- EBRD lends €25 million to residential rental accommodation operator LifeSpot
- Investment to support development of new residential housing in Poland
- Focus on cities with highest influx of displaced Ukrainians
The European Bank for Reconstruction and Development (EBRD) is lending up to €25 million to LifeSpot, an operator of residential rental accommodation in Poland. The loan will be used to build and operate a portfolio of rental apartments across the country, amid a chronic housing shortage exacerbated by inflation, high interest rates and an influx of refugees from Ukraine.
The project falls under the EBRD’s Resilience and Livelihoods Framework, which aims to support Ukraine and other countries affected by Russia’s war on Ukraine.
Poland has been experiencing historically high demand for medium- and long-term housing, due to systematic shortage of its housing stock. The national shortfall of residential units has been estimated at 2-2.5 million amid rising prices due to the supply squeeze and inflation.
Since the start of the war on Ukraine in 2022 the shortage has exacerbated further, as more than 13 million refugees crossed into Poland, and 1.6 million Ukrainians are currently settled in the country; most refugees are staying in rented apartments or temporary accommodation. The refugee numbers may fluctuate further depending on the length and intensity of the ongoing war, and there is an acute need to ensure suitable supply of available accommodation.
Klajd Hasimi, EBRD Acting Director for Property and Tourism, said: “We are proud to support LifeSpot to provide more residential accommodation on the Polish rental market. This is our third investment to tackle the systemic shortage of residential units in Poland, which demonstrates the scale of the need to invest in the housing sector. It also demonstrates the commitment of the EBRD and LifeSpot to improving access to vital services such as housing for both Poland’s host community and Ukrainian refugees.”
Marek Obuchowicz, Partner at Griffin Capital Partners: “We are proud that our PRS platform LifeSpot received the EBRD loan, which will support development of Polish residential rental accommodation. With the upcoming buildings LifeSpot will support the high demand for apartments to rent in cities which were mainly chosen by Ukrainian refugees."
LifeSpot operates 1,362 apartments in 4 cities, with approximately a third of apartments occupied by Ukrainian refugee tenants. LifeSpot will use the EBRD’s investment to develop a portfolio of additional over 4,000 residential units focusing on cities that have seen the highest number of Ukrainian refugees, such as Warsaw, Krakow, Wroclaw, Gdansk and Katowice. The company has also committed to certifying at least two of the residential buildings in its portfolio at the level of BREEAM “Very Good” or higher.
Since the start of its operations in Poland more than 30 years ago, the EBRD has invested more than €13 billion in the country.