Major dockland plan for Cork likely to cost €2.5bn

The joint Howard Holdings/ Tedcastles development planned for Cork's docklands is set to cost €2.5 billion.

Developer Howard Holdings is also in the process of setting up investment funds to expand its interest in Europe. It is understood that one backer will be Kingspan director and Howard board member Brendan Murtagh.

Howard Holdings and fuel group Tedcastles are due to seek planning permission next month for a major development on 30 acres in Cork's docklands.

The plan for a mixed commercial and residential development is likely to have a capital cost of €2.5 billion.

The local authority, Cork Corporation, has earmarked the docklands for redevelopment under a strategic plan for the city designed to expand its centre to the east. The area includes 400 acres and two kilometres (1.2 miles) of waterfront. The local authority will provide the infrastructure, including two bridges.

The area will house 20,000 new residents and the project will create 25,000 jobs.

Howard Holdings and Tedcastles are among a group of landowners in the area, which includes food group IAWS and developer Gerry Wycherley.

Howard Holdings is in talks to establish investment funds to support the expansion of its property portfolios in Spain, Italy and Poland. The company is also looking at expanding into North and South America.

Mr Murtagh is understood to be interested in investing in the funds. This week, he sold one-third of his holding in Kingspan, the building materials group he helped to found with his brother Eugene, for €48 million.

He is likely to invest the cash in the expansion of Howard Holdings. Mr Murtagh has a number of other interests, including telecoms group Smart and troubled British supermarket chain Kwik Save, but he is not directing the cash at either of these.

Howard Holdings is headquartered in Cork and is behind a number of developments there, including the city quarter on Lapps' Quay.

It has interests across the UK - where it has Coventry airport and a number of properties in Croydon - and Europe, where it is active in Poland, Spain and Italy.