Shoppers or Investors? The Great Jervis Centre Bidding War
Last week, Jervis shopping centre transformed into a scene reminiscent of Black Friday madness, but instead of the usual shoppers pawing at discounted sweaters, it was a lineup of potential buyers. I guess when the owners, Paddy McKillen and Padraig Drayne, decided to quietly place the centre on the market, they didn’t expect a bidding frenzy that would leave even the most seasoned auctioneer sweating.
For the first time since the 1990s (no, that’s not a typo), the mall hit the sales block. It seems decades of ownership by the original developers can’t shield you from the allure of cashing in—hello, Dublin’s property market! Among the alleged bidders were the Comer Group, the real estate heavyweight Hines, and Peter Horgan’s Lugus Capital, just to name a few. Sounds like a nerdy episode of “Who Wants to Be a Millionaire?” mixed with Monopoly, doesn’t it?
Of course, it’s not all sunshine and rainbows for retail. Despite the doom-and-gloom predictions swirling around during the pandemic—where retail became synonymous with “death of the shopping centre”— the sector is showing signs of life. Who knew that after nearly two years of online shopping, people might actually want to step out of their homes and into a store? Shocking! Statistics reveal in-store sales have surged by 2%, and before you roll your eyes at the notion of browsing actual aisles, the EY Future Consumer index tells us 70% of shoppers prefer the tactile thrill of brick-and-mortar buying.
In this topsy-turvy universe, companies like BPerfect are flipping the script. Once focused on online sales, they’ve opened 13 physical stores across the UK and Ireland, likening the period after Covid to a gold mine of empty retail space ready for the taking. But of course, with every expansion comes an intriguing mixture of shorter leases and rent-free periods—who needs mortgage payments when you can snag a retail unit with generous offers?
And don’t disregard the fact that as retail plots swirl in the wind of ownership changes, seasoned investors are cashing in like it’s Black Friday every day of the week. With $950 million thrown at the Bellagio casino and several retail parks already snatched up, one can’t help but wonder if retail is truly the phoenix rising or just an eco-friendly reusable shopping bag. It’s a trend that could either offer fantastic returns or have you perpetually chasing your tail, depending on the week.
Unfortunately, the retail landscape isn’t a utopia. Yes, while some shopping centres are experiencing superstar-level occupancy rates, outlying locations are crying “vacancy” louder than a toddler at nap time. Tales of retailers shuttering their doors—like Debenhams’ and New Look’s—remind us that no space is safe from the relentless march of time and consumer whims. To make it worse, British chains quickly vacate their Irish postings, making room for fresh faces. Goodbye, Quiz Clothing! Hello, random pop-up of trendy coffee shops and artisanal soap stores.
In a world where retail parks are circling back to institutional ownership, it’s clear that investors are diving into this cash cow of an industry with renewed vigor. As property agents pat themselves on the back while selling to corporate entities, we can only watch with popcorn in hand. With the Jervis shopping centre’s price tag of €120 million catching the attention of international buyers, one can’t help but think the only thing missing is a flashy sign saying “Cash Only!”
So, as the retail realm continues its unpredictable dance between survival and revival, all we can do is search for our favorite stores and supports from the comfort of our couch while contemplating if we should invest in retail stocks or simply continue curating the best collection of online shopping carts. One thing’s for sure—every day is a sale in the strange world of retail recovery.
