The development will add around 13,000sq m/140,000sq ft additional “demand-led” retail space, on top of the existing 350,000sq ft gross footprint at Mahon Point, plus existing 45,000sq ft Omniplex. It will include almost 70,000sq ft of offices with 40 parking spaces at Mahon Point (adding to c 500,000sq ft of offices nearby at City Gate and City Gate Plaza, National Software Centre, etc) and 250 apartments (with 84 parking spaces), with a tenure type yet to be decided. 

The centre is separate to Mahon Park Retail Park, which trades nearby. The development is expected to support over 1,500 permanent jobs, alongside approximately 365 jobs during construction.

Welcoming the grant of planning permission, Justin Young, centre director at Mahon Point it was an “exciting next step”.

“Since first opening its doors in 2005, Mahon Point has firmly established itself as a leading shopping destination for both locals and visitors from across Cork and the wider Munster region. 

"Beyond retail, it has evolved into a vibrant community hub, a place where people come not just to shop, but to meet, connect and spend time together," he said.

“The planning approval for Mahon Point 2.0 represents a natural and exciting next step in that journey. This development will build on the centre’s strong foundations, enhancing its offering and ensuring it continues to meet the changing needs of customers and the community. 

"With this evolution, Mahon Point is well positioned to look forward to a bright and sustainable future.” 

Director at Savills Ireland, Peter O’Meara, who has been involved in tenanting the centre for 20 years, said it was a “hugely positive and demand-led development for Cork, responding directly to the city’s projected population growth of 50–60% by 2040”.

“Mahon Point 2.0 will deliver much-needed homes alongside vital social infrastructure, creating a balanced and sustainable community. 

"It also represents a significant opportunity to enhance Cork’s economic output by attracting leading Irish and international brands, while strengthening the city’s appeal as a destination for visitors and tourists. By prioritising public transport and the 15-minute city model, the development is designed to support how people want to live and move in a growing city, while minimising traffic impact.”

The city council received an application from Deka Immobilien in July last year for the €200m mixed-use investment in Mahon Point and subsequently sought assurance on concerns such as traffic impacts in the area.

Currently, Mahon is relatively car dependent with 2,000 parking spaces, the reordering of which will see retail units built on current surface level parking as well as a multi-storey replacement that will add just 125 more parking spaces than are currently provided.

Several of the conditions attached to the provisional grant relate to ensuring the safe operation of the road network – Transport Infrastructure Ireland previously warned that it could add to a “deteriorating traffic situation” in the area. 

One condition states: “Prior to commencement of development the design of the internal road network, which is required by the National Transport Authority’s BusConnects programme of works, shall be finalised in consultation with the National Transport Authority and agreed in writing with the planning authority”.

Another condition states that “Following the opening of the proposed new multi - storey car park, a revised Car Park Management Plan shall be prepared, based on data obtained as part of the monitoring programme, within 12 months.” 

There are restrictions too on what goods that can be sold within a proposed retail warehouse – they must be limited to “bulky goods” having regard to "potential impact of the development on the vitality and viability of the city centre”.

Other conditions relate to required landscaping, green roofs on retail units, drainage, disposal of building waste and noise control.

Deka acquired the 60-unit shopping centre with cinema and restaurants from Irish developer Owen O’Callaghan back in 2005 and now have €1.5bn in Irish assets. 

When Mahon 2.0 is fully developed, it will have a value close to €500m in its own right, according to Peter O’Meara, director of Savills Cork, who has been involved in tenanting the centre for its first 20 years.

He has previously described it as “the country’s premier centre outside of the M50”.