Shoppers of an entirely unconventional variety flocked to the Jervis shopping centre last week, and by flocked, I mean up to 13 eager buyers itching to snatch it up like it was the last slice of pizza at a party. This Toronto-sized mall, once a beacon of retail investment, was stealthily placed on the market by its owners, Paddy McKillen and Padraig Drayne, likely after realizing that not every kid has to grow up with a dream of owning a mall.
This ambitious venture was the first time Jervis attempted to date since the 1990s, drawing in more attention than that one uncle who “totally met” a celebrity in a coffee shop. Among the bidders were the infamous Comer Group, the US property giant Hines, opportunistic Lugus Capital, and Patron Capital, all while David Goddard from Lanthorn stood in the corner like a quintessential property party crasher.
Clearly, these bidding wars are the new Hurt Locker of the investment world, especially after that thrilling auction for Marlet’s trifecta of retail parks, which received ten initial bids — not bad, considering rival office spaces were struggling to gather a handful of interested parties. Apparently, retail is the “best performer” in the property investment scene, and we’ve got Covid to thank for that: the ultimate unsought marketing campaign for entrepreneurs everywhere!
Just when we thought that brick-and-mortar shopping was on life support, like a beleaguered vampire needing a little sunlight therapy, retail’s comeback story began. A report from AIB revealed a 2% rise in in-store spending during the first quarter, which I can only assume is fueled by a surge in impulse buying driven by the ‘I deserve this’ mantra that unleashed itself post-lockdown.
Jean McCabe, the guru of Retail Excellence Ireland, claimed discerning patrons prefer the tangible “customer experience” that physical stores offer. Because nothing screams luxury like standing in line, am I right? And because of this, retailers are racing to open more stores for those economies of scale, as if the shopping experience counts as some kind of competitive sport.
Even Brendan McDowell from BPerfect Cosmetics, who wisely initiated his retail escapade online, thankfully jumped on the physical store bandwagon — 13 brick-and-mortar shops later, he’s ready to flaunt his monetary prowess. After testing the waters in pop-up stores across various shopping malls, he’s there for the long haul, probably contemplating a loyalty points scheme for those who dare to venture out of their homes.
Clearly, the market is a lively chessboard filled with players hoping to outmaneuver each other. Bannon, the commercial property wizard, noted a cultural shift in retail ownership, comparing it to an unmatched round of the Hunger Games; previously, only the elite such as Irish Life controlled the game, while now it appears to be anyone’s game — even a fledgling investor armed with coffee and ambition.
The final round reveals that deals still come in at competitive yields, with shopping centres flaunting numbers resembling those of an eager teenager looking for a prom date, but with the market reached a turning point, the future remains unpredictably exciting. Will retail parks rejuvenate with fresh brands? Will they continue to replace the remnants of the UK chain apocalypse? Only time will tell; for now, we’ll just have to enjoy the spectacle as the cash flows and offerings abound. Retail’s resilience is the new buzzword, and I can’t help but chuckle over the irony that it took a worldwide pandemic to get everyone back to the mall.
