Shoppers of a particularly unique persuasion flocked to the Jervis shopping centre last week, resembling a swarm of locusts on a discount spree.
This bustling mall recently became the star of a riveting auction drama, with a staggering thirteen first-round offers flung its way by enthusiastic contenders. The mall was stealthily put on the market by its owners, Paddy McKillen and Padraig Drayne, who presumably thought, “Why not profit from our existence in retail’s survival of the fittest?”
It’s a noteworthy fact that this shopping centre has only now decided to leave the family nest since its birth in the 1990s—a tale of neglect that would make even the most optimistic parent shed a tear. Jervis stands proudly among the last of the developers’ brood still lingering on their front porch, while the other kids have moved on to, you guessed it—private equity funds!
Among the eager bidders were the likes of the Comer Group, American property titan Hines, and several others who probably have more money than good sense. It’s like a rich man’s game of poker, with not-so-useful bits of retail thrown into the pot. You can practically hear the gasps when someone mentions “shopping centre!”
The excitement of the auction was palpable, especially in the wake of strong bidding for Marlet’s eclectic trio of retail parks, which pirouetted gracefully from one bidder to the next, landing a respectable ten initial offers. The real estate market has become a chaotic game of musical chairs where everyone seems to want a seat, preferably one with a backrest!
For more than a year, retail has danced its way back into the spotlight, so much so that it’s starting to feel like that overconfident prom date who shows up after years of hiding in the shadows. The pandemic may have dealt a heavy blow, but the retail sector is proving that it can recover like a cat with too many lives, and oh, what a spectacle it is!
Statistics, those pesky little things, are also showing a cocktail of good news this time. AIB’s first-quarter retail report reveals that in-store spending has made a spirited comeback, rising by 2 percent compared to the previous year. Consumers—who, let’s face it, love a good retail therapy session—are navigating their way back to brick-and-mortar stores as if they never left. “Who needs online shopping when you have the experience of battling through crowds?” they must be thinking!
Jean McCabe, chief executive of Retail Excellence Ireland, chimes in with the revelation that shoppers enjoy their “customer experience” as if it’s a Michelin-starred meal. Retailers are catching onto this like a cat to a laser pointer, expanding their premises and brands to hunt for those elusive economies of scale.
Yet, amidst the clamor, the Jervis shopping centre remains a hotbed of intrigue, boasting a whopping asking price of €120 million. Who knew shopping centres could be the new currency of love? This price tag has certainly prompted interest from serious international players, making us wonder if they value retail assets more than a fine wine.
Even in a landscape that’s suggested “the death of brick-and-mortar,” there lie opportunities like hidden treasures waiting to be excavated—more glorious and shiny with each passing day. With occupancy rates edging close to 100 percent in retail parks, there are boundless tales yet to unfold as consumers retake their throne among the aisles. So here’s to hoping the charm of retail reigns eternal, while the investors get ready for another thrilling ride on this rollercoaster called the real estate market.
