Shoppers of a rather different kind journeyed to the enchanted realm of the Jervis shopping center last week, a place usually populated by the noble quest for discounts rather than capital investment. Around 13 brave first-round offers were presented for the Dublin city center mall, recently liberated from the secretive clutches of its owners, Paddy McKillen and Padraig Drayne.
This spectacular sale marks the first time this shopping center has graced the market since it emerged from the mystical fog of the 1990s, when three gallant developers—McKillen, Drayne, and a mysterious figure known as Paschal Taggart—wielded their powers over its construction. This place is an endangered species in the world of retail: one of the last centers born three decades ago that’s still under the control of its creators. Kind of like finding a T-Rex on a scavenger hunt!
Among the valiant bidders were the Comer Group (who probably have a sibling rivalry going on), the American land-of-opportunity investor Hines, and Peter Horgan’s Lugus Capital—all vying for mall supremacy like characters in an unwanted sequel to “The Hunger Games.” Moreover, David Goddard’s Lanthorn was also rumored to be in the mix, traipsing around like a retail Cinderella at the ball.
Interestingly enough, this auction followed a fierce bidding war for Marlet’s trio of retail parks in Dublin, Louth, and Tipperary, a contest that attracted ten initial bids. It seems like everyone collectively decided that retail was the new golden goose. For over a year now, retail investments have been the shining star of the property investment galaxy. While the office spaces remain as desirable as a cold cup of tea, retail has swaggered back like a triumphant hero.
In fact, real estate agents reported that in the first three months of the year, retail accounted for half the value of all deals, perhaps sending a subtle hint to those stubborn office spaces still dreaming of grandeur. One might call their shots during uncertain times “the genius of necessity,” but who’s keeping score?
US-headquartered Realty Income is in the game as well, dropping a staggering $950 million on the Las Vegas Bellagio casino—because why not?—and snatching up eight retail parks for €220 million in an epic showdown. If there were Oscars for ambitious property transactions, they’d basically secure Best Picture.
Ah, but fear not! Reports of the death of the bricks-and-mortar shopping experience have clearly been exaggerated. Statistics show consumers are increasingly eager to step away from their screens and throw down some good old-fashioned cash in a physical store, with AIB reporting a 2% rise in in-store shopping compared to last year. Next, they’ll be camping outside shopping malls like it’s Black Friday year-round!
Jean McCabe, chief executive of Retail Excellence Ireland—a title that sounds somewhat valorous—responded to this revival by stating that customers are “returning to stores for the experience.” And yes, those glittering aisles filled with endless items are hard to resist. Meanwhile, Brendan McDowell of BPerfect Cosmetics, a brand that began as an online entity, decided to leap into the physical world by opening 13 stores across the UK and Ireland, turning his brand into a retail reality show.
So here we stand, watching as our once-desolate shopping malls attract a swarm of retailers eager to show what they’ve got. As they say, one person’s recession is another person’s opportunity, especially if there’s a discount section nearby. It seems retail—like a phoenix—has indeed risen from the ashes, albeit with perhaps a few more loyalty cards and an obsession with artisan cheese.
Consider yourself warned: The future of shopping is here, and it’s armed with strong sales, heroic leaps, and a retail landscape that is changing faster than you can say “markdown.” With prospective buyers waiting for investment treasures, the only thing left to wonder is whether you’ll have to dodge shopping carts or treasure maps in the not-so-distant mall ownership future!
