BIG READ: Work has recommenced but challenges remain for Tipperary housing development

Almost twelve months ago I wrote about developer Pramukh Gogineni and his plans for a major housing and nursing home development on Dundrum Road, Tipperary Town.

In that article in December 2022, Mr Gogineni was very critical of Irish Water for an eleven-month delay in trying to get an offer letter/connection agreement for his development.

That offer letter eventually came and in August a payment of €76,000 was made to Irish Water to enable the commencement of water and sewer lines.

In recent weeks work has recommenced on the development, and on Friday last I met up with Pramukh to see how things were going.

I started by asking him if everything was sorted with Irish Water.

"We just about got started in building the first 14 houses, so we have made progress but challenges do remain. The interest rates are going up.

"I had to borrow money at a very high interest rate of 13% and I am struggling to build the houses with all the hold ups with Irish Water.

"I made a payment to Irish Water of €76,000 in August so that I could get started with my water and sewer lines, but I haven't got the go ahead yet.

"That money is sitting with Irish Water and it is not benefiting me or helping to get the houses built, so that's one challenge as we speak.

"The €76,000 that I paid to Irish Water has cost me €4,000 in interest so far.

"I have spoken to the Minister for Housing, Darragh O'Brien and also to the Minister for Finance, Michael McGrath, but no help was forthcoming. €76,000 was paid in August and yet I can't get the go ahead from Irish Water" said Gogineni.

I then asked the Cork-based developer as to general progress on other issues.

"The County Council has been very supportive.

"We ironed out all the issues that we had and we are finally building houses. Now I have some ground to cover with ground works, site infrastructure, roads, water and sewer lines. There is some progress from where we were 6 months ago.

"We are making progress but I wish it was faster as time is money. If I lose another 6 months waiting for Irish Water that will be further interest costs for the 6 months and that will 'break my back' again. We want to keep building houses. We want to deliver all these A rated homes for all the first time buyers and the young families from the area" he said.

Pramukh then explained about his plans for having a showhouse ready to show to the market.

"The first showhouse we expect to be ready for St Patrick's Day. That's the target. We have the roofs going on this week and once the roof goes on we quickly start to finish the inside of the houses. We are back on track but I still have to sell a few houses at the start to be able to build more houses.

"I can build 94 houses subject to getting a sufficient response from the market here. If I sell the first 14 houses I will build another 16 and if I sell those I will build more.

"That is how I look at developing this scheme. I can't build all the houses at the one time. I can only build so many houses in a year because of all the challenges; cost of material and labour, cost of borrowing money, and the paperwork that is involved in delivering a new house".

Finally I asked Mr Gogineni about his plans for a nursing home development on the site.

"The plans for a nursing home have not taken off so far. All the big nursing home operators were waiting for an improved Fair Deal rate in the budget but that did not happen, so I don't see any nursing home operator taking up new developments in the foreseeable future.

"The cost of the money has gone up so the overall viability for a new nursing home has a question mark over it at the moment.

"I was in touch with a number of operators who initially showed a lot of excitement, but they were waiting for an improved Fair Deal rate which unfortunately did not happen.

"As things stand nursing home operators are not excited about creating new hospital capacity. However I have not given up on this proposal and if this does happen it will be a great boon for the town.

"It is right between Clonmel and Limerick hospitals so it would be an ideal location. If it gets developed it would give employment to 80 people so I am waiting for an operator that can take this nursing home on board and if so we will build it," concluded Pramukh.