09-10-2024 13:00

Sustainable financing for Copenhagen’s landmark construction project UN17 Village

Increased social, ecological and economic sustainability. That is what Copenhagen’s UN17 Village aims for by integrating, for the first time in the world, all of the United Nations 17 Sustainable Development Goals in one construction project. To make the project as sustainable as possible in every respect, Nordea has financed it with green bonds and green construction loans.

A completely new and unique residential area will soon be ready in Ørestaden. The property is being built by NREP, a leading real estate investor and innovator in the Nordics. The company is a pioneer of sustainability in real estate and has also created the world’s first 100% recycled concrete building. 

The 17 Sustainable Development Goals have been incorporated and integrated into all phases of the construction – from facade cladding to the design of communal areas..

Milestone in sustainable construction

The project is a landmark for sustainable construction, and it has also coincided with rapid development in sustainable financing solutions and products.

“When the project was first presented to us, we saw that it would require new solutions for both construction and financing. Along the way Nordea has developed green bonds and green construction loans which was important to the customer,” says Lasse Clausen, Client Executive in Real Estate East, Business Banking Denmark.

“NREP and Nordea have a long-standing relationship and we have done multiple construction projects together across the Nordics. Therefore, when we decided to pursue this pioneering project, collaborating with Nordea for financing was a natural step,” says Martin Schultz Nielsen, Investment Manager at NREP, and elaborates:   

“Having the possibility to go with Nordea’s green construction financing option further supports the large-scale vision and the ambitions that we have for this project, and we are pleased that Nordea shares our interest in making projects with a strong focus on sustainability possible.”

Having the possibility to go with Nordea’s green construction financing option further supports the large-scale vision and the ambitions that we have for this project.

Martin Schultz Nielsen, Investment Manager at NREP

Life between the buildings 

What is special about UN17 Village is that not only has the emphasis been on sustainability in materials and construction – social aspects and the life lived between the buildings have also been taken into account. The idea is that we all live longer, healthier and better lives when we get to know each other and form relationships with the people we interact with in everyday life. That is why common functions, sharing economy and cohesion have been incorporated into all buildings in UN17 Village – and the property has its very own Community Manager, who ensures the best framework for the community and neighbourhood.

When UN17 Village is completed, the five properties will have over 500 flats and 1,100 residents. The first residents who have moved in can already enjoy the extraordinary common areas.

200 initiatives selected

To operationalise the UN’s 17 development goals, these have been clustered in six main categories – biodiversity, community, health, materials, water and energy. Under each of these categories, NREP has evaluated a large set of potential initiatives to find the most impactful measures to implement. Based on significant extra investment, some 200 sustainability initiatives have been selected, which will deliver towards the towering sustainability ambitions for this project.

A specific area of focus is to ensure lowering CO2 consumption in the construction phrase. The CO2 footprint for the entire project will be reduced thanks to a building system that is largely based on high-quality wood, light facades and concrete based on FutureCem, a new type of cement with reduced CO2 emissions. 

In terms of the buildings’ energy supply, special emphasis has been placed on optimal use of resources. All five roofs are equipped with solar panels that produce electricity for the homes, and residents can follow the production of green electricity via an app that provides an easy overview of when energy is greenest and cheapest.