€200m expansion planned for ‘Mahon 2.0’ as premier Munster shopping centre proposes mixed uses and more shops for next 20 years 

The proposed “Mahon 2.0” development includes a significant investment in 251 apartments, an office block accommodating up to 580 workers, a new civic plaza/market square for events like the weekly farmers’ market, a multi-storey car park, a discount retailer, and eight to ten additional “bigger box” shops. This includes a large unit suitable for a major retailer like Decathlon, which has been exploring locations in Cork.

Planning permission is being sought this week by Mahon Point’s owner, Deka Immobilien, via Henry J Lyons’ architects in Dublin and Cork, for a phased development designed to shift towards more mixed uses and secure the centre’s position for the next two decades.

If approved, the project will add approximately 13,000sq m/140,000sq ft of additional retail space, driven by demand, to the existing 350,000sq ft gross footprint at Mahon Point, plus the existing 45,000sq ft Omniplex. This is separate from Mahon Park Retail Park, which operates nearby.

Deka acquired the 60-unit shopping centre, cinema, and restaurants from Irish developer Owen O’Callaghan in 2005 and now holds €1.5bn in Irish assets. Peter O’Meara, director of Savills Cork, who has been involved in tenanting the centre from the beginning, estimates that when fully developed, Mahon 2.0 will have a value close to €500m.

He stated, “It’s the country’s premier centre outside of the M50, and it will continue to be.” He added that the center is 99% let since Frasers/Sports Direct occupied the large former Debenhams two-storey space, and that if planning is approved, all the newly proposed units “will be fully let from the start.”

“Cork is emerging as an international center of scale, with a projected population growth of 50-60% by 2040.”

“With strong demand across the residential and retail sectors, this development answers the call for high-quality, integrated spaces that serve both current and future generations,” he said, noting that the proposed mixed-use expansion aligns with the National Planning Framework 2040 and the Cork City Development Plan 2022-2028.

The ambitious cross-city Cork Luas line, if delivered as planned, is also slated to have its eastern terminus at the edge of Mahon Point.

Currently, Mahon relies heavily on car access with 2,000 parking spaces. The reorganization will build retail units on existing surface parking, with a replacement multi-storey car park adding only 125 parking spaces over the current provision.

Bus Connects has already increased bus movements to 100 daily in Mahon, with a 24/7 service planned. Currently, about 20% of Mahon Point’s footfall comes from local/public transport, and further integrated transport upgrades are anticipated, including light rail, bus, cycle supports, and a hub with an underpass.

Prior to this week’s expansion announcement, pre-planning meetings were held with City Hall, along with briefings with the Cork Business Association and Chamber of Commerce, and senior politicians.

The first public information event on the proposed Mahon 2.0 development will take place on July 8 in the center’s community room.

The planned Mahon 2.0 development is notable for its mixed-use aspect, including almost 70,000sq ft of office space with 40 parking spaces at Mahon Point (in addition to the approximately 500,000sq ft of office space nearby at City Gate and City Gate Plaza, National Software Centre, etc.) and 250 apartments (with 84 parking spaces), the tenure of which is yet to be determined.

Mahon Point centre director Justin Young said: “For the last 20 years, Mahon Point Shopping Centre has been the heart and meeting place for Mahon’s community and the wider region. We are excited to present Mahon Point 2.0, a demand-led expansion that enhances Mahon for everyone and looks forward to the next 20 years.”

“By placing homes, sustainable transport, and civic amenities at the core of this vision, we hope to create a new chapter in Cork’s growth that reflects community values as much as economic ambition.”

Deka Immobilien asset manager Hendrik Höppner said: “We remain deeply committed to Cork and Ireland for the long term. This project reflects our belief in Mahon’s potential as a leading urban centre, combining quality of life, economic opportunity, and sustainable planning.”

Deka has sold just one Irish investment in the past 20 years, after starting with Mahon Point in 2005. That was the Tommy Hilfiger store on Dublin’s Grafton Street in 2015, according to Savills’ director Peter O’Meara.

• DETAILS: mahonpointexpansion.ie