New financing platform aims to support the construction of 250 homes with €60m of loans
Initiative Ireland is aiming to finance €60m in construction loans to fund 250 family homes. It intends to launch Ireland's first syndicated property finance platform in September to raise cash from investors, or members, and lend it on to builders.
Initiative Ireland will offer its private syndicate members a return of 3.5pc APR to 7.5pc APR on investments, the minimum commitment per loan is €10,000.
The business is supported by Enterprise Ireland.
Under the scheme, loans will be assessed by an internal credit committee prior to syndication amongst members - and the loans are managed by Initiative Ireland.
"It is great to see Irish firms like Initiative Ireland responding to the market need with new sustainable solutions," Minister for Housing, Planning and Local Government Eoghan Murphy said.
The company is currently accepting membership applications from private individuals and institutions interested in lending €100,000 or more via its digital platform.
Founded in 2015 with the goal of improving financial inclusion and competition in Irish market, Initiative Ireland was recognised by the MetLife Foundation Inclusion Plus Awards in September 2016.
"At a time when the country is in desperate need of housing, our initiative will offer competitive returns and terms to our private members, while supporting the construction of much needed family homes across Ireland," said Initiative Ireland CEO Padraig W Rushe.