Dáil Éireann Debate, Tuesday - 28 February 2017
75. Deputy Michael McGrath asked the Minister for Finance the amount of lending carried out by a company (details supplied) to date to the construction sector; his views on whether the State can do more to ensure the construction sector has access to finance to build the required homes and office accommodation here; and if he will make a statement on the matter. [9990/17]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) has invested in a number of significant financing platforms and projects in the construction sector.
One such platform is Activate Capital which has provided funding for approximately 1,917 new residential units in the Dublin area and has potential to support up to 11,000 new units. Other platforms in which ISIF is a co-investor include the Ardstone Residential Partnership and the Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund.
ISIF is also examining the feasibility of establishing, in conjunction with the private sector, a Housing Investment Fund which would fund the delivery of substantial new mixed-tenure residential developments, comprising social and private housing, in a way that is both off-balance sheet and commercially viable. Engagement with a wide array of key stakeholders is currently ongoing.
ISIF is also involved in other housing-related measures, including:
- On-campus accommodation programmes of Higher Education Institution with ISIF having provided a €54m long term debt facility to DCU.
- Potential provision of equity finance to operators in the build-to-rent sector.
- Financing infrastructure which enables residential development, by working with other funding sources including the Local Infrastructure Housing Activation Fund (LIHAF), Local Authority resources and commercial investment. Two pilot projects currently being considered would facilitate 6,000 housing units.
More broadly, my Department is engaging with NAMA around the levels and pricing of debt and equity investment to ensure financing is being provided on competitive terms.
The availability of development finance alone is not sufficient to encourage development unless projects are commercially viable. As part of Rebuilding Ireland the Government has set out a comprehensive package of measures to address structural constraints which may be inhibiting the viability of residential development.
One such measure is the LIHAF, administered by the Department of Housing, Planning, Community and Local Government, the purpose of which is to provide up to €200m for local authorities who collaborate with housing providers to provide off-site infrastructure to facilitate housing developments which would otherwise not take place. Allocations under this funding structure are expected to be announced by end-March 2017.
