UK alternative lender Fortwell Capital has launched a major initiative to support development activities in the Republic of Ireland. Activities commenced immediately with the completion a new €21 mln construction loan to Red Rock Developments Ltd., a property company led by experienced Irish developer, Keith Craddock.
The deal commences Fortwell Capital’s lending into Ireland, where it is aiming to emulate its rapid growth in the UK debt sector.
As part of this new initiative, Fortwell has partnered with Dublin-based real estate investment, development and finance specialist Warren Private, who they will work with to source and underwrite construction finance deals in Ireland.
Fortwell Capital is seeking to establish a €300 mln loan book in the new market and will follow a similar strategy to the UK. It will structure loan sizes of €10 mln to €50 mln to support the purpose built residential, retirement living / care homes and commercial sectors, identifying experienced developers requiring leverage of up to 75% Loan to Value or 85% Loan to Cost.
This initiative follows the recent upsizing of Fortwell Capital’s UK credit line with Cain International, the privately held investment firm led by Jonathan Goldstein, from £400 mln to £500 mln. Cain is also supporting Fortwell on its Irish strategy.
Dan Smith, CEO, Fortwell Capital, commented: ‘We identified a clear and present need for Fortwell’s product in the Irish market and are taking this opportunity to propel our next phase of growth in line with Ireland’s national objectives to accelerate development activity over the long-term. We have been considering European expansion for some time and Ireland was always our initial objective given its robust market and strong legal framework.’
Red Rock Developments will use the new construction facility, which is also Fortwell Capital’s first loan outside the UK, to power the development of its inaugural hotel, a 113-bedroom scheme on Gloucester Street in the heart of Dublin’s central business district, pre-let to Premier Inn.
Smith added: ‘We have been selective with our first loan in terms of sponsor and product, with Red Rock Developments boasting an exceptional track record of delivering high quality residential and commercial schemes in the city.’