The Land Development Agency (LDA) has struck a deal to pay more €40 million to NAMA to advance plans for as many as 2,500 affordable homes in north Co Dublin.
The proposed new development at Clongriffin will be the biggest single State housing project in decades, with The Irish Times reporting that building costs will be in the region of €1.2 billion.
The aim is to provide ‘cost-rental’ apartments with rents typically set 30% below market rates, although the LDA will not be on site for another year and must go to public tender for the building work.
The deal will see the LDA buy a 24.7-acre property that was once under the control of developer Gerry Gannon, a NAMA client.
The agency will also buy lands surrounded by the Gannon properties that were controlled by another NAMA client, Barina Construction, which is in receivership.
According to the report in The Irish Times, the LDA, which was established to build homes on State land, will pay Nama up to €45 million for the two properties. The transaction is the first between the bodies and the first in which the agency will buy privately owned land for housing. Both the LDA and Nama declined to comment in reply to questions about the deal.
The Gannon site has planning permission for 1,823 homes and a 209-bedroom hotel, in a stalled development known as Project Capital North. The 15-block project also includes permission for more than 22,000sq m (236,805sq ft) of commercial space. The LDA believes there is potential for another 700 homes on the former Barina property.
