Twenty private funds have applied to take part in the state’s masterplan to deliver thousands of units of social housing through the private sector.
One of the expressions of interest put in before last week’s deadline is from British fund RediResi, which is backed by investment of circa £250 million and has 33 sites.
RediResi has reached joint venture agreements with a number of established Irish developers and builders and is targeting delivery of some 4,000 social housing homes. It is believed that RediResi has offered sites across 11 counties totalling 2,000 homes to local authorities for this scheme.
The Enhanced Long Term Social Housing Leasing Scheme is a pillar part of the government’s plan to build 50,000 social housing homes before the end of 2021.
Of these, 10,000 are to be leased on 25 year lettings for 95 per cent of market rent, paid for by local authorities.
Another applicant is Richard Barrett’s Bartra Capital which plans to build 700 new social housing units in the next three years that would be leased to the state.
However some notable funds that have expressed an interest in state backed private social housing schemes did not apply.
Property market grandee Bill Nowlan’s Urbeo did not apply. A source with knowledge of its plans said that it was still in the process of finalising fund raising and was therefore not in a position to get involved.
And Bolt Capital, the investor where Peter Sutherland’s son Ian is involved. It presented proposals to Department of Housing officials to build around 200 social home units to the department but didn’t put in for this scheme.
Separately, two consortiums were selected last week for the state backed distressed home loan rescue plan.
The mortgage to rent scheme has been revised, purportedly to make it more commercially attractive to the private sector.
The consortiums are Merrion Capital’s Home for Life consortium and US fund KKR’s consortium.
Merrion Capital plans to work with Permanent TSB on the scheme.
KKR has a stated interest in buying up thousands of Irish distressed mortgage homes as part of the mortgage to rent scheme, where distressed mortgage owning families would forfeit ownership of their homes but be able to stay on as long-term tenants of private funds.