Oaklee Secures €50m To Build 250 Social Homes

23 Apr 2018 | 08.47 am

Oaklee Secures €50m To Build 250 Social Homes

German bank provides long term loan

23 Apr 2018 | 08.47 am

Social housing management company Oaklee Housing has concluded a financing deal with German bank Norddeutsche Landesbank for a €50m loan over 25 years, which the company will use to purchase 250 new homes.

Oaklee manages 900 social homes and recently agreed a deal with the Housing Agency for the acquisition of 148 vacant properties, with the majority located in Dublin.

Chief executive Sharon Cosgrove said: “Our innovative SPV financing structure and subsequent agreement with NORD/LB is putting more than €50m directly into the delivery of about 250 social homes in the areas where they are needed most.  It is pleasing to see an international bank investing with confidence in large scale housing programmes and we hope others will follow.

“This is one of the most cost-effective long-term finance arrangements ever used in Ireland, and means that we can make public money go further and deliver more. It represents good business for Oaklee and is a strong vote of confidence in our ability to deliver high quality homes for those in greatest need across Ireland in the years ahead.”

NORD/LB senior director John Hanley added: “As one of the leading banks providing finance for social infrastructure projects across Europe, NORD/LB is delighted to finance this pathfinding project in partnership with Oaklee Housing and to establish a new template for the funding of social housing in Ireland.

“The project with Oaklee is NORD/LB’s first social infrastructure investment in Ireland and an important step in the development of AHB financing. Furthermore, it is a significant milestone in the way social housing is provided and NORD/LB is proud to be involved in developing and delivering homes for those in need.”

 

Photo: John Hanley with Sharon Cosgrove of Oaklee Housing. (Pic: Colm Mahady /  Fennell Photography)

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