LEG Immobilien AG signed a loan agreement for €100 million with the European Investment Bank to finance energy modernization in its housing portfolio.

The loan agreement was signed Dec. 16 between LEG Immobilien CEO Thomas Hegel, its CFO Eckhard Schultz, and the president of the European Investment Bank, Werner Hoyer.

The credit facility can be drawn down in several tranches and has a term of up to 13 years, according to a news release.

The funds from the EIB, which are secured with guarantees from the European Fund for Strategic Investments, will be included pro rata in LEG's energy modernization program. Investments will mostly be made in energy renovation of the building envelopes of LEG assets, with a regional focus on growth markets such as Dortmund, Münster and the Düsseldorf metropolitan area. The plan will also support investments that will help smooth the transition to a low-carbon economy.

According to the company's analysis of its portfolio, potential for additional investments of about €200 million have been identified for the next three years.