Asset manager Gresham House Ireland has announced a new €100 million social housing fund for credit unions.
The Gresham House Credit Union Income Fund, which has been approved by the Central Bank, will finance the acquisition and construction of between 350 and 450 homes throughout the State over the next two years.
Gresham House said it intends to raise capital from the State’s 200-plus credit unions with those who invest members’ savings in the fund earning income from the portfolio.
With the loans amortising over periods of up to 25 years, Gresham said the portfolio “will create a stable long-term income stream and a gradual return of the original investment”.
“This fund will match approved housing bodies, who need long-term loan capital on competitive terms, with credit unions who are looking for an attractive and secure home for their members’ savings,” said Fiona O’Driscoll, fund manager with Gresham House.
“It has been developed to meet Ireland’s need for more homes for social housing; the needs of approved housing bodies for diversified sources of competitive loan capital to build more homes; and the ambition of credit unions to contribute to the social housing needs of their members and others within the communities they are set up to serve.”