Developers Paddy McKillen and Tony Leonard are joining forces with builders BAM on a €160 million apartment and commercial construction project.
HQ Developments, a joint venture between BAM and Mr Leonard's and Mr McKillen's Clarendon Group, plans to redevelop a six-acre site on Horgan's Quay in Cork. They intend to build three office blocks, 237 apartments, a hotel and shops on the site, which has a 160m waterfront and lies between the city's railway station and the River Lee.
HQ has agreed a deal with the site’s owner, the State public transport holding company, CIÉ, under which it will lease the property for 300 years.
In return, HQ developments will pay CIÉ either an annual rent or 10 per cent of the market rent the company collects from its tenants, whichever is the higher figure.
The company said on Thursday that the development will focus on restoring three buildings on the site, the station house, carriage shed and former goods shed.
The development will involve eight new buildings and construction will require a total of 450 workers at its peak. HQ will spend €160 million on the project.
HQ applied to Cork City Council for planning permission on Thursday and hopes to begin building next year.
Mr Leonard, Clarendon’s managing director, said that the scheme would transform unused industrial land as well as providing offices and homes in the city’s centre.
“As the provision of high-quality residential accommodation is a major factor in attracting new office tenants to the city, preference will be given to these tenants for the private rental accommodation in the development,” he added.
Mr Leonard and Mr McKillen own Clarendon, which is already involved with the Queen's Castle, Savoy, and Merchants' Quay and Wilton shopping centres in Cork.
BAM is part of publicly-listed Dutch construction giant, Royal BAM Group. Theo Cullinane, chief executive of its Irish division, said the investment would create much-needed offices, homes and jobs.
CIÉ group property manager, Niall Grogan, added that the deal with the developer would provide extra income to fund public transport. Conor Healy, chief executive of Cork Chamber, also welcomed the proposal.
