Ingka Investments has committed €100m of financing as part of an initiative for the construction of social housing units across the greater Dublin region.

Ingka Investments is the investment arm of Ingka Group which represents the largest IKEA retailer. As IKEA is a separate company it has no involvement in the Irish investment.

The initiative will finance the construction of 150 social housing units over a three year period.

These homes will then be effectively leased to the local authority on a long-term basis.

Each project is construction-ready and relatively compact in scale, averaging 50-70 units each.

Ingka said this will ensure minimal impact on local services and better integration into neighbouring communities.

It also said the approach for the investment is unique for Ireland in that the lease payments from the local authority will be treated like mortgage repayments.

This will allow the transfer of these homes to the local authority at the end of the term at an estimated zero additional cost, it added.

Peter van der Poel, Managing Director of Ingka Investments, said that Ingka Group is guided by the IKEA vision to create a better everyday life for the many.

"As a purpose-led company, our aim is to invest with impact, delivering positive returns for communities and the environment for generations to come," he said.

"We hope this project will provide an innovative, community focused template for social housing provision in Ireland, demonstrating a new way for companies like ours to be part of the solution," he added.