EU bank agrees loan for 2012 Olympic legacy

LONDON (Reuters) - The European Investment Bank confirmed a 95 million pound loan on Wednesday to help fund the purchase of athletes' flats in the London 2012 Olympics village, which will be converted into social housing after the Games.

The loan from the EU's long-term finance house has been approved for Triathlon Homes to buy 1,379 apartments to provide a lasting legacy for London.

Nearly half of the 2,800 flats in the Olympic village will now be dedicated to social housing afterwards, up from the initially planned third.

The EIB said it agreed to the loan with Triathlon, a joint venture between urban development company First Base and two local housing associations, because it contributed to the regeneration of a previously deprived area east London.

"The creation of sustainable communities is a key lending objective for the EIB," said the bank's Simon Brooks on its website.

The loan is separate from a 255 million pound loan agreed in April, which has been scrapped.

Triathlon Homes will invest 269 million pounds in the pre-sale deal with the Olympic Delivery Authority, the London 2012 organisers.

In addition to the 95 million pound loan, funding will come from a 64 million pound loan from Barclays Commercial bank.

The rest of the investment will come from a 110 million pound grant from the Homes and Communities Agency (HCA).