Some interesting shoppers stormed through the Jervis shopping centre last week. And by “interesting,” I mean those armed with a pile of cash – up to 13 first-round offers for this Dublin landmark, quietly placed on the market by its owners, Paddy McKillen and Padraig Drayne. Because who doesn’t want their own shopping mall, right?
This marks the first sale since Jervis was birthed by McKillen, Drayne, and some guy named Paschal Taggart back in the ‘90s. Yes, it’s like a fine wine that the original vintners have finally decided to part with. And let’s be honest, it’s one of the last shopping centres still owned by its creators. Most of them have been auctioned off to private equity funds faster than a summer sale on a Saturday.
The Sunday Times revealed a glittering list of bidders, including the Comer Group and the big-talking American property investor Hines, among others. Yes, nothing screams “I’ve arrived” like a shopping centre bidding war. The auction came hot on the heels of strong interest in Marlet’s triple retail parks, which somehow also attracted ten offers. Pure madness, or the glamour of capitalism? You decide.
For over a year, retail has been the market’s rock star, attracting more capital than that one glitzy band you love to hate. Offices and private rental properties? Not so much. They’re having a real “who invited them to the party?” moment, as people flock back to stores for that oh-so-genuine customer experience. Think of it like dating; sometimes, you want to get off the app and actually meet someone in person. But you still need those new shoes, of course.
Estate agents are positively giddy, reporting that retail accounted for half of all deals in the first quarter of the year. Cue the confetti. US-based Realty Income, known for splurging nearly a billion on the Bellagio casino, has thrown its chips into the retail ring, snatching up eight retail parks from Oaktree Capital for €220 million. It’s like Monopoly, but with real money—what could possibly go wrong?
Post-pandemic, the narrative that physical stores were on their last legs has turned out to be hilariously exaggerated. Bricks-and-mortar is fighting back with a vengeance, evidenced by AIB’s latest report showing a two percent rise in in-store spending. Shocking, right? EY’s Future Consumer Index states that 70% of us still prefer the in-person shopping experience for our everyday buys. Maybe we just like the chance to pick up a random item that we absolutely don’t need.
Jean McCabe, chief executive of Retail Excellence Ireland, says customers are “returning to stores for the customer experience.” Retailers, in their own wisdom, are now opening more stores to cash in on economies of scale—because what’s better than rolling the dice on multiple storefronts? Meanwhile, Brendan McDowell of BPerfect Cosmetics has gone from strictly online to 13 physical stores across the UK and Ireland. Who needs a robust business model when you have determination and a vision, right?
In a time when retail parks are clawing their way back to institutional ownership with prime locations yielding up to 6% returns, one can’t help but wonder if we haven’t all lost the plot somewhere along the way. So here’s to the retail renaissance—because if you can’t beat the e-commerce blues, you might as well open a new shopping centre in Cherrywood. Just make sure the rent isn’t steep enough to send tenants packing!
