A number of additional housing schemes in the planning process are to be supported with funding from AIB and Bank of Ireland after the banks extended debt to home builder Park Developments.
The deal, which is an expansion of an existing arrangement, will see funding provided on a half and half basis by both banks. It will run over a four-year term with an option to extend for a further year.
Park Developments is one of Ireland’s largest and longest‑established property development companies. It declined to disclose a figure for the extent of the funding or the number of new units it will support.
Over more than 64 years, the third-generation family-owned business has delivered more than 13,000 homes and 4.3 million square feet of commercial space across the greater Dublin area.
READ MORE
The group said the renewed funding package will also support several major residential schemes currently under construction, including 342 houses and apartments at the Glen in Cabinteely and 254 apartments at Lightburne in Leopardstown.
The funding will also be used to build 157 apartments under construction at Meadow View, Clay Farm, Leopardstown, and 68 apartments at Glenville Garden in Mount Merrion.
[ Park Developments pays €15m for Balbriggan siteOpens in new window ]
In addition, Park Developments said the money will go to build 79 houses at Estuary Ridge and Hurlers Field in Kinsale.
The new debt facilities with AIB and Bank of Ireland will be classified as green loans.
Bank of Ireland acted as agent for the transaction, while AIB was arranger and sustainability co-ordinator. Deloitte provided debt advisory services in relation to the transaction.
How the conflict in the Middle East is already affecting Irish consumers
Park Developments chief financial officer Thomas Brady welcomed the renewal of the partnership.
“This collaboration has played a fundamental role in helping us deliver thousands of quality homes and several commercial buildings since 2018,” he said.
“Our funders share our vision and our determination in terms of addressing the current housing shortages that exist throughout Ireland, we also share a strong focus on sustainability and ESG credentials.
“We take pride in the communities we build and we look forward to delivering many more homes in the coming years in partnership with AIB and Bank of Ireland.”
Kevin Baxter, head of property finance at Bank of Ireland, said Park Developments had a “strong track record of delivering high-quality commercial property and housing at scale and this refinancing will help progress several major schemes at an important time of high demand”.
Derek O’Shea, head of development finance at AIB, said the bank’s long-standing relationship with Park Developments “allows us to support one of Ireland’s most enduring development companies in the continued delivery of high-quality homes and commercial buildings”.
He added the bank remained “keen to increase our funding for the residential market in the coming years”.
