Dublin City Council will need a loan of over €132 million to pay for its first "direct build" cost-rental project.

578 apartments, which are expected to cost up to €450,000 each, are planned at the former St Michael's estate flat complex in Inchicore.

A quarter of the units will be social housing and paid for by the state.

Only fund so much

The council's Sandra McAleer said the Government will only fund so much of the cost-rental bill.

“So under cost rental, we qualify for €150,000 a unit, which equates to over €66 million,” she said.

“The loan we required... based on pre-tender estimates, is just over €132 million [and] that sum could increase a tender stage but this is our best estimate.”

2028 Completion

Councillors will be asked next month to approve the borrowing programme, so that construction can start on the development of these 578 cost-rental and social housing apartments.

If councillors approve the loan plan, the council will immediately seek final bids from construction companies to build the new estate.

This would put the scheme on track for a 2028 completion – marking a full decade after the regeneration project was announced.

St Michael's Estate in Inchicore, Dublin. Image: Alamy