Developers set up funds to provide alternative loans for other builders
Mm Capital's Elgin Property Finance aims to provide €300 million of loans, while Northern Irish developer Gareth Graham’s Belfast Commercial Funding has already loaned €34 million to Irish construction projects
Two Irish developers have established property fund providers in recent months, at a time when risks have increased for development projects. Supply chain problems and labour shortages already had inflationary effects on the sector even before the Ukrainian war impacted energy costs.
Consequently any supply chain delays are adding to the cost of project finance. Longer build times will exacerbate finance costs with interest rates expected to rise in the next 12 months.
While home ...