Belfast Telegraph

Bank funds thousands of Irish homes

Bank of Ireland has approved over €750m (£658m) in de­velopment finance that will fund the construction of thousands of new homes and student beds in the Republic
Bank of Ireland has approved over €750m (£658m) in de­velopment finance that will fund the construction of thousands of new homes and student beds in the Republic

By Michael Cogley

Bank of Ireland has approved over €750m (£658m) in de­velopment finance that will fund the construction of thousands of new homes and student beds in the Republic.

The bank, which has a €1.5bn (£1.3bn) rolling fund, has also boosted its development finance team to 16.

Business banking chief Michael Lauhoff said the fund could be widened further depending on the appetite from small and medium sized developers: "We're doing facilities that can build two houses up to 100 in various phases," he said.

"There is a strong appetite out there but you do need to see there is skin in the game. We will only fund shovel-ready sites, which are ready to be developed over the short to medium-term.

"A site to be acquired to go into planning permission is not within our appetite and we see that as equity risk."

Mr Lauhoff said the finance will back the building of 6,100 new homes, including 770 social housing units. Funds will be used to build a further 2,000 student beds over the next 18 months.

Belfast Telegraph

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