Ardcairn Capital, the M&G-backed residential development lender, says it has deployed some €350 million in just over 18 months, bringing to €400 million the total amount the platform has committed to homebuilding in the Republic since entering the market in late 2021.
The lender, which has funded the construction of about 2,000 homes after concluding a large-scale development deal in Cork recently, is headed by Daire McCarthy and supported by the London-listed investment giant’s £5 billion sustainability fund, known as Catalyst.
Ardcairn offers small and medium-sized developers access to loans of at least €3 million to support the delivery of social and affordable homes to approved housing bodies and local authorities.
It has helped fund projects in Dublin, Galway, Cork and across the midlands and southeast, working with developers including Oisín and Phelim O’Connor’s Torca Homes and Ray Grehan’s Montane Developments.
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Most recently, the platform agreed to provide development finance to Longview Estates for a new scheme at Ballyvolane in Cork city. Ardcairn is supporting the 750-home development, which is being delivered by CField Construction, in association with the Housing Infrastructure Services Company, a commercial joint venture between the Ireland Strategic Investment Fund (ISIF) and Cork County Council.
The agreement means Ardcairn has now committed funding to the development of one-fifth of its 10,000 initial target.
Mr McCarthy said he expects the platform to fund thousands of new social and affordable homes over the coming years.
“The injection of Government investment under the Rebuilding Ireland strategy has presented opportunities to help with the supply of much-needed social and affordable housing,” he said. “There is pressure on us all to assist with the delivery of many more homes, which will need to be met through a myriad of projects, ranging from small infill housing schemes to large scale multiphase developments.
“Whilst we’re happy with the progress of Ardcairn to date, particularly against a backdrop of material shortages, interest rate volatility and inflationary pressures, we acknowledge there is a lot more to do.
“We remain confident that we can continue meeting this demand from developers and, together, make a meaningful contribution to addressing Ireland’s affordable and social housing shortage.”
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