Elysian not a good fit for wholescale social housing

Cork City Council says it turned down a total of 313 units offered to it by the State asset agency 'to avoid over-concentration of social housing'

The Elysian was Ireland's tallest building for a period. Picture: Eddie O'Hare

CORK City Council did not take up an offer from the National Asset Management Agency (Nama) to use the entire Elysian tower for social housing because of concerns that it could lead to ghettoisation.

However, the council did identify a demand for 64 of the 205 units offered, but these were never delivered by Nama.

The landmark €100m apartment block was subsequently acquired from Nama by US investors Blackstone in 2017 as part of a settlement with the developers of the Elysian, O’Flynn Construction, before being sold in 2018 to another US firm, Kennedy Wilson, for €87.5m.

The city council was offered approximately 500 housing units by Nama prior to 2015, of which 188 were deemed suitable and of which 313 were not. Of these, the two biggest offers related to the 205 Elysian units and 71 at Ashmount Mews in Silversprings, near Tivoli.

The council identified a need for a portion of the units offered in both locations (31% of the total in the Elysian and 34 units at Ashmount Mews) but declined the remainder “having regard to sustainable community considerations and seeking to avoid a potential over-concentration of social housing in these areas”.

In relation to the 64 Elysian apartments, the council said “it subsequently transpired that none of the units identified in the city centre location could be delivered by Nama”.

A spokesperson for Nama said: “As its portfolio of loans was being actively deleveraged (repaid) since inception, there have been cases where properties for which social housing demand was confirmed subsequently become unavailable — for example, they may have been sold or rented on the private market by the relevant debtor or receiver to generate cash to repay debts owed to Nama.

“In addition, banks other than Nama may have had an interest in properties, which may have resulted in a property becoming unavailable for social housing.”

A Nama offer in 2015 of 31 units at Downview in Bishopstown was accepted in full by the council. Nama has not offered the council any units since then.

This week the council, which is by far the most active player in the city housing market, issued a call on eTenders for participants in a competition to build a circa €140m new residential scheme on their lands at the Old Whitechurch Rd/Old Mallow Rd (near Blackpool Shopping Centre) where they expect to deliver at least 600 new homes — apartments and a mix of house types — as well as schools, neighbourhood shops and services.

Council assistant chief executive Brian Geaney said the scheme will include a mix of social and affordable housing and affordable rental.

Awarding of the contract will be based on an EU competitive dialogue (CD) process where landowners/developers/contractors will be invited to come forward with proposals and will go through the public procurement process.

The CD process eliminates the need to apply for planning permission or to go through an appeals process. Instead, under Part 8 regulations, the city’s 31 councillors vote on the proposal, with a majority needed to carry it.

Mr Geaney said, pandemic permitting, he is hopeful building will commence at the Old Whitechurch Rd site “early next year”. He said there will be no private housing on the site. He said the development may be done in phases.

In addition to the eTenders call regarding the Old Whitechurch Rd, the council has issued a separate call on eTenders for participants to compete in another CD process to provide homes of all types on public and private lands across the city.

“This will include small and large schemes or parts of schemes of houses or apartments and will include conversion of existing residential, industrial, and commercial spaces to new homes,” Mr Geaney said.