Initiative Ireland has partnered with Fairfield Real Estate Finance in a project designed to lend €600 million to build 5,000 homes over the next three years.
According to a release, the Irish marketplace lender was chosen by Fairfield as a joint venture partner to enter the Housing Construction Finance Market in Ireland.
Initiative Ireland seeks to finance the new homes working with small, medium, and large-scale developers to deliver residential housing to the market. The joint venture is expected to create 20 finance roles at Initiative Ireland and support over 3,000 construction jobs across Ireland.
Reportedly, the Irish Minister for Housing, Local Government and Heritage Darragh O’Brien, TD has welcomed the announcement.
Initiative Ireland specializes in funding social, affordable, and mid-market housing developments and is described as an impact finance marketplace. Supported by Enterprise Ireland as a High Potential Start-Up and headquartered at NovaUCD, the company aims to target social and environmental challenges.
Minister O’Brien TD issued the following statement:
“I welcome news of increased funding competition within the Irish Finance Market, to support the delivery of social and affordable housing, in addition to the creation of new jobs. It is also great to see Enterprise Ireland-backed companies such as Initiative Ireland, successfully attracting and building partnerships with globally recognised firms, delivering and supporting new jobs here in Ireland as we work to stabilise the jobs and housing market.”
Padraig W. Rushe, CEO, Initiative Ireland said they have worked with their impact investor community to deliver housing projects across the country, for social and environmental impact.
“We understand the urgent need for fair and flexible finance, and we aim to work with new borrowers to bring sustainability to the Irish Housing Market, helping to make housing security more accessible for everyone.”
Between a partnership with CUDA, a hub for new ventures and entrepreneurs at University College Dublin, and the announcement today, Initiative Ireland says it is now positioned to deliver over €1.5 billion of funding to the market over the next 5 years.
Chris Wilson, CEO of Fairfield Real Estate stated:
“At Fairfield, we work to support experienced commercial property developers and owners across the UK and Ireland with competitive and flexible finance. We have exclusively partnered with Initiative Ireland to provide the same value to residential developers, leveraging Initiative Ireland’s specialist skills and residential focus. We are proud to be joining their Impact Investor community.”
Initiative Ireland accepts both institutional and individual investors. Following an online accreditation process, an individual may create a private lending account. According to its website, Initiative Ireland generates returns of around 5% to 8% APR. There is is a minimum lending amount of €500.