The European Bank for Reconstruction and Development (EBRD) has approved a zloty loan in the equivalent of €50 million to the Polish subsidiaries of NREP Nordic Strategies Fund IV to finance two residential rental projects in Warsaw.

The parties have signed an agreement on the first committed tranche of PLN 63.2 million (around €13.5 million). The total loan amount of PLN 229 million (€50 million), approved by the EBRD Board of Directors, includes an uncommitted tranche to finance future residential projects.

The new residential units will help tackle Poland’s chronic shortage of rental accommodation – something that is in even shorter supply since the arrival of 1.5 million Ukrainians fleeing the Russian invasion. The project was approved under the EBRD’s Resilience and Livelihoods Framework (RLF) to help Ukraine and other countries affected by the Russian invasion and is the second such residential project in Poland.

The signing comes a week after EBRD President Odile Renaud-Basso’s visit to Poland and Ukraine, where she discussed support for both countries’ economies.

NREP operates in Poland's residential rental market and offers fully furnished, contemporary apartments to a diverse range of tenants. The company's leasing policies prioritise equitable access to rental accommodation, including specific provisions designed to support refugees, such as providing leasing agreements and guidance documents in Ukrainian and streamlining the vetting process for Ukrainian citizens.

NREP is one of the largest real-estate investors in Northern Europe, with more than €19 billion of assets under management. The company has strong environmental, social and governance credentials and its carbon pledge is one of the most progressive in the industry; it aims to decarbonise its real-estate portfolio by 2028.

Vlaho Kojakovic, EBRD Director for Property and Tourism, said: “The demand for medium- and long-term housing in Poland was already high prior to the influx of refugees from Ukraine. By financing new residential housing, the Bank is supporting both the host community and the refugees.”

Maciej Piotrowicz, NREP Head of Living Investments in Poland, said: "As renting becomes an increasingly popular way of meeting housing needs in Poland, those seeking to rent an apartment face a shortage of available units. With the EBRD loan, NREP will be able to increase the supply of modern rental apartments to benefit tenants from a variety of backgrounds, including young professionals, families with children, and people from abroad.”

Since the start of its operations in Poland more than 30 years ago, the EBRD has invested more than €12.6 billion in the country.