Over 4,000 new homes to be built in Dublin after €50m cash injection for infrastructure
State-backed Irish Strategic Investment Fund (ISIF) is to provide a debt facility of around €50m to 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.
The development zone designation requires certain enabling infrastructure to be put in place before residential and commercial development can take place.
Infrastructure identified in the planning scheme includes water and drainage, roads and transportation, utilities and ICT, energy and waste management.
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.
"This investment is significant because it shows that we are willing to also fund key infrastructure, such as utilities and roads, which is needed to make developments such as these 4,000 new homes in Cherrywood viable," Donal Murphy, head of infrastructure and credit investments at Isif, said.
Brian Moran, MD with Hines Ireland, said that the funding from Isif was a "very welcome development and an important declaration of support by the State for large-scale projects that can deliver significant numbers of houses and apartments in Dublin in the coming years."
The funding announcement comes one week after the submission of a planning application for the town centre at Cherrywood and the construction of almost 1,300 apartments.