Ingka Investments, owner of hundreds of IKEA stores, to finance construction of potentially up to 250 social housing units across greater Dublin region.
The owner of IKEA retail stores worldwide Ingka Investments has revealed plans to invest €100m in social housing projects in Dublin.
The investment is expected to result in the construction of approximately 150 units over a three-year period.
“We hope this project will provide an innovative, community focused template for social housing provision in Ireland”
A spokesperson said that the initial 150 homes announced was a conservative estimate of the number of homes that will be ready for dwelling in a 24–36-month period.
“The estimated total amount that Ingka Investments aims to build is over 250 homes at a total cost of €100m.”
Ingka Investments, the investment arm of Ingka Group which represents the largest IKEA retailer, will finance the construction of the social housing units, which will then be effectively leased to the local authority on a long-term basis.
Its parent company Ingka Group is a strategic partner in the IKEA franchise system, operating 392 IKEA stores in 32 countries.
Increase in social housing stock
This approach to investing in the projects is unique for Ireland in that the lease payments from the local authority will be treated like mortgage repayments, allowing the transfer of these homes to the local authority at the end of the term at an estimated zero additional cost.
The initiative aims to increase the stock of social housing in Ireland and produce a significant benefit to society.
“Ingka Group is guided by the IKEA vision to create a better everyday life for the many,” said Peter van der Poel, managing director of Ingka Investments.
“As a purpose-led company, our aim is to invest with impact, delivering positive returns for communities and the environment for generations to come. We hope this project will provide an innovative, community focused template for social housing provision in Ireland, demonstrating a new way for companies like ours to be part of the solution.”
Funds will be allocated to ensure the energy efficiency of the homes is of the highest standard, reducing the cost to the occupant and better protecting the environment. A percentage will also be invested in social facilities such as parks, playgrounds, community centres, and more.
The social housing initiative will be executed and delivered by Aurium Capital, a specialist sustainability focused investment manager. Aurium Capital is responsible for coordinating the construction and delivery of these social homes.
The planned developments will be ‘new builds’ across the greater Dublin region, designated specifically for social purposes. Each project is construction-ready and relatively compact in scale, averaging 50-70 units each, ensuring minimal impact on local services and better integration into neighbouring communities.
“We are delighted to be working with Ingka Investments on this ground-breaking strategy. Our objective is to deliver energy efficient and affordable housing for the benefit of the local community and with a lasting legacy for the public. This joint venture with Ingka Investments leverages Aurium’s experience in delivering real assets with a significant environmental impact to assist with the drive to net zero, whilst providing genuine social impact,” said Nimesh Kamath, partner at Aurium Capital.
Construction is expected to commence in the coming weeks with an estimated total delivery of 250 social housing units over the next 36 months.