Developer To Earn €67M Profit From Public Land Site - Independent.İe

Developer To Earn €67M Profit From Public Land Site - Independent.İe

Developer to earn €67m profit from public land site - Independent.ie

Developer to earn €67m profit from public land site

14.9.2019

Developer to earn €67m profit from public land site

Developer Bartra Capital is set to make around €67m in profit after it takes over the publicly owned site at O'Devaney Gardens, develops it and sells the property.

https://www.independent.ie/irish-news/developer-to-earn-67m-profit-from-public-land-site-38496638.html Email Bartra, which is also behind the controversial co-living development in Dún Laoghaire, has been chosen as the preferred bidder to redevelop the site in north Dublin. Dublin City Council, whose deputy chief executive Brendan Kenny has insisted the site is not being"given away" to the private developer, has refused to say how much it stands to make from the deal. The company has also declined to specify how much it has estimated it will make. A Bartra spokesman said:"The procurement process is not yet complete. There are many hurdles still to be completed. As the preferred bidder our plan was deemed to most economically advantageous by the city council." However, it is understood the developer stands to make tens of millions on the back of the public asset. According to a report by Mr Kenny, the total cost of developing the site will be €300m. The profit figure was based on an estimated total sale value of €367.5m. This was calculated based on the council's estimates for the value of each of the type of property to be built - one- to three-bedroom apartments, and two- to three-bedroom houses. Affordable values for the properties were contained in Mr Kenny's report. These were adjusted upwards for the 411 properties to be sold privately on the basis that a 40pc market-rate discount applied. Also included was an approximate €50,000-per-unit payment to the developer from the Serviced Site Fund for the affordable houses. Barta will benefit from a development levy of around €10,000 being waived for the properties - but this was not taken into account, and could boost its overall profits when the site is fully sold. The council has refused to be transparent about the total value of the deal to Bartra, citing commercial sensitivity and an ongoing procurement process. "As a result of procurement rules, none of the actual procurement prices and figures contained in the final tender from the preferred bidder can be released," a statement said. It said the result of this was that"for the purposes of the preferred bidder announcement", the unit prices"have to be indicated by a range of prices and not the actual per unit price". Local councillor Anthony Flynn said:"It is absolute madness for councillors to agree to give away prime public lands in the middle of the worst housing crisis this country has ever seen while we have over 10,000 people in emergency homeless accommodation." The proposed development has already proved controversial after it emerged individuals or couples will have to earn at least €108,000 a year and have savings of €42,000 to buy a category of"affordable" home. At the top end of the"affordable" scale in O'Devaney Gardens, a three-bedroom apartment will cost €420,000 and this includes a discount of up to 40pc on what is considered market value. The cheapest affordable properties at the site, two-bedroom houses, will still cost at least €270,000, meaning a household will have to earn almost €70,000 a year to buy under Central Bank rules. Irish Independent Read more: Independent.ie

Gardaí renew appeal to public for help in finding 13-year-old Chantelle Doyle - Independent.ieGardaí have renewed an appeal to the public for help in finding 13-year-old Chantelle Doyle.

Pressure on Noel Grealish to withdraw claim Africans 'sponge off the system' - Independent.ieIndependent TD Noel Grealish brazenly appeared in public amid the ongoing storm about his African “spongers” remarks, but has failed to address the controversy.

Grealish under fire for alleged 'spongers' commentsGalway Anti-Racism Network calls for Independent TD Noel Grealish to step down after comments he made about asylum seekers at a meeting in Oughterard | Read more: RLTW14 its a 'violation of his duties to his constituents'? foreigners aren't his constituents u twit Leo needs to stand down after his Christianophobic remarks We don't need anymore in our country. Our own are dying on the streets while these people are given everything

TD Noel Grealish urged to retract alleged remarks about asylum seekers - Independent.ieJUSTICE Minister Charlie Flanagan has said he is 'disappointed' about alleged remarks made about asylum seekers by an independent TD at a public meeting in Galway.

Fireman Sam dropped as fire service mascot amid claims he's not inclusive enough - Independent.ieFireman Sam has been dropped as a fire service mascot, following claims he is not inclusive enough.

'UK hasn't proposed any legally credible or workable backstop alternatives' - Michel Barnier - Independent.ieThe European Union's chief Brexit negotiator said the bloc is still waiting for proposals from UK Prime Minister Boris Johnson to end the impasse over Britain's departure, which is due



Irish flights cancelled due to Canary Island sandstorm

What evidence is there that the IRA still controls Sinn Féin?

Truck driver jailed after dangerous motorway u-turn

Varadkar's comments an 'overreaction', says McDonald

Vehicle seized in connection with N7 sulky race

Royals hope to forge 'lasting friendship' with Ireland

Film producer Weinstein guilty of sexual assault, rape

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

14 September 2019, Saturday News

Previous news

Former ref explains why VAR was not used for Joel Matip penalty decision

Next news

Personality Test: What percent clown are you? | JOE.ie
Varadkar and Martin set to begin 'exploratory' talks Humpback whale rescued from illegal net off Mexico Public appeal made for help in locating missing teenager last seen in Dublin city centre Man stabbed to death in Dublin Conor Murphy again refuses to state that Paul Quinn was not a criminal South Korea to launch mass coronavirus testing Kobe Bryant's widow sues helicopter company over fatal crash Conor Murphy again refuses to say murdered Irishman Paul Quinn was not criminal Legal sector must take some responsibility for soaring insurance costs, say hoteliers Weinstein moved to New York hospital with chest pains EU to insist on 'level playing field' in UK trade talks Father spared deportation but cloud still hangs over young family
Irish flights cancelled due to Canary Island sandstorm What evidence is there that the IRA still controls Sinn Féin? Truck driver jailed after dangerous motorway u-turn Varadkar's comments an 'overreaction', says McDonald Vehicle seized in connection with N7 sulky race Royals hope to forge 'lasting friendship' with Ireland Film producer Weinstein guilty of sexual assault, rape Calls for greater efforts to tackle impact of flooding Minister does not rule out chlorinated chicken imports Mastercard to create 1,500 jobs in Dublin Jewish council to write to TDs on how to spot anti-Semitism Party leaders planning new week of talks but still no sign of government being formed