Barclays backs private rented sector – in Ireland

Barclays Bank has advanced a EUR130m loan to fund the purchase of rental housing in Ireland. The funds have been made available to Irish Residential Properties Reit (IRES), a company floated on the Irish stock exchange in April.
IRES is backed by Canadian company Capreit, one of Canada’s largest residential landlords with more than 40,000 homes across its home the country. It raised EUR200m when it floated, and has already invested in several apartment blocks in the Dublin area, including the Marker Residences in the docks area, and Kings Court in the city centre.
IRES has said it aims to build a portfolio of 2,300 houses and apartments for rent in Ireland. “We are very proud that our lenders have shown confidence in IRES and extended a credit facility which allows the Reit to grow and achieve its investment goals,” said IRES head David Ehrlich.
Will Barclays also move into the UK rented sector in a similar way? Time will tell. The loan to IRES is secured against the company’s existing assets ie the portfolio of properties already bought with the equity raised by the April stock market listing.

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