Two of Ireland’s best-known construction and property names are joining forces in a new venture to build 1,000 social and affordable homes a year with initial funding of €32 million.
Builder John Sisk & Son and the Durkan family-owned developer D/RES Properties will begin selling affordable houses in a new project, Foothills in Killinarden, Dublin, where they are building 635 homes, in September.
The two firms have jointly founded a new business, Arden, on the back of the scheme.
They have secured funding from Bank of Ireland, which has pledged an initial €32 million in loans to provide working capital for the Foothills project, and will be the company’s primary lender.
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They say the venture aims to build 1,000 social and affordable dwellings a year, working with local councils, approved housing bodies and others.
Sisk and D/RES pledged that Arden would be a fully independent company, with the pair providing their resources and skills to the new business.
The company “brings together complementary strengths” and a shared commitment to building quality housing, according to John Sisk & Son chief executive Paul Brown.
D/RES Properties chief executive Patrick Durkan hailed the venture as a “powerful combination of two family legacies” that would aid the construction of big housing developments across the Republic.
Chief executive, corporate and commercial banking, Bank of Ireland, John Feeney, noted that Arden was well positioned to build large numbers of quality homes.
“This aligns closely with our housing strategy, and we’re delighted to provide working capital finance for its first flagship project,” he said.
The new company has several objectives. They include joint ventures with local councils, State agencies or approved housing bodies to build homes on public or institutional land.
Arden intends seeking agreements with the Land Development Agency to work on State initiatives to provide more housing in the Republic.
It will look to bid for land that is being offered for social and affordable housing and to build on underused sites owned by religious orders, education bodies or State organisations.
It could also buy land from, or go into partnership with, commercial landowners or infrastructure businesses to develop large sites.
The company is seeking to develop “an active pipeline of projects” across the Greater Dublin Area and the rest of the Republic, it said.
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The Sisk group is one of Ireland’s best-known builders, employing more than 3,000 people in operations around Ireland, the UK and Europe.
Founded more than 165 years ago, the family-owned firm provides construction and engineering to the data and technology industries, pharmaceutical manufacturers and the energy sector.
Sisk also works on infrastructure, transport, commercial building, retail and residential projects.
Led by brothers Patrick and Kevin Durkan, whose family’s construction businesses have more than half a century’s experience, D/RES Properties has built more than 2,000 homes in the last six years.
The company recently raised €70 million with backer Avenue Capital through the State’s Irish Strategic Infrastructure Funds investment division to acquire land to support it in the construction of 6,000 new homes.
