Initiative Ireland in €150m residential fund bid

PROPERTY finance platform Initiative Ireland is seeking to launch a new €150m senior debt fund which will specialise in financing residential property developments.

According to a report in Development Finance Today, the fund is set to be launched in the autumn and will help to finance the construction of over 2,500 new family homes across Ireland over the next five years.

Davy will provide regulatory and investment management services to the fund.

Last year Initiative Ireland launched the country’s first syndicated property finance platform and announced the company’s pre-approval of a €1.5m secured loan which will fund the development of 10 social housing apartments and a restaurant in Dublin. The new fund, which is headed by Padraig W Rushe has already secured backing from Abbey International Finance, which will invest up to €20m. It will target an annual return of 7-7.5pc for investors and will provide finance for terms of up to two years to developers. The fund will be marketed to institutional investors, family offices and qualified individuals investing over €100,000.

The fintech platform has an existing loan pipeline of more than €150m, comprising more than 30 housing developments across Ireland, according to Development Finance Today.