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Earlsfort Capital Partners launches lender for new development projects

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Oakley Park housing development in Enfield, Co Meath

Oakley Park housing development in Enfield, Co Meath

Oakley Park housing development in Enfield, Co Meath

Earlsfort Capital Partners Limited, a non-bank property lender, has launched a new lending vehicle, Earlsfort Development Finance DAC, dedicated to providing construction finance for residential development projects in the €7.5m-€20m range.

As part of the launch, Earlsfort also announced the closing of its first two transactions with total commitments of €25m.

The first transaction is to provide construction financing for a €15m apartment development in Limerick city. The development will comprise of 61 units and will be a mix of predominantly one- and two-bedroom residential units bringing increased and necessary residential availability to the city.

The second transaction will provide construction financing for a €10m starter home development in Enfield, Co Meath. Construction is well underway with the first homes expected to be delivered in October.

Both of these transactions are with established developers who have a track record in delivering quality residential units in their respective markets.

The main focus of Earlsfort Development Finance is “ready to go” residential projects in locations with proven demand – both in the private and social housing markets. Advance rates will be up to 90pc of cost, subject to a maximum loan to value of 70pc. Its range of interest rates start at 7.5pc but vary depending on the project.

Commenting on the launch, co-founder and managing director Paul Brophy said; “We are delighted to … help provide much-needed support and liquidity to the housing sector. Earlsfort was the first non-bank lender to enter the Irish market in 2014, and since formation has funded circa €1.25bn of lending transactions. This new vehicle is a natural add-on to our current offering, and we are excited to enter the market and grow the business. Given the very recent market uncertainty and lack of liquidity in the development sector, sponsors are looking for a dependable funder who understands their project needs and can execute quickly.”

Earlsfort Development Finance plans to invest over €250m into the Irish market over the next two years.

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