IRELAND’S first property-backed peer-to-peer loan has been funded, which is also the country’s largest P2P loan to date.
Lenders on Initiative Ireland have raised €1.5m (£1.3m) for a loan to North Strand Five Lamps that will finance a social housing development in Dublin, consisting of 10 apartments and a ground floor cafe.
The P2P platform launched in October, offering investors returns of three to eight per cent.
“At a time when many sophisticated investors are looking to diversify beyond equity, we’re making secured real estate debt accessible to investors through our syndicated finance platform,” Initiative Ireland chief executive Padraig W. Rushe (pictured left alongside Frank Flynn of North Strand Five Lamps and Rory McEntee of Initiative Ireland) said.
“We’ve already seen solid demand from our private and institutional members, with many indicating their intention to commit additional funds via the platform.
“Since launching the platform in October, we’ve seen high volumes of new borrowers and lenders attracted by our loans.”
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Initiative Ireland is setting up syndicates of loans for P2P lenders to fund and back residential development projects.
It is looking to raise €60m by the end of 2018 to meet its 250-home target.