Concerns have risen regarding the delivery of affordable housing at the former Irish Glass Bottle site in Ringsend, Dublin. A disagreement exists between Dublin City Council and a Johnny Ronan-led development consortium, Pembroke Beach, regarding the costs involved.
Pembroke Beach is nearing completion of the first phase (570 homes) of the development. However, the council states that there's no agreement on providing affordable homes in phase one, citing significant cost challenges. Indicative prices of €495,000 for a one-bed and €675,000 for a two-bed apartment are deemed unaffordable for low- to middle-income buyers, even with government subsidies.
The site's history includes ownership changes involving Bernard McNamara, the Dublin Docklands Development Authority, and NAMA. A 2016 agreement designated 15% of apartments for affordable housing. While the council initially negotiated with NAMA, the site was ultimately awarded to the Ronan-led consortium in 2020. Subsequent negotiations have failed to produce a deal.
Sinn Féin representatives, Eoin Ó Broin and Chris Andrews, have expressed strong concerns, stating the community has fought for years to secure affordable housing. They highlight the lack of affordable homes in phase one as unacceptable given the high cost of housing in the area.
The council confirms that no agreement exists for affordable housing in phase one. They state the developer is working on a proposal to provide the affordable element across the whole development, but without a defined timeline. Pembroke Beach, comprising Lioncor, Oaktree Capital, and Ronan Group Real Estate, declined to comment; however, it's understood that they aim to allocate an apartment block for social and affordable housing in phase one, subject to agreement on costs.
Concerns are mounting over the provision of affordable housing at the former Irish Glass Bottle site in Ringsend with no deal on cost reached between Dublin City Council and a Johnny Ronan-fronted development consortium.
Pembroke Beach is close to completing construction of the first 570 homes at the former industrial lands on the Poolbeg Peninsula, designated for an urban quarter with up to 3,800 apartments.
However, in an email to Sinn Féin housing spokesman Eoin Ó Broin, the council has said there is “no agreement in place for the delivery of ‘affordable homes’ in phase one” of the development, with the costs making a deal “very challenging” to achieve.
It was indicated last year that the apartments in the scheme would cost €495,000 for a one-bed and €675,000 for a two-bed.
While eligible affordable house purchasers are given a State subsidised discount on market rates, the high indicative cost of the apartments would still put them out of reach of most low- to middle-income buyers.
The land on the peninsula at the east end of the city has been vacant for more than 20 years following the closure of the Glass Bottle Company in 2002.
The site was bought in 2006 for €412 million by a consortium involving developer Bernard McNamara and the Dublin Docklands Development Authority. The National Asset Management Agency (Nama) bought the debt associated with the site from the now defunct Anglo Irish Bank after the property crash.
The council drafted plans, approved by the cabinet in 2016, for a strategic development zone designation for the land in order to speed up the regeneration of the area, particularly for housing.
In May 2017, the council, Nama and the Department of Housing reached agreement that 15 per cent of the apartments would be used for affordable housing.
The council initially entered into negotiations with Nama in relation to the affordable homes and said it would be willing to buy plots of land from the State agency.
However, Nama instead offered the site to the market with the Ronan-led consortium confirmed as the preferred bidder in December 2020. The council has since been in negotiations with Pembroke Beach but has been unable to finalise a deal.
Sinn Féin senator Chris Andrews, previously a TD for the area, said the community had “fought for nearly a decade” to secure homes which could be bought at affordable prices
“[The council] has informed us that the delivery of these affordable homes is in doubt, and that it is unlikely that any social or affordable homes will be included in phase one of this development,” Mr Andrews said.
“This is entirely unacceptable for local residents, who have had to endure skyrocketing housing prices, insufficient social housing and years of broken promises from the Government.”
The council told Sinn Féin there was no requirement for affordable housing to be part of any particular phase, and that the developer was working on a proposal to deliver the “affordable component across the full development” but there was “no defined time frame for this as yet”.
The council has confirmed there “is not yet an agreement in place for the delivery of ‘affordable homes’ in phase 1” and has told the Irish Times the “affordable housing component is subject to a commercial agreement being reached with the developer that takes account of funding and value for money considerations”.
Pembroke Beach, which includes Lioncor and Oaktree Capital, as well as Ronan Group Real Estate, declined to comment.
However, it is understood the developer intends to allocate an apartment block in the first phase for social and affordable housing, pending agreement on the affordable element.
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