UCD spin-in aims to fund construction of 250 family homes in next 18 months
Posted July 24, 2017
An online lending platform is aiming to provide €60 million in loans to support the construction of 250 new family homes by the end of 2018.
UCD spin-in Initiative Ireland will focus on residential property projects in high demand areas across Ireland. It will only lend to established property developers.
The syndicated finance company is scheduled to launch in September and will provide 3.5% - 7.5% APR to members who provide a minimum contribution of €10,000.
“Addressing the housing crisis requires innovation and initiative. It is great to see Irish firms, like Initiative Ireland, responding to the market need with new sustainable solutions,” said Eoghan Murphy TD, Minister for Housing, Planning and Local Government.
“I welcome their goal of making finance available at affordable rates to smaller developers, which is a necessary component if we want to see the activation of dormant sites.”
Pictured (l-r): Eoghan Murphy TD, Minister for Housing, Planning and Local Government
and Padraig W. Rushe, CEO of Initiative Ireland.
Initiative Ireland is supported by Enterprise Ireland as a high-potential start-up. In 2016, it was recognised at the MetLife Foundation Inclusion Plus Awards for its innovative social lending model.
“Individuals and institutions can now register for membership at InitiativeIreland.ie and be among the first to gain access to what is an exclusive secured asset class, often available only to banks and specialist institutions,” said Padraig W. Rushe, CEO of Initiative Ireland.
“Moreover, at a time when the country is in desperate need of housing, our initiative will offer competitive returns and terms to our private members, while supporting the construction of much needed family homes across Ireland.”
From 2019 onwards, Initiative Ireland expects to finance the construction of 250 – 500 new homes every year. It estimates this would lead to 600 – 1200 new jobs in the construction industry over the same period.
Initiative Ireland was founded in 2015 by experienced banking professionals who will approve and manage all loans. It is headquartered at NovaUCD, the hub for new ventures and entrepreneurs at University College Dublin.
By: Jonny Baxter, digital journalist, UCD University Relations