What is the Benefit of Loans from the Fund for Tier 3 Approved Housing Bodies (AHBs)?
The Gresham House Credit Union Income Fund (the Fund) will provide Tier 3 AHBs with a new, attractive source of fixed-rate, long term debt finance as they address the ongoing undersupply of social housing in Ireland. In line with targets under the government’s ‘Housing for All’ strategy, which calls for an increased focus on delivery through ‘new build’, the Fund will offer long-term loans for both acquisition and construction projects.
Partnering with the Fund also provides an exciting opportunity for Tier 3 AHBs to work with like-minded, socially motivated investors and to deliver on their common mission of improving the wellbeing of their clients within the homes and communities where they provide their services.
Key loan features and benefits
- Fixed-rate loans up to 25 years for both the acquisition and construction of social housing, underpinned by CALF and PAA funding structures
- Partnering with socially motivated, long-term investors for the benefit of common clients in communities across Ireland
- Competitive interest rates and attractive loan structures, including committed facilities, which will enhance AHB pipeline delivery and generation of surpluses
- An accessible, single stage borrower application process and simplified loan documentation and drawdown processes will increase ease of use for AHB borrowers
- Opportunity to diversify away from existing lenders to new funding sources, whilst still working with an investment team with direct experience of lending to AHBs and Burlington Real Estate with expertise in managing property and construction projects in the current Irish market
- Working with Gresham House Ireland who is an established investment manager that is backed by the AIM listed asset manager, Gresham House Group*, and which has in-house loan and credit risk management capabilities alongside a commitment to developing a close, long-term relationship with its borrowers
- Drawing on Gresham House Group’s sustainable investment and social housing teams, the Fund will implement a sustainable investment framework that supports AHBs in developing and improving on their ESG credentials over coming years
* Gresham House Asset Management Ireland Limited, formerly Appian Asset Management Limited, was acquired by Gresham House plc in 2021. Gresham House plc is listed on the London Stock Exchange’s AIM and is a specialist alternative asset manager. Total assets under management include over £600 million in housing investments as at 10 September 2021.