Irish peer-to-peer lender Initiative Ireland and Fairfield Real Estate Finance have secured the backing from Goldman Sachs Asset Management for their development finance partnership.
Thanks to the new investment, Initiative Ireland said it now has capacity to lend up to €900m (£767.6m) over the next three years to finance the construction of over 7,500 homes.
The joint venture will see Initiative Ireland lending to experienced small, medium and large-scale developers to fund the development of private, social and affordable housing schemes, while supporting over 3,000 construction jobs and creating 20 new finance jobs at the platform.
Brookland arranged the financing with the private credit business within Goldman Sachs Asset Management.
“We’re delighted to have won the backing of the private credit business within Goldman Sachs Asset Management for the joint venture with Fairfield Real Estate Finance, further strengthening our ability to compete as a new financial competitor in the Irish property market,” said Padraig W. Rushe, chief executive of Initiative Ireland said.
“We’re building a truly sustainable and reliable source of alternative funding for experienced property developers, to help tackle the housing crisis. Today’s announcement is a key milestone in that journey.”
“We welcome the private credit business within Goldman Sachs Asset Management backing for our joint venture, which enables us to lend at more competitive rates through Initiative Ireland,” said Chris Wilson, chief executive of Fairfield Real Estate.
“Like Fairfield, they recognise Initiative Ireland is uniquely positioned to become a leading provider of residential development finance in Ireland, with a proven track record and innovative models that support large and small developers alike.”
“We are proud to support Initiative Ireland and Fairfield as they seek to address the large gap in social and affordable housing in Ireland, with a focus on sustainability,” said Banu Kisakurek, a managing director in the private credit business within Goldman Sachs Asset Management.
“We believe our provision of credit provides increased support for developers and that Initiative Ireland’s innovative approach will make a meaningful impact on social and affordable housing supply.”
Initiative Ireland said it will soon start lending to Approved Housing Bodies (AHBs), with the aim of delivering an additional 10,000 new homes over the next 10 years.
This followed the platform partnering with the Credit Union Development Association, which enabled Irish credit unions to provide funding to AHBs across Ireland through a new regulated fund.