AIB fund to help property developers

AIB is looking to return to the property development game with the launch of a €350m fund earmarked for urban areas.

The bank is looking for applications from people who have prior experience in developing residential property. AIB believes there is a need to start building now to address a growing shortage in residential housing in these urban areas,

Head of business banking at AIB, Ken Burke, said the fund is designed to meet the need for new housing.

“AIB recognises the acute shortage of available housing in key locations around the country and this €350m fund will support experienced operators in constructing quality housing units to help meet demand,” he said.

While all the parties in the construction industry welcomed the funding, the Construction Industry Federation (CIF) warned there was a danger that the fund could go unused as builders do not have access to the equity to secure funding.

The head of the CIF, Tom Parlon, said if the conditions for accessing the funds were too onerous then it would remain unused.