Amsterdam’s Vesteda bags €150M loan from EIB to make existing homes sustainable

Amsterdam-based Vesteda, a property management company that focuses on mid-rental division and manages real estate portfolios, announced on December 21 that it has signed a second financing agreement of €150M with the European Investment Bank (EIB). The loan term length ranges from 10 to 15 years.

CFO of Vesteda, Frits Vervoort, says, “Vesteda and the EIB share high ambitions on the sustainability and affordable living fronts. Following the first €150M in EIB financing in 2020, we are delighted to be receiving a second €150M loan from the EIB. This financing will also be allocated to sustainable and affordable homes.”

How is EIB helping Vesteda?

The EIB is the European Union’s financing arm. It’s one of the main sources of climate finance, extending loans to fund projects or investment programmes aligned with the goals of the European Union, such as cohesion, development, climate, and environmental sustainability.

The new residential complexes comply with the EU Energy Performance of Buildings Directive. A significant reduction in energy usage is predicted for initiatives to improve the energy performance of existing dwellings. Vesteda has revised its objective for energy reduction to at least 55 per cent (from 50 per cent) by 2030 (relative to 1990). The startup is not only going above what is required to meet the Paris targets outlined in the EIB Climate Bank Roadmap but also claims to be a leader in the field of sustainability.

EIB Vice-President, Kris Peeters, says, “The Netherlands needs more housing, but especially in the framework of climate change, the sustainability of this housing is key. Vesteda has set itself ambitious targets to lower the emissions of its real estate portfolio. As the EU climate bank, the EIB is pleased to be continuing this good partnership.”

Brief about Vesteda

Founded in 1997, Vesteda is a residential investor and landlord that specialises in sustainable and inexpensive mid-rental properties. The company invests money on behalf of institutional investors, including pension funds and insurance companies.

Vesteda says, “We are proud that we contribute to Dutch pensions in this way and that we can offer families affordable and comfortable living space. We also work continuously to improve the quality of residential areas and communities. Our investors also benefit thanks to a good return on their invested capital.”

The company’s management board comprises of CEO Gertjan van der Baan and CFO Frits Vervoort. Its portfolio has almost 28,000 residential units with a total value of almost €10B. The houses are mostly in economically wealthy districts and central metropolitan centres in the Netherlands.

Capital utilisation

Vesteda says it will use the funds between 2023 and 2025 to improve the sustainability performance of its current houses and to acquire new, inexpensive and sustainable residential complexes in the regulated rental segment and for middle-income households.