Initiative Ireland Approves Ireland’s Largest Peer-to-Peer Loan of €2.75 million to Deliver New Homes in Dublin
- New loan to fund 27 new homes to Rush, Co. Dublin
- Company plans to launch new Pension Lending Accounts
Initiative Ireland today announced the launch of Ireland’s largest peer-to-peer loan of €2.75 million, financed through its Secured Lending Community at www.initiativeireland.ie. The loan will fund the construction of 27 new family homes in Rush, County Dublin.
The €2.75 million loan is secured with a first legal charge and will see phased syndication and release of funds to the borrower over 18 months, subject to ongoing certification of works by the company’s partnering quantity surveyors.
Padraig W. Rushe, CEO, Initiative Ireland said, “This project will deliver much needed family homes within a short commute from Dublin City Centre. We will be syndicating the loan in stages, enabling clients to join the loan at different stages over the next 12 months, to earn a fair return.”
Initiative Ireland, headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs at University College Dublin (UCD), is supported by Enterprise Ireland as a high-potential start-up.
It was founded in 2015 by an experienced financial services team, with the goal of providing increased financial inclusion, competition and sustainability to the Irish finance market.
Initiative Ireland loans are funded by its Secured Lending Community, made up of both Corporate and Private Clients, via Secured Lending Accounts. All loans listed are assessed by its internal credit committee and pre-approved by one their Corporate Credit Partners, who lends alongside its other Private and Corporate Clients.
As such, they offer clients access to institutional grade loans, which are secured against the underlying asset (the property) from day one, enabling them to earn 6% - 8% APR, while helping to deliver much needed family homes across Ireland.
Initiative Ireland aims to provide competitive terms and rates to experienced property developers exclusively. Primarily focused on affordable residential developments, with planning in place, the company provides up to 75% of required funding up to a maximum of €10 million per loan but takes a first legal charge over the financed project.
This means for every €100 released to the borrower at any given time, they require €133 of underlying security. Once the homes are sold, they release this security to the buyers. As senior secured loans, they must be repaid first in full before the developer earn any return, offering significant downside protection to their lenders.
Padraig W. Rushe, added, “We’ve designed Initiative Ireland to provide people with a way to earn strong returns while also protecting their funds against downside risks. In the coming weeks we hope to announce the launch of new Pension Lending Accounts, to make this even more accessible to individuals, looking for fair returns with capital security.”
11 October 2018
For further information contact Micéal Whelan, Communications Manager, UCD Research and Innovation, e: firstname.lastname@example.org, t: + 353 1 716 3712, or Padraig W. Rushe, CEO, Initiative Ireland, e: email@example.com or t: +353 1 685 9259.
Initiative Financial Services trading as Initiative Ireland is a financial services company. It acts as Loan Agent on all loans. With a Secured Lending Account from Initiative Ireland, clients can lend as part of a Syndicate, in return for a share of the issued loan and interest income. All loans are secured with a first charge over the property deeds. Clients can tailor their loan portfolio in line with their own risk-reward appetite, choosing which pre-approved loans to fund and opting to finance senior and/or subordinate debt, to achieve their financial goals. Initiative Ireland has financed over €5.5 million in loans, supporting the construction of housing developments across Ireland. www.initiativeireland.ie
Initiative Ireland Nominees Limited is a trust and company service provider, authorised by the Department of Justice and Equality of Ireland. It acts as the Security Agent, holding a first legal charge over the funded properties in trust for the Private Lending Syndicate Members. www.iin.ie
Initiative Ireland is a partner of MANGOPAY, a public limited liability company incorporated in Luxembourg (Number B173459) and approved as an electronic money institution by the Financial Sector Regulator (CSSF), Luxembourg. As the regulated payment partner for the company, it holds all client funds on behalf of the firm, facilitating payments between borrowers and lenders.
At NovaUCD, the hub for new ventures and entrepreneurs at University College Dublin, we nurture and support new high-tech and knowledge-intensive companies as part of UCD's mission. At NovaUCD we provide purpose-built, state-of-the-art incubation facilities alongside a comprehensive business support programme for client companies such as Initiative Ireland. NovaUCD has been funded through a unique public-private partnership that includes AIB Bank, Arthur Cox, Deloitte, Enterprise Ireland, Ericsson, Goodbody Stockbrokers, UCD and Xilinx. www.ucd.ie/novaucd