Property finance firm seizes the Initiative
Initiative Ireland has launched the country's first syndicated property finance platform.
The launch coincides with the company's pre-approval of a €1.5m secured loan which will fund the development of 10 social housing apartments and a restaurant in Dublin.
The platform - which enables private and institutional investors to customise their property loan portfolio in line with their individual risk appetite - has been described by CEO Padraig W Rushe, as offering "low-to-moderate" risk for lenders.
Investors must be willing to put forward a minimum balance of €10,000, and can earn returns of between 3.5pc to 7.5pc, provided there is no default on the property development loans.
The lending takes place across two tiers, with the different tiers providing different levels of risk and reward, based on the terms of the underlying loan.
In the event of a loan default, tier one - which earns returns of 3.5pc - will be repaid first.
"It's a fair alignment of risk and reward. The only people who have exposure to our model are those who are directly involved in it," Mr Rushe told the Irish Independent.
He added that the platform does not provide financial advice to investors, however, it was "extremely" transparent to investors in terms of risks and rewards on offer.
Mr Rushe said Initiative Ireland was looking at locations across the country, but is seeing a lot of interest in the Dublin market.
He went on to say that the platform was not willing to invest in apartments in the middle of the country "somewhere we feel it doesn't really make sense".