Business Irish

Saturday 25 November 2017

AIB to publish proposals dealing with financing delivery of new housing stock

 

The proposals are expected to cover a range of issues which the construction sector maintains are impeding its efforts to deliver residential and commercial developments.
The proposals are expected to cover a range of issues which the construction sector maintains are impeding its efforts to deliver residential and commercial developments.

Ronald Quinlan, Commercial Property Editor

An AIB report covering a range of proposals to assist with the delivery of new housing is to be published in two weeks' time, the Sunday Independent has learned.

The report's publication marks the culmination of several months of research and deliberations by the bank's executives, combined with consultations with a number of the country's major property developers.

The proposals are expected to cover a range of issues which the construction sector maintains are impeding its efforts to deliver residential and commercial developments.

Those issues are understood to include the availability of finance, planning regulations, construction costs and project viability.

Among those consulted by AIB management were Chartered Land and Castlethorn chief Joe O'Reilly, Cairn Homes' chairman John Reynolds, Green Reit director Stephen Vernon, O'Flynn Group chairman and managing director Michael O'Flynn, and John Mulryan, a son of Ballymore Properties chief Sean Mulryan and managing director of the group's UK operations.

During the summer, the group was invited by AIB chairman Richard Pym to attend a chairman's dinner at AIB's Bankcentre headquarters in Ballsbridge to discuss the challenges facing the development sector. Pym referred in passing to the event in his subsequent address to the MacGill Summer School in Donegal last July, when he spoke of AIB's intention to make a "serious contribution" to efforts to address the housing crisis.

"It is housing though that is still stalled and new home completions fall well short of demand and I think that is something where AIB can make a serious contribution," he said.

Referring to the role he believed the country's main residential and commercial property developers could play in ramping up the delivery of housing and commercial space, the AIB chairman added: "It's something that the private sector can contribute to if we organise ourselves properly."

Sunday Indo Business

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