November 4, 2015 / Company

Ireland Strategic Investment Fund Announce €500M Home-Building Finance Joint Venture with Leading Global Investment Firm KKR

The Ireland Strategic Investment Fund (“ISIF“), managed by the National Treasury Management Agency (“NTMA“), together with KKR Credit, have today announced the launch of a new €500 million joint venture, which transforms the funding options available to the Irish house building sector and will be capable of financing the construction of over 11,000 new homes in Ireland.

Activate Capital will focus exclusively on lending to Irish residential development projects.  The lending platform will facilitate home-builders in engaging in medium/large scale housing schemes, delivering a material increase in housing supply.

Activate Capital will lend on a commercial basis to projects, providing home-building companies with cost effective loans for up to 90 per cent of the total financing requirement.

As a large and labour intensive sector, recovery in the construction industry will be critical to the realisation of further employment gains in Ireland.  The establishment of Activate Capital is intended as a significant step towards unlocking credit for Irish house builders.  Projects funded by the new joint venture are expected to create an average of 1,900 full-time jobs per annum in construction and ancillary services.

ISIF will contribute €325 million towards the joint venture, making it the biggest single investment yet undertaken by ISIF.  KKR will provide the remaining €175 million.