Avenue Capital Group, which specialises in opportunistic credit and special situations, is to help fund the development of housing and student accommodation in Ireland.
The US-based firm has entered into a €65m joint venture with Irish developer Duffy Property Group.
The investment will part-fund more than 800 homes and a purpose-built student accommodation project across Duffy Property Group’s existing portfolio in Galway and Cork.
Last year, Avenue Capital established the Homebuilder Capital Solutions Fund, with investment from the Ireland Strategic Investment Fund, to provide equity to Irish homebuilders.
Barry Duffy, CEO of Duffy Property Group, said: “This partnership with Avenue is an important endorsement of Duffy Property Group, the team we have built and the residential development platform we are now scaling.
“We have a long track record of developing and building in Ireland, and this partnership combines that capability with long-term institutional capital and expertise. It gives us the capacity to accelerate delivery from our existing portfolio while continuing to originate and acquire new opportunities.
“Ireland has deep and sustained demand for new housing across private, affordable and state-supported tenures. Increasing delivery requires experienced developers to have access to the right forms of long-term capital, and Avenue’s Homebuilder Capital Solutions Fund is an important addition to the Irish funding market.”
Padraig Moore, co-head of Avenue Europe funds at Avenue Capital, said: “Avenue is pleasesd to support Duffy Property Group’s residential delivery programme in Ireland. Duffy Property Group combines a longstanding track record with an experienced team and an integrated delivery model. We look forward to supporting its continued growth.”
