Castlehaven switches backer in €250m deal
New York based investor Avenue Capital has acquired a stake in construction sector lender Castlehaven Finance, under a €250m deal that will see it replace Pollen Street as a shareholder and funder for the Irish business.
Castlehaven itself was set up in 2014 by then London-based Irish financiers Will Aylmer and Clark McCann, who established the Irish lender for the construction sector at a time when traditional banks had largely exited the market. Since then Castlehaven has provided over €580m in finance to developers.
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UK-based Pollen Street has invested around €1bn since it entered the Irish market three years ago, across a number of businesses including a stake and financing line for Castlehaven.
It also owns Capitalflow another Irish non-bank lender, and majority stakes in software company Vision Blue Solutions and online property auction firm Bid X.
Its interests in Castlehaven are held through P2P Global Investments PLC and Honeycomb Investment Trust.
Pollen Street has been involved with Castlehaven since 2016, providing financing in excess of €385m.
Castlehaven said it is on course to complete over €300m in lending this year, backing projects including 74 new homes at Chapel Road in Delganey for Patrick Durkan's DRES and a 149-bedroom hotel on James Street, Dublin for The Dublin Loft company owned by Cosgrave family.
Avenue Capital will acquire the existing Castlehaven Finance Portfolio from Pollen Street Capital and intends providing future funding lines to allow the Castlehaven platform to continue to grow.
Castlehaven co-founder Clark McCann said the new investment will allow the business to scale up including a shift into backing developments in the private rented sector.