City's economy `facing unprecedented growth'

Superquinn is to be the anchor tenant in a shopping centre being built in Castletroy, Limerick, on the Dublin road.

Superquinn is to be the anchor tenant in a shopping centre being built in Castletroy, Limerick, on the Dublin road.

Auctioneer Pat Chesser says final negotiations are being held with Feargal Quinn to be the main occupant of the 100,000 sq ft centre at the Kilmurry Roundabout. "Superquinn is a huge advantage to any centre because they have a special draw," he says.

Meanwhile, on the Ennis Road, Babette Ltd has permission to build a 120,000 sq ft centre at Caherdavin, close to Pairc na nGael, with Tesco as the anchor tenant.

Alongside, an application has been made by Shanvale to build a scaled-down 50,000 sq ft retail centre, with shop units, a garage forecourt and a cinema. An application for a larger centre was turned down by An Bord Pleanala. In the same area, Dunnes Stores has planning permission to extend its 19,000 sq ft food and drapery store by 70,000 sq ft.

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Further out the road and beyond the city boundaries, at Coonagh Cross, developers Mulcair Well Drilling have applied to the county council to build a 225,000 sq ft shopping centre, after the area was zoned for retail purposes. This is despite a report to the council from consultants Brady Shipman which recommended that Coonagh Cross should not be so zoned. The council is due to make a decision by the end of this month.

The Crescent Shopping Centre, on the approach to the Cork road in the south-east of the city, is set to become Limerick's largest shopping centre. Clan Court Group is adding an extra 80,000 sq ft of development to the 150,000 sq ft centre.

"There is a need for one, if not two, retail parks in Limerick city, providing the white goods, DIY and gardening centres," says Mr Chesser.

Closer to the city centre, on the dock road, the Riverside Commercial Park development is the midwest's first retail warehousing park, says Mr Chesser. Units from 3,000 sq ft have been let to the likes of Compustore for between £10 and £12 per sq ft. To the rear of the 50,000 sq ft facility will be 100,000 sq ft of warehousing. In the city centre, development of the 1.25-acre Spaights site on Henry Street is proceeding. It will include a 600-space multi-storey car-park, about 50 apartments and 50,000 sq ft of retail and commercial space.

Construction of the £18 million 16-storey Millennium Hotel on Steamboat Quay, a four-star hotel likely to be managed by the Holiday Inn group, has begun. The latest addition to that quay will be the occupant of the 6,000 sq ft Pavilion Bar & Restaurant. The tenant is believed to be a local nightclub owner.

Within walking distance, a 1.25-acre site at Howley's Quay is being developed as a leisure centre and swimming-pool with 15,000 sq ft of office space, a 350-space car-park and 13 apartments also being built.

Also in the city centre, an application has been made by O'Reilly and Associates to convert the former Cahill May Roberts building at Bank Place into 60,000 sq ft of offices. Prime letting in Limerick is between Arthur's Quay and Thomas Street, including the pedestrianised Cruises Street area. Retailers are not prepared to pay "six-figure sums" for prime retail locations, says Mr Chesser. "Rents have moved progressively in the past five years, from £55 to £75 for zone A."

Office development is taking place at the Ashbourne Business Park, on the Dock Road, by Alberside Properties with 100,000 sq ft of office development. "There are additional plans available for us but in the short term, planning permission is not likely," he says.

At the Raheen Business Park, an 86,500 sq ft office project, Houston Hall, is being developed. Fitted, the rent is about £12.50 per sq ft, £10.25 for shell and core, says Mr John Buckley, of Sherry Fitzgerald.

Shannon Development is proceeding with the second phase of the Raheen business park development. It has also developed the old Ferenka site at Annacotty and is involved with Limerick Enterprise Development Partnership in converting a 160,000 sq ft factory on Roxborough Road into a business park.

At the Ballysimon Road Business Park, a 10,000 sq ft unit has been leased to the National Car Testing Centre, says auctioneer JC Gubbins, the joint letting agent with HOK. The park will have 135,000 sq ft of warehousing. "We are quoting £70 to £75 a square foot for sales, and £6.50 to £7 for lettings. It is the first major, private industrial warehousing in the city," he says.

Mr Buckley adds that the attraction of high-tech companies and the decentralisation of the Civil Service will fuel the demand for office space: "Limerick is facing unprecedented economic growth at the moment. With companies coming in to service Dell, and even with Dell themselves there is demand for office accommodation."

Across the city, at the Plassey Technological Park, off the Dublin Road, a 60,000 sq ft block of office space, Hamilton House, is expected to be fully leased by the end of the month. Mr P J Power, of Power and Associates, says a second 45,000 sq ft block will be built later this summer.