Initiative Ireland is working to launch a new €150 mln senior debt fund in the next three months, the company announced on Thursday.
The fund will specialise in residential property developments. The goal is to construct over 2,500 new family homes across Ireland within the next five years.
Padraig W. Rushe, Initiative Ireland’s CEO, said: ‘We will be marketing the opportunity both in Ireland and across Europe, to pension fund managers, large institutional investors and family offices alike. It will also open to qualified investors in Ireland subject to a regulatory minimum investment of €100,000.’
The fund, which will target an annual return of 7 to 7.5%, has already secured backing from Abbey International Finance, which will invest up to €20 mln in the fund.
The annoucement comes in the wake of increased interest in the asset class in recent months.
In June, Irish real estate investment manager Carysfort Capital confirmed it has bought the 120-unit Six Hanover Quay in Dublin from Irish builder Cairn Homes for €101 mln, an average gross sales price of €800,000 per apartment.
According to Irish brokerage firm Goodbody the deal ‘highlights the interest that the Irish multi-family investment market continues to attract from professional and institutional investors’.
Cairn will recycle the proceeds into new schemes and its CEO Michael Stanley said the firm will make an important contribution to the city.
Also last month, Kennedy Wilson and AXA Investment Managers – Real Assets concluded formalities to establish their 50/50 joint venture targeting the Irish private rented sector (PRS).
The two firms agreed to join forces on three of Kennedy Wilson’s PRS schemes in Dublin: the Alliance, Clancy Quay and Sandford Lodge, in all comprising 1,173 units.
The investment marked AXA IMRA’s entry into the Irish PRS market.
Pictured left to right: Padraig M. Rushe (chief credit officer), Rory McEntee (chief operations officer) and Padraig W. Rushe (CEO).