Council pays €25m for 52 apartments after 'taking plunge'
DUBLIN City Council (DCC) chief executive Owen Keegan has described the purchase of more than 50 Dublin 4 apartments for almost €25m as "expensive", but added that the council had to take the plunge.
The Herald can reveal that some of the units at Shelbourne Plaza, on Charlotte Quay, are costing the council more than €500,000 each.
DCC is set to buy four three-bed units at €535,000 each, 42 two-bedroom apartments at €410,000 each, and six one-bedroom apartments costing €340,000 each.
The average acquisition cost works out at €411,000 per unit.
In a statement released to councillors last night, housing chief Brendan Kenny said the turnkey development came on to the market and was offered to the council as part of the Part V Social Housing commitment.
The units have been bought from Chartered Land, which has made a financial contribution.
"Dublin City Council has agreed a purchase price of €24.5m for Shelbourne Plaza and Chartered Land has made a financial contribution of €2.7m towards this," Mr Kenny said.
Speaking to the Herald last night, Mr Keegan said the cost was "disappointing".
"It's a real challenge for us. It's disappointing they are expensive. The acquisition cost is very high," he said.
"Everybody would be very concerned if the recovery were to be confined to housing out of reach of middle income aspiring house purchases.
"In some cases we're just taking the plunge and buying the units.
"I think it's great there will be social housing in this development, I just wish it wasn't so expensive."
Independent councillor Mannix Flynn said that while buying homes to be used for social housing was welcome, he feels there is a need for councillors to have a say in these acquisitions.
He said there should be more information provided in reports to see if there is value for money.
"The councillors have a say when it comes to dispensing of council property, but we don't have that say with acquisitions," Mr Flynn said.