Ireland’s fastest growing Approved Housing Body plans to capitalise on current ‘lower for longer’ interest rate environment to accelerate its planned delivery programme of 2,000 social homes by end 2022.
Tuath Housing Association currently manages 5,000 social homes across Ireland with plans to scale to 7,000 homes in the next three years. The Housing Finance Agency (HFA), has provided financing of €186m in the last three years representing two thirds of Tuath’s borrowings for the period 2016 to 2018.The new funding package is designed to complement current and future debt funding via the HFA. As part of Tuath’s drive to diversify its financing, the association sought out alternative sources of funding and innovative ways to leverage existing resources. Funders responded positively.
Tuath plans to deepen its existing relationship with AIB Corporate Banking and looks forward to working with German bank Norddeutsche Landesbank Girozentrale (“NORD/LB”). NORD/LB has significant experience in social infrastructure financing in Ireland and across Europe and is the funder for the TORC Housing Partnership, which includes Tuath, for the second phase of the Government’s social housing PPP. The €120M finance package will be provided at exceptionally lowinterest rates of below 2.5%, fixed for up to 25 years.
Brian Nevin, Head of Treasury at Tuath Housing explains “In the current competitive financing market, lenders and investors are increasingly recognising the benefits of providing debt finance for social housing. The housing market in Ireland tends to experiences flux, with peaks and troughs but we cannot afford to dip in and out of social housing delivery. The provision of social housing must be a constant, despite any ups and downs inthe housing market. This innovative use of debt financing supports the State’s long-term commitment to social housing. We need to be consistently investing in social housing. Tuath will continue to innovative to ensure the ongoing delivery of urgently needed new homes for families across Ireland.”