Cork Airport Road commercial sites on market for combined €4m pricetag

Two high-profile commercial development sites on Cork city’s Airport Rd with planning consent for a hotel and a neighbourhood centre have come to market with a combined guide price of €4.05m.

Both properties are being sold by a consortium led by developer Denis McBarron who is progressing the residential element of a wider mixed-use scheme approved by planners in 2023.

While the entire site measures 7.23 acres, the two lots now up for grabs include:

A 1.5a site with full planning permission for a 158-bedroom hotel, with offers sought in excess of €1.5m;

A 13,100sq ft (1,217sq m) neighbourhood centre, which will be delivered to grey shell standard, guiding at €2.55m.

Savills director Peter O’Meara said the hotel site is generating interest among a range of asset classes.

“While the site has permission for a hotel, we think it would suit a variety of uses and we are seeing interest from healthcare operators, car dealership operators, and hotel operators,” 

Mr O’Meara said.

Its proximity to Cork airport, combined with strong demand for hotel beds in the city, should make it attractive to hotel operators. Mr O’Meara said it is also suitable for a trade warehouse.

Interest in the three-storey neighbourhood centre with planning permission for a restaurant, shop, gym, dentist, physio, and hairdressers, is coming primarily from owner occupiers. Mr McBarron will complete the centre to grey shell standard leaving the buyer to proceed with the permitted scheme or seek a change of use.

Both commercial sites are part of a larger 7.23-acre landbank purchased by the McBarron-led consortium in 2018 for an undisclosed sum, after it guided at €3m.

Mr McBarron was granted permission for a mixed-use development in 2023, including the 158-bed hotel, neighbourhood centre, and 121 residential units.

Site clearance began late last year, with construction of the residential element due to proceed across 20 blocks, mostly three-storey apartments/duplex units, spread over 4.5 acres.

The scheme is being delivered in partnership with approved housing body Clúid, with homes to be provided under a cost-rental model.

The landbank was once part of an 11.5-acre charitable bequest by gentleman farmer Sidney Northridge to St Luke’s Home in Mahon.

In 2006, the 11.5 acres were put up for auction and achieved a whopping €27.5m — or €2.4m per acre. The sale included 7.23 acres on one side of Kinsale Rd/Airport Hill and 4.4 acres across the road. Neither site was developed due to the financial crash. Mr McBarron later acquired the 7.23-acre site.