TORC CONSORTIUM IN WHICH KAJIMA IS A LEADING MEMBER HAS BEEN SELECTED AS PREFERRED BIDDER FOR THE SECOND STAGE OF IRELAND’S €300M SOCIAL HOUSING PPP PROGRAMME
The Torc Housing Partnership has been selected as Preferred Tenderer for the 2nd phase of the Government’s current PPP programme to deliver 465 new social housing units in County Cork, Kildare, Clare, Galway, Waterford and Roscommon. This project is the second bundle of the Government’s PPP programme to invest c. €300million in social housing which is expected to comprise;
Development of up to 1,500 housing units as a number of ‘bundles’ of sites;
Provision of services to the developments over a 25 year period following construction that will include the maintenance and upkeep of the housing; and
Return of the asset after 25 years in prime condition.
The National Development Finance Agency (NFDA) is procuring the project on behalf of Cork County Council through a standard availability model PPP contract which includes the design, build, finance, operation and maintenance of the Social Housing developments for a 25 year contract term. The local authorities will own the developments at the end of the term.
The Torc Housing Partnership consortium is led by Equitix Ltd, who together with Kajima Partnerships Ltd are the lead developers and long term majority investors in the project. A Construction Joint venture between Irish builder JJ Rhatigan and Spain’s Obrascon Huarte Lain who are jointly responsible for the Design and Construction of the project. Derwent FM will be delivering the Hard FM services and Tuath Housing Association providing the Tenancy Management. Debt funding is being provided by Nord/LB.
Craig Smailes, Project Director for Kajima Partnerships Ltd, said, “We are delighted to have been selected as the preferred bidder for the second bundle of Ireland’s Social Housing PPP programme. Kajima’s extensive experience and that of our partners ensures that the consortium is very well placed to deliver on this significant project. It is a landmark for social housing in Ireland, and we hope to play a greater role in the very promising development of the Irish PPP market.
For more information see www.ndfa.ie/project/social-housing-ppp-bundle-2
CONSTRUCTION OF LARGE APARTMENT SCHEMES OUTSIDE DUBLIN UNVIABLE
According to a report by AIB, the presence of institutional buyers in the residential property market is the primary reason why large-scale standalone apartment blocks are being built. The report examines the construction industry in the rental sector and has been authored by AIB head of property research Pat O’Sullivan and property economist Rory McGuckin.
A key finding of the report is that the viability of apartment construction “remains challenging” in many parts of Dublin and this “continues to constrain the supply of new residential units in the capital”. It also found that currently, the construction of large-scale apartment schemes outside of Dublin is not, for the most part, viable and suggests that the presence of institutional buyers in the residential market is the primary reason why large-scale standalone apartment blocks are being built. “Without the presence of institutional buyers of apartment blocks in the private rental sector, the viability issue would be even more pronounced and the supply of new apartments would be even lower,” it says.
Irish Construction Industry Magazine