The company announced the launch of Ireland’s first syndicated property finance platform.
This launch is linked with Initiative Ireland‘s pre-approval €1.5 million secured loan, which has been approved for funding via the platform. This loan will fund the development of ten social housing apartments and a restaurant on the North Strand Road in Dublin.
Subject to legal processing, this is guaranteed funding passed by Initiative Ireland’s members. It was made available for syndication to private members on Monday. For the company’s private-lending members, it offers them returns of up to 7.5% annual percentage rate (APR) on their committed funds.
The loan is received via phased syndication over the space of 12 months subject to ongoing certification of works by the company’s quantity surveyor partners. The loan is secured with a first legal charge and membership is free but €10,000 must be given per loan to take part in the private syndicate.
Initiative Ireland has also partnered with Mangopay, which offers electronic-money accounts to members.
The CEO of Initiative Ireland, Padraig W. Rushe, said: “Over two years ago we set out to launch a new honest, fair and inclusive finance model for Ireland. From today, our private members will be among the first to gain access to what is an exclusive secured asset class, often available only to banks and specialist institutions. We look forward to welcoming new borrowers and lenders alike and are committed to delivering sustainable value to the Irish housing sector.”
The company also made an ambitious statement in July of this year that through its funding capabilities it will look to finance 250 new family homes by the end of next year.