New fi­nanc­ing plat­form aims to sup­port the con­struc­tion of 250 homes with €60m of loans

Irish Independent - Business Week - - BUSINESSWEEK -

INI­TIA­TIVE Ire­land is aim­ing to fi­nance €60m in con­struc­tion loans to fund 250 fam­ily homes. It in­tends to launch Ire­land’s first syn­di­cated prop­erty fi­nance plat­form in Septem­ber to raise cash from in­vestors, or mem­bers, and lend it on to builders.

Ini­tia­tive Ire­land will of­fer its pri­vate syn­di­cate mem­bers a re­turn of 3.5pc APR to 7.5pc APR on in­vest­ments, the min­i­mum com­mit­ment per loan is €10,000.

The busi­ness is sup­ported by En­ter­prise Ire­land.

Un­der the scheme, loans will be as­sessed by an in­ter­nal credit com­mit­tee prior to syn­di­ca­tion amongst mem­bers – and the loans are man­aged by Ini­tia­tive Ire­land.

“It is great to see Ir­ish firms like Ini­tia­tive Ire­land re­spond­ing to the mar­ket need with new sus­tain­able so­lu­tions,” Min­is­ter for Hous­ing, Plan­ning and Lo­cal Gov­ern­ment Eoghan Mur­phy said.

The com­pany is cur­rently ac­cept­ing mem­ber­ship ap­pli­ca­tions from pri­vate in­di­vid­u­als and in­sti­tu­tions in­ter­ested in lend­ing €100,000 or more via its dig­i­tal plat­form.

Founded in 2015 with the goal of im­prov­ing fi­nan­cial in­clu­sion and com­pe­ti­tion in Ir­ish mar­ket, Ini­tia­tive Ire­land was recog­nised by the MetLife Foun­da­tion In­clu­sion Plus Awards in Septem­ber 2016.

“At a time when the coun­try is in des­per­ate need of hous­ing, our ini­tia­tive will of­fer com­pet­i­tive re­turns and terms to our pri­vate mem­bers, while sup­port­ing the con­struc­tion of much needed fam­ily homes across Ire­land,” said Ini­tia­tive Ire­land CEO Padraig W Rushe.

Padraig W Rushe, Rory McEn­tee and Padraig M Rushe of Ini­tia­tive Ire­land at yes­ter­day’s an­nounce­ment. Photo: Maxwells

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