Capital Partners Launches Residential Lending Vehicle

Earlsfort Capital Partners Limited (Earlsfort), a leading non-bank property lender, has announced the launch of Earlsfort Development Finance DAC, a new lending vehicle dedicated to providing construction finance for residential development projects in the €7.5m – €20m range.

As part of the launch, Earlsfort also announced the closing of its first two transactions with a total commitment of €25m.

The first transaction is to provide construction financing for a €15m apartment development in Limerick city.  The development will comprise of 61 units and will be a mix of predominantly one- and two-bedroom residential units bringing increased and necessary residential availability to the city.

The second transaction will provide construction financing for a €10,000,000 starter home housing development in Enfield, Co. Meath.   Construction is well underway with the first homes expected to be delivered in October.

Both of these transactions are with established developers who have a track record in delivering quality residential units in their respective markets.

The main focus of Earlsfort Development Finance is “ready to go” residential projects in locations with proven demand – both in the private and social housing markets.  Advance rates will be up to 90% of cost, subject to a maximum Loan to Value of 70%.

Commenting on the launch of Earlsfort Development Finance, Co-Founder and Managing Director Paul Brophy, said; “We are delighted to launch this programme and to help provide much needed support and liquidity to the housing sector.

Earlsfort was the first non-bank lender to enter the Irish market in 2014, and since its formation has funded circa €1.25BN of lending transactions.  This new vehicle is a natural add-on to our current offering, and we are excited to enter the market and grow the business.  Given the very recent market uncertainty and lack of liquidity in the development sector, Sponsors are looking for a dependable funder who understands their project needs and can execute quickly.”

Earlsfort Development Finance plans to invest over €250,000,000 into the Irish market over the next two years.

Founded in 2014 by Paul Brophy and Fergal Feeney, Earlsfort has issued over €1.25bn of loan facilities secured on a wide range of properties including residential, office, industrial and student housing. Earlsfort’s business has a special focus on providing real estate debt capital in Ireland and the UK, operating out of Dublin, London and Boston.