Funding Ireland’s Future

By Gemma Wright
Credit Executive, Castlehaven Finance

Opportunity is Back

It is an interesting and exciting time for the residential development sector in Ireland! There is a critical shortage of housing across the country. The development and construction industries suffered great hardships during the economic downturn, but are finally ready to heal and return to building Ireland’s future. Housing projects are once again underway and cranes have transformed our skylines, indicating a wider recovery across the sector.

Industry Challenges

Despite the rapid growth in the construction industry (and ancillary professions) in response to the housing shortage, there remains a nationwide crisis. There is a severe lack of supply of homes across the country and, despite proposed government solutions, the fact remains that not enough residential units are being constructed in Ireland to meet the urgent demand.

Those within the industry know that one of the greatest barriers to the provision of residential units is a lack of access to development finance. The challenge of sourcing finance is particularly onerous for small-to-medium-sized firms seeking to develop smaller housing projects—especially in locations outside of the Greater Dublin Area (GDA). It is of vital importance that housing needs are met across the whole of the country, including key employment hubs outside of Dublin, like Cork, Galway, and Limerick.

Available Solutions

Castlehaven Finance is an alternative lender providing site acquisition finance, working capital finance, and refinancing options to developers nationwide. With speed, responsiveness, and flexibility as key differentiators from traditional lending institutions, Castlehaven has a highly experienced team who work collaboratively to ensure the best possible service for clients.

Whilst we are starting to see the green shoots of economic recovery transform the social atmosphere of the country and become the solid foundations of Ireland’s future housing, important lessons were learned from the crash and during the downturn. A considered and detailed approach is necessary to ensure the ongoing success of this return to growth. Carrying out extensive and thorough due diligence in the provision of development finance is integral to success. Castlehaven takes this responsibility seriously while, at the same time, understanding the need for a fast and flexible approach to ensure that Ireland’s housing needs are met.

Investing in Ireland’s Future

The shortage of available housing across the nation is, at its heart, a social crisis. It is also a constraint on the long term sustainable economic recovery and growth of the country. Ireland is the European home to some of the world’s largest companies. More than 50% of the world’s leading Financial Services firms have operations in Ireland, while ICT sector global leaders such as Microsoft, Apple, Google, Facebook, PayPal, LinkedIn, and Amazon have all established headquarters here. Industry leaders from the Life Science and Pharmaceutical sector also have a significant presence in Ireland’s major cities.

These companies bring huge inward investment and provide a wealth of employment opportunities, which help to underpin Ireland’s future economic success. However, the acute housing shortage and consequential spiralling cost of living are prohibitive to these firms’ ability to attract and retain talent, particularly in the capital.

It is vital that developers can secure the finance necessary to deliver essential housing and associated infrastructure and to continue to contribute to economic and social progress in Ireland. Castlehaven Finance is proud to be part of the solution as we support the country’s developers in realising a sustainable future for Ireland.

About the Author

Gemma has been a member of the CH team since 2017. As credit executive, she is responsible for the review and analysis of finance opportunities, as well as research and preparation of credit reports. Originally from Yorkshire, she now lives in Dublin with her husband and their two children.

gw@castlehavenfinance.com
T: 01.563.6000