A HOUSING development in County Limerick will be completed after the examiner of the construction company behind the project reached an agreement with a group of investors in Estonia.
In August 2020, Limerick City and County Council signed a fixed-price contract to buy the 16 homes at the Orchard Estate in Pallaskenry, following approval from the Department of Housing, Local Government and Heritage.
Irish company Top Drawer Developments secured finance to build the houses through Dublin-based peer-to-peer lending firm Property Bridges, which raised loans from an Estonian crowdfunding website, Evoestate.
Top Drawer got into financial difficulties as material costs soared within the construction sector.
As it was a fixed-price contract, the council had no mechanism to seek additional funding from the department as inflation costs and supply chain issues affected the overall price of the project.
The council then assigned the purchase contract to housing charity Focus Ireland, which agreed to pay a higher price for the 16 homes than had been agreed by the council with the developer.
Property Bridges has now confirmed to investors in Estonia that the examiner of Top Drawer Developments has brought forward a scheme of arrangement, which has been authorised by the court.
It is understood that the new investor has agreed to pay Evoestate €2.475m from the sales proceeds of the first 12 houses which are due to be completed by August. The overall payment will result in the lenders receiving all of their capital back plus the majority of their interest,” it noted.
Property Bridges said that it will maintain full security over the property as the scheme of arrangement is implemented.
