Cork’s commercial property scene is heating up, with French investors once again flexing their financial muscle in the city. Mata Capital IM, acting for private investment vehicle Osmo Energie, has splashed out €4.9 million to acquire Nos 26/27 South Mall—an office block that’s now the second-biggest deal in Cork’s property market for the latter half of 2024. It’s the fund’s first foray beyond French borders, and it signals a growing Gallic appetite for Leeside’s real estate gems.
The South Mall purchase isn’t an isolated move. French investment has been pouring into Cork like a fine Bordeaux in recent years. Earlier in 2024, Corum Asset Management shelled out €50 million for Mahon Point Retail Park, adding to its trophy cabinet after snapping up Block A of Navigation Square on Albert Quay for an estimated €60 million in 2021. This latest deal underscores a trend flagged by property experts Lisney in their H2 2024 Cork market update: international capital—especially from France—is circling the city, hungry for high-yield opportunities regardless of sector.
Nos 26/27 South Mall, a freshly renovated gem, was sold off-market in Q4 2024, fetching nearly double the €2.2 million it commanded in 2018/19 when Dublin and UK investors last traded it. The upgrade paid off handsomely—today, it rakes in €385,078 annually across four tenancies. Anchor tenant JW O’Donovan Solicitors, who relocated from No 53 South Mall, occupies the ground and first floors, joined by Crowley McCarthy Accountants and OCMA Architects. With its modern interiors and prime city centre perch, the block offers a steady income stream—a magnet for yield-focused buyers like Osmo Energie.
But the South Mall deal was pipped to the post as H2’s biggest transaction by the €48 million sale of Blackpool Shopping Centre to Pan-European fund Patron Capital and Ireland’s Lugus Capital. Together, these blockbuster deals accounted for just 3% of Ireland’s €1.78 billion investment turnover in H2 2024, per Lisney’s report. Yet their significance looms large for Cork, where off-market activity hints at a robust pipeline beneath the surface. “Supply is likely to improve in 2025,” Lisney predicts, with prime office and retail yields holding steady at 7.25%.
A Shifting Landscape
Cork’s office market tells a tale of two speeds. While total take-up dropped to 25,000 square metres across 52 deals in 2024—down from 29,300 in 2023—demand for city centre spaces is stirring. Enquiries picked up in Q2, nudging prime headline rents to €350 per square metre (€32.50 per square foot) in H2, a €25 jump from earlier in the year. South Mall rents, however, stayed put at €225 psm (€21 psf), with nearly half of vacant office stock clustered in the city centre (48%). Sustainability is also flexing its muscles—tenants are eyeing ESG credentials, pushing landlords of older buildings to rethink energy efficiency or risk being left behind.
The construction outlook is less rosy. With 15 office schemes greenlit but unstarted by year-end, Lisney reckons 2025 won’t see shovels in the ground unless pre-lets are locked in. “Developers are pivoting to residential,” the report notes, a shift that could tighten office supply further.
Beyond Offices: Industrial and Retail Buzz
Cork’s industrial sector is straining at the seams. Low vacancy rates and scant supply are driving rents skyward—prime high bay rates hit a record €1,145 psm (€13.50 psf) in H2, up from €123 psm (€11.40 psf) six months prior. Big wins included Swedish firm Munters leasing two new units in Little Island’s Anchor Business Park. Demand is hottest near main road networks on the south and west sides, but with construction costs soaring, new builds hinge on rental hikes to pencil out.
Retail, meanwhile, is holding its own. Prime high streets and shopping centres boast solid occupancy, with retail parks like Mahon Point drawing hefty investor interest. Patrick Street’s vacancy rate dipped to 17% by December 2024 (from 20% in 2023), while Oliver Plunkett Street hit 9% (down from 10%). The numbers suggest a slow but steady recovery—and a lure for overseas funds.
Why Cork, Why Now?
French investors aren’t just throwing darts at a map. Cork’s appeal lies in its blend of stable yields, strategic location, and untapped potential. Mata Capital’s South Mall grab and Corum’s earlier hauls reflect a laser focus on guaranteed income and long-term value—traits Lisney expects to keep international eyes trained on the city. For local businesses, it’s a double-edged sword: rising property values signal confidence, but they could price out smaller players if the trend accelerates.
As 2025 looms, Lisney forecasts a busier Cork market, buoyed by off-market deals and foreign cash. The French connection, it seems, is just getting started. For South Mall’s newest landlords, the €5 million bet is a foothold in a city on the rise—proof that Cork’s commercial heartbeat is pulsing stronger than ever.
