Ingka Investments has committed financing of €100M as part of an initiative that will see the construction of up to 150 social housing units across the greater Dublin region within the next three years.

Each project is “construction-ready and relatively compact in scale”, averaging around 50-70 units each, Ingka Investments said in a statement. The company is one arm of the Ingka Group, which includes retail giant Ikea.

The social housing initiative will be executed and delivered by Aurium Capital, a specialist sustainability-focused investment manager, which will be responsible for coordinating the construction and delivery of each project.

Funds will be allocated to ensure the energy-efficiency of the homes is “of the highest standard”, reducing the cost to the occupant and ensuring the homes are environmentally friendly. A percentage of the funding will also be invested in community facilities such as parks, playgrounds or community centres, Ingka said.

The company added that this will ensure minimal impact on local services and better integration into neighbouring communities. It also said the approach for the investment is unique for Ireland in that the lease payments from the local authority will be treated like mortgage repayments.

This will allow the transfer of these homes to the local authority at the end of the term at an estimated zero additional cost, it added.

Peter van der Poel, managing director of Ingka Investments, said that Ingka’s approach is guided by the Ikea vision to create a better everyday life for the many.

"As a purpose-led company, our aim is to invest with impact, delivering positive returns for communities and the environment for generations to come," van der Poel said. "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.”

Construction is expected to commence in the coming weeks with an estimated total delivery of 150 social housing units over the next 36 months.