Northern Ireland enlists CBRE to address debt shortage

A £100m fund created by Northern Ireland’s Department of Finance will be managed by the real estate firm.

The Northern Irish government has launched a £100 million (€111 million) fund to address the shortage of development finance.

The fund will be managed by CBRE Capital Advisors, which will provide debt finance for real estate, in addition to regeneration, low carbon and infrastructure projects.

The vehicle is yet to make an investment, but will be exposed to any real estate development project in the province, Andrew Antoniades, CBRE’s head of debt investment advisory, told Real Estate Capital.

CBRE will manage the fund for 15 years and oversee a minimum of two full investment cycles. The fund has no restrictions when it comes to real estate development projects with the investment split “dictated by market needs as the fund progresses”, Antoniades said.

Investment will focus on regeneration, office and low carbon projects to deliver economic growth, said Hugh Widdis, permanent secretary at the Northern Irish finance department. “[The fund] will play a significant role in supporting private sector investment in key areas of local development over the next decade,” he added.

QMPF will act as strategic partner to CBRE, advising on low carbon projects.

“It is great to see key regional markets taking charge of development. By instigating capital projects, Northern Ireland will be able to deliver wider socio-economic benefits as well as generating income that can be recycled back into the fund. We are already in discussion with a number of developers to build a successful pipeline,” Antoniades added.