1,4 billion euros of work for the renovation of army housing, according to Eiffage

The concession for the management of the army housing stock, awarded in February 2022 to the Nové joint venture, 50% owned by Eiffage, "will generate between 2023 and 2030 nearly 1,4 billion euros in housing renovation and construction of new housing throughout France," Benoit de Ruffray, CEO of the Eiffage group, told shareholders.

"This is a good omen at a time when the construction of new housing is down," he noted.

In February 2022, Eiffage and the real estate group Arcade-VYV won the first concession contract awarded in France for the outsourced management of a state housing stock in mainland France for a period of 35 years. A contract of more than 7 billion euros in total.

At the end of the contract, 15.000 homes will be renovated or built for the personnel of the Ministry of the Armed Forces and their families.

Nové is in charge of improving the energy performance of nearly 8.000 homes and the new construction of around 3.000 homes spread over 55 sites.

Nearly 4.000 other dwellings, currently managed by other service providers, must be gradually integrated during the term of the contract within the stock and also be renovated.

Nové will also be in charge of the management of renovated or built apartments.

The financing of the renovation program is partly provided by equity provided by Nové shareholders and 49% by a loan of 1,3 billion euros taken out by Nové with the European Investment Bank (for 474 million euros), the Public Establishment of Military and Aeronautical Provident Funds (100 million euros) and a pool of ten commercial banks (Auxifip, BBVA, BNP Paribas, Caisse d'Epargne and Prévoyance IDF, CaixaBank, Credit Agricole CIB, LB Saar, NordDeutsche LB, KfW IPEX-Bank, and Société Générale).

At the end of 2020, the housing stock of the Ministry of the Armed Forces consisted of 10.700 housing units owned by the State, 20.800 housing units reserved with lessors and around 3.300 housing units leased from private owners, according to the ministry.