A new development finance lender, Ardcairn Capital, has partnered with M&G Investments to help residential developers deliver housing projects across Ireland.
The platform is supported by M&G's £5 billion Catalyst fund, which invests in private companies tackling environmental and social issues such as Ireland’s housing crisis, on behalf of Prudential policyholders and customers.
Ardcairn Capital aims to deploy significant capital to help developers bring new and existing residential projects, including social housing, to completion.
The new lender is entering the market with competitive financing of up to 90% of overall project costs for developers who have a track record of delivering quality.
Ardcairn said it will consider all sizes of housing developments, whether social housing, traditional houses or apartments for private sale, with a loan requirement of €2m upwards.
Alex Seddon, Head of Catalyst at M&G, said creating more, good quality, homes is a priority for most societies around the world, and also a priority for its Catalyst fund.
"We welcome this opportunity to partner with Ardcairn Capital to help overcome some of the barriers that smaller developers face in delivering residential and social housing," he said.
Daire McCarthy, co-founder and CEO of Ardcairn Capital, said Ireland is starting to see recovery in construction, but not enough to meet the demand and the investment it takes to reach housing targets.
"We are therefore delighted to partner with M&G and are excited about the potential of the development finance space in Ireland, which is brimming with compelling opportunities for small to medium sized homebuilders, who continue to be overlooked and under serviced in the market," Mr McCarthy said.
"Our evolving, fast-paced society - accompanied by changes in demographics, preferences and regulation - is having a profound effect on how we live and commute. We need to be creative, and talk about more options for accommodation than we have done in the past - placing affordability at the centre of these conversations," he added.