Germany: NHW and EIB sign €465 million framework contract for affordable and sustainable housing in Hessen

This article is published in association with European Investment Bank.

• The partnership will enable some €1 billion in investment in new construction and energy efficiency upgrades.
• The agreement was signed in Frankfurt’s Schönhof district by Thomas Hain (NHW) and Nicola Beer (EIB).

The Nassauische Heimstätte Wohnstadt group (NHW) and the European Investment Bank (EIB) signed a framework agreement in the Schönhof district of Frankfurt am Main for a total of €465 million in financing. The signing ceremony took place in a showhome flat, between NHW CEO Thomas Hain and EIB Vice-President Nicola Beer. Afterwards, guests took a tour of the Schönhof district, where they could learn more about one of Hessen’s largest ongoing housing construction projects.

The financing will enable NHW to make investments in new construction and modernisation with a total volume of around €1 billion. The funds will largely be used for the construction of affordable, sustainable and energy-efficient rental housing, and for energy efficiency refurbishment and upgrades to existing residential buildings. Between 2024 and 2029, NHW will implement seven new-build projects with around 1 350 residential units, as well as a comprehensive modernisation programme covering around 5 200 units. The new buildings will meet high energy standards, while the upgrades will significantly reduce primary energy demand.

NHW CEO Thomas Hain said: “With this framework agreement with the EIB, we can secure good financing conditions. The flexibility and long-term certainty for planning that we get from this partnership are crucial for us to successfully meet the challenges of the housing market and the energy transition.”

EIB Vice-President Nicola Beer said: “With this new EIB financing of €465 million and our strong partnership with NHW, we are giving affordable housing a major boost across Hessen. It will enable around €1 billion in investment – so that more people have a place to live that is modern, with good transport options, and see a marked decrease in their energy costs. Right in the heart of Frankfurt, the Schönhof district illustrates what the cooperation between the EIB and NHW is all about: a new part of the city, with homes, childcare, green spaces and local amenities – and Germany’s first hybrid community primary school, with classrooms at the bottom and housing at the top. This flagship project is a model for all of Europe. By supporting not just the Schönhof district, but a broad programme of new construction and energy efficiency upgrades, the EIB and NHW are making buildings into true neighbourhoods, strengthening communities and helping improve quality of life for thousands of people across Hessen.”

The EIB financing, backed by InvestEU, is set apart by its especially favourable lending conditions, which are well below market. The goal of this partnership is to increase Hessen’s supply of social and affordable housing, and to upgrade its existing stock. This should ease pressure on the housing market and give more people access to suitable, affordable housing. Through construction and refurbishment, the programme will help improve quality of life in local neighbourhoods.

The EIB will provide robust finance and expertise in long‑term investment in sustainable infrastructure, reinforcing NHW’s role as a reliable affordable housing partner for Hessen. The partnership shows how EU funding has a tangible impact, and helps increase housing and expand sustainable neighbourhoods.

Background information

Nassauische Heimstätte | Wohnstadt group

The Nassauische Heimstätte | Wohnstadt group, headquartered in Frankfurt am Main and Kassel, has been providing comprehensive services around housing, construction and development for over a century. It employs more than 900 people. With around 61 000 rental flats across 112 locations in Hessen, it is one of Germany’s leading housing companies. NHW carries out sustainable urban development projects under its ProjectStadt brand. It is a founding member of Wohnen.2050, which aims to make climate action more powerful in the housing sector. Under its hubitation brand, NHW also fosters a network of startups and exchange of ideas for innovative living.

www.nhw.de/

The EIB Group  

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

Photos of the EIB Group’s spokespeople and headquarters, logo files and video B-roll for media use are available here. 

InvestEU

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible.

The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.