Thursday, April 24 11:25:46
For the first time since the 1980s, the IDA will build two large facilities in prime investment target regions as part of its efforts to attract more Foreign Direct investment (FDI).
The projects will see the building of two high technology-capable facilities in the midlands and southeast, which will create around 180 jobs during the construction phase.
"The availability of high quality property solutions is a key component in winning FDI projects," said IDA chief executive Barry O'Leary. "These initiatives will advance the product offering for both Midlands and the South-East and therefore underpin the conversion of projects from IDA's pipeline. Furthermore, these initiatives by IDA will address the current deficit of suitable property solutions and promote investment into regional locations. IDA's direct intervention to construct these buildings is due to the absence of private funding available to do so."
The move was warmly welcomed by Property Industry Ireland (PII), the Ibec sector that represents the Irish construction and property industry.
Speaking today, PII Director, Dr Peter Stafford said: "In order for Ireland to continue to attract FDI investment into Ireland, we need to make sure that we have modern buildings of the type, scale size, and location required by these new businesses. Since the property market collapsed a number of years ago, the supply of new commercial property has halted. As project financing is still limited, the supply of new accommodation remains subdued, lowering vacancy rates and increasing rents. Today's announcement that IDA is both funding and managing the construction of commercial properties is a sensible way to resolve shortages on a programmed and co-ordinated way."
"Property Industry Ireland remains concerned that the shortage of large-scale, high quality office accommodation, especially in Dublin, will soon become acute. Ireland has one of the most efficient construction industries in Europe - the cost of constructing office accommodation is cheaper in Ireland than in many other EU countries. However, to capitalise on these low costs, we need to re-examine the additional cost of planning and local government administration so that we can bring this vital physical infrastructure to completion as soon as possible."