The Paddy McKillen-backed Clarendon Properties and builder BAM Ireland have secured the development rights for a waterfront site in Cork city owned by State transport company, CIÉ.
The pair have signed a deal with CIÉ to redevelop its site at Horgan’s Quay, close to Kent railway station, in the city centre. Clarendon and BAM emerged as the successful bidders at the end of a tender run by the State company.
Cork City Development plan has earmarked the 6.1 acre site for a combination of offices, housing and leisure.
300-year lease
Under the contract’s terms, the developers will get a 300-year lease from CIÉ in return for an annual rent or 10 per cent of the market rent from the site, whichever is the highest.
BAM is already involved in a number of projects in Cork. It is redeveloping the old Capitol Cinema on Grand Parade and recently finished the One Albert Quay office block for real-estate investment trust Green Reit.
Clarendon, owned by Mr McKillen and its managing director, Tony Leonard, also has interests in Cork, including the Queen's Castle and Savoy in the city centre and Wilton Shopping Centre on its south side.
BAM Ireland is a subsidiary of Dutch construction and engineering giant Royal Dutch BAM. Its chief executive, Theo Cullinane, said the company was looking forward to working with Clarendon.
CIÉ property manager Niall Grogan said the developers had the experience and financial strength that the transport company's tender required.
“The development will be good for CIÉ in generating an ongoing income stream to help fund our public transport services,” he added.
