Michael McGrath (Cork South Central, Fianna Fail)
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75. To ask the Minister for Finance the amount of lending carried out by a company (details supplied) to the construction sector to date; his views as to whether the State can do more to ensure the construction sector has access to finance to build the required homes and office accommodation around the country; and if he will make a statement on the matter. [16413/17]

Michael Noonan (Limerick City, Fine Gael)
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ISIF has already invested in a number of financing platforms and projects in the construction sector and is actively examining other opportunities.  ISIF is a co-investor in a number of funds designed to make finance available for new construction and particularly for sites without planning permission. Examples of these investments include:

- Activate Capital, which has to date provided funding for approximately 2,325 new residential units in the Dublin area with potential to support construction of up to 11,000 new units;

- Ardstone Residential Partnership, which has to-date acquired sites with the potential to deliver up to 2,113 new housing units to be delivered over 5-7 years and is targeting a total delivery of up to 3,750 new units;

- Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund, with a focus on multiple real estate sectors, providing both pure finance and development capital, has already advanced funding for 1,700 new residential units.

Activate Capital is a private €500 million fund, which is financed through a €325 million loan note provided from ISIF and a €175 million loan note provided from KKR.  Given Activate Capital has private shareholders, it would not be appropriate to disclose the Fund's commercially sensitive information, including the level of drawdown from the fund.  This approach is in line with the normal banking confidentiality rules that apply to all private companies.

ISIF is considering a number of additional investments that would support housing provision, including a Housing Investment Fund to fund the delivery of new mixed-tenure residential developments of social and private housing, in a way that is both off-balance sheet and commercial.  ISIF is also engaged in dialogue with a range of Higher Education Institutions ("HEIs") to support HEI capital programmes, emphasising on-campus student accommodation.  ISIF gave a €54m long term debt facility to DCU for student accommodation and overall campus development programme.  ISIF is exploring the possibility of providing equity finance to a number of operators in the build to rent sector.

Regarding infrastructure to enable residential development, ISIF seeks to work with the Local Infrastructure Housing Activation Fund (LIHAF), Local Authorities and commercial investment. A private sector pilot project for c. 3,000 units is being progressed. Public sector projects also for c. 3,000 units are being considered.