Shoppers of a decidedly peculiar nature gathered at Jervis shopping centre last week, evoking images of a scene from a surrealist painting.
Up to 13 first-round offers landed for the Dublin city centre shopping mall, which its owners—Paddy McKillen and Padraig Drayne—slyly decided to offload after years of accumulating fond memories and questionable impulse buys.
This delightful retail wonderland is hitting the market for the first time since its 1990s inception, when McKillen, Drayne, and a certain Paschal Taggart thought, “Let’s make a mall!”—the quintessential Irish phrase. It hangs onto a piece of history as one of the last malls still in the hands of its creators, much like your grandmother holding onto her VHS player.
A motley crew of bidders attempted to snag this retail gem, including the Comer Group, the US-based property mogul Hines, Peter Horgan’s Lugus Capital, and Patron Capital. Not forgetting David Goddard’s Lanthorn, who likely joined the bidding for the snack options available.
This auction comes on the heels of a blind bidding war for Marlet’s trio of retail parks. Spoiler alert: they received ten initial bids—which probably translates to a lot of posturing over lunch in swanky Dublin eateries while wondering who would brave the weather to visit a retail park.
Retail has emerged as the unlikely darling of the property investment market, defying expectations and recovering from the imminent demise predicted during the pandemic. Turns out, consumers still enjoy strolling through shops, buying things they didn’t know they needed. Estate agents amusingly reported that, during the first quarter, retail accounted for half of all property deals, likely prompting an eye-roll among office brokers and their cramped cubicles.
Amidst all this chaos, we have Realty Income, a US titan who somehow managed to throw $950 million at the Bellagio casino this year and dove headfirst into retail—snatching up eight retail parks from Oaktree Capital for a mere €220 million. They’re also a hot favorite for Marlet’s retail portfolio, proving yet again that the retail arena is more tantalizing than a half-off sale at your favorite store.
Forget the news headlines screaming about the end of brick-and-mortar stores! The numbers are showing a noteworthy recovery. AIB found that in-store spending increased by 2 percent compared to last year—an undeniable triumph for physical stores everywhere and a collective “Take that, online shopping!” from local shopkeepers.
As consumers flock back to physical stores for that warm and fuzzy “customer experience,” Jean McCabe, chief executive of Retail Excellence Ireland, quips that retailers are extending their store footprints to harness the right blend of nostalgia and bargains. Shopping centres and retail parks are getting revamped, reshuffled like a deck of cards, now sporting entertainment options and those artisanal food stalls that you didn’t know you needed in your life.
Brendan McDowell, the mastermind behind BPerfect Cosmetics, initially dabbled online before dramatically opening 13 physical stores, proving that you can indeed take a brand from “just internet” to “where’s my parking spot?” in style. He recalls a sea of vacant units in shopping malls, turning a grim reminder of retail doom into prime real estate for his profit-driven ambitions.
Yet amidst the chaos, retail might just be on the upswing, with investors now eyeing a selection of shopping centres boasting attractive yields—because who doesn’t want to make money while investors fight over who gets to claim the best food court spots?
Bannon, a commercial property agent, reminisced about the retail ownership shifting landscape over the past 20 years, suggesting all this fuss in the market isn’t merely a trend but a new beginning for retail. After all, changing the guard isn’t just for royalty; it’s for the unsung heroes of the retail world, too, showing how the demise of the old can usher in a glorious new chapter.
