A price guide of €1.2 million an acre is indicated in the proposed sale of 3.31 acres of Cork docklands, being sold by the Doyle Group for €4 million.
New to market and being sold as part of the group’s repositioning of its property holdings, the asset offered via Cushman & Wakefield currently comprises a warehouse property of 76,000 sq ft, in two sections and in current warehouse usage, near Monahan Road and Centre Park Road.
It’s an area already undergoing redevelopment, with the delivery of the new Páirc Uí Chaoimh GAA stadium just a few hundred metres to the west (due summer 2017), and near where Cork City Council plan a new regional park to serve future docklands and suburban regeneration by the former Showgrounds and the Marina.
The local authority has planned other Monahan Road upgrades, plus a new bus link to the eastern docks from the city centre.
The site’s location is 1.5kms from the city centre, and it’s expected to attract interest for commercial as well as residential development in the medium to long-term, as per the 2015-2021 City Development Plan.
Agents Peter O’Flynn and Eoin Ryan of Cushman & Wakefield predict “this asset is likely to attract strong interest from occupiers and from local, national and international developers, due to its high value in its existing use and, also the medium-to long-term strategic development potential of the property at the Ballintemple end of the south docklands.
They point to its profile setting, directly opposite the proposed new regional Marina Park being developed by Cork City Council, by the new GAA stadium and the former Atlantic Quarter site, previously the Ford Distribution Centre, earmarked in the mid 2000s by Howard Holdings for three apartment towers, or 10, 20 and 30 storeys, to a design by Norman Foster and Partners.
The location’s probably best known, far and wide, for hosting the Live at the Marquee events.
Interest has rekindled, post-crash, in development at Cork’s north and south docks, with an immediate demand for residential development in particular, given FDI growth and letting demand.
Recent site sales at Cleve Hill, near this Doyle Group site, off the Blackrock Road, and at Temple Hill (Eir site), Ballintemple are indicative of demand, and both of those residential sites were bought by developers outside of Cork.
The Doyle Group property has 210 metres frontage to Centre Park Road and the link road connecting it to Monahan Road, and has two older-style buildings of portal frame construction which could be let for immediate income, or for owner-occupation with a view to future value uplifts. It has vacant possession.
Zoning is for mixed uses, including offices and residential, subject to planning and the South Docks LAP proposes building of up to six storeys, with an additional storey set back.
Peter O’Flynn, MD Cushman & Wakefield, Cork, says there’s strong demand for both warehousing and well located sites in the city, so “we expect significant interest in the property from a wide range of purchaser types.
“Also this end of the docklands can commence in advance of the redevelopment of Centre Park Road and the move by Port of Cork downriver”, he adds.
According to Eoin Ryan of C&W, the 3.31 acres “has strong development potential, good immediate income generating capacity and solid underlying value in its existing use.”
The agency is also marketing the landmark, Port of Cork site with a €7m price tag (understood to be in an exclusive negotiations period with US-based, Irish-origin interests,) reports “ a wide range of developers looking at such assets, from local developers, to national and also international interest who have traditionally restricted themselves to the Dublin market, but who are now looking at Cork and other regional locations, if they see quality.”
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