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Ireland's investment fund is going to spend €500 million building 11,000 houses

It will create 1,900 jobs a year.
Jul 29th 2015, 7:55 AM 17,348 18

THE GOVERNMENT’S INVESTMENT arm will create nearly 2,000 construction jobs a year as it spends half a billion euro on 11,000 new houses.

The Ireland Strategic Investment Fund (ISIF) has joined together with US investment firm KKR Credit on a new €500 million joint venture, which transforms the funding options available to the Irish house building sector and will be capable of financing the construction of over 11,000 new homes in Ireland.

Activate Capital will focus exclusively on lending to Irish residential development projects and will facilitate developers in engaging on medium and large-scale housing schemes, which the government hopes will deliver a material increase in housing supply.

The money will create an estimated 1,900 jobs a year in the construction sector.

The ISIF will contribute €325 million towards the joint venture, making it the biggest single investment yet undertaken.

Finance Minister Michael Noonan said the idea was a “win-win”.

The announcement is a win-win for the State from all perspectives: economically, we are increasing activity in the housing sector, which is vital for our economic competitiveness and long term growth prospects; financially, we are generating a commercial financial return for the Ireland Strategic Investment Fund, which can be continually recycled into new and additional projects.

“[A]nd socially, we are supporting employment in a sector that was worst hit during the crash and it is noteworthy that employment in the sector will be at all levels from early school leavers through to third level graduates.”

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