Ireland Strategic Investment Fund to provide up to €50m for key infrastructure supporting over 4,000 new homes in south Dublin

Ireland Strategic Investment Fund to provide up to €50m for key infrastructure supporting over 4,000 new homes in south Dublin

The Ireland Strategic Investment Fund (ISIF) is to provide a debt facility of approx €50m to Hines Ireland[1] to fund construction of essential enabling infrastructure at the Cherrywood SDZ (Strategic Development Zone) in south Dublin.

The ISIF facility will directly facilitate supporting infrastructure (such as roads, waste and utilities) which will enable the planned development of over 4,000 residential units on the Hines lands.

This infrastructure, which is already under construction, will also be a key catalyst for the overall Cherrywood development which is targeting over 8,000 new residential units across the entire SDZ.

The SDZ designation requires certain enabling infrastructure to be put in place before residential and commercial development can take place. The physical infrastructure identified in the planning scheme includes water and drainage, roads and transportation, utilities and ICT, energy and waste management. The required green infrastructure includes natural green spaces, amenities, parks and plazas.

Hines Ireland, as the largest landowner at Cherrywood, will use the ISIF facility to lead infrastructural development in the SDZ, where over 4,000 units will be built.

Donal Murphy, Head of Infrastructure and Credit Investments at ISIF said:

“This €50m debt facility further demonstrates ISIF’s focus on commercial investments that are designed to support economic impact and employment in Ireland, and in this instance which have a strong ability to help ease the housing supply shortage through commercial investments.

We have already committed over €400m on commercial terms to funding the construction of thousands of new homes. But this investment is significant because it shows that we are willing to also fund key infrastructure, such as utilities and roads, which is needed to make developments such as these 4,000 new homes in Cherrywood viable.

Financing this enabling infrastructure goes to the heart of the ISIF mandate – whilst generating a commercial return, the investment will also unlock the core of the Cherrywood site for development by Hines and other developers with interests in nearby sites, thereby creating economic impact and employment.”

ISIF is exploring further similar investments that meet its “double bottom line” mandate of generating commercial return and economic impact, where enabling infrastructure is required to facilitate development of residential housing on large sites and in areas of strategic importance.

Welcoming today’s announcement, Senior MD with Hines Ireland, Brian Moran, said:

“The upfront development of essential infrastructure for Cherrywood such as roads, cycleways, utilities and 3 very substantial parks is a key part of the strategy to expedite the delivery of much-needed housing for south Dublin.

The decision by the Ireland Strategic Investment Fund (ISIF) to provide debt to part fund this project is a very welcome development and an important declaration of support by the State for large-scale projects that can deliver significant numbers of houses and apartments in Dublin in the coming years.

It comes just one week after the submission of a planning application for the town centre at Cherrywood and the construction of almost 1,300 apartments and over 2 million square feet of mixed use retail, leisure and residential."

Note to Editors

Cherrywood is a large mixed use development situated in south-east Dublin. The Government designated the lands at Cherrywood as an SDZ in 2010 and Dun Laoghaire Rathdown County Council adopted the Cherrywood SDZ Planning Scheme in 2014. The overall SDZ Planning Scheme allows for up to 8,336 residential units, 6 schools, a minimum of 77,000 sqm of commercial space, up to 350,000 sqm of high intensity employment, a town centre and a number of smaller village centres. The site is already served by the Green Luas line and is adjacent to both the N11 and M50.

[1] Cherrywood Development Fund ICAV (acting in respect of its sub-fund HCDF Land Development 2 Fund) (Hines)