St Patrick’s Street Expansion to Precede Mahon Point Development
- A new economic impact study estimates the proposed expansion of Mahon Point Shopping Center, dubbed 'Mahon Point 2.0',will generate a monetary impact of €3.1 billion over 25 years.
- Deka immobilien, the owner of Mahon Point in Cork, submitted plans to Cork City Council for a major expansion of the shopping centre in July 2024.
- Frank McCloughlan, reveals considerable financial benefits.
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Mahon Point 2.0: Economic Impact Study Projects €3.1 Billion Boost for Cork
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A new economic impact study estimates the proposed expansion of Mahon Point Shopping Center, dubbed ‘Mahon Point 2.0’,will generate a monetary impact of €3.1 billion over 25 years. The plans, submitted to Cork City Council last month by Deka Immobilien, outline a significant expansion of the existing retail space.
project Overview: mahon Point 2.0
Deka immobilien, the owner of Mahon Point in Cork, submitted plans to Cork City Council for a major expansion of the shopping centre in July 2024. the request details the addition of over 10,000 square meters of retail space, alongside office and leisure facilities, creating a mixed-use growth. A decision on the planning application is expected in early September.
Economic Impact: A Detailed Breakdown
The economic impact study, conducted by Dr. Frank McCloughlan, reveals considerable financial benefits. Key figures include a total value output of €1.44 billion, total wages of €1.48 billion, total gross value added (GVA) of €717.46 million, and payments to the exchequer of €128.4 million. The study highlights that the €3.1 billion impact significantly outweighs the project’s €268 million capital cost.
| Economic Indicator | value (€ billions) |
|---|---|
| Total Value Output | 1.44 |
| Total Wages | 1.48 |
| Total Gross Value Added (GVA) | 0.71746 |
| Payments to Exchequer | 0.1284 |
| Total Monetary Impact (25 years) | 3.1 |
| Capital Cost | 0.268 |
Job Creation and Retail interest
The development is projected to create 939 jobs during the construction phase, encompassing direct, indirect, and induced employment. once operational, the scheme is estimated to generate 4,374 jobs through the same channels. Moreover, the report indicates strong market interest, with “a number of large retailers” expressing interest in locating to the facility, and existing occupiers seeking to expand their presence.
Unique Development Possibility for Cork
Dr. McCloughlan emphasized the unique nature of this project, stating that a mixed-use scheme of this scale “could not occur in Cork City due to lack of suitable large-scale development space currently.” This suggests Mahon Point 2.0 could fill a critical gap in Cork’s development landscape.