Cork’s Mahon Point Expansion Promises €3.1bn Economic Boost

Plans for an expansive mixed-use development at Mahon Point Shopping Centre in Cork have been submitted, promising a significant economic impact of approximately €3.1 billion over the next 25 years. The proposal, known as ‘Mahon Point 2.0’, was filed with Cork City Council by its owners, Deka Immobilien, last month. This expansion aims to add more than 10,000 square meters of commercial space, addressing what the developers describe as “strong demand.”

In light of recent feedback from the city council regarding housing needs, the development plan also incorporates 251 new apartments. The Cork Business Association (CBA) has expressed conditional support for the project, urging the council to impose a requirement that no further retail space be approved until St Patrick’s Street and the shopping areas within Cork’s city center achieve at least 90% occupancy. This condition aims to ensure that Mahon Point enhances rather than competes with the city centre.

The CBA has also requested that any planning contributions from the Mahon Point expansion be exclusively allocated for improvements to St Patrick’s Street, emphasizing that “the long-term viability of Cork depends on a thriving St Patrick’s Street.” They assert that the new retail complex presents a unique opportunity to reinvest in this vital urban asset.

According to the economic impact study conducted by PMCA Economic Consulting, the total capital cost of the Mahon Point 2.0 project is estimated at €268 million. Dr. Pat McCloughan, the report’s author, anticipates that construction will commence in the second half of 2026 and conclude by mid-2029.

The projected economic benefits are substantial, with the study estimating a total output value of €1.44 billion, wages amounting to €1.48 billion, and a gross value added (GVA) of €717.46 million. Payments to the exchequer are expected to reach €128.4 million. Dr. McCloughan noted that “a number of large retailers have expressed interest in locating to the facility, while some existing occupiers are looking for more space.”

During the construction phase, the project is expected to create 939 jobs through direct, indirect, and induced impacts. Once operational, it is estimated that 4,374 jobs will be generated under similar categories. Dr. McCloughan emphasized that such a mixed-use scheme “could not occur in Cork City due to lack of suitable large-scale development space currently.” He concluded that the projected €3.1 billion economic impact significantly outweighs the project’s capital costs, highlighting the overall value of the proposed development.

A decision on the planning application is expected in early September 2023. The public remains engaged and curious about the implications this expansion may have for both Mahon Point and the broader Cork community.