Orchard Estate Housing Development in Pallaskenry to proceed following investment issues

Orchard Estate Housing development – An agreement between Estonian crowdfunding investors and an Irish construction company has been reached to complete the Orchard Estate housing development in Pallaskenry.

Orchard Estate Housing Development will now proceed following investment issues 

By I Love Limerick correspondent Ava O’Donoghue

The estate was originally a Limerick City and County Council housing scheme, which would allow people to buy new starter homes at a discounted price.

advertisement

advertisement

advertisement

An agreement between Estonian crowdfunding investors and the examiner of an Irish construction company has been reached, meaning that the Orchard Estate housing development in Pallaskenry, County Limerick can now be completed. 

The estate was originally a Limerick City and County Council housing scheme, which would allow people to buy new starter homes at a discounted price. 

The housing project, which presented issues securing a scheme of arrangements, has now confirmed that it was able to reach an agreement with investors. This agreement will see investors receive almost €2.5m of their investment back.

Irish company Top Drawer Developments secured financing for the housing project through Dublin lending firm Property Bridges, who then raised loans from Evoestate, an Estonian crowdfunding website.

In August 2020, the Limerick City and County Council agreed to sign a fixed-price contract to buy the homes in Pallaskenry after receiving approval from the Department of Housing, Local Government and Heritage.

However, material costs soared, leaving Top Drawer Developments in financial difficulty as the housing estate was being built. Limerick council had no way of seeking additional funding for the project.

The council have since assigned the contract to housing charity Focus Ireland, who have agreed to pay a higher price for homes than what was originally agreed on by Limerick Council and the project’s developer.

Without interest from Focus Ireland, the project would have become an unfinished ghost estate, with no plans for construction or any delivery of housing units in the short to medium term.

The new investors have agreed to pay Evoestate €2.475m from the sale of the first 12 houses, which are set to be completed this August. Overall payment to investors will see previous lenders receive their capital back, plus the majority of their interest.

Dublin lending firm Property Bridges are ‘extremely disappointed’ in how the project unfolded, however, they believe the scheme of arrangement is a very positive outcome for lenders.

Property Bridges will maintain full security over the property as the scheme of arrangement is implemented.

For more housing stories, go HERE  

For more information on the Orchard Estate, go HERE