Financial close reached on second Housing bundle PPP
The Torc Housing Partnership has announced that it has reached financial close on the project for the second phase of the Government’s PPP Programme to deliver 465 new homes in Ireland.
The project is the second bundle of the Government’s investment programme into social housing and the housing will be built in the counties of Cork, Kildare, Clare, Galway, Waterford and Roscommon. Construction will commence immediately and is expected to take between 14 and 18 months.
The Torc Housing Partnership is a consortium led by Equitix, who together with Kajima Partnerships are the lead developers and long-term majority investors in the project, the other investors are Obrascon Huarte Lain S.A. and Tuath Housing Association, who have a small equity stake. Torc’s advisers include Philip Lee (Legal), EY (Finance), BTY (technical and lifecycle), Marsh (Insurance), and Aecom (independent Tester and Assigned certifier roles).
Craig Smailes, Project Director for Kajima Partnerships Ltd, said: “We are very pleased to see this project reach financial close and for Kajima to continue to be a key part of the Government’s initiative in delivering social housing for Ireland. Kajima as a long-term majority investor in PPP projects has extensive experience and expertise in delivering to a high standard and we look forward to ensuring that these communities receive high quality homes.”
A construction joint venture between Irish builder JJ Rhatigan and Spain’s Obrascon Huarte Lain (OHL) who are jointly responsible for the Design and Construction of the project, will deliver the new homes.
Derwent FM will be delivering the repairs and maintenance services and Tuath Housing Association will provide the Tenancy Management.
Debt funding is being provided by Nord/LB, with the funders advisers including Osbourne Clarke (Legal), BTY (LTA), Marsh (LIA), Amberside (model audit) and Grant Thornton (Tax).
Sean O’Connor CEO of Tuath said: “The Association looks forward to the accelerated delivery of 465 much need homes in six local authority area and welcomes the opportunity to provide tenancy management services to our new residents when they move into their new homes.”
The National Development Finance Agency (NDFA) has procured the project on behalf of the County Councils through a standard availability model PPP contract which includes the design, build, finance, operation, management and maintenance of the Social Housing developments for a 25-year contract term. The local authorities will own the developments at the end of the term.
Padraic Rhatigan, Managing Director of JJ Rhatigan & Company, said: “JJ Rhatigan & Company is proud to be involved in the delivery of the second bundle of this significant Social Housing initiative and setting the standard for the subsequent phases of the programme. As an indigenous Irish Main Contractor, we link local experience and expertise with the best of international practice. We are a national player in the regions making this partnership an excellent fit for us.”
The complete PPP development programme is expected to deliver up to 1,500 housing units across Ireland and will provide management and maintenance services to the developments after construction over a 25-year period. All properties will be well maintained and returned to the relevant local authority at the end of the 25-year operating period.