The Sunday Independent – 8th July 2018


Initiative Ireland in €150m residential fund bid

The Sunday Independent – 8th July 2018

Property finance platform Initiative Ireland is seeking to launch a new €150m senior debt fund which will specialise in financing residential property developments.

According to a report in Development Finance Today, the fund is set to be launched in the autumn and will help to finance the construction of over 2,500 new family homes across Ireland over the next five years.

Davy will provide regulatory and investment management services to the fund.

Last year Initiative Ireland launched the country’s first syndicated property finance platform and announced the company’s pre-approval of a €1.5m secured loan which will fund the development of 10 social housing apartments and a restaurant in Dublin. The new fund, which is headed by Padraig W Rushe has already secured backing from Abbey International Finance, which will invest up to €20m. It will target an annual return of 7-7.5pc for investors and will provide finance for terms of up to two years to developers. The fund will be marketed to institutional investors, family offices and qualified individuals investing over €100,000.

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The Sunday Times – 8th July 2018


Peer-to-peer lender Initiative Ireland builds €150m debt fund for housing

The Sunday Times – 8th July 2018

Initiative Ireland, a peer-to-peer lender to small builders, is to raise a €150m debt fund to finance housing projects.

The Irish stockbroker Davy will provide the necessary regulatory and investment management services to the senior debt fund.

Padraig W Rushe, the chief executive of Initiative Ireland, said the fund would finance small-scale residential property developments and was expected to be launched in September. “With such a fund,” he said, “we aim to support the construction of 2,500 additional houses for the market over the next five years, supporting smaller developers.”

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P2P Finance News – July 2018


Irish P2P lender launches €150m property fund 

P2P Finance News – July 2018

Initiative Ireland will launch a new residential property fund worth €150m (£134m) within the next three months.

Initiative Ireland – which last year funded the country’s largest ever P2P loan – will act as the investment advisor on a €150m Residential Property Finance Fund alongside Irish wealth manager The Davy Group.

The senior debt fund will specialise in financing residential property developments and aims to fund the construction of more than 2,500 new family homes in high-demand areas across Ireland over the next five years.

The fund is targeting annual returns of between seven and 7.5 per cent, although it will initially be available only to institutional investors and qualified lenders who can invest a minimum of €100,000.

Retail investors will still be able to invest in the underlying loans via the Initiative Ireland platform.

“One of Initiative Ireland’s core objectives is to promote financial inclusion,” said Initiative Ireland chief executive Padraig W. Rushe (pictured, left).

“As such, investors who cannot commit the required amount for the fund will still be able to open Private Lending Accounts or Corporate Lending Accounts with InitiativeIreland.ie to access the underlying secured asset class, directly lending alongside the fund at smaller amounts.

“For financial services to remain relevant, we must embrace innovation, but that innovation must come from a place of understanding,” added Rushe. “Often that isn’t the case. We’re innovative but conservative. It’s that paradoxical conservatism which really sets us apart in a good way from both traditional finance and other fintech firms.”

 

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Press Release – 05/07/2018


Press Release – Immediate Release

Initiative Ireland CEO Behind New €150 million Residential Property Finance Fund

Dublin, Ireland, 05 July 2018, Fintech CEO Padraig W. Rushe is working to launch a new €150 million Senior Debt Fund within the next 3 months, which will specialise in financing residential property developments, to fund the construction of over 2,500 new family homes in high-demand areas across Ireland over the next 5 years. The fund, which will target an annual return of 7 to 7.5 percent, has already secured backing from Abbey International Finance, which will invest up to €20 million in the fund.

It is expected that the fund will be structured as a sub-fund of The Davy Platform ICAV umbrella fund structure and that the Davy group will provide regulatory and investment management services to the fund. Initiative Ireland shall provide investment advisory services to the fund in addition to Loan Management Services. Initiative Ireland, which specialises in syndicated property finance, will enable the fund to lend alongside their existing private and corporate clients, via their syndicated finance platform http://www.InitiativeIreland.ie .

It is anticipated that the fund will facilitate increased levels of lending via Initiative Ireland’s fintech platform, which has an existing loan pipeline more than €150 million, comprised of over 30 housing developments in high-demand areas across Ireland.

Through syndication, the planned senior debt fund will benefit from additional diversification and optimised returns while also facilitating additional loans for Initiative Ireland’s existing private lenders to co-fund. All loans will be provided in line with the fund and platform’s strict lending criteria, which is highly selective.

Intended to be a closed-ended 5-year fund, it is expected to provide finance for terms of up to 2 years to developers via special purpose vehicles, re-deploying funds over the lifetime of the fund to creditworthy projects.

Padraig W. Rushe, CEO, Initiative Ireland said, “We will be marketing the opportunity both in Ireland and across Europe, to pension fund managers, large institutional investors and family offices alike. It will also open to qualified investors in Ireland subject to a regulatory minimum investment of €100,000.”

He added, “One of Initiative Ireland’s core objectives is to promote financial inclusion. As such, investors who cannot commit the required amount for the fund will still be able to open Private Lending Accounts or Corporate Lending Accounts with InitiativeIreland.ie to access the underlying secured asset class, directly lending alongside the fund at smaller amounts.”

Initiative Ireland currently specialises in financing projects of up to €10 million, through their peer to peer lending platform, providing competitive finance to experienced developers with what it deems to be lower risk, smaller projects. As such, the fund is expected to secure high levels of diversification across the property finance market.  All loans shall be asset-backed, secured with a first legal charge against the underlying properties.

Rushe concluded,We’ve been described as paradoxically conservative by one investor, who I think put it well. For financial services to remain relevant, we must embrace innovation, but that innovation must come from a place of understanding. Often that isn’t the case. At Initiative Ireland we understand finance, financial risk, compliance and the immense responsibility which comes with providing financial services and managing other people’s hard-earned money. We’re innovative but conservative. It’s that paradoxical conservatism which really sets us apart in a good way from both traditional finance and other fintech firms.”

Rushe explains how Initiative Ireland’s model is designed to address the housing crisis in particular, “When you finance the construction of 500 homes via a single development, you’ll likely see those 500 homes drip-fed into the local market over a longer period. In contrast if Initiative Ireland provides finance for 500 homes it is more likely to be across a minimum of 20 developments, with each developer delivering 25 homes as quickly as they can, spread across a wider geography. It’s more work for us, but it can deliver better outcomes for the market on several fronts. It offers more competition for the market and reduces development concentration, which is essential to stabilising the Irish Housing Market.”

Initiative Ireland, a University College Dublin (UCD) spin-in company headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs, was co-founded by CEO Padraig W. Rushe, CCO Padraig M. Rushe and COO Rory McEntee and is supported by Enterprise Ireland as a High-Potential Start Up.

Rushe, who is a graduate of Trinity College and UCD, has previously held roles in Ulster Bank, Bank of Ireland and GE Money. With a background in finance, risk management and financial crime prevention he co-founded Initiative Ireland in 2015, in response to the emerging housing crisis and a lack of competitive finance solutions in the market, to afford fairer financial solutions to both developers and private clients alike.

Irish Tech News


Initiative Ireland Clients Commit €1.25 million to Finance a New Peer-to-Peer Funded Residential Housing Development

Irish Tech News

Initiative Ireland today announced that its clients have committed €1.25 million to finance a new peer-to-peer funded residential housing development in Co. Kildare, only the second of its kind nationwide. The loan, funded by Initiative Ireland’s private and corporate clients via the company’s Private Lending Accounts, was made to LandPort Estates Limited to acquire a portfolio of 65 plots, with full planning permission, in the Cluain Dara Estate, Derrinturn, Co. Kildare.

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The Times UK – February 2018


Dublin will need to house 2.3m people before 2031

The Times UK – February 2018

Dublin will need more than 170,000 new homes to house 2.26 million people by 2031, a study has found.

Over the next 13 years an extra 360,000 people will be living in the greater Dublin area, according to the Housing 2031 report by Initiative Ireland, a financial services company. Nationally another 478,269 new dwellings will be needed for the rising population.

Outside Dublin, the southwest and the mid-east regions will be most in need of new housing. The mid-west will require the fewest — 22,591 until 2031.

The report also said that fewer than 10,000 new homes were built last year. Eoghan Murphy, the housing minister, said earlier in the year that he could not say how many homes were built in 2017.

 

The Irish Times – Feb 2018


Ireland needs 480,000 new homes by 2031, says peer-to-peer lender

At least 40,000 homes will have to be built this year to satisfy demand, a peer-to-peer lender has said. A report from Initiative Ireland suggests the construction industry is falling far short of this, having built fewer than 9,500 properties in 2017.

The syndicated finance group, based at University College Dublin’s NovaUCD new-venture centre, forecast a need for 480,000 new homes across the State by 2031, with an average of 34,000 a year. Half will be needed in the Greater Dublin Area. The southwest and mideast will require more than 71,000 and 63,000 new properties, respectively, by 2031. The midwest and midlands will need the fewest, at 22,000 and 27,000.

“While there have been multiple public and private reports issued recently on the subject, most reference data sources, they openly acknowledge, are significantly flawed,” said Padraig Rushe, Initiative Ireland’s chief executive.

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Business World – Dec 2017


Ireland’s 1st Peer-to-Peer Funded Property Development

Ireland’s first Peer to Peer property-backed loan of €1.5m was launched by Initiative Ireland today. This positions the finance company as Ireland’s 2nd Largest Peer to Peer Lender.

The loan was made to North Strand Five Lamps limited, to finance a social housing development in Dublin 1, consisting of 10 apartments and a ground floor cafe. With full planning in place, the development is expected to deliver the units to the market in late 2018.

The first loan of its kind in Ireland, at €1.5m it is the single largest peer to peer loan approved in Ireland to date. It is the first of many according to the CEO, with the company aiming to finance up to €60m by the end of 2018, supporting the construction of over 250 new family homes.

As Private Lending Members, individuals and institutions can sign-up for free to view loans via the platform, which are pre-approved by the company’s experienced Credit Committee prior to listing via their digital platform. As an approved Private Lender, individuals can earn returns of 3.00% to 8.00% APR on their committed funds, dependent on the risk tier and loan term they select.

Each loan is secured with a first legal charge over the properties and whilst committed funds accrue interest monthly, these are only released to the borrower on a phased basis. Initiative Ireland approve the release of funds provided they are satisfied with the ongoing reports from their appointed Quantity Surveyors and Relationship Management Team.  This helps to ensure the release of funds occurs in line with the completion of works and scheduled increasing value of the site.

Peer to Peer lending, which has become popular in the US and UK, (where it now exceeds £3.2bn) enables individuals and institutions to pool funds and collectively finance loans together, as an alternative method of offering finance to businesses and individuals. Traditionally, peer to peer lenders offer unsecured, high-cost loans to businesses which are otherwise unable to secure finance.

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Irish Times – July 2017


Peer-to-peer lender aims to raise €60m to fund house building

 

Peer-to-peer lender Initiative Ireland hopes to raise €60 million from members with the aim of financing construction loans.

The fintech startup said on Wednesday that the platform, scheduled to launch in September, could facilitate the building of 250 new family homes over the next 18 months if it raises €60 million.

The firm also said it hopes to create 50 jobs over the next five years.

The way the company works is that members will become part of a private lending syndicate in return for the issued loan and interest income.

According to the company, the members can tailor their loan portfolio in line with their own risk-reward appetite, choosing which pre-approved loans to fund and opting to finance senior or subordinate debt to achieve their financial goals. Private syndicate members can earn between 3.5 per cent and 7.5 per cent APR for their committed funds.

 

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