Statements & Blogs

10 May - Ireland’s largest non-bank lender reports strong progress in its Commercial Mortgages division

Ireland’s largest non-bank lender reports strong progress in its Commercial Mortgages division

  • 40 deals completed - total value of €65m in loans

  • Company doubles customer numbers in Q1

  • On target to lend over €100m in current year

Wednesday May 10 2017. Finance Ireland, Ireland’s largest non-bank lender has provided over €65 million in finance for over 40 different commercial property transactions since it entered the market in early 2016.

The company, which recently secured a number of major institutional investors, says it is on target to provide over €100 million in commercial mortgages this year and is currently lending approximately €10m a month.

Ken Murnaghan, the MD of the Commercial Mortgages division said there was significant interest in commercial lending products from across the country.

“While we can lend up to €10m, we have a particular focus on loans of between €1 million and €5 million and our typical Loan to Value (LTV) is 75%. We’ve completed over 40 loans to date across the main property sectors; retail, office, industrial and residential (BTL). The bulk of the lending (85%) is to support projects in urban areas (Greater Dublin, Cork, Galway and Limerick) with the remainder (15%) used to support projects in provincial centres.”

Murnaghan said that Finance Ireland was now well established as an alternative to bank finance; “A lot of enquiries come from people looking to refinance assets out of the large international loan funds but increasingly we are doing business with regular investors who have no baggage from the crash and who are attracted by our ability to make quick decisions and because our decision making team is all based here in Ireland and doesn’t have to go abroad to have decisions confirmed. We are a regulated business, which also confers some advantages, principally the flexibility to lend directly to individuals as well as companies, which can be important in our segment”.

Before launching the company’s Commercial Mortgages division last year, Murnaghan was Head of Property Finance at Ulster Bank and Head of European Real Estate Finance at AIB. His team comprises 10 property lending specialists, including Lending Directors Niall King and Jonathan Farrelly. Murnaghan said the fact that 20% of their client base came from repeat business showed they were on the right track.

Market Momentum

“We are experiencing strong market momentum at the moment. We doubled our size in Q1 with regard to both customer and team numbers. Billions of euro worth of investment property loans are financed / refinanced annually so there are a lot of opportunities in the market. International loan funds remain active and we are an important part of the story on how they exit the market and how borrowers rebuild their businesses with a new lender.”

“While most of our clients are in the main cities, the geographical spread is increasing all the time and we have done deals from Killarney to Letterkenny. We anticipate strong growth for the year ahead based on the strength of our offering and the expertise of our team” Murnaghan concluded.