Vantage Group – a subsidiary of TAG Immobilien, active in Poland’s institutional rental market (PRS) – has finalized a credit agreement with the European Bank for Reconstruction and Development (EBRD, Bank) for EUR 100 million. The total value of the project funded by the loan will amount to EUR 200 million. The transaction will alleviate the shortage of housing in Poland, a shortage made more severe by the war with Ukraine and the influx of Ukrainian refugees into Poland. The objective is to boost the supply of high-quality energy-efficient residential buildings.
All buildings financed by the EBRD will be executed adhering high energy efficiency standards, exceeding by at least 10% the requirements for nearly zero-energy buildings (nZEB), in line with the Bank’s approach to green economy transformation (GET). This will foster the creation of greener and energy-efficient housing resources in Poland, contributing to the country’s decarbonization objectives.
Vantage’s financial results confirm the dynamic growth of the company and its strengthening position in the PRS market in Poland. It has stable financing, backed by the TAG Group – also thanks to their recent bond issue of EUR 500 million – approximately PLN 2 billion. As planned, a significant portion of these funds will be allocated for the development of the Polish rental portfolio. The company has now secured additional investment funds from the EBRD, which will further strengthen the TAG Group’s position in the PRS market in Poland,” commented Martin Thiel, CFO and Co-CEO of TAG.
“The financing provided by the EBRD will allow Vantage to build and operate a rental housing portfolio across the country and help address the issue of a chronic housing shortage. Around 3,000 new, affordable homes will be added to the Vantage portfolio, as part of the project. The agreement with the EBRD is a crucial element of Vantage Group’s development in Poland. The total value of the new investments will amount to as much as EUR 200 million, of which EUR 100 million is an EBRD loan. These are actions carried out as part of a program aimed at expanding access to housing as key infrastructure for developing human capital and sources of livelihood. There is still a severe shortage of housing in Poland and a large rent gap – i.e., a significant part of the population who can’t afford to buy a house but are interested in renting. The funded buildings will achieve results that are at least 10% better in terms of ecology than the minimum national requirements, bringing tangible benefits to the environment and reducing greenhouse gas emissions,” explained Oscar Kazanelson, Chairman of the Supervisory Board of ROBYG and Vantage.
Vantage is one of the leaders of institutional rentals in Poland. It owns apartments in Wroclaw, Poznan, and Lodz – across 14 investments. It has about 3,000 rental units on offer and over a thousand units under construction. Vantage’s land bank allows for the construction of over 5,000 rental units, showing significant development potential. Moreover, it has significant commercial space possibilities totaling 26,400 m2. Vantage has great development plans, mainly expanding the rental housing portfolio to over 10,000 units by the end of 2028, extending the offer to other Polish cities, and continuing the ESG strategy and strengthening cooperation with the ROBYG Group. Vantage puts a lot of emphasis on sustainable development. Investments are built according to the highest standards of sustainable construction, which is crucial for environmental protection and the long-term value of investments. The TAG Group – together with Vantage – offers a total of 87,000 rental apartments in Europe.
“The funding agreement with Vantage Group is another EBRD project in the institutional rental segment in Poland, which delights us, indicating this institution’s conviction about the prospects for the development of this segment of the Polish real estate market. This also confirms the financial stability of our Group and trust in us as a partner. The funds obtained will be used for the development of the rental housing portfolio, which will allow us to further strengthen our position in the institutional rental segment. Moreover, thanks to the funding received in cooperation with the EBRD, we will be able to develop our ESG strategy on a larger scale by building green estates according to high standards of sustainable construction,” pointed out Marta Hejak, Vice-President of the Board and CFO of ROBYG and Vantage.
“Vantage Development is a company with solid procedures in the field of environmental protection, safety, and hygiene at work and employment. The environmental and social due diligence (ESDD) conducted by the EBRD has allowed for a thorough analysis of Vantage’s capabilities and our approach to management. This has confirmed that the company is equipped with appropriate management systems to control the E&S impact related to work management, health, and safety of employees and communities during construction works, energy efficiency, and stakeholder engagement. According to the EBRD program’s assumptions, private rental sector buildings, which will be financed as part of the transaction, will achieve results that are at least 10% better than national regulations regarding nearly zero-energy buildings, and will mainly consist of residential units with a minor share of commercial space,” added Dariusz Pawlukowicz, Vice President of the Board of ROBYG and Vantage.
The European Bank for Reconstruction and Development (EBRD) has launched over EUR 1.1 billion in financing through direct investments or financial intermediaries to help the European Union (EU) countries where the bank invests maximum their ecological potential, improve sustainable development, and minimize environmental impact. The funds will benefit Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. These funds support the EBRD’s “Green Cities” program, which is active in over 50 urban areas to help accelerate their green transformation. It will help overcome the recent Covid-19 crisis, address infrastructure gaps, and improve the competitiveness and socio-economic convergence of these EU countries with other Member States. The EBRD also supports green investments across a wide range of industrial and infrastructural projects – carried out by private companies struggling with the rising costs of newer technologies, higher perceived risk, and a lack of available financing.
The EBRD has been investing in Poland since its inception in 1991. To date, the Bank has invested EUR 14 billion in Poland, in 532 projects. Last year, the Bank invested a record amount of EUR 1.3 billion in Poland.
Source: https://managerplus.pl/grupa-vantage-sfinalizowala-umowe-kredytowa-z-ebor-na-100-mln-euro-14754
