MegaProject 963: PIN for a €600 MM Irish housing project
This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
Dublin City Council (DCC) has issued a prior information notice (PIN) for a housing initiative.
DCC intends to initiate tender competitions in the coming months to seek private partners to develop residential units on the following Council owned lands mentioned below under the proposal collectively known as ‘the Land Initiative’:
- O'Devaney Gardens, Arbour Hill, Dublin 7.
- Oscar Traynor Road, Coolock, Dublin 5.
- St. Michael's Estate, Inchicore, Dublin 8.
The total investment of the initiative stands to €600 million (US$680 million).
The tender process is scheduled to be launched on 1 September 2017. Further information about this business opportunity is available here.
Dublin’s housing crisis has been widely reported upon in the national media. Housing prices and rentals have been increasing steadily since 2012 and demand for housing has been rising rapidly over the last months particularly for starter homes. There has been a limited supply of new housing over the same period.
According to a National Economic & Social Council (NESC) report, between one quarter and one third of individuals will not be able to find satisfactory housing through the market alone and housing affordability is now seen as the main issue. The Draft Housing Strategy set within the Draft Development Plan 2016-22 for Dublin City Council identifies the need for 4,217 new residential units per annum in Dublin City. Under the provisions of Part V, Planning and Development Act 2000 as amended by the Urban Regeneration and Housing Act 2015 up to 10% of these units must be reserved for social housing.
Factors affecting the supply of starter homes in Dublin include the lack of a ready availability of residential building land in suitable locations, high construction costs and issues affecting the financial viability of undertaking residential development of this nature at this time. Dublin City Council is now proposing to make vacant DCC owned lands at the three sites available for the provision of a mix of affordable, private and social housing. All of the subject sites are located within areas where there is a high level of housing demand. All locations are well served by public transport and benefit from existing facilities including parks, schools and shops.
Recently, we informed about other housing project in Ireland, the First bundle of Social Housing PPP project. In May, the Irish National Treasury Management Agency(NDFA) for and on behalf of the Department of Housing, Planning, Community and Local Government and Dublin City Council, issued a contract notice for the first Social Housing PPP bundle. The programme is being delivered in three bundles with a capital value of approximately €100 million (US$107.2 million) each.
A second bundle of social housing PPP is also in planning. In OCtober 2016, we reported that the Irish National Treasury Management Agency (NTMA) selected Cyril Sweett as advisor for the programme.