Earlsfort Capital Partners, a non-bank property lender, has announced the launch of Earlsfort Development Finance, a new lending vehicle dedicated to providing construction finance for residential development projects in the €7.5m to €20m range.
Founded in 2014 by Paul Brophy (pictured above) and Fergal Feeney, Earlsfort Capital Partners says it has has issued over €1.25bn of loan facilities secured on a wide range of properties including residential, office, industrial and student housing.
Earlsfort Capital Partners Ltd had fee income of €3.44m in 2020 and booked a profit of €1.9m. The two founders shared dividends of €1.4m.
Earlsfort’s business has a focus on providing real estate debt capital in Ireland and the UK, operating out of Dublin, London and Boston.
The main focus of Earlsfort Development Finance is ‘ready to go’ residential projects in locations with proven demand – both in the private and social housing markets. Advance rates will be up to 90% of cost, subject to a maximum Loan to Value of 70%.
In Association with
Earlsfort has also announced the closing of its first two EDF transactions with total commitments of €25m.
The first transaction is to provide construction financing for a €15m apartment development in Limerick city. The development will comprise of 61 units and will be a mix of predominantly one- and two-bedroom residential units.
The second transaction will provide construction financing for a €10m starter home housing development in Enfield, Co. Meath. The first homes are expected to be delivered in October 2022.
Earlsfort Capital said that both of these projects are being undertaken by established developers who have a track record in delivering quality residential units.
Managing director Paul Brophy commented: “This new vehicle is a natural add-on to our current offering, and we are excited to enter the market and grow the business. Given the very recent market uncertainty and lack of liquidity in the development sector, sponsors are looking for a dependable funder who understands their project needs and can execute quickly.”
Brophy added that Earlsfort Development Finance plans to invest c.€250m into the Irish market over the next two years.
