23 Oct 2017 | 09.12 am
P2P Lending Syndicate Targets Property Developers
Initiative Ireland tries crowd funding for housing development loans
23 Oct 2017 | 09.12 am
Initiative Ireland, a personal P2P lender founded in Dublin in 2015, has launched a syndicated property finance platform.
The NovaUCD-based startup said that its platform is the first such facility in Ireland. The launch coincides with the company’s pre-approval of a €1.5m secured loan.
The loan will fund the development of 10 social housing apartments and a ground floor restaurant on the North Strand Road, Dublin. It has already been guaranteed funding, subject to final legal due diligence, by Initiative Ireland’s institutional members, and is being made available for syndication from today via the new platform.
Initiative Ireland says the loan and will see phased syndication and release of funds to the borrower over 12 months, subject to ongoing certification of works by the company’s partnering quantity surveyors. Membership in Initiative Ireland’s syndicate calls for a minimum of €10,000 for onward lending.
Initiative Ireland has partnered with Mangopay to offer electronic money accounts to its members via the platform.
Initiative Ireland was founded by Padraig Michael Rushe (63) and his son Padraig Rushe (35). Padraig Rushe senior worked in corporate banking with Bank of Ireland for many years, while his son, who is CEO, has previously worked in RBS, GE Money and Bank of Ireland.
Initiative Financial Services Ltd was incorporated in June 2015 as The Strategy Clinic Ltd. Advised by Derek Madden & Company in Mallow, the company raised equity of €288,000 from undisclosed investors in December 2016.
According to Rushe junior (pictured): “From today our private members will be among the first to gain access to what is an exclusive secured asset class, often available only to banks and specialist institutions. When you lend money through a crowd-lending platform, your money is at risk, similar to an investment. We are committed to safeguarding lenders, which is why all are loans are carefully managed from end-to-end and secured with a first legal charge over Irish real estate.”
Initiative Ireland envisages developing the venture so that it can offer residential property developers 80% of required funding up to a maximum of €10m per loan.