Government announces extension to Isif homes funding programme

By Jonathan McCambridge, Press Association

The Government has announced a new €400 million equity programme in the Ireland Strategic Investment Fund (Isif) to deliver new homes.

The additional funding will double Isif’s homebuilding investment programme equity to €800 million since it was first announced in July 2023.

Isif, managed and controlled by the National Treasury Management Agency (NTMA), is a development fund with a mandate to invest on a commercial basis to support economic activity and employment in Ireland.

Together, this 600 million euro of equity capital will unlock up to two billion euro of finance for housing developments across the country

Isif is also to collaborate with the banking sector, which will make available an additional €200 million in equity.

Finance Minister Simon Harris welcomed the new funding.

He said: “The new allocation will build on Isif’s existing housing-related commitments of €2.5 billion, targeting the delivery of over 25,000 new homes by 2030.

“I also welcome the national banks who are committing to make available €200 million in additional equity above the €400 million from Isif.

“This demonstrates the impact of using targeted state investment to crowd in private capital and expand the pool of funding available.

“Together, this 600 million euro of equity capital will unlock up to two billion euro of finance for housing developments across the country, with the potential to deliver up to 5,000 homes.

“The commitment from the banks will increase the impact of ISIF investments and will also support a more sustainable long-term financing ecosystem for the Irish homebuilding sector.”

Housing Minister James Browne said the Government was doing more to empower the private sector to play a role in the delivery of more new homes.

He said: “Isif’s additional 400 million euro in its housing equity investment programme – coupled with an additional 200 million euro from the banks – will not only deepen the pool of funding available for Irish homebuilding but will enable many more small and medium house-builders to get involved.

“With this significant injection of funding, it will improve SME homebuilder’s ability to establish a consistent pipeline of projects and greatly assist in scaling up their housing output on a sustainable basis nationwide.

“I am determined to not only deliver more homes but also to create the best possible operational environment for homebuilding. Investment like this is crucial as we engage with all our delivery partners and stakeholders, both public and private, in further mobilising critical residential investment and development in Ireland now and into the future.”

Senior investment director at Real Assets Isif, Sarah Hickey said: “The availability of equity risk capital is important in supporting housing delivery.

“Isif has previously committed 400 million euro to equity risk capital for housebuilders, unlocking sites, improving commercial viability and funding the delivery of thousands of new homes.

“This new 400 million euro commitment will build on that progress, supporting new funding platforms, helping more housebuilders and delivering more homes for the people who need them.

“Isif’s capital will also continue to act as a catalyst for co-investment by other capital providers, making additional capital available for the sector to enable growth.”