A NON-BANK property lender has announced the launch of a new fund that will provide €15 million for a new townsite.
Earlsfort Capital Partners has announced the launch of Earlsfort Development Finance DAC, a new lending vehicle dedicated to financing the construction of residential development projects.
As part of the launch, it announced the closing of a transaction for a €15 million apartment development in the city of Limerick.
The development will consist of 61 units and will be a mix of mainly one and two bedroom residential units.
It is also funding a €10 million starter home development in Meath, on Dublin’s suburban belt.
Both deals are with established developers who have a proven track record of delivering quality residential units in their respective markets.
Earlsfort Development Finance focuses primarily on ready-made residential projects in locations where there is proven demand, in both the private and social housing markets.
Advance rates will be up to 90% of cost, subject to a maximum loan-to-value ratio of 70%.
Co-Founder and Managing Director Paul Brophy, said, “We are delighted to launch this program and help provide much-needed support and liquidity to the housing industry. Earlsfort was the first non-bank lender to enter the Irish market in 2014 and since its inception has funded approximately €1.25 billion in lending transactions. This new vehicle is a natural complement 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 reliable funder who understands their project needs and can execute quickly.
Earlsfort Development Finance plans to invest over €250 million in the Irish market over the next two years.