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Wednesday 12 December 2018

ISIF commits additional funding to residential development lender

Stock Image: Bloomberg
Stock Image: Bloomberg
Ellie Donnelly

Ellie Donnelly

The State's Ireland Strategic Infrastructure Fund (ISIF) is to provide additional funds to Activate Capital, a residential development lender.

ISIF and global investment firm KKR have committed an additional €270m to their existing investment of €500m in Activate.

"ISIF is focused on encouraging private capital to invest alongside it in sectors and areas of the Irish economy which continue to experience market failures," said Eugene O’Callaghan, director of ISIF, said. 

"Residential housing is an important sector for ISIF in this context.  We have committed more than €600m to platforms that are targeting delivery of more than 10,000 units in the main urban centres and Activate is a central part of this strategy."

Since commencing business in 2016, Activate said it has deployed in excess of €400m across multiple developments incorporating 4,200 new homes.

The company said that it will create an opportunity for third party institutional investors to invest in the second half of this year with the intention of expanding its available capital for residential development finance to €1bn.

"Our pipeline is very strong and we have good visibility into 2019 and beyond," Robert Gallagher, CEO of Activate, said.

"The additional commitment of €270m by ISIF and KKR underpins our ability to continue to lend to good projects across the country."

ISIF, formerly the National Pensions Reserve Fund, has a mandate to invest on a commercial basis in a manner that will support economic activity in Ireland. It has backed a number of SME-focused lenders.

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