NAMA announces details of Docklands and residential funding programmes

DOCKLANDS

NEW HOMES

3.8 million square feet of commercial space – equivalent to double the original IFSC

Focus on 3 and 4-bed starter homes

€170m funding plan for Boland’s Quay offices, apartments and shops announced today

20,000 new homes

15 separate sites in North and South Docklands

2,000 apartments

78% in Dublin city and county

22% in other areas of strong demand in ROI

Total 93% in Greater Dublin area

Up to 30,000 construction and ancillary jobs generated by the Docklands and new homes funding programmes

 

 

"NAMA has committed itself to funding the delivery of much-needed office space and quality homes and, in doing so, it hopes to leave a lasting and positive legacy for the coming decades." NAMA Chairman Frank Daly

"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." – NAMA Chief Executive Brendan McDonagh

 

Thursday 3rd December 2015

The National Asset Management Agency (NAMA) has today announced details of a major funding programme that aims to deliver almost 4 million square feet of new commercial space in Dublin Docklands and 20,000 new homes in Dublin and other areas of strong demand. 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. The Docklands development programme will require total funding of €1.9 billion with peak funding up to €500m.

In an effort to de-risk these programmes and to maximise the contribution of the alternative funding, development and construction sectors, NAMA will look for JV partners interested in the co-funding and construction of projects. With that in mind, NAMA will formally seek, in January 2016, ‘expressions of interest’ from potential partners for its residential delivery programme.

In line with NAMA’s obligations under Section 10 of the NAMA Act, all projects will be required to pass a stringent commercial viability threshold before NAMA approves funding. The Agency will explore appropriate financing options for each site to establish the best financing mechanism specific to each. These options include NAMA funding all of the construction work required; co-funding with other lenders; or establishing project-specific joint ventures with major investment or construction groups. NAMA will also work with non-NAMA building platforms.

The funding programme is expected to generate up to 30,000 jobs when construction is at its peak and deliver commercial space equivalent to approximately double the original IFSC.

NAMA is confident that the new programmes will not affect its plan to redeem all of its senior debt by 2018 and its subordinated debt by 2020. Current projections indeed indicate that the programmes are likely to increase NAMA’s projected terminal surplus (currently estimated at up to €1.75bn) which will be transferred to the Exchequer when NAMA completes its work.

The announcement was made today at the formal launch of NAMA’s funding programme in Dublin, which was attended by Minister for Finance Michael Noonan TD and Minister for Public Expenditure and Reform Brendan Howlin TD, and hosted by NAMA Chairman Frank Daly and NAMA Chief Executive Brendan McDonagh.

Today’s announcement provides detailed information on some of the projects that are included in the two programmes.

 

Michael Noonan, Minister for Finance, said:

 

"NAMA’s commitment to the Dublin Docklands SDZ combined with its efforts to provide much needed supply of residential units will continue to encourage Start-Ups and Multi-Nationals alike to have confidence in identifying Dublin as the home of choice for their businesses and will allow us to continue to punch above our weight in the global competition to attract and retain talent.

 

On the residential side, today’s launch follows on from an announcement I made in my Budget speech that NAMA would be in a position to provide 20,000 additional housing units by 2020. This, in addition to the housing package announced recently by Minister Alan Kelly, demonstrates this Government’s commitment to addressing the housing shortage which is particularly evident in the greater Dublin area.

 

I want to take this opportunity to thank the entire NAMA team for its continuing and tireless efforts to bring about such an important contribution to the recovery of the State".

 

Brendan Howlin, Minister for Public Expenditure and Reform, said:

"I commend NAMA for taking this considered commercial decision which will ultimately benefit the taxpayer. It is welcome both in terms of the Housing and Commercial Development resulting from these programmes and in terms of the enhanced return to the taxpayer these programmes will secure.

 

I look forward to seeing the SDZ come to life. I also look forward to the positive impact on the housing market your residential funding programme will have.

 

Judging by today’s presentations, both will be remarkable achievements."

 

Frank Daly, NAMA Chairman, said:

"NAMA has committed itself to funding the delivery of much-needed office space and quality homes and, in doing so, it hopes to leave a lasting and positive legacy for the coming decades."

We are proud to be in a position to use NAMA’s unique blend of property and financial expertise, funding capability and scale to benefit the taxpayers the Agency was set up to serve."

Brendan McDonagh, NAMA Chief Executive, said:

"We are making the Dublin Docklands a better place to live, work, invest and create jobs and are on track to make a significant contribution to delivering large numbers of quality new homes where people need them.

This is an ambitious commercial programme but we are confident that we can deliver. We look forward to building on our successful track record of creating significant value for the taxpayer and asset managing our secured assets in the best way possible."

 

Key features of Dublin Docklands SDZ programme

 

  • 15 major new city blocks
  • Almost 4 million square feet of office space
  • 66,000 square feet of retail space
  • 2,000 new homes
  • 13,000 sq. ft. of restaurant space (in schemes granted permission)
  • 18,000 sq. ft. of new cultural and community space and high-quality civic plazas (in schemes granted permission or where planning has been submitted)
  • 1 major new street
  • Building cross-river access to DART rail line from North Dockland
  • Building cross-river access to LUAS tram network from South Docklands
  • Ireland’s biggest-ever student accommodation block
  • Dublin’s tallest office block
  •  

Dublin Docklands – progress summary

Construction work now underway – 3 sites

8 Hanover Quay

Boland’s Quay

Capital Dock

782,000 square feet

246 homes

Planning permission obtained, construction work imminent – 3 sites

76 Sir John Rogerson’s Quay

5 Hanover Quay

Project Wave (North Wall Quay) – Phase 1

608,000 square feet

161 homes

Planning applications submitted – 5 sites

City Quay

Spencer Dock – Phase 1

EXO Building, Point Village

Block 5, Point Village

Block 10A, Point Village

1.2m square feet

450 homes

169-bedroom hotel

Planning applications nearing submission – 6 sites

Project Wave (North Wall Quay) – Phase 2

Spencer Dock – Phase 2

10-12 Hanover Quay

Block 19 (Waterways Ireland)

Block 3, Mayor Street

Block 9, North Wall Quay

1.3m square feet

1,200 homes

 

Key features of new homes funding programme

  •  20,000 new homes
  • 13,200 units already identified as commercially viable at this point; others to become viable following intensive planning and asset management work and infrastructural spending.
  • Focus on 3 and 4-bed starter homes
  • Programme will include high-quality dual-aspect apartments in city centre locations
  • 78% will be in Dublin
  • 15% will be in counties Meath, Kildare and Wicklow
  • 7% in other areas where demand is proven
  •  Locations will include:

    BALDOYLE / CLONGRIFFIN CLUSTER

    NO. UNITS

    STEPASIDE / FOXROCK CLUSTER

    NO. UNITS

    Under Construction

    315

    Under Construction

    59

    Planning Granted

    146

    Planning Granted

    115

    Planning Lodged

    0

    Planning Lodged

    446

    Planning to be Lodged within next 12 months

    609

    Planning to be Lodged within next 12 months

    341

    Total

    1070

    Total

    961

     

     

     

     

    DUN LAOGHAIRE CLUSTER

    NO. UNITS

    PELLESTOWN / ASHTOWN CLUSTER

    NO. UNITS

    Under Construction

    197

    Under Construction

    237

    Planning Granted

    667

    Planning Granted

    279

    Planning Lodged

    0

    Planning Lodged

    318

    Planning to be Lodged within next 12 months

    0

    Planning to be Lodged within next 12 months

    0

    Total

    864

    Total

    834

     

     

     

     

    SWORDS CLUSTER

    NO. UNITS

    KILTERNAN CLUSTER

    NO. UNITS

    Under Construction

    115

    Under Construction

    0

    Planning Granted

    72

    Planning Granted

    125

    Planning Lodged

    551

    Planning Lodged

    106

    Planning to be Lodged within next 12 months

    56

    Planning to be Lodged within next 12 months

    399

    Total

    794

    Total

    630

     

     

     

     

     

     

     

     

    BALLYCULLEN / KNOCKLYON CLUSTER

    NO. UNITS

    CASTLEKNOCK / DISWELLSTOWN CLUSTER

    NO. UNITS

    Under Construction

    123

    Under Construction

    359

    Planning Granted

    172

    Planning Granted

    0

    Planning Lodged

    79

    Planning Lodged

    0

    Planning to be Lodged within next 12 months

    180

    Planning to be Lodged within next 12 months

    74

    Total

    554

    Total

    433

New homes – progress summary

 

 

Status

Total

TIER 1 sites

Completed – end 2015

2,300

 

Under construction

2,950

 

With planning permission but not yet under construction

4,900

 

Sub-total

10,150

TIER 2 sites

Planning applications lodged

3,900

 

Planning applications to be lodged within 12 months

6,000

 

Sub-total

9,900

                            
Grand Total
20,500

                                                                                                

 

Boland’s Quay development funding announced today

NAMA has today announced that it is providing €170m to fund the Boland’s Quay (formerly known as Boland’s Mill) project, which is being developed by Savills, a NAMA-appointed receiver, and which recently received planning approval.

NAMA is funding the demolition and enabling works phase at Boland’s Quay over the next 10 months and has committed to funding all construction work on the site, which is expected to be completed by Quarter 3 2018.

This project will include:

  • 2 landmark office buildings of 274,000 square feet 41 apartments
  • Retail and commercial space of 15,000 square feet
  • Extensive restoration of protected structures
  • 2 new civic plazas with water frontage to Grand Canal Dock
  • A new pedestrian bridge to provide walking routes from Barrow Street/Google European headquarters through the site
  • Cultural/community space of 5,910 square feet

 

Welcoming the announcement, Receiver Mark Reynolds of Savills, said:

 

"The development of Boland’s Quay is now full steam ahead. We are delighted with NAMA’s commitment to funding its construction, as it enables us to move forward with the certainty that our plans for the site will come to fruition. This will be one of the most significant construction projects this city has seen over the past 10 years and it has been supported by the SDZ fast-track planning scheme introduced by Dublin City Council, which has seen us bring the project from planning stages to development in less than a year."