Mahon centre hit by investor’s withdrawal

The future of the Regus City Gate business centre in Mahon, Cork, is in danger as one of the major investors in the project, Cork View One, has been voluntarily placed in liquidation.

Ronald van Bueren, the executive director of Iberpen, the investment company behind Cork View One, was in Cork yesterday to explain his decision to end their investment in Cork after nearly seven years. The company is entering voluntary liquidation and a meeting of Cork View One creditors will be held in the Imperial Hotel on Monday, March 25.

Mr van Bueren said they had come to the decision as the company was effectively subsidising the rent of its Regus tenants.

Office space provider Regus operates 1,400 business centres in more than 100 countries, but Mr van Bueren said it had not hit the targets they had presented to investors in their business plan. He said that despite Regus City Gate facility having almost full tenancy, investors were only receiving half of what they were paying in rent. Cork View One had rented the property, which was then managed by Regus.

“We are, essentially, subsidising the customers of Regus,” he said. They pay half of what I pay in rent for the business centre. It is unsustainable; €20,000 to €30,000 losses a year cannot continue.”

However, Regus and John Cleary Developments said they were committed to finding a solution. “We are aware of the issue with the local franchisee. We are in direct negotiations with Regus and it is business as usual,” said a spokesperson for JCD.

A Regus spokesperson said they were disappointed at Cork View One’s decision. “We are currently working with all parties concerned to ensure that our operations in Cork remain unaffected. Regus is fully committed to Cork, and our customers in the city. We hope to have a solution to this situation in the coming days.”