BNY Mellon has been appointed as account bank for a €500 million lending platform for building homes in Ireland, Activate Capital.
Activate Capital is a joint venture between the Ireland Strategic Investment Fund (ISIF) and private equity firm KKR intending to help increase housing supply in Ireland by lending to residential development projects.
It has the capacity to finance the construction of about 11,000 new homes and to create up to 1,900 new jobs per annum. The platform will lend on a commercial basis, providing affordable loans for up to 90 percent of the total financing required.
Dean Fletcher, head of corporate trust in Europe, the Middle East and Asia at BNY Mellon, said: “As a major participant in Ireland's financial services industry we are well placed to support our clients in this venture.”
He added: “Rejuvenating the housing sector will help stimulate the Irish property market and broader economy.”
The ISIF will contribute €325 million to the platform in its largest single investment to date. KKR will provide €175 million.
