Government eyeing €57m student complex in Cork to house asylum seekers
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The Government is to consider purchasing a €57m student accommodation complex in Cork to house international protection applicants (IPA).
The has learned that the complex is being examined by the Department of Integration for use as a long-term reception centre for asylum seekers.
The privately-owned property in Cork City is currently accommodating third-level students but if the Government agrees to buy the site, it will be used to house up to 400 IPAs.
It is understood ministers were briefed on the matter as far back as October but there was concern about the fallout of removing student accommodation from the housing system.
However, the understands Department of Integration officials are to bring the proposal back to the table.
If the Government signs off on the deal, it would be included in the revised white paper which will outline the State’s long-term plan on housing asylum seekers.
The premises has been made available to the Government for an offer, a senior source said.
It comes as the Government is under significant pressure to find a long-term solution to house Ukrainians and asylum seekers after protests and the destruction of property continues across the country.
It is understood that senior Government figures previously warned that the purchase of the Cork property could not proceed until alternative accommodation was sourced for the students living in the complex.
A source said if a decision is made to purchase the property, students living there would be accommodated elsewhere.
Three senior sources said the property is to be brought to Government again as an option as Integration Minister Roderic O’Gorman seeks to build, lease, and acquire a number of reception centres across the country.
His revised plan is due before Cabinet within weeks.
The Cork property is a turnkey student accommodation complex over five blocks of apartments from three to five stories and can be adapted to meet the key requirements of a reception and integration centre, sources said.
The briefing document previously prepared for ministers states the property is currently accommodating students and if Government gives approval to progress with the purchase, it could be available for occupancy from May.
However, a senior source stressed that the Government had yet to decide whether to make an offer to purchase and discussions are at an early stage.
However, a professional valuation of the property has been carried out via the Housing Agency on behalf of the department, setting a market value of €57m excluding Vat.
A value-for-money exercise has been conducted “at a very high level” to compare the cost of private serviced accommodation with that of buying this property.
That comparison exercise is based on the medium current average daily rate of €78 a night and the high average daily rate of €111 a night in serviced accommodation and is used to calculate the cost of accommodating 390 IPAs over a five to 30-year period.
As comparison, the cost of purchasing the complex at the market value of €57m and a yearly current expenditure outlay of €5m each year for maintenance over the five to 30-year period is also included.
It shows after five years, the cost of the centre if purchased would be €82m — in comparison to €55.5m at the medium average cost and €79m at the high average cost.
However, after the 10-year period the centre will begin to deliver cost savings for the State, with this significantly increasing after 15 years and potential savings between €120m and €260m over the 30-year period.
A memo for Government about the property was on the Cabinet agenda for this week but withdrawn and is to be included in a broader strategy plan to go to Government soon with a number of options.
A source said building new centres will be a longer term approach to extending capacity while the purchasing of pre-existing buildings will provide much needed accommodation capacity in the shorter term.
A separate source said there is a protocol in place between the Department of Higher Education and the Department of Integration that a premises cannot be used unless it is vacant for 12 months.
However, the briefing note for ministers said a specific arrangement was in place regarding this particular Cork property to allow the Department of Integration to pursue purchasing it and assurances have been given that no current student will be left without accommodation.