AIB, in collaboration with Activate Capital through the Irish Apartment Development Fund (IADF), is set to launch a groundbreaking €500 million initiative. This ambitious project aims to deliver 1,000 new apartments every year, catering to various housing needs across Ireland. The initiative will encompass mixed-tenure homes, including options for owner-occupiers, private sector rentals, cost rentals, and social housing. Funding will also support the development of apartments and student accommodations, with a primary focus on key cities like Dublin, Cork, Galway, and Limerick.
This move comes on the heels of AIB’s previous commitment of €800 million towards social housing initiatives. The bank has reaffirmed its dedication to addressing housing challenges by significantly contributing to this fund.
Cathy Bryce, AIB Capital Markets’ chief executive, emphasized the plan’s core objective: to secure vital funding for developers, bolstering the IADF’s capacity to support housing development projects.
Activate Capital, boasting a robust partnership with the Ireland Strategic Investment Fund since its establishment in 2015, stands as a key player in real estate development finance. With a track record of facilitating loans totaling €1.9 billion across 75 sites, Activate is well-positioned to contribute to Ireland’s housing expansion efforts, with a capacity to deliver over 18,250 homes.
This initiative underscores a collective effort to address Ireland’s housing shortage, as indicated by the Banking & Payments Federation Ireland’s report of a 28% increase in apartments last year, totaling 11,600 units out of 32,695 new accommodations nationwide—a 55% surge compared to 2019.