AN IRISH peer-to-peer property platform aiming to help fund the construction of 250 new homes over 18 months is set for launch in September.
Founded by Padraig Rushe, Initiative Ireland is setting up syndicates of loans for P2P lenders to fund and back residential development projects.
The platform is looking to raise €60m (£53.1m) to meet its 250-home target.
Syndicate members will need to commit to a minimum loan of €10,000 and can earn between 3.5 per cent and 7.5 per cent in annual returns.
Each loan is assessed and pre-approved by an internal credit risk committee and secured on the property. The syndicate is also first in line for repayments should the borrower default.
“Individuals and institutions will be able to register for membership at Initiative Ireland and be among the first to gain access to what is an exclusive secured asset class, often available only to banks and specialist institutions,” Rushe said.
“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.”
The platform has also been welcomed by Ireland’s minister for housing Eoghan Murphy.
“Addressing the housing crisis requires innovation and initiative,” he said.
“It is great to see Irish firms, like Initiative Ireland responding to the market need with new sustainable solutions.
“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.”
Read more: Ireland’s Linked Finance gains FCA approval