Shoppers of a Unique Variety
Last week, the Jervis shopping centre was not exactly buzzing with the usual crowd of bargain hunters. Instead, a cadre of sharp-suited dealmakers descended upon it like vultures on a roadkill buffet. To add to the drama, up to 13 first-round offers were thrown on the table like confetti at a wedding, for the illustrious Dublin city centre mall, which its owners—Paddy McKillen and Padraig Drayne—quietly placed on the market as if they were selling off last season’s collection of ties.
This bold maneuver marks the first time the shopping centre has been up for sale since the 1990s when McKillen, Drayne, and their partner Paschal Taggart graced the development scene. It stands tall among the very last of its kind, remaining in the hands of its original creators—like a beloved toy that isn’t quite ready to leave the playroom.
The usual suspects come crawling back to the bidding war: names like the Comer Group, the US property investor Hines, and the enigmatic Lugus Capital, among others. With such a lineup, it’s practically a corporate reality show, minus the dramatic voiceover and explosions. And if you thought the competition on those reality shows was fierce, wait till you hear about the ten initial bids for Marlet’s retail parks in Dublin, Louth, and Tipperary.
For over a year, retail investment has strutted its stuff like a peacock at a fiesta, drawing in more cash than a kid in a candy store. While offices and rental schemes are about as popular as soggy toast, retail has resurrected itself from what was supposed to be a death sentence brought on by the pandemic. In fact, estate agents reported that retail deals in the first quarter of this year accounted for half the total market value. Who knew retail had such tenacity?
Meanwhile, US-based Realty Income seems to be investing in retail like it’s going out of style—or rather, as if it’s coming back into style. After splurging $950 million on the Bellagio casino in Las Vegas this year, they snapped up eight retail parks from Oaktree Capital for a tidy €220 million. Meanwhile, they’ve been chosen as the preferred bidder for Marlet’s prized possessions. Am I sensing a theme here? Perhaps retail is staging a comeback like your uncle’s old band—unexpected, but somehow entertaining.
Let’s not forget the statistics that paint a less-than-dismal picture. According to AIB’s latest retail report, in-store spending saw a buoyant rise of 2 percent in the first quarter. It seems customers have finally decided to ditch their PJs and venture into the real world, relishing the tactile joys of shopping amidst the sea of online influencers. A full 70% of consumers reportedly prefer brick-and-mortar shopping for their everyday needs. It turns out retail therapy is far more effective in person—who could possibly resist those city sales?
Jean McCabe, CEO of Retail Excellence Ireland, confirms our burgeoning affection for retail as she notes the customer’s infatuation with the store experience, resulting in retailers opening more shops. How charming! We’re returning to the good old days when a shopping centre was deemed a social gathering hub rather than a convenience sprint to the checkout kiosk. Maybe the mall is the new pub?
So as the retail landscape shifts yet again—from various closures of high-street favorites to new brands—remember: when a store closes, it paves the way for fresh newcomers. Instead of doom and gloom for landlords, it’s merely a makeover session, often referred to in the industry as an “upgrade.” Resilience, it appears, might just be the new black.
