Urban Regeneration: In Villeurbanne, a Model for Industrial Brownfield Redevelopment

The workshop began with a presentation by Ginkgo, a company specializing in investments for urban regeneration. “The observation is quite simple,” says Nicolas Menu, Investment Director at Ginkgo Advisor, “land pressure continues to rise in major European cities, with a major environmental issue: limiting soil artificialization.” Yet, many underutilized plots still exist in city centers, especially former industrial sites. “The goal was to create investment vehicles capable of supporting the transformation of these sites.”

Despite their potential, these areas are often neglected for two main reasons. On one hand, a lack of funding: “Neither local governments nor businesses have the necessary capital to initiate their rehabilitation,” explains Nicolas Menu. On the other hand, there are technical risks: “These sites have environmental liabilities that are too heavy for traditional players. This is exactly one of Ginkgo’s areas of expertise: our teams, composed of engineers and academics specialized in soil pollution, as well as experts in urban planning, allow us to assume this risk.”

Presentation of the Villeurbanne Project

To illustrate these challenges, the speakers used the example of the ACI Villeurbanne industrial wasteland, which was formerly home to a Renault factory and is located between Gratte-Ciel and the La Doua campus. Closed in 2019 after the transfer of activity to Meyzieu, the site was purchased in 2021 by BNP Paribas and Ginkgo to give it a new lease of life. “This five-hectare site, in the heart of Villeurbanne, was historically dedicated to the production of automotive chassis. By 2026, it will host a new mixed-use neighborhood including more than 300 housing units, business spaces, and even a daycare center,” says Nicolas Menu. The transformation will also include a two-hectare park and a stop on the future T6 tram line, in line with the city’s goal to enhance green spaces and transportation infrastructure.

The project was anticipated as early as 2021. The Lyon Metropolis and the City of Villeurbanne collaborated with Renault to prepare the site for conversion, before the automotive group selected an operator to manage the real estate project, which included ceasing activity, demolition, and pollution remediation. The BNP Paribas-Ginkgo consortium was chosen and replaced Renault as the requesting party, thus assuming the environmental risk. “Without this procedure, Renault would have retained this responsibility, including in the case of pollution discoveries decades later,” continues Nicolas Menu. This substitution ensured the security of the operation and guaranteed its long-term viability.

Political Support

Ginkgo’s selection was based not only on its expertise in pollution remediation but also on the integration of the project into its urban environment, the preservation and enhancement of industrial heritage, housing design, and the establishment of a transitional urban planning strategy. “The city wanted to organize a temporary occupation, and we already had experience with this type of approach,” says Laura Nolier, ESG and Impact Director at Ginkgo Advisor. A budget of 500,000 euros was dedicated to repairing the buildings, hosting associations, and funding a full-time project manager for two years.

The Villeurbanne project benefitted from strong political traction, particularly thanks to the park and the tramway. “This alignment of interests between various public and private stakeholders helped accelerate the timeline,” says Nicolas Menu. As a result, the demolition, asbestos removal, lead abatement, and pollution remediation work were completed in just 13 months. There was also a desire from the city to control prices and rents. “Much discussion had already taken place beforehand, and we knew from the start that this was a flagship project for Villeurbanne and Lyon Metropolis,” recalls Laura Nolier. The adaptation of the Local Urban Planning Plan (PLU) had already begun during the tender process, along with the definition of a specific Orientation for Development and Programming (OAP).

Multi-Party Dialogue

Urban transformation projects are complex equations that require constant dialogue with a variety of stakeholders, including sellers and public authorities. “Our investment funds typically span 8 to 10 years, while political mandates are usually 5 years,” says Nicolas Menu. This discrepancy between the long-term vision required to build the city of tomorrow and the electoral cycle can slow or even halt certain projects. “Therefore, the quality of dialogue with elected officials is essential.”

However, gaining approval doesn’t only involve institutions: social acceptance of the projects is another challenge. “Depending on the geography, particularly in northern Europe, there is growing hesitation about construction,” observes Nicolas Menu. Residents no longer automatically welcome new projects, which can influence the stance of elected officials. In this context, it is crucial to involve residents early on to foster acceptance and anticipate their needs. In Villeurbanne, the municipality organized consultations during the diagnostic phase, with participatory workshops and a steering committee overseeing the major project stages.

“Building a Story”

To convince elected officials, it is crucial to build a narrative, the speakers emphasized. “When you ask them what they want to do with a site, they often don’t have an answer for these neglected sites. It seems important to provide a vision, a conviction, drawing on the site’s history, environment, and the people living there,” says Nicolas Menu. In a context where local governments must limit soil artificialization and better utilize existing spaces, the goal is to highlight the potential of these projects.

“There’s a lot of talk about (re)building the city on the city. In this context, the question is not so much about convincing already engaged elected officials, but rather for us, actors in the real estate chain, to evolve to meet a profession undergoing transformation. Today, the challenge is to renovate what exists and actively use it—rather than building new or passively owning—to create living spaces,” says Claire Flurin Bellec, real estate strategy consultant at Curiosity, co-founder of Co‑Liv, and author of Changing Real Estate: From Utopia to Reality. She further insists: “Showing that it works is the best way to engage elected officials. We need to prove our ability to deliver and show them symbolic, replicable projects.”

The success of these initiatives also relies on choosing the right partners: public authorities, associations, developers… It’s about creating a shared vision and ensuring support while also guaranteeing the sustainability of the project. “This should be obvious, but we must make an effort to create useful spaces and ask upfront who will use them and then who will operate them,” stresses Claire Flurin Bellec. The financial challenge is to ensure coherence between the development model and the operational phase by securing a viable business model, anticipating short-term uses, and incorporating adaptability into both the buildings and business plans to meet future long-term uses.

Ensuring the sustainability of a project is not limited to its launch; it is also necessary to anticipate and adapt to the needs of the area. “We need to be flexible to adjust the program according to demand,” observes Nicolas Menu. Working on industrial wastelands of this scale requires agility: the goal is to recreate a neighborhood, but its purpose may evolve. “The challenge is to find a new life for the site, build a viable economic model to finance the pollution remediation, and prevent the project from falling into neglect,” he says. The program must therefore be thought out in light of future uses. “We anticipate that, with this park, this tramway, and this little village center, this neighborhood in Villeurbanne will become more attractive,” foresees Laura Nolier.

“The success of such an operation relies on a combination of the right local partner, support from public authorities, and an appropriate proposal,” concludes Nicolas Menu. “Even with solid tools, tailored solutions, and investors following us, it’s not always enough. If we can’t find alignment of interests, projects won’t come to fruition.”

Engaging Investors

The sustainability of these investment vehicles also relies on securing the backing of investors, especially individuals. “Today, we see a real demand for investments with social impact, particularly those rooted in local territories,” notes Pauline Levillain, a sustainable finance expert at MAIF.

But to convince savers, commitment alone is not enough. “Even though they are sensitive to these issues, they primarily seek to grow their money,” she continues. The fund will therefore combine different types of assets to reconcile social impact and profitability: intermediate housing with moderate rents, co-living, inclusive housing, participatory and ecological housing, as well as residences for seniors. “The idea is to accompany the evolution of housing models and offer solutions tailored to contemporary social challenges.”

For institutional investors, the investment logic can vary. “If an asset is fully secured with an operator in place, we may accept slightly lower returns,” explains Benjamin Kérignard, Investment Director at Banque des Territoires. “Moreover, proof of tangible impact can also justify a lower return.”

“The question is no longer ‘Can we create a financial vehicle for projects with high social value?’ but rather: ‘What innovative mechanisms and tools can we implement to actively finance urban regeneration while ensuring a satisfactory return?'” emphasizes Claire Flurin Bellec. Today, these funds typically combine different asset types, with more profitable ones balancing those with a stronger social mission.

At the project level itself, impact and profitability are not necessarily incompatible, reminds Nicolas Menu: “It’s all about balancing acquisition costs, rent levels, and diversified uses.”

A Model Applicable to Different Territories?

Questions have also been raised about the replicability of such projects in medium-sized cities and currently neglected areas. “In a context of land-use sobriety, revitalization is a strategic issue that forces us to think about how to address all territories,” emphasizes Benjamin Kérignard, Director of Investments at the Banque des Territoires. Depending on the context, the action levers vary: the rehabilitation of urban wastelands does not follow the same logic as the transformation of city entrances or the repurposing of obsolete industrial land.

“This is also urban regeneration: anticipating changes and preventing the creation of new wastelands, particularly by safeguarding certain land to maintain economic activity,” he explains. The challenge, therefore, is to identify models suited to each context. Additionally, there is a strong constraint on urban sprawl. “The impact is even more pronounced in medium-sized cities, where urban sprawl remains significant, unlike in large metropolitan areas, where the lack of land forces cities to rebuild themselves,” highlights Laura Nolier. The goal, therefore, is to rethink development while avoiding uncontrolled expansion, all while creating viable economic models.

In rural and industrial areas, the issues of urban regeneration differ. “In the Moselle department, for example, significant industrial wastelands await repurposing, which relies less on urban development than on the creation of new infrastructure, particularly energy-related,” explains Nicolas Menu.

Beyond the example of Villeurbanne, these initiatives illustrate how urban regeneration can help address the environmental and economic challenges facing European cities. However, their success hinges on aligning the interests of investors, local authorities, and citizens. Engaging elected officials, structuring sustainable investment models, and ensuring social acceptability are essential levers for making these projects successful and replicable on a larger scale.

Content written by Max Morgene.