New fund to finance €15m housing development in Limerick
A NON-BANK property lender has announced the launch of a new fund which is providing €15m to a new city housing development.
Earlsfort Capital Partners has announced the launch of Earlsfort Development Finance DAC, a new lending vehicle dedicated to providing construction finance for residential development projects.
As part of the launch, it has announced the closing of a transaction for a €15m apartment development in Limerick city.
The development will comprise of 61 units and will be a mix of predominantly one-and two-bedroom residential units.
It’s also providing financing for a €10m starter home development in Meath on the Dublin commuter belt.
Both transactions are with established developers who have a track record in delivering quality residential units in their respective markets.
The main focus of Earlsfort Development Finance is ready to go residential projects in locations with proven demand – both in the private and social housing markets.
Advance rates will be up to 90% of cost, subject to a maximum loan-to-value of 70%.
Co-founder and managing director Paul Brophy, said: “We are delighted to launch this programme and to help provide much needed support and liquidity to the housing sector. Earlsfort was the first non-bank lender to enter the Irish market in 2014, and since formation has funded circa €1.25bn of lending transactions. This new vehicle is a natural add on to our current offering, and we are excited to enter the market and grow the business. Given the very recent market uncertainty and lack of liquidity in the development sector, sponsors are looking for a dependable funder who understands their project needs and can execute quickly.”
Earlsfort Development Finance plans to invest over €250m into the Irish market over the next two years.