Asset manager Gresham House Ireland is seeking to raise capital from credit unions to finance the acquisition and construction by Approved Housing Bodies of new homes for social housing.

The pitch from the Gresham House Credit Union Income Fund is that credit unions can invest part of their funding derived from members’ saving and generate an attractive return from a new investment asset class.

Gresham House Ireland, formerly Appian Asset Management, was acquired by UK-listed Gresham House plc in 2021. The public company has c.€6.5bn in assets under management, including c.€715m in social and affordable housing investments

Fund manager Fiona O’Driscoll (pictured) commented: “This fund will match Approved Housing Bodies, who need long term loan capital on competitive terms, with credit unions who are looking for an attractive and secure home for their members’ savings. We look forward to harnessing the funding capacity of credit unions to deliver tangible benefits for credit unions, AHBs and people who need high-quality social homes over the long-term.”

O’Driscoll added that credit unions that invest in the fund will earn income from a portfolio of AHB loan investments, secured on the properties financed and backed by letting contracts with local authorities. “With the loans amortising over periods of up to 25 years this portfolio will create a stable long-term income stream and a gradual return of the original investment,” she said.

In Association with

The fund’s investment advisor is Dublin-based Burlington RE Property Management, headed by John Bruder.

Pic: Iain White/Fennells