Shoppers of a rather different flavor were bustling into Jervis shopping center last week. No, they weren’t hunting for the last discount pair of shoes or the crumpet of the week; they were vying for a Dublin shopping mall like it was the world’s last potato.
Upwards of 13 first-round bids flowed in like a torrent for this urban mega mall, which its owners—Paddy McKillen and Padraig Drayne—quietly decided to sell after years of clinging to it like a life raft in a sea of consumerism. This historic sale marks the mall’s first appearance on the property market since it materialized from the imagination of McKillen, Drayne, and their companion Paschal Taggart back in the fabulous ’90s. It’s one of the few shopping centers left standing that hasn’t traded hands like a hot potato in the last 30 years, a true survivor.
Who were the lucky bidders? The crème de la crème of property investors strutted their stuff: the Comer Group, that American real estate guru Hines, Peter Horgan’s Lugus Capital, and the mysterious Patron Capital, to name a few. It was like a high-stakes poker game, but instead of chips, they were throwing around cash like confetti at a wedding.
In case you missed it, this bidding frenzy followed hot on the heels of enthusiastic offers for Marlet’s portfolio of retail parks scattered across Dublin, Louth, and Tipperary. Ten initial bids were put forward, proving that retail real estate is the new black, at least for those with deep pockets.
For over a year now, retail has risen like a phoenix from the ashes of the COVID apocalypse, snagging the spotlight in the property investment arena. While other segments like office space are suffering a fate worse than a soggy sandwich, retail is experiencing a renaissance that many thought was as dead as disco. The irony! During the panic of COVID, we were all nervously predicting the end of brick-and-mortar shopping—yet here we are, with in-store spending rising by 2% year-on-year, according to an AIB report. It’s as if consumers have suddenly remembered that actual walking, yes, still exists.
Jean McCabe, the big cheese at Retail Excellence Ireland, suggests that consumers miss the thrill of a visceral shopping experience—who knew there’s still life left in the old retail dog? McCabe remarked that retailers are popping up more locations to rake in those sweet economies of scale. Shopping centers are getting makeover treatments with more entertainment venues and diverse food offerings, trying hard not to look like ghost towns.
Meanwhile, the BPerfect Cosmetics founder Brendan McDowell revealed he’s been living the pop-up store dream, sprinting from online to the real world with 13 physical stores across the UK and Ireland. When he opened in Blanchardstown, he found the retail battlefield littered with empty units, a surefire sign it was time to snag a location at bargain rent. “If you can’t beat ’em, join ’em,” he laughed in a not-so-untrendy way. This golden age of retail is making it rain opportunities for those wise enough to capitalize.
Meanwhile, in the shadowy corners of the retail market, the likes of Realty Income, those real estate fat cats, are dropping €220 million like it’s pocket change on retail parks, proving the demand is still raging. And despite ongoing troubles for some brands, the inevitable closures may just pave the way for new names ready to grace our shopping sanctuaries. After all, every cloud has a silver lining—and this one might just be a shiny new outlet for that niche vegan cheese brand we’ve all been waiting for. Who knew shopping could be so *thrilling*?
So while some might regard the retail landscape as grim, seasoned investors are proudly waving the banner for resilience. As one expert put it perfectly, “The retail park segment has been the poster child for the sector for the last number of years,” because, let’s face it, who doesn’t want to enjoy a shopping spree without the hassle of trudging 15 floors up in a concrete jungle? It’s a new world in retail, folks—brace for impact and enjoy the leap back into the bustling bazaars of yesteryear!
