Cullaun Capital nears €100m of development lending

Cullaun Capital, a fledgling Dublin-based property development finance provider that started business 11 months ago, is set to reach €100 million of committed finance lines over the coming months, according to its founder and chief executive.

The lender recently closed deals to support Richard Barrett's Bartra Capital's plan to build two nursing homes – a 221-bed facility close to Beaumont Hospital in north Dublin and a 118-bed home in neighbouring Santry – said chief executive Stephen Bell, a former senior executive at AIB and Ulster Bank.

In addition, Cullaun Capital has closed deals to support the development of private and social housing schemes in Dublin and Galway with a transaction in Cork imminent, according to the company.

The company’s first deal, closed in November 2018, supported the development of apartments in Dublin 18. In December, the firm closed a deal for a specialist firm involved in the acquisition and refurbishment of properties for the social housing sector and another against land in Galway, which is going through the planning process and will support the development of more than 150 homes, the company said.

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“The shortage of development finance is still a significant problem across Ireland following many years of very little new building,” said Mr Bell.

“There is a clear and long-term need for sustainable progress to be made with an estimated 50,000-plus deficit in house construction. But this is not restricted to housing. Many other sectors are being impacted, including nursing homes where there are thousands of beds required over the coming years. It will take all our collective efforts to address these challenges.”

Cullaun Capital is backed by TPG Sixth Street Partners, the global finance and investment firm with over $30 billion in assets under management.

With domestic banks remaining cautious about how much finance they will provide to building projects, many Irish developers complain about difficulties in accessing capital. Cullaun is among a number of non-bank lenders that have emerged in recent years to help plug that gap.