U2 tower in Dublin shelved because of credit crunch
The Dublin Docklands Development Authority has shelved plans to develop the U2 tower because of difficulties raising development finance.
It said that following discussions with development consortium Geranger, led by developer Ballymore, Irish investor Patrick McKillen and members of rock band U2, ‘we have now decided to suspend negotiations regarding the development for up to twelve months to allow for an improvement in the current uncertainty surrounding the property and financial markets’.
Geranger was selected as the provisional preferred bidder to design, construct and finance the U2 Tower and Britain Quay Building in October last year with a Fosters & Partners-designed scheme.
The Dublin Docklands Development Authority said it ‘continues to have full confidence in this landmark project for an inspirational U2 Tower building, which is an important element in the master plan for the area’.
‘The objective is to see this landmark project completed. However, given the current unfavourable economic environment, more time is needed at this juncture. The Docklands Authority will review all of its options on an on-going basis,’ it said.
‘The Authority is confident that these economic uncertainties are short to medium term and that the Docklands will continue to be a vibrant and positive regeneration project for the city of Dublin.’
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Readers' comments (1)
Declan Kerr | 5 November 2008 9:48 am
The DDDA and Geranger are obviously keen to get the project under way. The way they mention the uncertainty of the economy and financial markets seems to be a cautious approach which is in my view is prudent. Forecasts from leading analysts say the downturn in the economy will more than likely return by the end of 2009. The development programme will as I see be at least 18months, at a guess. If they postpone the development then they are going to have increased abortive costs and inflated build costs once they do decide to get the building out of the ground. I feel they should get the development under way.
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