New fund closes €1.6m housebuilding deal
A Dublin company is targeting further property funds after successfully closing a €1.6m deal with private investors to bankroll housing developments.
Foxglove Finance - which was established by accountant Declan de Lacy and chartered surveyor Peter Stapleton - last week completed the €1.6m fundraising which will be used to complete a housing estate in Courtown, Co Wexford. The fundraising was structured by issuing bond-like loan notes to subscribers. Funds will help complete a development of 200 homes in Courtown that includes 29 incomplete houses and an unfinished creche.
The project is being taken on by property investors Aidan Farrell and Charles O'Reilly Hyland. They expect to acquire the properties from Nama this week, and complete and sell them within a year. It's understood that while the pair would have been able to finance the development themselves, they opted to use the funding initiative from Foxglove Finance.
Speaking to the Irish Independent, Mr De Lacy, a director of accountancy firm PFK O'Connor, Leddy & Holmes, said that the fundraising had been a success and confirmed Foxglove plans to work on more projects with Mr O'Reilly Hyland and Mr Farrell. The banking system remains effectively closed to residential construction, he said.