The fund is set to be launched within the next three months and will help to finance the construction of over 2,500 new family homes across Ireland over the next five years.
It will target an annual return of 7-7.5% for investors and has already secured backing from Abbey International Finance, which will invest up to €20m (approximately £17m).
It is expected that the Davy Group will provide regulatory and investment management services to the fund, while Initiative Ireland will offer investment advisory services to the fund in addition to loan management services.
Initiative Ireland will enable the fund to lend alongside its existing private and corporate clients, via its syndicated finance platform.
The fintech platform has an existing loan pipeline of more than €150m, comprising over 30 housing developments across Ireland.
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The fund is expected to provide finance for terms of up to two years to developers via specialist purpose vehicles, re-deploying funds over the lifetime of the fund to creditworthy projects.
“We will be marketing the opportunity both in Ireland and across Europe to pension fund managers, large institutional investors and family offices alike,” said Padraig.
“It will also open to qualified investors in Ireland, subject to a regulatory minimum investment of €100,000 [approximately £88,000].”
The fund is expected to secure high levels of diversification across the property finance market and all loans will be asset-backed, secured with a first legal charge against the underlying properties.
“We’re innovative but conservative,” added Padraig.
“It’s that paradoxical conservatism which really sets us apart in a good way from both traditional finance and other fintech firms.”
Also pictured above: Left, Padraig M Rushe (chief credit officer) and middle, Rory McEntee (chief operations officer)