French Ministry of Armed Forces has signed a concession for its Ambition Logement (Housing Ambition) program with 50/50 JV of Eiffage and Arcade-VYV. The program involves management of state-owned housing stock across the entire country for a period of 35 years.

The JV will be responsible for improving the housing stock’s energy performance with the renovation of almost 8,000 housing units, and for expanding it, through the construction of around 3,000 new-build housings across 55 sites. These projects will be realized during the first years of the contract. It will also manage the servicing and maintenance of all housing stock, as well as modernizing and improving the quality of the lease management service. It will provide a digital customer experience and dedicated service packages to enhance day-to-day life of the resident families.

Financing for the programme will partly come from Nové shareholders’ equity capital and a EUR1.3 billion (US$1.47 billion) loan. The load is subscribed by Nové with EUR474 million (US$ 536.68 million) financing from the European Investment Bank, EUR100 million (US$113.22 million) from the EPFP military pension fund and a pool of 10 commercial banks: Auxifip, BBVA, BNP Paribas, Caisse d’Épargne et de Prévoyance IDF, CaixaBank, Crédit Agricole CIB, LB Saar, NordDeutsche LB, KfW IPEX-Bank and Société Générale.

The management of the housing stock is expected to begin in 2023.