By Olga Aristeidou
Highlights
- EBRD commits an additional 50 million in equity to its joint venture with Dimand
- JV focuses on brownfield redevelopment, deep refurbishment and regeneration projects in Greece
- EBRD-Dimand partnership promoting the decarbonisation of the country's building sector
The European Bank for Reconstruction and Development (EBRD) is investing an additional 50 million in its joint partnership with Dimand SA in Greece, increasing its overall commitment to 71.5 million.
The joint venture is 35 per cent owned by the EBRD and 65 per cent owned by Arcela Investments Ltd., a wholly owned subsidiary of Dimand, a leading Greek real-estate developer and construction services provider with a track record of delivering major brownfield regeneration projects.
The EBRD's additional equity commitment to the joint venture aims to fund a new pipeline of green buildings, with a focus on offices, mixed-use projects and city hotels.
Alongside the increase in investment limit, the Bank is promoting a higher level of sustainability reporting and risk management by introducing GRESB reporting - the global environmental, social and governance (ESG) benchmark for real-estate assets, at the level of Dimand.
Since the joint venture's inception in 2017, the EBRD has invested in five green-certified projects in Greece, including the Piraeus Tower, the Piraeus Port Plaza 2 and 3 office buildings, the Importex office building and the Omonoia Moxy hotel.
The built environment accounts for close to 40 per cent of all global energy-related greenhouse gas emissions and half of global resource extraction. Consequently, the need for sustainable building developments and the deep retrofit of existing buildings has never been more relevant.
Notwithstanding a rise in local demand for sustainable buildings in Greece, there is still limited supply of quality new product and chronic underinvestment in the refurbishment of existing buildings.
The Bank's partnership with Dimand, which centres on brownfield redevelopment projects and deep refurbishments, can thus play a major role in fostering the market's low-carbon, climate-resilient transition.
Vlaho Kojakovic, EBRD Head of Property and Tourism, said: "We are very excited to continue our excellent partnership with Dimand and support the joint venture in financing a new stage of mature pipeline projects in Greece. The joint venture integrates sustainability and resource efficiency as a systematic and core element of its business strategy, while addressing a number of strategic priorities set by the EBRD, ultimately supporting the decarbonisation of the Greek building sector."
Dimitris Andriopoulos, CEO and majority shareholder of Dimand, added: "We are honoured by the EBRD's continued trust in and support for our company and business. Since 2017, the EBRD has helped us to grow and evolve and we look forward to further strengthening our strategic relationship and investing in a new pipeline of sustainable projects."
To date, the EBRD has invested approximately 5.4 billion in more than 85 projects in the corporate, financial, energy and infrastructure sectors of the Greek economy.
