Shoppers of a unique variety jam-packed the Jervis shopping centre last week, possibly mistaking it for a weekend festival rather than a retail establishment.
Up to 13 first-round offers emerged faster than socks disappearing in a laundry mishap for the Dublin city centre mall, which was discreetly listed for sale by its owners, the dynamic duo Paddy McKillen and Padraig Drayne. Apparently, they decided it was time to cash in the shoebox of their retail empire.
This sale marks the shopping centre’s first public debut since its inception in the ’90s, courtesy of McKillen, Drayne, and fellow businessman Paschal Taggart. It’s like a nostalgic reunion, except instead of awkward small talk, you just get competitive bids and unrealistic expectations.
Among the bidders—a lineup that could rival a pop concert—are big names like the Comer Group, the US property titan Hines, and even the intriguing Peter Horgan’s Lugus Capital. Not to mention David Goddard’s Lanthorn, who, on behalf of clients, joined the bidding war. I mean, who wouldn’t want a piece of prime retail real estate in a city where the most action has been a three-day queue for a café?
The auction wasn’t short on drama, following a flurry of enthusiasm for Marlet’s trio of retail parks, which received ten initial bids. Clearly, the retail market is not dead but rather on a midlife resurgence, buying leather jackets and trying to relive its youth. With retail outperforming other property sectors, it’s like watching your friend who always claimed to be a late bloomer suddenly win the ‘Best Dressed’ award at the reunion.
Reports from estate agents indicate that the retail segment made up half of all property deals in the first quarter of the year. In short, while offices and private rental schemes are in the doldrums, retail has donned its party hat and brought snacks to the table. Who knew that while we were hoarding snacks during lockdown, the retail sector was busy plotting its triumphant comeback?
Even US investor Realty Income, known for splurging nearly a billion dollars on the Bellagio casino in Las Vegas this year, jumped on the retail bandwagon by grabbing eight retail parks from Oaktree Capital for around €220 million. Who knew retail therapy could come with such hefty price tags? If the pandemic taught us anything, it’s that flipping through virtual aisles just doesn’t compare to the rush of sprinting past a cousin of an ex at the mall.
Statistics reveal a consumer renaissance in physical shopping. AIB’s latest retail report shows that in-store spending climbed 2% compared to last year, suggesting that consumers are reclaiming their territory from online shopping like a cat returning to a sunny window sill. According to the EY Future Consumer index released in May, a whopping 70% of consumers still prefer brick-and-mortar stores to snag their everyday essentials. Who could resist the thrill of that tantalizing in-store ambiance?
Jean McCabe, the fearless leader of Retail Excellence Ireland, asserts that shoppers are flocking back to stores for the experience, proving that retail therapy isn’t just therapy—it’s a full-bodied workout. Retailers are responding with gusto, diving headfirst into the mix by adding entertainment options and Irish brands, much like a nostalgic mix-tape compilation.
