Ireland
UK
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The Minister for Finance, Michael McGrath TD, has unveiled an extension to the Ireland Strategic Investment Fund (ISIF) funding programme, dedicated to delivering new homes.
As part of the expansion, €400 million has been allocated for equity-based investments in new housing projects. The initiative represents a significant step towards addressing the housing needs in Ireland and promoting the development of much-needed housing projects across the country.
The new allocation will build on ISIF’s existing housing related commitments of €1.2 billion which has supported the delivery of 11,250 new homes thus far and is targeting the delivery of over 25,000 new homes by 2025 for owner-occupiers, renters, people who need social housing and students.
ISIF will use this money to target equity-based investments on a commercial basis, diversifying its portfolio and extending ISIF’s reach into the delivery of new homes in Ireland.
ISIF is making this new allocation to address emerging gaps in the capital landscape, in accordance with its statutory "double bottom line" mandate of investing in support of economic activity and employment in Ireland while delivering a commercial return.
The new allocation will result in ISIF making equity investments in new and existing housing focussed funds and housing delivery platforms, supporting Irish homebuilders by providing them with greater access to the commercial capital they need to build new homes at scale.
Minister McGrath said: "I welcome ISIF's new allocation which will provide a timely boost to the delivery of new homes in Ireland. Securing access to equity is key to unlocking access to senior debt for residential development. Therefore, this capital, together with construction debt financing, will result in a multiple of the Fund’s investment ultimately financing the delivery of new homes, for owner-occupiers, renters and people who need social housing. These investments will not only provide equity to support short-term housing delivery, but critically will also seek to structurally improve the long-term funding landscape for Irish homebuilding."
