member, said: "The low-interest loan from the EIB enables us to make further investments in Berlin’s housing construction in order to increase the state’s own residential portfolio. This also means that our tenants’ rental burdens are kept as low as possible. We are pleased to have a strong partner on our side with the EIB."
Ambroise Fayolle, EIB’s vice-president, said: "The lack of quality, affordable housing is a pressing issue in many European cities.
"I am proud that the EIB has a long tradition in financing sustainable urban housing. Our loan to Gewobag brings more financially accessible and greener homes to many people in Berlin, and when we talk about the added value that a public bank like the EIB needs to deliver, this is a prime example."
The loan is the second awarded to Gewobag by the EIB.
Images courtesy of Amaury Wenger/Gewobag