Ardcairn Capital, a residential development financier backed by M&G, announces that it has invested €350 million within a period slightly over 18 months, raising the total investment sum to €400 million since its inception in the Irish market in late 2021. The company is led by Daire McCarthy and is financed by the London-listed investment giant’s sustainability fund, Catalyst, valued at £5 billion.
The number of homes funded by Ardcairn for construction stands at approximately 2,000, following a major development contract recently concluded in Cork. Ardcairn provides loans starting from €3 million to small and medium-scale developers in order to aid the delivery of economical and social housing to certified housing bodies and local administrations.
Ardcairn’s investment has funded projects across Dublin, Galway, Cork and regions in the midlands and southeast of Ireland, partnering with developers like Torca Homes, a company owned by Oisín and Phelim O’Connor, and Montane Developments, belonging to Ray Grehan. The most recent agreement involves offering development finance to Longview Estates for a new venture at Ballyvolane in Cork city. This will support the construction of 750 homes by CField Construction, in partnership with the Housing Infrastructure Services Company, a business partnership between the Ireland Strategic Investment Fund (ISIF) and Cork County Council.
This deal means that Ardcairn has fulfilled its commitment to finance 20% of its primary target of 10,000 homes. McCarthy anticipates the platform expanding its funding of social and economical housing units in the approaching years.
Expressing his thoughts, McCarthy said: “Government funding through the Rebuilding Ireland strategy has opened up opportunities to aid the supply of much-needed social and affordable homes.” He stated the need for everyone’s contribution to meet the increased demand for housing through a spectrum of projects, from minor infill housing plans to multi-phase large-scale developments.
“Although we’re satisfied with Ardcairn’s progress so far, against a background of material shortages, unpredictable interest rates and inflation, we acknowledge that there is still much work to be done. We are optimistic about persistently meeting the demand from developers and jointly making a significant difference in solving Ireland’s social and affordable housing crisis,” McCarthy added.