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CEB and HOWOGE to bolster provision of affordable housing in Berlin
18 June 2024
BERLIN - The Council of Europe Development Bank (CEB) and the municipal housing company HOWOGE signed a €100 million loan for the construction of more than 1,000 new residential units in Berlin.
This loan is the first cooperation between HOWOGE and CEB with the objective to increase the affordable housing stock in Berlin. The project will especially benefit vulnerable groups, including low-income households and displaced persons from Ukraine now living in the city. The targeted design and careful allocation of residential units, combined with rent restrictions based on the cooperation agreement with the City of Berlin to support vulnerable tenants, will ensure high social impact.
HOWOGE will also invest in attractive, inclusive neighbourhoods through mixed-use buildings for a diverse set of tenants. In addition to its positive social impact, the investments financed by this debt facility will generate environmental benefits by delivering high-energy efficiency buildings.
“The creation of affordable housing is one of the biggest challenges facing society. We are therefore delighted about the cooperation with CEB. By financing numerous new construction projects at attractive conditions, we can make a significant contribution”, says HOWOGE Managing Director Katharina Greis.
“We are delighted to join forces with HOWOGE to expand the provision of modern social and affordable housing in Berlin, with a particular focus on the economically more vulnerable income groups. In addition to providing much-needed housing for the people of Berlin, these buildings’ high-energy efficiency standards will make an important contribution to protecting the environment,” said CEB Governor Carlo Monticelli.
About HOWOGE
HOWOGE Wohnungsbaugesellschaft mbH is one of the six municipal housing companies of the State of Berlin. With its housing stock of around 76,400 apartments (as at 31 December 2023), the company is one of the largest landlords in Germany. HOWOGE intends to expand its residential portfolio to around 100,000 flats in the medium to long term, particularly through new construction. As part of Berlin’s school construction campaign, HOWOGE also undertakes new builds and major refurbishments of schools for the State of Berlin.
About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.