Shoppers of a decidedly *unique* variety paraded into Jervis shopping centre last week. In a scene reminiscent of a Black Friday sale—minus the bloodshed—up to 13 first-round offers were slapped on the table for the Dublin city centre haven of retail therapy, all thanks to owners Paddy McKillen and Padraig Drayne deciding it was high time for an asset clearance sale. Apparently, they could no longer bear the guilt of their mall loitering unsold.
This marks the shopping centre’s debut on the market since it was developed in the1990s by McKillen, Drayne, and that one guy from your secondary school who still insists he “just needs a quick chat” to capitalize on his business acumen. It’s practically the last remaining center from the glory days that still belongs to those who built it—kudos, guys!
Among the bidders were high-caliber names like the Comer Group, US property tycoon Hines, and Peter Horgan’s Lugus Capital—plus some mysterious player named Patron Capital. Let’s not forget David Goddard’s Lanthorn, who, it seems, enjoys dabbling in other people’s fantasies of owning a mall. The competition was fierce, akin to a family Christmas dinner fight over the last slice of fruitcake.
The auction was preceded by the exhilarating bidding wars over Marlet’s trio of retail parks in Dublin, Louth, and Tipperary—where they thankfully only received ten initial bids, a clear sign of true enthusiasm. Retail has transformed into the golden child of the property investment market, scooping up capital like it’s their full-time job. Office sales are dragging their feet in comparison, leaving retail strutting around like it just won a beauty contest.
Realty Income, the US-based giant that seemingly has a credit card with no limit, is dead-set on retail this year, having showered €220 million to snap up eight retail parks. With the kind of spending that would make most people faint, they’ve even pinned their hopes on snagging Marlet’s retail park portfolio. Who knew retail therapy could manifest into therapy for your investment portfolio?
According to the latest statistics, the horror stories post-pandemic about the demise of brick-and-mortar ventures were as exaggerated as your uncle’s fishing tales. AIB’s recent retail report suggests that in-store spending has miraculously risen by 2% compared to last year, apparently proving that people still like to venture out and *interact* with actual products—even if they do have to wear pants while doing so.
In an ironic twist, Jean McCabe, the chief executive of Retail Excellence Ireland, noted that consumers are flocking back to the stores for that nostalgic “customer experience.” Yes, that magical experience of waiting in line to buy overpriced water bottled straight from the fountain of youth, while retailers race to open more stores as if it were 1999 all over again. The evolving tenant mix in shopping centres is now heavily spiced up with entertainment venues because, apparently, shopping isn’t a sufficient distraction from reality anymore.
As we navigate this retail renaissance, we find ourselves caught in a bizarre cycle of closures and openings—where the abandoned shells of once-thriving chains are eagerly snatched up by new players desperate to offer an ever-so-slightly different version of the same old thing. Post-recession survivors like BPerfect are adeptly negotiating shorter leases and better rates, proving that when the going gets tough, the tough get savvy. Or, perhaps, just a little cheeky.
