Sean Mulryan's Ballymore property group has secured €112 million in funding from AIB under the bank's new green lending programme.
AIB is providing discount loans to developers that adhere to new green energy building standards. Ballymore said the five-year facility would fund current and future projects and included “a special tranche for social housing”.
The company is progressing a plan for Dublin Arch, a major mixed-use commercial and residential scheme next to Connolly station. It said projects funded by the facility would be constructed, developed and delivered to new Irish Green Building Council (IGBC) specifications. The interest rate on the loans are tied to the achievement of environmental targets.
Established in 1982, Ballymore said it planned to mark its 40 years in business with a significant uptick in investment in Britain and Ireland. It has a development pipeline for up to 15,000 homes and some 4.5 million sq ft of commercial space.
"Social and environmental sustainability is at the forefront of everything we do," Patrick Phelan, managing director of Ballymore Ireland, said. "Through our design process, life-cycle analysis, and the use of innovative techniques, we are working to create truly sustainable developments."
Donall O’Shea, head of AIB real estate finance said: “In terms of AIB’s relationship with Ballymore, AIB has had a strong relationship with Ballymore in Ireland, and the UK, on projects for over 20 years and AIB is proud to be their house bank and main funder in Ireland for the years ahead.”
Loans
AIB announced last month it would offer cheaper loans to residential developers who build to new IGBC building specifications. The discount will be up to 10 basis points lower than existing rates, which could have a significant impact on the cost of development.
Launched in 2016, the IGBC’s Home Performance Index is Ireland’s first national certification for quality and sustainable residential development.
The benchmark sets higher green building standards than are required under current building regulations. It takes accounts not only of the energy efficiency of the home but also of factors including air quality, water efficiency and the sustainability of the location in the context of factors such as transport links and community facilities.
AIB’s property team said it would encourage the adoption of the index for new development schemes it reviews, offering all applications a lower priced option if they comply with the home performance index standards, setting a higher ESG (environmental, social and governance) benchmark than current regulations.
Cathy Bryce, managing director of AIB capital markets added: “Sustainability is a key strategic priority for AIB. That is why we are supporting our customers in the transition to a lower carbon future through our €10 billion climate action fund.”
