Sean Mulryan of Ballymore and Colin Hunt of AIB. Photo: Shane O’Neill/Coalesce
Developer Sean Mulryan’s property group Ballymore will step up efforts to build up to 4,000 homes in Ireland after agreeing a €130m refinancing with AIB.
The facility agreed between AIB and Ballymore comes as the Government scrambles to solve the country’s crippling housing shortage. The Government recently revealed plans to build 300,000 homes within five years.
Economists, however, fear that the pace of housing completions is too slow. In November, AIB’s economic outlook forecast only 35,000 homes would be built in 2026 – a meagre increase on recent years and far short of the numbers required to hit targets.
Colin Hunt, chief executive officer of AIB, said delivering thousands of homes was a “strategic priority” for the country’s largest bank and Ballymore.
“Our track record with Ballymore is strong, and this new facility is our commitment to continue financing new A-graded sustainable homes,” he said.?
“Our appetite for lending to house-builders remains strong and we are keen to increase our funding for the residential market in the coming years.”
The deal includes Home Building Finance Ireland as a new minority partner. The state-backed lender, set up to address gaps in residential construction funding, provided 12pc of the total debt.
Ballymore is one of Ireland’s most prominent developers, delivering commercial and residential schemes across the country. It also has a substantial international portfolio, including in London, Bratislava, Prague and Berlin.
In Ireland, Ballymore is currently building 1,500 homes on nine sites across Bray, Mullingar, Naas, Newbridge, Portmarnock and Rush.
It is understood that the AIB facility could allow the developer to build an additional 2,500 homes across sites in Dublin, Kildare and Wicklow. Some may also be developed in Westmeath.
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