Shoppers of a different nature gathered at the Jervis shopping centre last week, proving yet again that the only thing more enthusiastic than a kid in a candy store is a property investor with a fat wallet.
Rumor has it up to 13 first-round offers were slammed down for the Dublin city centre mall, which was stealthily placed on the market by its owners, the chic duo Paddy McKillen and Padraig Drayne. It seems like a high-stakes game of Monopoly, but with real money and even realer trends.
This sale marks the first time the shopping centre has sought a new owner since its debut back in the ’90s, when McKillen, Drayne, and Paschal Taggart were busy throwing up buildings like they were making pancakes. It’s now one of the few malls still in the hands of its original developers, a rare breed in the ever-changing jungle of retail.
On the wishlist of bidders were heavy-hitters like the Comer Group, US property giant Hines, the frisky Lugus Capital, and the mysterious Patron Capital. Also spotted was David Goddard’s Lanthorn, possibly scoping out clients’ summer shopping plans. One can only imagine their bidding strategy: “Keep raising the number until someone cries, ‘uncle!’”
This auction came hot on the heels of a vigorous bidding war for Marlet’s retail parks spread across Dublin, Louth, and Tipperary — which ruffled feathers with a surprising ten initial bids. Who knew retail parks were the new hot-ticket item, leaving dull office spaces in the dust? No one wants to invest in a somber office building when you can have a bustling retail playground.
For over a year, retail has shamelessly flaunted its victory lap in the property investment arena, attracting capital like moths to a flame. The market’s mood has shifted; while office space sales are still languishing in a dark corner, retail is throwing a block party. Surprisingly, post-Covid rumors of ‘bricks-and-mortar are dead’ turned out to be the hottest rumor since “the dog ate my homework.”
Looking at hard facts, AIB reported a 2% increase in in-store spending in the first quarter of this year, suggesting that consumers aren’t just window-shopping for entertainment. They are, in fact, diving right into the mall vibe, declaring a preference for actual stores over their online alternatives. “When did shopping become an Olympic sport?” you ask? Well, it seems it has – seven in ten consumers prefer the tactile experience of in-store purchases.
Jean McCabe, CEO of Retail Excellence Ireland, elaborated on the trend, claiming that customers are flocking back for the “experience” of shopping—not just for the sake of accumulating more stuff. And retailers are obliging by rolling out more stores to bank on this newfound enthusiasm, as if they’ve discovered the philosopher’s stone of retail economics.
