CPS Property to manage new £30m property fund for house builders
A NEW £30 million property fund exclusive to Northern Ireland has been launched to help bridge the liquidity gap that exists in the residential and development markets.
The Omega Capital Fund, which is backed by a group of institutional and Northern Ireland-based private investors, offers secured loans from £50,000 up to £2.5m.
The scheme will be managed and delivered on behalf of Omega by estate agency CPS Property, which has just marked its 30th anniversary.
Its managing director Art O'Hagan said: “Lending in the residential mortgage market reached £2.5 billion last year, with remortgaging and first-time buyers making up 60 per cent of that.
"But the shortage of affordable housing is well documented in Northern Ireland, and developers still struggle to access working capital. The Omega Capital Fund will help support these housing developers and we anticipate there to be strong demand for this much needed liquidity in the market.”
Mr O'Hagan said CPS will be "client facing and will assess whether applicants are the right fit for funding".
He added: "If we think a scheme is suitable for investment, then we'll guide them towards funding options and make a decision within 10 working days.
“Market demand is up 15 per cent on last year but demand still outstrips supply. Over the next three to four years we anticipate the market will stabilise with the gap between supply and demand shrinking.”
CPS Property has six branches, including Belfast, Armagh, Dungannon, Enniskillen, Omagh and Monaghan. It works in rentals, residential and commercial sales, new developments, land and sites, and also sells properties in Dubai, Cape Verde and Spain.