Thursday 19 October 2017

Agency providing cheap loans to developers expected to be established

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Ellie Donnelly

Ellie Donnelly

A new agency, which is believed to be called Home Building Finance Ireland, is expected to be established with the aim of providing cheap loans to developers, when Minister for Finance Paschal Donohoe unveils his budget today.

It is understood that that agency will draw on Nama’s experience.

Funding for the loans to developers is expected to come from the sale of assets by the Irish Strategic Investment Fund (the Isif), the Irish Times reports.

The Isif, which has total resources of more than €7bn, has already committed over €400m on commercial terms to funding the construction of thousands of new homes.

Earlier this month the Isif confirmed that it is to provide a debt facility of around €50m to real estate investment company Hines Ireland in order to fund the construction of infrastructure such as roads and utilities.

The infrastructure will help facilitate the planned development of over 4,000 new residential units.

The homes will be built in the Cherrywood, south Dublin, where Hines is the largest landowner.

This infrastructure, which is already under construction, will be a catalyst for the overall Cherrywood development, which is targeting over 8,000 new residential units across the entire development zone.

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