Shoppers of a decidedly non-traditional nature flocked to the Jervis shopping centre last week, proving once again that retail therapy is universal—just ask the financial institutions. Up to a staggering 13 first-round offers were made for the Dublin city centre mall, subtly placed on the market by its benevolent owners, Paddy McKillen and Padraig Drayne, who decided it was time to cash in their chips.
Yes, folks, this is the first time in decades that the shopping centre has had a “for sale” sign dangling from its neck. Developed in the ’90s by McKillen, Drayne, and Paschal Taggart, this mall is practically an artifact in retail history—and not the kind you’d find curated in a trendy museum.
Who were the eager bidders, you ask? According to insiders, names like the Comer Group, US property titan Hines, and a remix of Legos—Lugus Capital and Patron Capital—were all in the mix. Also in attendance was David Goddard’s Lanthorn, representing clients who likely know more about shopping than a fashionista on a caffeine high.
This feverish auction follows impressive bids for Marlet’s retail parks located in Dublin, Louth, and Tipperary—areas where the excitement is palpable unless you’re a caffeine-free hermit. Retail has been stealing the spotlight in property investment recently, accumulating an impressive amount of capital while other sectors sulk in the corner like uninvited party guests.
Oh, and since we’re keeping score, estate agents reported that retail accounted for half of all deals in the first quarter of this year. Yes, you heard that right—these shops are pulling rank on offices and private rental schemes, leaving them to drown in a sea of despair, sipping on overpriced lattes.
Importantly, it turns out that the rumors of retail’s death caused by COVID were exaggerated. Statistics support the comeback story: AIB’s latest retail report reveals that in-store consumer spending increased by 2% year-over-year. And according to the EY Future Consumer index, seven out of ten consumers still prefer bricks-and-mortar shops for everyday purchases—much like they prefer pizza delivery on Fridays.
Jean McCabe, the CEO of Retail Excellence Ireland, stated that customers are returning to stores for the “customer experience.” How original! Retailers are even opening more physical storefronts to amplify economies of scale—essentially letting more people experience the wonder of goods they can’t even afford.
Amidst all this, BPerfect Cosmetics founder Brendan McDowell decided to expand from selling online to launching 13 physical stores across the UK and Ireland. Apparently, he found that actual brick-and-mortar stores still have a pulse—who knew? As McDowell explained, opening stores when shopping malls had vacant units was a savvy move, allowing for flexible rent terms like a Game of Monopoly gone rogue.
Meanwhile, the retail landscape continues to morph like a chameleon on an acid trip. Institutional investors are vying for prime shopping centres for yields up to 6%—a figure that makes private equity funds swoon. Neil Bannon, a commercial property agent, noted that retail ownership is undergoing another transformation, akin to a Taylor Swift album release.
This swirling dance of investors continues as the market wrestles with challenges. Sure, some shopping centres in less-than-stellar locations are still battling high vacancy rates, but for everyone else? Retail seems to be the new black, and it’s here to stay—as long as there are sales to flaunt and discounts to savor.
