The Ireland Strategic Investment Fund (ISIF) has today announced a €150m commitment to a new Avenue Capital Group homebuilders fund that will provide equity capital to medium and large Irish homebuilding companies.
ISIF’s €150m commitment to the Avenue Homebuilder Capital Solutions Fund will support the Fund’s objective of helping these firms to scale up and increase their housing output.
It aims to bridge the gap that may exist between the homebuilder’s equity capital and development financing from pillar banks and alternative lenders, to enable more active sites. The Fund is expected to make individual investments of between €30m and €100m.
The Fund already has a strong pipeline and has teamed up with established homebuilder D/RES. It will initially fund the acquisition and development of two sites in the greater Dublin area, capable of delivering over 1,000 homes. The Fund will also be used to contribute equity across existing developments within the D/RES portfolio, ultimately ensuring the delivery of new homes.
The €150m commitment announced by ISIF today brings it close to completing its initial €400m programme of investments in housing equity capital, which was announced in 2023.
A follow-on €400m programme, which will double ISIF’s housing equity investments to €800m over the coming years, will commence shortly in line with the commitment announced last month as part of the Government’s Delivering Homes, Building Communities 2025-2030 Plan.
ISIF is continuing to target supporting the delivery of 25,000 homes by 2030 under its housing and enabling investments theme. This investment theme targets significant investment across residential development, urban regeneration, commercial real estate and infrastructure.
ISIF is currently on track to achieve this target, delivering a wide mix of homes for First Time Buyers, other owner-occupiers, renters, students and people who need social housing.
ISIF has committed a total of over €2.5bn to date in housing investments since its inception a decade ago.
Tánaiste and Minister for Finance, Simon Harris, TD said:
“I welcome today’s announcement by the Ireland Strategic Investment Fund (ISIF) of a €150m commitment to a new Avenue Capital homebuilders fund providing equity risk capital for medium and large Irish homebuilding companies. ISIF’s commitment here will be invaluable in helping these firms to scale up and increase their housing output. It will also help to bridge the gap that may exist between the homebuilder’s equity capital and development financing from pillar banks and alternative lenders, to enable more active sites.
Today’s announcement by ISIF brings it close to completing its initial €400m programme of investments in housing equity capital, announced in 2023. A follow-on €400m programme, which will double ISIF’s housing equity investments to €800m over the coming years, will commence shortly in line with the commitment announced last month as part of the Government’s Delivering Homes, Building Communities 2025-2030 Plan.
I strongly support ISIF in continuing to target supporting the delivery of 25,000 homes by 2030 under its housing and enabling investment theme. This investment theme targets significant investment across residential development, urban regeneration, commercial real estate and infrastructure. ISIF is currently on track to achieve this target, delivering a wide mix of homes for First Time Buyers, other owner-occupiers, renters, students and people who need social housing.
ISIF has committed a total of over €2.5bn to date in housing investments since its inception a decade ago.”
Sarah Hickey, Senior Investment Director, ISIF said:
“ISIF’s initial €400m housing equity investment programme has deepened the pool of funding available for Irish homebuilding and in doing so, helped to unlock sites and fund the construction of much needed new homes nationwide.
As we near the completion of this initial programme, ISIF is pleased to continue to support the State in responding to key strategic challenges such as housing with an additional €400m allocation, as announced in the new housing plan last month. We look forward to further positive engagement with investees and stakeholders that will assist in unlocking new sites and homes around the country.
Today’s commitment to Avenue’s Homebuilder Capital Solutions Fund will introduce a new source of capital to the Irish market and help ensure more homebuilders in Ireland have access to the forms of capital they need to scale up and increase the number of homes they can deliver. We look forward to working with Avenue in the years ahead.”
Padraig Moore, Co-Head of Avenue Europe Funds, Avenue Capital Group said:
“Avenue Europe is delighted to partner with ISIF on this new fund that will provide much-needed equity capital to leading Irish homebuilders. D/RES, led by Patrick Durkan, is a great example of how Avenue Europe will invest with best-in-class homebuilders to help them meet their ambitions, scale housing delivery and address a national strategic priority for Ireland.”