Shoppers of a unique variety flooded the Jervis shopping centre last week, making it the kind of place you wouldn’t want to be if you’re an actual shopper just looking for a pair of socks.
Up to 13 first-round bids were thrown onto the table for the Dublin city centre mall, which was recently sold quietly by its owners, Paddy McKillen and Padraig Drayne. Whispers circulated that the mall was available, prompting the bidding frenzy—because who doesn’t want to add a shopping centre to their portfolio of questionable investments?
This sale marks the first time Jervis has been up for grabs since McKillen, Drayne, and the elusive Paschal Taggart decided the ’90s were a good decade to start a mall. It’s practically a historical artifact at this point, and still managed to avoid bankruptcy—unlike some of its tenants.
Among the bidders attracted to the prospect of purchasing a magical land of shopping were big names like the Comer Group and the US’s Hines. Not to be outdone, Peter Horgan’s Lugus Capital and Patron Capital entered the fray, along with David Goddard’s Lanthorn—because why not go all in on a mall that might not be the latest Instagram hotspot?
Interestingly, this auction followed intense bidding for Marlet’s trio of retail parks. Yes, an actual bidding war broke out over retail parks—because what else would investors do with their money, right? And let’s face it, with fashion so ever-changing, retail parks might just be the dinosaurs of the investment world: they just refuse to die.
Now, let’s momentarily address the shocking twist that retail has been the biggest star in the property investment market. Who would’ve thought? Maybe it’s not dead after all—just taking a particularly long nap after the pandemic. In-store spending, according to AIB, increased by 2% this year compared to last. Apparently, we got tired of our couches and decided to brave the outside world once more.
Jean McCabe, chief executive of Retail Excellence Ireland, confirmed that consumers are flocking back to stores for the ‘experiences’ (because who needs online shopping when you can enjoy the aroma of pretzels and coffee while also avoiding eye contact with fellow humans?). Retailers are following suit by opening more stores while trying to add an entertainment factor—because shopping alone wasn’t awkward enough.
The market may have its shining moments, but it’s no utopia. With lingering high vacancy rates in less glamorous shopping centres, it’s evident that not every mall can have a bustling reclaimed history.
The irony is that while some brands close their doors, new ones are ready to pounce on those disadvantaged retail spaces faster than a cat on a laser pointer. It’s survival of the fittest out there, folks—who knew shopping malls could be such a cutthroat arena for retail gladiators? Nevertheless, if you’re in the market for a new shopping adventure, it seems some retail parks are still a bargain—just make sure to avoid the curse of copying that one store that went bankrupt. Arm yourselves with coupons, and happy shopping—while it lasts!
