Europe to get more climate-friendly housing with EIB loan to GROPYUS

• EIB lends GROPYUS €40 million to accelerate building of sustainable and affordable housing. 

• InvestEU-backed venture debt loan to help GROPYUS fully automate production of wooden multi-family homes. 

• Wood can replace concrete in push for carbon-free residential construction. 

Luxembourg/Berlin, March 19, 2024 – The European Investment Bank (EIB) is lending €40 million to German-Austrian PropTech GROPYUS to spur the construction of sustainable and affordable homes in Europe. PropTechs are property technology companies that address construction and real estate industry challenges with tech-based approaches and innovative business models. GROPYUS has developed a method of producing multi-storey wooden residential buildings using a process that is digitalised, fully automated and industrialised. 

The EIB financing will go towards further developing the manufacturing technique and expanding production, which is up to 86% automated. GROPYUS’s process cuts construction times almost in half, making building not only more predictable but also less expensive. 

The loan will take the form of equity-type venture debt with a guarantee from the InvestEU programme, which also contributes to the European Union’s zero-carbon housing goal. The EIB’s venture debt loans are cheaper than equity and designed for fast-growing innovative companies, supplementing other forms of financing. 

“Affordable housing is scarce in many European regions while energy-efficient construction poses another challenge,” said EIB Vice-President Nicola Beer, who oversees financing in Germany. “The EIB is very pleased to support innovative companies like GROPYUS that use sustainable raw materials and automated, modular construction in Germany and Austria. The result is low-cost, climate-friendly homes to rapidly advance the green transition in housing.” 

“Since its founding, GROPYUS has been striving to lift the construction industry to a state-of-the-art level in product development, automation and digitalisation,” said Chief Executive Officer and Co-Founder Markus Fuhrmann. “This is the only way to provide high-quality affordable and sustainable housing in a timely manner. This challenge transcends borders, so we are pleased that the EIB not only sees the potential of our approach but is also supporting us after an intensive and thorough evaluation.” 

GROPYUS set up its first production line in a former factory for structural composite lumber in Richen in the German state of Baden-Württemberg. The production plant is now being expanded and turned it into a highly automated and fully digitally integrated manufacturing facility. The new production line will enable the company to complete a wall panel in 17 minutes and a ceiling panel in 16 minutes. 

GROPYUS is pursuing a new approach for the construction industry. The company views buildings as products with an integrated value chain covering digital planning, component production, on-site assembly and building operation using its own building operating system. 

Its first wood hybrid residential building in Weißenthurm near Koblenz in Rhineland-Palatinate proves that GROPYUS can produce cost-effective and climate-friendly homes. Ground is about to be broken on the next project, which is located in Immendingen and consists of nine buildings with around 100 residential units with two to four rooms. Construction will be split into five phases. More projects are planned for this year. 

At a time of rising building and rental costs, digital and industrialised construction can help deliver additional affordable housing – particularly in growing metropolitan areas – improving living conditions for many people.