Developer pulls out of social housing

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Developer Bernard McNamara had pulled out of five public-private partnership (PPP) schemes social housing schemes in Dublin, worth a total of €900 million.

Dublin City Council has asked the government to help fund its housing budget following the collapse of plans to build thousands of units in partnership with the firm, one of the biggest builders in Ireland.

In a letter to Ciaran McNamara, Dublin City Council's assistant city manager of housing and residential services, McNamara and Company boss Michael McNamara stated that changes in market conditions and additional costs were the reason for the firm's retreat:

"The adversely changed circumstances of the current private housing market to that of 2005/2006 when the bids were submitted, along with the significant additional costs of increased apartment sizes and new energy regulations, have rendered the whole concept of using the sale of private housing units to fund Social and Affordable Housing and Community Services along with a balancing site purchase figure, unsustainable in the current market, despite the best efforts of everybody involved," wrote Mr. McNamara.

The affected projects include a €265 million redevelopment of St Michael's Estate, Inchicore planned in 2001, a €180 million regeneration of O'Devaney Gardens in Dublin 7, a €200 million project on the convent grounds on Seán MacDermott Street, the regeneration of the Dominick Street flats and a €100 million project on Infirmary Road.