Origin Enterprises strikes disposal deal for land at Cork's South Docklands

Origin Enterprises has reached a conditional agreement for the disposal of up to 31 acres of land owned by the group at Cork’s South Docklands in Ireland to O'Callaghan Properties, it announced on Tuesday, for a cash consideration of up to €47.5m.

The AIM-traded firm said the Cork Docklands area had been designated by local authorities for future urban development.

It said the transaction was subject to the satisfaction of a number of conditions necessary to realise the full disposal proceeds, including the granting of various permissions and approvals and the relocation of the group's existing operating business in Docklands at an “economically viable cost” to an alternative location in Cork.

O'Callaghan Properties was described by Origin as a “well-established” Cork-based property developer, with a 50-year track record of residential, commercial and retail property completions in Ireland and the United Kingdom.

The estimated gain on disposal was approximately €3.5m, assuming the full disposal proceeds are realised.

“We look forward to actively working with O'Callaghan Properties and the wider stakeholders to unlock the potential of this highly strategic asset to support the sustainable and progressive development of Cork City in line with the Government's National Development Plan 2040,” said Origin Enterprises chief executive officer Tom O'Mahony.