Elgin Property Finance to provide 300 million euros in loans to developers

Elgin Property Finance is to provide up to €300 million in development loans over the next three to five years through a new fund.

The new property finance lender has partnered with UK venture capital firm Pollen Street Capital for the fund and has successfully closed its first deal – a €6 million housing project in Munster.

Elgin, part of MM Capital Group, aims to deploy significant capital to help developers complete new and existing residential projects, including social housing.

It offers financing of up to 75% of loan-to-value (LTV) and 90% of project development costs for transactions above €1 million, he said.

He said that in addition to providing debt financing for housing projects, money will also be available for other “bed-run” assets, such as nursing homes, student accommodation and hotels.

Offer pipeline

Elgin, which is led by Domhnall Gaffney, said it had a “strong deal pipeline” and had agreed terms on projects which will provide more than 150 affordable homes in Kildare, Galway and Limerick.

“We believe we can play our part in providing much needed housing for Ireland, as well as supporting the living sector with much needed funding following the underdevelopment of the past 10 years,” Mr Gaffney said.

“We have a fast and efficient process, which is essential to provide developers with certainty,” he added.

Pollen Street Capital has invested over €1.5 billion in senior property finance in Britain and Ireland over the past five years through its specialist lender partnership model. It has also backed Irish online auction specialist BidX1 and last year took a majority stake in mobile charging service provider Ding.

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