Construction BUSINESS

The National Asset Management Agency has announced today plans for a €7.5 billion development programme to deliver about 4 million sq ft of new commercial space in Dublin’s docklands, and 20,000 new homes in the city and other areas of strong demand. These developments are expected to generate up to 30,000 jobs when construction is at its peak.

The announcement was made this morning at the formal launch at the Aviva Stadium in Dublin, which was attended by the Minister for Finance Michael Noonan and the Minister for Public Expenditure and Reform Brendan Howlin.

The residential programme will require total funding of €5.6 billion with peak funding expected to be €1.8 billion. The proceeds from the sale of completed projects will be recycled to fund new commercially viable projects.

There will be a focus on a 3 and 4-bed starter homes, according to a statement released by Nama.

The docklands development programme will require total funding of €1.9 billion, with peak funding up to €500 million.

In an effort to de-risk these programmes, Nama will look for joint venture partners interested in the co-funding and construction of projects.

NAMA chief executive Brendan McDonagh commented the announcement :

“This funding programme is designed to maximise the return to Irish taxpayers on NAMA’s secured assets. These are commercial ventures and they will also contribute to making the Dublin Docklands a better place to live, work, invest and create jobs. We are on track to make a significant contribution to delivering large numbers of quality new homes where people need them but it will still only be 20% of the forecast market demand.”