Irish peer-to-peer property lender Initiative Ireland has partnered with credit unions to help fund the development of more than 1,000 social and affordable housing units a year in the country.
The property investment platform is working with trade body the Credit Union Development Agency (CUDA) to help its members lend to approved housing bodies to support developments through a regulated fund.
Initiative Ireland will act as an investment adviser to the fund, sourcing and managing projects with approved housing bodies.
“As a social impact finance specialist, we are committed to strategies that deliver clear societal and environmental impact and promote financial inclusion,” Padraig W. Rushe, chief executive of Initiative Ireland, said.
“Over the past five years, we’ve worked with our impact investor community to deliver social and affordable housing projects across the country.
“Our partnership with CUDA is the logical next step, as we look to increase the scale of that impact.”
CUDA, which has more than 50 members, will lead engagement with its credit unions as a sub-adviser to deploy more than €300m (£267m) per year.
“Through this new fund our members will play a key role in supporting an increase in supply of much-needed housing nationwide,” Kevin Johnson, chief executive of CUDA, said.
“The fund will provide competitive finance to approved housing bodies which play a key role in the delivery of social housing today.
“As not-for-profit enterprises, they purchase and commission new social housing for long-term lease back to local county councils.”