DFS fits Mahon bill

A €1M fit-out wraps up this weekend as the covers come off Munster’s largest retail letting — UK giant DFS opens its second Irish store, in the office and retail City Gate Park, Mahon, Cork, this Saturday.

Just in time for last-minute pre-Christmas sofa shopping, and likely to be swamped in their January sales, the company has taken 18,500 sq ft at the €70m recession-defying development, built and part-occupied after an 18-month build period. It’s providing 40 retail jobs, in a high-profile unit at one of Cork city’s busiest traffic junctions.

Savills director and letting agent Peter O’Meara says the DFS deal — second to their Blanchardstown opening last year — could well be the largest retail opening anywhere in Ireland this year and key to the deal was the building quality and location. Developer John Cleary says “it’s a significant further vote of confidence in Cork”, noting the fully-built scheme is capable of hosting 3,000 jobs, and is already over 40% allocated.

That DFS confidence vote follows his sale of City Gate Park’s ’Block C’ to Dell/Quest, who took up occupation in October, while the new Cork Mater Hospital opens on Jan 2 in John Cleary Developments’ adjacent (phase 1) City Gate, in building 3000, where other occupiers include McAfee, Big Fish Games, VHI, and Hiqa.

And, discussions with other significant targeted IT firms are ongoing for major floor areas, Mr Cleary confirmed, although identities are currently confidential.

City Gate Park has 265,000 sq ft of newly-developed space, both office and retail, and office floor-plates are a sizeable 55,000 sq ft (gross) on upper floors. Designed by Coughlan de Keyser architects, and built by BAM in record time over two basement levels of bike and car-parking, the development consolidates Mahon’s emergence as a vibrant new city district, says John Cleary. Its strategic setting is obvious: off the south city ring road by the tunnel, with the airport a seven minute drive, it faces over to the 330,000 sq ft Mahon Point, which has a shopping footfall of 1m year. Across the road is Mahon Point Retail Park, with B&Q and Home Store among other occupiers.

Mahon Point’s developer Owen O’Callaghan is expected to go for development of a prominent five-acre site facing City Gate Park next year, for office/retail use, once the City Council finalises an LAP early in 2013.

DFS have signed a 15-year lease, with no break clause, on rent likely to be around €18 psf, and with a €1m investment in fitting out the unit. ”It shows how committed and confident they are,” says Savills’ Peter O’Meara. He’s seeking to lease a remaining 5,500 sq ft corner space by the outdoor plaza/indoor street and with direct line of sight to Mahon Point, for retail and/or cafe use. He says it’s suitable for a range of occupants, including convenience store.

Also under negotiation for City Gate Park is a gym operator, with a 20-metre swimming pool provided for. The mix of fitness-class leisure/gym, as well shopping (60 units in Mahon Point) will all help to draw mobile international investment and office occupiers, predicts Mr Cleary.

Having spent €500,000 making for an enclosed central street linking the blocks and across the plaza from Dell, he said “there’s a critical mass of space, services and amenities here that companies like — it’s Cork’s version of Dublin’s Barrow Street”.

Details: Savills, 021-4271371; www.citygatepark.com