Initiative Ireland CEO Padraig W. Rushe intends the launch a new senior debt fund, valued at €150m / £132m, aimed at financing residential property developments.
The new Irish housing fund is scheduled to be launched within three months and will be used as a small builder lending resource to build over 2,500 new family homes across the country over the next five years.
The scheme has targeted an annual investment return of 7 to 7.5% and has already obtained substantial financial backing from Abbey International Finance, which will invest up to €20m, or £17m.
The Davy Group is expected to provide the fund with investment management and regulatory services while Initiative Ireland will support it with both loan management and investment advisory services.
Initiative Ireland will also use its syndicated finance platform to allow the fund to lend along with its current corporate and private clients.