International financial institution, EBRD, extends €120 million loan to AFI Europe for support in eco-friendly regional expansion
Fresh Take:
The European Bank for Reconstruction and Development (EBRD) has dropped a whopping EUR 120 million into AFI Europe's pocket, fueling its expansion across Central and Eastern Europe (CEE),notes Economica. This investment, announced by the EBRD, is designed to supercharge AFI Europe's portfolio of sustainable residential and commercial properties in the region.
In a nutshell, this funding will help AFI Europe build green, ensuring high-level sustainability certifications for all financed structures. Additionally, the company will initiate a corporate climate governance action plan, aligning with the upcoming EU directive on corporate sustainability reporting, teaming up with the EBRD on this mission.
Vlaho Kojakovic, the EBRD's Real Estate boss, is stoked about the investment, claiming it's in line with the bank's Real Estate Sector Strategy 2025-29. This strategy focuses on accelerating the green transition, enhancing labor standards and community engagement, and addressing housing shortages. "This financing underscores our commitment to promoting sustainable development, preparing businesses for evolving regulatory frameworks, and championing high environmental standards," Kojakovic declared.
The EBRD-backed expansion will also turbocharge AFI's private rental sector (PRS) initiatives. AFI has already launched PRS projects in Poland and the Czech Republic, introduced the model in Serbia, and now eyes expansion in Romania. Kojakovic hinted that growing the PRS portfolio would help tackle the regional housing deficit while solidifying AFI's position as a leading player in the PRS market.
Anat Dafna, AFI Group's CFO, was pumped about the partnership, stating, "AFI is thrilled to kick off a new collab with the EBRD, allowing us to push forward our strategy and continue growing our regional portfolio. This new financing improves our liquidity position and showcases our commitment to sustainability."
With headquarters in the Netherlands, Israeli-listed AFI Properties Ltd owns AFI Europe, which focuses on developing, owning, and operating income-generating commercial real estate, emphasizing office buildings and rental properties, as well as select retail and shopping center projects.
(Credit: Alekleks/ Dreamstime)
iulian@our website
Some Insights:- The EBRD's Real Estate Sector Strategy 2025–29 focuses on three key areas: green transition, human capital resilience, and housing affordability.- The EBRD's loan to AFI Europe will promote the development of green buildings with high environmental standards in the CEE region.- AFI Europe is scaling its PRS portfolio in Poland, the Czech Republic, Serbia, and Romania, aiming to address housing shortages while cementing its role as a market leader in the PRS segment.- The EBRD is helping AFI align its operations with evolving ESG regulations, ensuring long-term competitiveness in the CEE markets.
This partnership stands as a powerful example of how the EBRD's strategy fosters sustainable, large-scale real estate development, striking a delicate balance between economic growth and climate resilience in the region.
- The EBRD's recent financing of EUR 120 million to AFI Europe will not only fuel the company's growth in Central and Eastern Europe but also support the development of sustainable homes and businesses.
- AFI Europe's expansion is expected to result in high-level sustainability certifications for all its constructed properties, aligning with the EBRD's mission for green transition.
- With the EBRD's assistance, AFI Europe will initiate a corporate climate governance action plan, ensuring its operations adhere to the upcoming EU directive on corporate sustainability reporting.
- As part of its strategy, AFI Europe is extending its private rental sector (PRS) initiatives to the Czech Republic and aims to further grow its PRS portfolio in Romania, addressing regional housing deficits.
- The EBRD-AFI Europe partnership will aid in promoting sustainable living through the development of eco-friendly home-and-garden and real-estate projects, encouraging a more environmentally-friendly lifestyle amongst consumers.
- By investing in AFI Europe, the EBRD is not only financing business growth but also encouraging businesses to prioritize sustainable practices for long-term success and competitiveness in Central and Eastern Europe.
