€1.25m for new peer-to-peer funded residential housing development unveiled
26 June 2018
Pictured in Co Kildare are Padraig Rushe, CEO, Initiaitve Ireland, and Eugene Finn, director, LandPort Estates Limited
Initiative Ireland has announced that its clients have committed €1.25 million to finance a new peer-to-peer funded residential housing development in Co Kildare, only the second of its kind nationwide.
Portfolio of 65 plots with full planning permission
The loan, funded by Initiative Ireland’s private and corporate clients via the company’s private lending accounts, was made to LandPort Estates Limited to acquire a portfolio of 65 plots, with full planning permission, in the Cluain Dara Estate, Derrinturn, Co Kildare.
Initiative Ireland was founded in 2015 by an experienced financial services team, with the goal of providing increased financial inclusion, competition and sustainability to the Irish finance market through its syndicated finance platform.
Initiative Ireland which is headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs at University College Dublin, is supported by Enterprise Ireland as a high-potential start-up.
Require on average 17,000 new homes over the next two years
Padraig W Rushe, CEO, Initiative Ireland said: “As outlined in the Initiative Ireland Housing 2031 report published earlier this year, the Greater Dublin Area will require on average 17,000 new homes over the next two years, with some 1,800 new homes needed in Kildare alone. This announcement is a step in the right direction to addressing this need and this new development will bring much needed family homes to the market in Kildare.
“The first of more than 65 housing units come to market shortly and the new homes will likely appeal to local buyers and commuters alike and are expected to range in price from €250,000 to €400,000.
“At Initiative Ireland we assess and professionally manage secured property loans from start to finish, on behalf of our Lending Clients. Our clients share our commitment to deliver a positive social impact, doing their part to help address the housing crisis, while also earning fair returns on the capital.
Work exclusively with experienced developers
“We’re committed to offering honest, fair and inclusive services. All of our loans are secured with a first charge over the property deeds and we work exclusively with experienced developers, offering fair rates to our borrowers and lenders alike.”
Peer-to-peer lending, has become popular in the US and UK, and is expected to exceed €8.3 billion in new lending in the UK in 2018. It enables individuals and institutions to pool funds and collectively finance loans together, as an alternative method of offering finance to businesses and individuals.
Traditionally, peer to peer lenders offer unsecured, high-cost loans to businesses which are otherwise unable to secure finance.
Initiative Ireland offers market leading loans, at mainstream finance rates, to attract experienced property developers. In return for the attractive borrowing rates, these developers provide a first legal charge over their properties to the company, which is held in trust from day one for the benefit of Initiative Ireland’s private lending syndicates.
“Committing €10,000 via a private lending account, our clients can earn €350 to €800 on their funds annually, compared with a maximum of €30 they might expect to earn leaving those funds on deposit in a bank savings account,” Rushe said. “Irish households have €110 billion on deposit with the banks, earning some of the lowest returns in Europe amid a national housing shortage.
“Our clients appreciate the opportunity to earn fair returns of up to eight per cent APR on their funds while also helping to deliver much needed family homes across Ireland.”http://www.engineersjournal.ie/2018/06/26/e1-25m-finance-new-peer-peer-funded-residential-housing-development/http://www.engineersjournal.ie/wp-content/uploads/2018/06/a-kild.jpghttp://www.engineersjournal.ie/wp-content/uploads/2018/06/a-kild-300x300.jpgNewsconstruction,Enterprise Ireland,funding,NovaUCD