Ireland’s first peer-to-peer funded family homes come to market
18 September 2018
Cluain Dara residential housing development phase one launches in Derrinturn, Co Kildare, and developer aims to deliver more than 65 residential houses to area over next three years across two sites
Cluain Dara Cluain Dara development in Derrinturn, Co Kildare
Initiative Ireland has announced the official launch of Cluain Dara in Co Kildare, the first peer-to-peer funded family homes to be financed and built in Ireland.
Developed by Landport Estates and financed by Initiative Ireland’s lending community, the first phase of houses, comprising a limited number of two-, three- and four-bedroom homes, priced from €227,500 to €305,000, have come to the market in Derrinturn, Co Kildare.
A social impact finance provider
The development is financed by Initiative Ireland, a social impact finance provider, which originates and syndicates loans on behalf of its private and corporate lending clients.
Founded in 2015 by Padraig W Rushe, Initiative Ireland is headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs at University College Dublin and is supported by Enterprise Ireland.
The company combines peer-to-peer lending technology with traditional, asset-backed secured lending practices. All loans to developers are secured with a first legal charge over the properties, with loans repaid from initial sale proceeds.
Delivering affordable homes quickly
Padraig W Rushe, CEO, Initiative Ireland, said: “Initiative Ireland was established to do three things; provide social impact by delivering affordable homes quickly; promote competition by supporting smaller developments at fair rates, and deliver strong returns to our lending community without compromising on capital security.
“Cluain Dara is prime example of all three and we are proud to play our small part in delivering much needed family homes.”
Initiative Ireland recently announced its to intention to increase the scale of its lending through the launch of a new Social Impact Fund. With a targeted initial close of €35 million, it is expected that the fund will be structured as a sub-fund of the Davy Platform ICAV umbrella fund structure and that the Davy Group will provide regulatory and investment management services to the fund.
Initiative Ireland will provide investment advisory services to the fund in addition to Loan Management Services. Initiative Ireland, which specialises in syndicated property finance, will enable the fund to lend alongside their existing private and corporate clients, via their syndicated finance platform.
Investment of up to €20m in fund
The fund, which will target an annual return of 7 to 7.5 per cent, has already secured backing from Abbey International Finance, which will invest up to €20 million in the fund.
Padraig W Rushe, added: “We are in talks with large international and domestic firms, who appreciate our conservative approach to loan management and our focus on sustainable lending. While we welcome these corporate partnerships, we remain committed to maintaining and building our community of private lenders, giving them access to an asset class usually reserved from large pension funds.”
Initiative Ireland is one of the fastest growing peer-to-peer lending platforms in Ireland and the first to specialise in secured property backed finance. With over €5 million in loans approved to date, the firm aims to significantly increase its lending in the coming months ahead of the launch of the planned debt fund, aiming to exceed €10 million in loans, by the end of the year.http://www.engineersjournal.ie/2018/09/18/irelands-first-peer-peer-funded-family-homes-come-market/http://www.engineersjournal.ie/wp-content/uploads/2018/09/a-abir.jpghttp://www.engineersjournal.ie/wp-content/uploads/2018/09/a-abir-300x200.jpgNewsconstruction,Enterprise Ireland,funding,NovaUCD