Shopping enthusiasts of a rather unusual sort crowded the Jervis shopping center last week. It appears the mall, which has been slyly marketed by its owners, Paddy McKillen and Padraig Drayne, has caught the eye of some rather eager bidders.
In this episode of “Will it sell?”—the Jervis edition—up to 13 first-round offers were presented. This marks the first sale of the shopping center since it emerged from mid-90s nostalgia, courtesy of McKillen, Drayne, and a certain businessman, Paschal Taggart. Once upon a time, this was a place of vibrant foot traffic; now, it’s a stage for the latest bidding war.
Among the bidders right now? Well, let’s just say the “who’s who” of property investment is making an appearance: The Comer Group; the US property powerhouse Hines; Peter Horgan’s Lugus Capital; Patron Capital; and David Goddard’s Lanthorn, who looks suspiciously like he may have snuck in under the radar. The auction follows a flurry of interest in retail parks across Dublin, Louth, and Tipperary, which collected ten initial bids like they were Pokémon cards.
For over a year now, retail has been the golden child of the property investment scene. Yes, retail—once considered the undead of the investment world—is back, and it’s thriving. While the office market takes a nap in the corner, retail has woken up with a vengeance and a hot cup of coffee in hand.
Reports show that, in Q1 of this year, retail snagged around 50% of the value of all deals. Who would have guessed shopping could be so lucrative? Meanwhile, US-based Realty Income—which, let’s not forget, casually dropped $950 million into the Bellagio casino in Vegas this year—has chosen to double down on shopping, acquiring eight retail parks from Oaktree Capital for €220 million. They clearly have a penchant for acquiring assets with foot traffic.
As if that wasn’t enough of a twist, reports of the demise of brick-and-mortar shopping were apparently blown out of proportion. Recent stats show in-store spending ticked up by 2% in Q1 compared to last year. This comes after a similarly cheerful rise in the last quarter of the previous year—clearly, people are rediscovering the thrill of actual in-person shopping, or maybe they just want an excuse to leave the house.
Jean McCabe, head honcho over at Retail Excellence Ireland, observed that consumers are “returning to stores for the customer experience.” Who knew that all it took was a global pandemic to remind us what not being alone feels like? Retailers are opening more stores to cash in on this nostalgic experience, but good luck to them—those sales will need to make up for the existential crises suffered during lockdown!
In conclusion, the story of the retail market is one of resilience, reinvention, and quite a few lucky bidders trying to cash in on Jervis shopping center before it becomes the next site for a meticulously constructed IKEA. After all, you can’t buy happiness, but you can buy retail parks—and it seems plenty of people are prepared to do just that. So dust off your wallets and prepare for a bidding war, because the only thing cooler than shopping during a pandemic is successfully navigating the chaos of property investment!
