EIB allocates €28 m for developing low carbon emission buildings in Madrid

06 / 11 / 2020

By Marwa Nassar - -

The European Investment Bank (EIB) allocated €28 million to GMP PROPERTY SOCIMI (Gmp), one of Spain’s biggest real estate groups, to finance green investments in Madrid, reducing energy consumption and CO₂ emissions in office buildings.

The funding will help the Spanish company finance the development of near zero energy buildings (NZEBs) and refurbishment works aimed at improving energy efficiency. The operation is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

Thanks to the EIB support, Gmp will finance energy improvements in the flagship 38 346 m² Castellana 81 building, and will develop new near zero energy projects such as the ARQBÓREA building in Las Tablas.

The primary energy savings in the buildings covered by the EIB financing will be an estimated 3 420 megawatt hours per year (MWh/year), implying CO₂ emissions savings equivalent to the average emissions produced by 124 EU households a year.

The EIB financing will support national and European energy efficiency targets, will help mitigate climate change and aims to lead to a catalytic effect for the growth of highly energy-efficient buildings in Spain. At the same time, these investments will boost the economic recovery following the COVID-19 crisis and will drive the employment of 280 people during the implementation phase.

Paolo Gentiloni, European Commissioner for the Economy, said: “Good news for the climate and for the construction sector in Madrid, which has been hit hard: the Investment Plan for Europe is supporting Gmp’s investments in the construction of new office buildings and the renovation of old ones to meet the latest emissions and energy standards. Buildings are still the origin of 40% of our emissions, so their renovation is key to meeting our climate targets and is also a major source of new jobs. I hope to see many, many more investments of this kind in Spain in the coming years as part of the recovery effort.”

“The real estate sector is one of the major energy users in Europe and, therefore, the modernization and energy rehabilitation of our buildings is essential to achieving the European goal of reaching climate neutrality by 2050. For this reason, we are delighted to sign this agreement with Gmp to encourage investments in sustainable buildings needed for the transition to a low-carbon economy that will also contribute to the economic recovery and job creation in Spain”, said EIB Vice-President Ricardo Mourinho Félix, who is responsible for the Bank’s operations in Spain. “One of the EIB’s key objectives is promoting sustainable and inclusive growth while combating climate change”, he added.

For José Luis García de la Calle, Gmp Corporate Managing Director and Chairman of the CSR Committee, “I am very pleased we have reached this agreement with the European Investment Bank, which reaffirms our commitment to sustainable corporate governance. As a property-owning promoter and investor for high quality office buildings in Madrid, environmental responsibility is among our key strategic values, implemented via investment plans for our buildings aimed at mitigating climate change by incorporating low-carbon and renewable energies and promoting energy efficiency and savings. ARQBÓREA, one of the projects covered by this financing, will be a near zero-energy building, with the highest levels of environmental sustainability, accessibility, health and well-being for its occupants.”

The EU bank is assisting this operation via a green energy loan, the features of which are fully in line with the requirements set out in its Climate Awareness Bonds program. As a result, it is likely to be allocated to its portfolio of loan operations financed via the issuance of these bonds.