Shoppers of a slightly unconventional caliber descended upon the Jervis shopping centre last week. Forget your average consumer seeking a discount; we’re talking about a frenzy of investors, armed with checkbooks instead of shopping bags.
In what can only be described as an unexpected third-act twist to what many believed was a dull story, up to 13 first-round bids were waddled forward for this prime slice of Dublin real estate. The once-mundane shopping mall, stealthily available in recent months by owners Paddy McKillen and Padraig Drayne, has become the “it” spot—so hot that real estate agents are probably fanning themselves with it.
Let’s take a moment to appreciate the gravitas of this sale. This isn’t your average Sunday afternoon clearance sale; it’s the inaugural appearance of the shopping centre on the sales stage since it was birthed into existence by McKillen, Drayne, and businessman Paschal Taggart during yonder 1990s. It stands as a relic, one of the last living tokens of a bygone era when developers actually kept some skin in the game.
Among the cadre of interested suitors, The Sunday Times whisper network has fingered the usual suspects: the Comer Group, US property titan Hines, Peter Horgan’s Lugus Capital, and Patron Capital. A wildly entertaining cameo was also provided by David Goddard’s Lanthorn, who appears to be channeling their inner Wall Street by bidding on behalf of clients like a black market auctioneer.
After the mild frenzy around Marlet’s collection of retail parks—where ten initial bids emerged like rabbits from a hat—it’s safe to say that retail is back in vogue. Not in the way that flared trousers are, but with actual money being thrown around like it’s confetti. In a world where office buildings are still gazing forlornly at their vacancy rates, retail has been getting all the attention as the belle of the property ball. Talk about a glow-up!
Data shows that the retail segment has been pouring half of all the capital into property deals this year. US-headquartered Realty Income, which recently rolled the dice with $950 million on the Bellagio casino in Las Vegas, is now cozying up to retail parks, snapping up eight from Oaktree Capital for a cool €220 million as if they were Pokémon cards. Sad for retail naysayers, but those predicting the demise of brick-and-mortar stores during the peak of the pandemic have been dealt a reality check. Surprise! Retail isn’t going gently into that good night.
Beauty brand BPerfect Cosmetics is the poster child for this resurgence. Starting its life in the digital abyss of online sales, it has evolved into a physical presence with 13 stores sprouting across the UK and Ireland. McDowell, the brand’s founder, noticed an abundance of empty units when they first ventured into Blanchardstown in 2022; a not-so-subtle hint that timing is everything in retail. Snagging shorter leases and better rents felt like hitting the jackpot at the slot machines—who wouldn’t want that?
Yet, despite the blooming optimism in the retail segment, the market is a minefield for anyone still gripping the wreckage of older business models. From Debenhams to New Look, retailers are either switching hands or shuttering entirely like a poorly-timed magic show. Yet, in classic retail fashion—where there’s drama, there’s opportunity—new brands are scrambling to fill the void, leading to a revitalized tenant mix that could make any landlord weep tears of joy.
