INITIATIVE Ireland has provided Ireland’s largest peer-to-peer loan to date, totalling €2.75m (£2.4m).
The Irish P2P platform financed the loan through its secured lending community, which comprises of corporate and private investors who co-fund loans for residential development projects.
The €2.75m loan will be used to fund the construction of 27 new family homes in Rush, County Dublin. Interest rates for lenders will vary from 6% to 8% APR per loan.
The loan is secured with a first legal charge and will have phased syndication. This means funds will be released to the borrower over 18 months, subject to ongoing certification of works by the company’s quantity surveyors.
“This project will deliver much-needed family homes within a short commute from Dublin City Centre,” said Padraig Rushe, chief executive of Initiative Ireland.
“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.”
Earlier this year, the platform called for greater support for property developments in Ireland after research showed that four times more houses needed to be built in 2018 compared to 2017 to match demand.
Back in December 2017, the platform raised €1.5m for a loan to North Strand Five Lamps. This financed a social housing development in Dublin, consisting of 10 apartments and a ground floor cafe. At the time this was Ireland’s largest P2P loan, so the new €2.75m loan beats this record.
Initiative Ireland is aiming to raise €60m by the end of 2018 to meet its 250-home target.