How to motivate private

investment to retrofit the

existing housing stock

Mirja Adler

KredEx

12 September 2011

Who is private investor for

housing stock in Estonia?

• Legal body:

– Housing association

– Housing cooperative

• Community of apartment owners

– no legal body

• In all cases all apartment owners (private

persons) are responsible for decisions and

payments

To motivate private investors

the purpose has to be set, is it

• Complete renovation of the buildings

• Healthy indoor climate

• Energy efficiency

• Better living environment

Or the combination of all of them - yes

Key for motivation: complex

approach

Technical studies by Tallinn

University of Technology

Studies for 4 different building types,

including social studies about residents

attitude and expectations

• Brick

• Concrete large panel

• Wooden apartment buildings

• Newly constructed buildings

Estonia BPP - Paldiski 171 • Supervisory of works 7.669 €

• Design 5.958 €

• Reconstruction 389.408 €:

• roof – 52.325 €

• windows – 46.664.€

• facade – 119.566 €

• balconies – 107.929 €

• heating system – 51.643 €

• heating metering system – 11.279 €

• Total costs per square meter 128 €

• Result: 58% energy saving

• Paldiski mnt 171

– built in 1977

– typical block of flats

– 5 storey

– 60 apartments

– 3.144 m²

Financial measures

• Grants

– From state

– From municipalities

• Low interest rate loan

• Beneficiary can

combine the

measures

Grants and guarantee • State grant from KredEx for:

– energy audit – 50%, max 700 €

– technical inspection – 50%, max 700 €

– building design documents - 50%, max 4 000 €

• Reconstruction grant from GIS: 15, 25 or 35%

depending on the level of refurbishment

– Grants from municipalities, for example:

Tallinn City 10% for renovation

• Credit guarantee from KredEx – if needed

Low interest rate loan -

revolving fund scheme

Results so far Loan

• Start 24.06.2009

• By 31.08.2011:

• 308 buildings

• Apartments 11 004

• Ca 730 600 m²

• Total 26,8 mln €

• Average 88 500 €

• Saving 33,4%

Refurbishment grant

• Start 30.09.2010

• By 31.08.2011:

• 218 applications/buildings

– 5,5 mln €

• 183 pos decisions

– 4,9 mln €

– 15% 1,8 mln €

– 25% 2 mln €

– 35% 1,1 mln €

• Ca 452 000 m²

• Average 26 600 €

Steps for end-beneficiary

Information to market participants

• Press-conference in public media

• Infodays/seminars/workshops - to end

beneficiaries, builders, energy auditors, project

designers, local municipalities

• Advertisements in newspapers/magazines

• Internet (website, banners,

news, articles)

• Direct mails

• Leaflets/booklets

• Cooperation with banks

10 campaigns since 2006

Conclusions • To motivate private investors the all-round

approach is needed:

– Legal framework

– Specialist and companies available

– Arguments and support for decision making process

(studies, BPP)

– Financial support schemes – loans, grants

– Programs for awareness raising

– Campaigns to inform residents about possibilities

Contact:

KredEx

Mirja Adler

Hobujaama 4

10151 Tallinn, Estonia Tel: +372 6 674 100

Fax: +372 6 674 101

E-mail: mirja.adler@kredex.ee

www.kredex.ee