€1.35 million Secured to Finance New Social Housing Project and Training Centre in Dublin City Centre
- Residential development will include 9 social housing apartments and construction of new training centre for The Paddy McGrath Housing Project
- Loan co-funded by Initiative Ireland’s Impact Investor Community
Initiative Ireland today announced that its clients have committed €1.35 million to finance the construction of a new social housing project and training centre in Dublin’s City Centre.
Co-funded by the company’s impact investor community of Irish businesses and private investors, the project will provide 9 additional social housing apartments and a training centre for The Paddy McGrath Housing Project, to be developed by McGrath Talbot Developments.
The Paddy McGrath Housing Project (originally The Aids Fund) was founded in 1987 by Fr Paddy McGrath. Since 1994 the fund has provided housing and care support for those living with HIV and AIDS.
Initiative Ireland was founded in 2015 by an experienced financial services team, with the goal of building an online community of impact investors who would co-fund the construction of social, affordable and mid-market housing projects nationwide.
To date the company has provided over €20 million in funding to eligible projects, by way of senior secured loans, delivering much needed housing to the market nationwide.
Initiative Ireland, which is headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs at University College Dublin, is supported by Enterprise Ireland as a high-potential start-up.
Padraig W. Rushe, CEO, Initiative Ireland said, “Domestic demand for housing in Ireland exceeds 35,000 new homes each year, Ireland is grappling with a housing shortage crisis following a decade of under supply of social, affordable and mid-market housing. The country experienced a 48% supply shortfall last year based on supply volume.”
He added “The true housing shortfall is understated, due to a mismatch in the affordability of supply, with many Irish families locked-out of the market due to a lack of new affordable housing stock. Dublin rents have increased 200% since 2011, due to a lack of new supply of rental accommodation and affordable housing alternatives.”
“As of May 2019, there were 70,000 households on the social housing waiting list of which 10,000 families were living in emergency accommodation. At Initiative Ireland, we are supporting smaller developments, providing a good return for our clients while also helping to deliver much needed social impact.”
Don O’Higgins, CEO, The Paddy McGrath Housing Project said, “We welcome the opportunity to work with Initiative Ireland. Their support along with the Department of Housing, Planning and Local Government with Dublin City Council has been instrumental in providing the financing for this project which will deliver new and much needed social housing in the heart of the City for long-term homeless.”
Padraig W. Rushe, concluded, “We established Initiative Ireland to offer honest, fair and inclusive finance. We’ve built an online community of investors who share our values and value the opportunity to help communities and worthy projects like this new development in Dublin City Centre.”
Initiative Ireland has recently been shortlisted for two Irish Pension Awards 2019, the Environmental, Social and Governance (ESG) or Socially Responsible Investing (SRI) Provider of the Year Award and the Innovation Award.
ENDS
29 October 2019
For more information contact Miceal Whelan, University College Dublin, Communications Manager, UCD Research and Innovation, t: + 353 1 716 3712, e: miceal.whelan@ucd.ie or Padraig W. Rushe, CEO, Initiative Ireland, t: +353 1 685 9259 or e: team@initiativeireland.ie.
Editors Notes
Initiative Financial Services trading as Initiative Ireland is a financial services company focussed on delivering social impact. It acts as Loan Agent on all loans. As a Private, Pension or Corporate Lender with the company, clients can lend as part of a Private Lending Syndicate, in return for a share of the issued loan and interest income. Members are able to tailor their loan portfolio in line with their own risk-reward appetite, choosing which pre-approved loans to fund to achieve their financial goals. www.initiativeireland.ie
Initiative Ireland Nominees Limited is a trust and company service provider, authorised by the Department of Justice and Equality of Ireland. It acts as the Security Agent, holding a first legal charge over the funded properties in trust for the Private Lending Syndicate Members. www.iin.ie
Initiative Ireland is a partner of MANGOPAY, a public limited liability company incorporated in Luxembourg (Number B173459) and approved as an electronic money institution by the Financial Sector Regulator (CSSF), Luxembourg.
Under the “New Configuration of Homeless Services” The Paddy McGrath Housing Project has been recognised as providing a Care and Support Intensity Level of Category 4 – Medium Care & Support. Care is provided by 5 full-time Staff at the Project - a Co-ordinator of Care and 4 Care Facilitators. Initially six Residents were housed in Dominick Place and Temple Court until, in 1998 a further 10 purpose-built apartments were developed on a site at 9/9A Granby Lane. This was followed in 2009 by the completion of an additional 15 apartments in Talbot House, opposite our existing Granby Lane building. The residents in Dominick Place were moved to this new building. The Project currently comprises 24 Residents apartments, plus 2 Carers' apartments, one in each building. https://mcgrathhousing.ie/
At NovaUCD, the hub for new ventures and entrepreneurs at University College Dublin, we nurture and support new high-tech companies as part of UCD's mission. At NovaUCD we provide purpose-built, state-of-the-art incubation facilities alongside a comprehensive business support programme for client companies such as Initiative Ireland. NovaUCD has supported over 360 companies and early-stage ventures. Supported companies have attracted over €760 million of investment and currently employ over 1,040 people directly. NovaUCD has been funded through a unique public-private partnership that includes AIB Bank, Arthur Cox, Deloitte, Enterprise Ireland, Ericsson, Goodbody Stockbrokers, UCD and Xilinx. www.novaucd.ie