Shoppers of an unusual breed flooded the Jervis shopping centre last week, and no, they weren’t after the latest winter coats or festive baubles. No, they were the moneyed kind with wallets full of first-round offers, which, let me tell you, sounds far more interesting than hunting for a bargain on a Tuesday afternoon.
Yes, up to 13 eager bidders came forward for the Dublin city centre mall, which was sold like a popular dish on a buffet table by its not-so-quiet owners Paddy McKillen and Padraig Drayne. It’s the first time the shopping centre has shuffled out on the market since it was put together by McKillen, Drayne, and the master chef of business, Paschal Taggart, back in the 1990s. Remarkably, it’s one of the last shopping centres from that glorious era still gracing the developers’ hands.
Among this colorful collection of bidders were the glamourous Comer Group, the flashy US property investor Hines, and Peter Horgan’s Lugus Capital, who presumably just returned from a successful episode of “The Wolf of Wall Street.” And let’s not forget Patron Capital or David Goddard’s Lanthorn, who apparently were just stopping by to check out the competition.
Interestingly, this bidding frenzy followed the spirited auction of Marlet’s triple-threat retail parks in Dublin, Louth, and Tipperary, which received ten initial bids—an impressive haul for a game of “Pin the Asset on the Developer.” Retail, it seems, has become the Hollywood starlet of the property investment market, basking in the spotlight while other sectors, like offices and private rentals, sulk in the corner.
According to estate agents, retail accounted for a hefty half of all deals in the first three months of the year—proof that while everyone was busy panicking about COVID, someone was still looking for the latest trends in bricks-and-mortar.
Take a bow, US-headquartered Realty Income, which splashed out a cool $950 million on the Bellagio casino in Vegas this year. That’s right, while we were navigating pandemic uncertainties, they were busy buying eight retail parks from Oaktree Capital for €220 million—and don’t forget they also snagged the coveted title of preferred bidder for Marlet’s retail park portfolio. Clearly, while some people are busy worrying, others are finding new ways to double-dip their assets.
Okay, hold onto your shopping carts! You thought the death of bricks-and-mortar was a foregone conclusion? Think again! Recent statistics have revealed that in-store spending rose a delightful 2% year-over-year, proving that spending time in the mall is as rejuvenating as an overpriced pumpkin-spiced latte (without the calories, of course). AIB’s latest retail report even reflected an upswing in shoppers returning to brick-and-mortar stores, despite the moody whispers of e-commerce’s reign.
In fact, according to the EY Future Consumer Index, a robust seven out of ten consumers prefer the tangible experience of buying everyday items in shops—possibly because they long for the thrill of the hunt, or perhaps they just don’t trust their Wi-Fi signal. Jean McCabe, the fearless leader of Retail Excellence Ireland, affirmed that customers are flocking back for the exhilarating “customer experience.” Apparently, there’s nothing quite as electrifying as shopping under blinking lights while dodging families on a weekend expedition.
Brendan McDowell, chief of BPerfect Cosmetics, started his venture online before deciding that physical stores weren’t such a bad idea after all. “When we first opened in Blanchardstown in 2022, there were so many empty units, it felt like we were starting a flash mob rather than a retail chain,” he joked. But hey, what could be better than strolling around a shopping centre with bargain-hunting aspirations?
Of course, let’s face facts. Operating shopping malls can be as complex as deciphering a menu in a Michelin-star restaurant. High service charges? You bet! Yet, despite the drama, multiple bids were thrown into the mix for the Jervis shopping centre like a Thanksgiving dinner showdown. Local investors set their sights alongside international players, and the asking price of €120 million for a slice of retail heaven didn’t exactly frighten them off.
While Max Reilly from JLL suggests international investors usually have their “minimum deal sizes” (you know, buying only what they swoon over), it’s refreshing to witness a vibrant market considering how retail has taken its fair share of pandemic punches. Just remember, folks: a thriving retail park might be the current poster child for resilience, but come prepared with a good pair of shoes—shopping is serious business!
