Monday 27 May 2019

Isif puts €140m into Irish Life rental property fund

'With this investment Isif has committed a total of €916m to residential housing investments to date, relating to housing funding of €2.4bn when private sector co-investments are included.' (stock photo)
'With this investment Isif has committed a total of €916m to residential housing investments to date, relating to housing funding of €2.4bn when private sector co-investments are included.' (stock photo)
Samantha McCaughren

Samantha McCaughren

The Ireland Strategic Investment Fund (Isif) has committed €140m to fund new homes for people in the private rental market through the Irish Residential Property Fund, managed by Irish Life Investment Managers (ILIM).

Isif will co-invest alongside private sector investors in this fund.

The rental fund will allow forward funding, forward purchase and development financing arrangements.

Although institutional investment in the rental sector has come under criticism in Ireland, Isif said that it is well-established in developed economies around the globe.

"Institutional ownership of residential property schemes gives renters stability of tenure, with a motivated long-term owner whose objective is to continue to hold and make the accommodation available for rent into the future," said Isif.

With this investment Isif has committed a total of €916m to residential housing investments to date, relating to housing funding of €2.4bn when private sector co-investments are included.

ILIM will continue to invest in residential stock to meet the needs of changing household sizes and the demand for housing close to the main employment centres.

The fund will be permitted to invest in existing stock, but Isif capital will be ring-fenced in a sub-fund and can only be drawn for acquisitions delivering new housing stock to the market.

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