Shoppers of a different ilk flocked to Jervis shopping centre last week. Not your typical bargain-hunters, but rather a swarm of property investors eager to dive into the dizzying world of retail real estate. Up to 13 first-round offers fluttered about like confetti after a misguided wedding, all targeted at the Dublin city centre mall. Apparently, Paddy McKillen and Padraig Drayne had decided it was time to quietly let go of this prized possession, much like clearing out a closet of unworn shoes.
This is truly a landmark moment—the first time since its inception in the 1990s that the Jervis centre has dared to mingle in the open market. It’s one of the last shopping bastions built in the past three decades that still remains under the watchful eyes of its original developers. Think of it as the grandparent who refuses to give up the homestead while all the kids have been sold off to the highest bidder.
An impressive cast of bidders emerged from the shadows, including the Comer Group, US property heavyweight Hines, Peter Horgan’s Lugus Capital, and Patron Capital. They were joined by David Goddard’s Lanthorn, bringing a few mates along, of course. It seems like an episode of a real estate talent show: “Who Wants to Buy a Mall?”
Interestingly enough, bidding for the Jervis centre didn’t just materialize in a void. It followed a competitive round for Marlet’s trio of retail parks, which, at least according to the estate agents, made it feel like a fun game of Monopoly—only with way more zeros on the price tags and fewer rows over “fake” money.
Retail has somehow managed to be the rock star in the property investment market, defying all expectations by dazzling everyone with its unexpected revival post-Covid. Remember when everyone was predicting the end of shopping as we know it? Well, it turns out the ghost of retail is alive and kicking, even if it sometimes shops for joggers online.
A recent report reveals that in-store spending hiked up by 2% in the first quarter of this year. Apparently, consumers have finally rediscovered the joys of in-person shopping, mingling, and—dare I say it—the smell of fresh mall pretzels. Retailers are cashing in on this nostalgia trip, with some even opening more stores. Yes, kids, it seems millennials might just love shopping in physical locations after all!
Retail parks are now on a revival tour, not unlike the Spice Girls, but way less cringey. With prime retail parks boasting yields of 6.5%, property investors are in a bidding frenzy trying to snap them up at a bargain. They’re not just buying bricks and mortar; they’re investing in a hopeful future of more foot traffic, crossed fingers, and maybe even a food court that doesn’t make you question your life choices.
Ah, but amidst this chaos, a new retail centre is being plotted in Cherrywood. For those of you keeping track, that’s in south Dublin, where they plan to expand retail options like it’s the final season of ‘Game of Thrones’—lots of changes all at once. Meanwhile, existing shopping centres are working hard on their increasingly complex tenant mixes—think less “bargain bin” and more “let’s liven up the food court with artisanal cheese stalls and Instagrammable desserts!”
So as the market shifts and ebbs like a tide of very expensive handbags, the retail scene seems to be flourishing. The post-pandemic fears of pandemic closures are fading, and it appears that retail isn’t just a passing phase. It’s revived, restructured, and ready to fight for its place in the hearts (and wallets) of consumers everywhere. Grab your shopping bags and keep those fingers crossed—the retail industry is back, and it promises to be the most unexpected comeback tour of the decade.
