In a matter of weeks the newly extended Gateway Shopping Park in Galway has opened its fourth new store, Petstop. The new store has a floor area of 6,500 sq. ft and brings the total number of Petstop stores in Ireland to eight, which include The Park Carrickmines and Limerick One Shopping Park.
Petstop is a chain of pet shops in Ireland stocking pet foods, pet supplies and pet accessories. They are a one-stop-shop for all petcare needs with over 7,000 products in their stores. Established 25 years ago in 1995, they are one of the leading pet store chains in Ireland.
Anthony Gallagher, the Managing Director of Petstop said “Petstop are delighted to have opened our latest store at Gateway Shopping Park in Galway. The reaction so far from pets and their parents has been fantastic. I hope we can welcome many more pet families to visit us at Knocknacarra. I would like to send my warmest congratulations to all my colleagues at Petstop in Galway and my friends at Sigma Retail Partners for making our opening such a success.”
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O’Connor, Asset Manager for the park, said: “On behalf of Sigma, we are absolutely delighted to welcome Petstop to Gateway Shopping Park and feel they are a great addition to the existing line-up of retailers. Petstop will join top quality retailers including the recently opened Harvey Norman, Boots and Carraig Donn, as well as the impressive list of existing retailers. We wish them all the best in their new store.”
The new shopping park extension is the first provision of retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It will have open-use retail units, food and beverage units, a creche and a gym.
Gateway Shopping Park already has an impressive line-up of retailers including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with three new stores recently opened in the Phase 2 extension, Harvey Norman, Boots and Carraig Donn.
As per the Retail Sales figures released by the CSO and our own experience across our retail park portfolio DIY & Household goods sales have been the stand out performer of the Retail sector since March.
Retail Parks continue to perform well with rolling restrictions on other retail outlets redirecting spend into home improvements.
Interestingly this is a sector with very low levels on pure online penetration although we have been actively engaging with a number of occupiers about facilitating their client and collect offer.
Bannon are delighted to have concluded the deal that sees Ray-Ban now trading from 32 Grafton Street. Congratulations to Ray-Ban for carrying out an amazing fitout.
Carraig Donn will open a new store in Gateway Shopping Park in Galway on Friday 11th September. The new store will be the largest of all their retail stores with a floor area of 4,700 sq. ft and it will bring the total number of Carraig Donn stores in Ireland to 42.
Carraig Donn is Ireland’s premier retailer of fashion, jewellery and giftware products. Carraig Donn was established 55 years ago in 1965 and has its head office in Westport, County Mayo. It is 100% Irish owned and currently employs over 500 people nationally.
Pat Hughes is the Managing Director of Carraig Donn and the company was founded by his parents, Padraig and Maire Hughes. Pat Hughes said “We’re delighted to announce the opening of our new flagship store, and our third store in Galway. Despite the challenges that exist in our industry as a result of Covid-19, we are committed to our growth and expansion plan. We have a loyal customer base in Galway, and we are delighted to bring the very best of Irish fashion, jewellery and homeware to Knocknacarra”.
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O Connor, Asset Manager for the park, said: “On behalf of Sigma and indeed the wider design team and the owners, we are thrilled to welcome Carraig Donn to our newly extended and re-branded Gateway Shopping Park. Carraig Donn will join top quality retailers including Boots and Harvey Norman who also opened their fantastic new stores within the last few weeks, and will join existing tenants Dunnes, B&Q, Next, New Look and McSharry Pharmacy.”
The Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. The new extension will have open-use retail units, food and beverage units, a creche and a gym.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with two new stores recently opened, Harvey Norman and Boots, and Petstop opening soon in the upcoming weeks.
On the face of it the recovery in the retail sector is astounding. Excluding Cars the value of retail sales in Ireland in July was 5.9% higher than in July 2019. These are boom type numbers. Dig deeper and the continued polarisation of the Retail sector’s recovery is laid bare.
Bars, Books, Fuel & Department stores (Debenhams closure might be a large part of this) are still way down on last year meaning that the increase in sales in other sectors is stratospheric. Electrical up 26.5%, Furniture & Hardware up 20%, Food & Beverage up 16% and this is in comparison to 2019 not the lock down period. Bodes very well for Retail Parks.
Also positive to see 3.6% annual growth in the value of Clothing & Footwear. A note of caution, the natural rhythm of the retail sector has been greatly disrupted by COVID & lockdowns so we will be monitoring how sales in different sub-sectors balance out over the months ahead.
FunTech is now open on Level 1 in Blanchardstown Centre. Phones, gadgets and accessories all available.
Liverpool FC have launched a brand new pop-up store in the Swords Pavilions Shopping Centre, making it the second official club store in Dublin.
International homeware retailer JYSK will open a new store in Sligo Retail Park on Thursday, 27th August. The store will have a floor area of 10,000 sq. ft and it will be JYSK’s eighth store in Ireland. It will also be the fifth store in Sigma Retail Partners’ portfolio, the other JYSK stores in its portfolio are Naas Retail Park, Drogheda Retail Park, Navan Retail Park and Parkway Retail Park (Limerick).
JYSK is an international retail chain from Denmark that sells household goods such as mattresses, bedding, sofas, furniture, curtains, dining sets and soft furnishings. JYSK is the largest Danish retailer operating internationally with close to 2,800 stores in 52 different countries, and many more stores will follow with its worldwide expansion plans. It was the founder and Chairman of the board Lars Larsen’s goal from the beginning to open and grow more and more stores and the aim to expand is a central part of JYSK’s plans. JYSK’s first entry into Ireland was in April 2019 with a store in Naas Retail Park.
Roni Tuominen, Country Manager at JYSK UK & Ireland, said: “The appetite for JYSK’s offering is there amongst Irish consumers. As a result we want to find new JYSK locations in towns and cities all over Ireland so we can contribute to the local economy, especially in smaller communities where our job creation will be extremely valuable.”
“We’re very excited to open the first JYSK store in Sligo which will be the centre of our operations in the West of Ireland going forward. We look forward to delivering exceptional quality products at great prices to our Sligo based consumers”, he added.
Patrick O’Connor, Asset Manager from Sigma Retail Partners, said “New retailers always bring a fresh new feeling and a sense of excitement into a retail park. The fact that JYSK is relatively new to Ireland adds even more to this excitement. We are delighted to have JYSK on board in Sligo Retail Park and we wish them the best of luck with their upcoming store openings.”
In addition to JYSK, Harvey Norman is also due to open a 40,000 sq. ft store in October. Sligo Retail Park is the primary retail park destination in the North West catchment area with stores catering to a wide variety of customers and accommodates diverse retail use. It has a total of twelve retailers that include Currys PC World, Smyths Toys, Homebase, Castle Davitt, Right Price Tiles, Homestore & More, EZ Living, McDonalds, Costa and KFC, with 1,000 free car parking spaces.
Yours Clothing, a plus-size retailer, is now open in the Ilac Shopping Centre.
The Phase 2 development provided over 150 jobs during the construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It is also the first provision of new retail space outside of Dublin since 2008.
After the absence of any retail construction activity in Galway for more than 10 years, the brand new Gateway Shopping Park Phase 2 expansion has just been completed, with the first two retailers, Harvey Norman and Boots opening their stores this month. Boots opened their store early July with Harvey Norman opening their new flagship store of 60,000 sq. ft on 22nd July.
The newly completed Phase 2 extension will have open-use retail units, food and beverage units, a creche and also a gym. It will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland’s largest shopping destinations. Aside from Harvey Norman and Boots, Carraig Donn, Spraoi Early Learning and Evergreen, Esquires are also included in the line-up of new retailers in the expansion.
Gateway Shopping Park already has an impressive list of current retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy. The asset management company Sigma Retail Partners, on behalf of the owners Targeted Investment Opportunities ICAV, worked extensively on the project and the newly expanded retail asset will reinforce the shopping park as a primary shopping destination.
Gateway Shopping Park is located in Knocknacarra on Western Distributor Road, just across from the new gaelscoil that was built last year, Gaelscoil Mhic Amhlaigh. Gateway Shopping Park is also just a 10-minute drive from Galway city centre.
Harvey Norman are set to open their premium store in the new Phase 2 development at Gateway Shopping Park, Knocknacarra, Galway on Wednesday the 22nd July. Harvey Norman will anchor the recently completed Phase 2 extension with the existing Phase 1 anchored by Dunnes Stores and B&Q.
The largest retailer of appliances, technology and interiors in Ireland, Harvey Norman, will open a new premium 60,000 sq. ft. store which will trade over 2 levels and will include furniture, bedding, homewares, technology and appliances. There is also a Synge & Byrne café located upstairs. Harvey Norman will be an exciting addition to the already impressive line-up which includes Dunnes Stores, B&Q, Boots, New Look and Next.
Commenting on the store opening, Harvey Norman CEO Peter Hearn said, “We are very excited to open the doors to our Galway store. Our team has created THE key shopping destination in Galway for furniture, bedding, appliances and technology. We are proud to showcase our large range of the latest Irish-made furniture and bedding, we’ve installed a huge kitchen display area, a games hub, a Wonder Photo Shop and more. The biggest global brands highlighted by the latest store fit design plus safe shopping measures are all in place for our Galway customers.” There have been 47 jobs created within the store and warehouse.
Paddy O’Connor of Sigma Retail Partners, the asset managers for Gateway Shopping Park, said “we are absolutely delighted with the opening of Harvey Norman in our shopping park. We are excited to finally be able to welcome Harvey Norman to Galway and wish the Harvey Norman team all the best in their impressive new store. This is the first large scale retail development in the country for a number of years and the confidence shown in the scheme, Galway and also traditional retail can be seen with the quality of the international and national renowned retailers we are partnering with. Harvey Norman and the new Phase 2 tenants will solidify Gateway Shopping Park as a leading retail destination in the Galway catchment”.
The new Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied.
The Phase 2 extension will have open-use retail units, food and beverage units, a creche and a gym. Gateway Shopping Park will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland largest shopping destinations.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, Boots, New Look, Next and McSharry Pharmacy.
More exciting retailers will be announced in the coming weeks.
Lucy Connolly – Divisional Director – “The anticipated impact of covid-19 on the Dublin office market translated to a take up figure of 75,000 sq.ft. this quarter. We do expect to see a busier Q3 with over 700,000 sq.ft. of accommodation reserved, with some large transactions close to completing in the coming weeks. We commenced the quarter on a positive note with the recent announcement that Gilead are to create 140 new jobs following their letting of over 30,000 sq.ft. at North Dock”.
David Carroll, Investment Director – “Q2 turnover of €430m reflected the impact of C-19 on the commercial market. 20 deals were completed with 78% of turnover attributable to just four transactions”.
Another exciting addition soon to Manor Mills Shopping Centre in Maynooth, Sasta by the River restaurant, offering healthy food & drinks, including a great selection of vegetarian, vegan and gluten-free options, homemade cakes and pastries.
This new eatery is exactly what Maynooth has been looking for. It is great news to have new local businesses emerging in what has been very difficult times for the retail sector. Keep an eye on Sasta by the River social media pages where they will be documenting their fit-out towards their opening.
Boots is set to be the first store to open in the new Phase 2 development at Gateway Shopping Park, Knocknacarra, Galway on Wednesday 1st July. Boots will come as an excellent addition to the existing park, currently anchored by Dunnes Stores and B&Q.
Boots will occupy a large store of over 7,500 sq.ft and will come as wonderful news to customers of Gateway Shopping Park and the loyal shoppers in Knocknacarra and the wider catchment.
Boots Ireland is a leading pharmacy-led health and beauty retailer with 89 stores in Ireland and over 2,000 employees. Boots is at the heart of the communities it serves and is a staple health and beauty retailer for many people in Ireland. Customers visiting the new store will have access to a wide range of pharmacy services, including prescription service, blood pressure monitor, vaccinations, healthy heart support and hearing care service.
Commenting on the store opening, Store Manager David Boyce said: “We are delighted to open the doors to our new Boots Ireland store in Knocknacarra. The new store will provide local residents with access to our wide range of pharmacy, health and beauty products and services. Our new store has created 16 new jobs in the locality and both myself and the team are looking forward to welcoming customers over the coming days.”
Paddy O’Connor of Sigma Retail Partners, the asset managers for Gateway Shopping Park, said “we are absolutely delighted with the opening of Boots in our shopping park and feel they are a great addition to the existing line-up of retailers. Boots and the new Phase 2 tenants will solidify Gateway Shopping Park as a leading retail destination in the Knocknacarra and wider Galway catchment”.
The new Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied.
The Phase 2 extension will have open-use retail units, food and beverage units, a creche and a gym. Harvey Norman is also scheduled to open a new flagship 60,000 sq.ft store in July. Gateway Shopping Park will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland largest shopping destinations.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy.
More exciting retailers will be announced in the coming weeks.
Since the introduction of the Local Government Reform Act 2014, Local Authorities have been given autonomy to vary the level of rates relief granted to owners of vacant properties. As a result, the level of refunds on commercial rates available to Landlords of vacant properties varies significantly between Local Authorities. In Dublin City Council for example the owner of a vacant property is responsible for 75% of the annual rates bill (with 25% relief granted by DCC) where a property remains vacant and unlet.
| Local Authority | Vacancy Relief 2020 |
| Dublin City Council | 25% |
| Dun Laoghaire Rathdown County Council | 35% |
| Fingal County Council | 50% |
| South Dublin County Council | 50% |
These levels of vacancy relief will come under increased scrutiny later in the year as Council’s prepare Budgets for 2021 and beyond. Owners of unoccupied properties should carefully consider options on how to mitigate against increased vacancy voids.
Businesses across Ireland contribute approximately €1.5 billion in commercial rates to Local Authorities across the country each year. This is a critical source of income for each of the 31 Local Authorities in the State and typically accounts for between 16% and 53% of their revenue stream with the national average standing at 33%. According to the latest available statistics collection rates averaged 86% nationwide in 2017, significantly less that the corresponding LPT collection rate which stood at 97%.
Within the Dublin City Council administrative area commercial rates income of €353.5m has been budgeted for the 2020 financial year. Of the 21,000 commercial properties within the city it is estimated that some 34% are classified as retail properties following the last Revaluation process. Therefore, the total annual rates income from retail properties alone in Dublin City is in the order of €120m, representing almost 12% of the Council’s total annual revenue for 2020.
The reliance on rates income from retail properties is even more pronounced in Dun Laoghaire-Rathdown which is home to the country’s largest retail scheme. Dundrum Town Centre alone contributes €9.2m in annual rates income representing just over 10% of the Council’s budgeted rates income for 2020.
In the midst of the current Coronavirus pandemic most businesses, particularly those considered non-essential and which have been forced to shut their doors, are intensively considering cash-flow and how to eventually get their businesses re-open for trade, if at all. It’s likely that overheads such as wages, rent and payments to Revenue will take precedence over commercial rates.
For its part the Government has recognized that ratepayers, particularly small and medium retailers, hospitality, leisure and childcare operators are likely to be the businesses that are most adversely affected. However, they have stopped short of issuing an exemption from commercial rates unlike the U.K Government which announced that all retail and hospitality firms will be exempt from business rates for 12 months. In the absence of such tangible Government intervention on the issue Local Authorities will be facing major funding difficulties and hard choices over which of their services to cut as additional revenue raising measures will not be palatable.
It is likely that the Government may introduce Emergency Legislation to extend/suspend the statutory timeframes which apply to planning applications and appeals. Currently a planning application which is not adjudicated upon within the 8 week timeframe (barring an F.I. & assuming no 3rd party appeal) receives a grant of permission by default. The current planning process timeframe is as follows:
| 3rd Party Observation Period: | 5 weeks from receipt of application |
| Planning Authority Decision: | 8 weeks from application validation |
| Further Information Receipt: | 6 months from request |
| Appeals to ABP: | 4 weeks from L.A decision |
| ABP Decision: | 18 weeks (but can be unilaterally extended) |
Any ongoing reviews of Local Area Plans or Development Plans are likely to be postponed as the requirements for Public Consultations cannot be adhered-to due to COVID-19. The Oral Hearing for the N6 Galway City Ring Road has also been postponed by ABP until the end of March at the earliest.
There has been a lot of talk about the future of the bricks & mortar of Irish retail and flagging local retail performances – most of which has been framed through the arrival of online sales.
But is it all as worrying as we’re led to believe?
Neil Bannon, Executive Chairman of Commercial Property Consultancy firm Bannon joined Bobby to discuss how retail is faring in Ireland and ask if all the doom and gloom is actually warranted?
When designing a campus for a new University of Engineering and Technology in Lima, Peru, the Dublin-based architects Yvonne Farrell and Shelley McNamara thought deeply about how to integrate the wind and the rain.
It is because of that sensitivity to the natural elements, as well as qualities like their emphasis on collaboration, that the pair was selected to receive the 2020 Pritzker Prize, making them the first two women to share the profession’s highest honor. The award was announced on Tuesday.
“Their approach to architecture is always honest, revealing an understanding of the processes of design and construction from large-scale structures to the smallest details,” the jury’s citation said. “It is often in these details, especially in buildings with modest budgets, where a big impact can be felt……continue reading full article.
“Great to see Fitzwilliam28 architects, Shelley & Yvonne, win the Pritzker. Their end-user lead approach to design with an environmental focus was an education.” Rod Nowlan of Bannon
Hibernia REIT has let the remaining space in its 2WML building to online fashion platform Zalando Ireland.
The 47,500 sq.ft has been rented on a 15-year lease, with term certain of seven years, at initial rent of €2.9 million per annum – almost €60 per square foot.
The building is now let to Zalando, Udemy and gym firm Perpetua, at a contracted rent of €3.9 million per annum.
The news follows Hibernia Reit’s statement earlier this month that negotiations over leases on the majority of its vacant office space were “advanced” following an active fourth quarter in the Dublin office market.
“Following this letting the Quarter’s circa 400,000 sq.ft of office accommodation is fully occupied, marking the completion of a six-year programme to transform the Windmill Lane area in Dublin’s South Docks and the creation of our first cluster of office buildings,” said Justin Dowling, Hibernia’s director of property.
Hibernia REIT has made two acquisitions in recent months as it bought assets next to properties it already owns.
In a trading update covering the period from October to today, the commercial property firm said it spent €2.5m on the two acquisitions.
Hibernia REIT also said it was in negotiations with tenants to take 56,000 square foot of space in its redeveloped property on Cumberland Place in Dublin city centre.
In today’s trading update, Hibernia said the Dublin office letting market saw another highly active fourth quarter, following two relatively quiet quarters.
It noted that take-up exceeded 3.3 million square feet in 2019 as a whole.
While this was lower than 2018, when a record 3.9 million square feet was leased, a number of deals were outstanding at the end of the year, with over 1.3 million square feet of space reserved.
“In addition, active demand at year end stood at 3.8 million square feet, which should be supportive for the occupational market in 2020,” Hibernia REIT said.
Hibernia said the vacancy rate in its in-place office portfolio remains at 12% and is mainly across its 2WML, Central Quay and the Forum developments.
It said it has made good progress in lease negotiations for the majority of the space available, adding that it expects these to start concluding shortly.
Kevin Nowlan, chief executive of Hibernia, said that the Dublin office letting market ended 2019 strongly, with a pick-up in demand from tenants of all sizes, after a quieter period in the middle of the year, particularly for smaller occupiers.
“Levels of active tenant demand remain high and 2020 has started positively,” he said.
“Property investment market volumes set a new record in 2019 though it remains to be seen how the market reacts to the tax changes introduced in the recent Budget,” he added.
Mr Nowlan said Hibernia REIT had made good progress with the lease negotiations that are ongoing over much of the available space in the office portfolio.
“We continue to work on advancing our development pipeline and have made two small property acquisitions to enhance the future value of the assets we already own,” he said.
“Hibernia remains well-positioned with an extensive development pipeline, low financial leverage and a talented team,” he concluded.
Specsavers have now joined the tenant line up in Manor Mills Shopping Centre. The store is equipped with the latest eye and ear testing technology. Maynooth is the only Specsavers store in North Kildare.
Specsavers now have over 1,980 stores worldwide including 79 in Ireland. The chain offers optician services for eyesight testing and sells glasses, sunglasses, contact lenses and hearing aids. Founded in 1983, Doug and Mary Perkins started the business with their first store opening in UK and through the years, Specsavers have partnered with international celebrities such as Kylie Minogue and Will.I.Am in their exclusive eyewear range with Specsavers.
Jenna Culligan, from Sigma Retail Partners, asset managers for Manor Mills Shopping Centre, said “One of our asset management strategies from the outset for the shopping centre has been to bring in a wide variety of retailers to cover all aspects of the needs for our shoppers and residents alike.”
Built in 2005, Manor Mills Shopping Centre is centrally located within Maynooth town itself and is located adjacent to Maynooth University. The shopping centre is home to 30 retailers including Dunnes Stores, Costa Coffee, Carraig Donn, Eason and Hickeys Pharmacy. There are over 500 free car parking spaces in a covered car park. A significant amount has already been invested into the rebranding of Manor Mills Shopping Centre and plans for further investment are set to continue.
Harvey Norman is to open its new store in Knocknacarra in April with the creation of over 60 jobs.
The major retail outlet will be located at the Gateway Retail Park, on the Western Distributor Road beside Dunnes Stores and others such as B&Q.
Recruitment is ongoing for cashiers, sales, administration, and technical support staff.
Manager of the new outlet, Michael Sloane says the Galway store will be one of the best in the country.
The Central Statistics Office has today issued results from the Household Finance and Consumption Survey (HFCS) for 2018 and comparable data for 2013, the previous year this survey was run.
Commenting on the report, Stephen Lee, Statistician, said: “The HFCS is the only household survey that collects combined information on asset, income and debt levels of Irish households.
The results show that in Ireland, the wealthiest 10% of all households have a net wealth greater than €835,000 while the bottom 10% have a net wealth of less than €1,000. Net wealth is calculated as the value of all assets minus debt.
In 2018, the median net wealth value of Irish households was €184,900, representing an increase of 80.2% on the 2013 value of €102,600.
The median value is obtained by arranging all households in ascending order from the smallest to the largest value and then selecting the middle value. In terms of wealth, the median provides a truer reflection of the average household as it is not influenced by extreme values.
The value of the household’s main residence is a key component of wealth. In Ireland, 69.5% of households own their own residence. In 2018, the median value for households’ main residence was €250,000, up from €150,000 in 2013.
The median net wealth of households that own their own home is €287,300 while for renters it is considerably less at €5,900.
We see that wealth is more concentrated in the ‘Eastern and Midlands’ region with a median net wealth of €212,700, compared to €189,700 in the ‘Southern’ region and €146,900 in the ‘Northern and Western’ region.
Almost one third of households (32.7%) reported that they received an inheritance or a substantial gift at some time in the past. However, this varies depending on how wealthy a household is. Over two thirds (67.6%) of the wealthiest 10% of households received a substantial inheritance or gift but this drops to just over one tenth (10.3%) for the 10% of households with the lowest net wealth.
More than nine out of every ten households (94.3%) own some form of financial asset including savings, shares, bonds, investments and voluntary pensions. For households that own financial assets the median value is €7,900 up from €6,300 in 2013.
Over half (51.5%) of all households have some form of debt including mortgages, loans, credit cards and overdrafts, down from 56.8% in 2013. Overall, the median value of debt, for those households that have debt, has dropped by over €20,000 since 2013, from €63,000 to €42,300.
For households that have a mortgage on their home, the median loan to value (ltv), the ratio of the outstanding amount of the mortgage to the current value of the property, is 45.3%, down from 73.5% in 2013.
In 2013, 31.9% of all homes owned with a mortgage were in negative equity, whereas the 2018 rate is 3.9%.”
The first drive-thru Starbucks on Ireland’s east coast has opened at Marshes Shopping Centre and coffee lovers should keep an eye out for promotions throughout the week.
The move has been hailed by centre management at Marshes as “another vote of confidence in the north east’s most popular retail destination”.
Starbucks operates over 20,000 outlets globally, but this is only the second drive-thru in the Republic of Ireland.
The first Starbucks drive-thru in Ireland opened in 2018 at Shannon.
The new drive-thru is located at the Dunnes Stores entrance to the centre, beside an An Bóthar Iarainn and the link road to the Avenue Road/Tom Bellew Avenue.
“We are delighted with this wonderful development at Marshes,” said centre manager Seán Farrell.
“Marshes continues to enjoy great success and the opening of the Starbucks drive-thru is another vote of confidence as the centre experiences more growth and renewal.”
This is the second Starbucks outlet in the centre, the coffee chain has had a store in Marshes since 2014.
The volume of retail sales increased by 3.6% in December when compared to November on a seasonally adjusted basis and increased by 5.8% on an annual basis.
Note: ‘Black Friday’ is included in the December reporting period for the RSI, which covers the 5 weeks 24/11/2019 – 28/12/2019. In 2018 ‘Black Friday’ was covered in the November reporting period.
When Motor Trades are excluded, the volume of retail sales increased by 2.8% in December 2019 and rose by 5.0% when compared with December 2018.
The sectors with the largest month on month volume increases were Food, Beverages & Tobacco (11.7%) and Motor Trades (5.3%). The sectors with the largest monthly volume decreases were Other Retail Sales (-10.0%) and Books, Newspapers & Stationery (-3.0%).
There was an increase of 3.4% in the value of retail sales in December 2019 when compared with November 2019 and there was an annual increase of 4.6% when compared with December 2018. If Motor Trades are excluded, there was an increase of 2.9% in the value of retail sales in the month and an increase of 3.0% in the annual figure.
Unadjusted indices are available on CSO Statbank.
Online Sales
The sector with the highest share of its sales online in December 2019 was Online & Mail Order at 87.5%. This sector accounted for 1.0% of turnover in the 2017 Annual Services Inquiry. For Electrical Goods the online share was 13% and for Clothing, Footwear & Textiles it was 7.3%.
One of only a handful of independently-owned retail units at the highly successful Blanchardstown Centre has been brought to the market by agent Bannon at a guide price of €16 million.
The property, which is being offered as a sale-and-leaseback opportunity, will be the subject of a new 25-year lease to its current owner, the leading book and stationery retailer,Eason, at a market rent of €1.1 million per annum, reflecting an initial return of 6.25% for the prospective purchaser.
The subject property comprises a large double unit extending to 1,125 sq.m (12,104 sq.ft) over two floors and is centrally located within the Blanchardstown Centre, enjoying frontage on to both level 1 and level 2 malls.
At level 1, the unit is located opposite the new flagship 12,500 sq.ft JD Sports which is under construction and due to open later in the year. At level 2 the unit is situated directly opposite the Hollister flagship store, which is due to open in the third quarter of this year. This is in addition to a number of other new developments within the scheme including a new Aldi at level 1 and nine new restaurants at level 2. Other high-profile occupiers in the retail scheme include Dunnes, Penneys, M&S, BT2 , Boots, H&M and Zara.
Blanchardstown Shopping Centre scheme is Ireland’s largest shopping and leisure destination and is majority owned by Multi/Blackstone, who acquired their interest from Green Property in 2016 for close to €950 million implying a yield level for mall units in the region of 4.75%.
New units
In terms of the subject property, Bannon say there is scope in the long term to increase the rental income by dividing its existing space at levels 1 and 2 into two or even four units. Were these new units to be let independently of each other, the selling agent believes the estimated rental value grow to as much as €1.28 million.
The lessee of the current combined unit will be Eason Limited. This entity is the lessee on all the major Eason’s units in Ireland including the four other M50 shopping centres being Dundrum Town Centre, Liffey Valley Shopping Centre, The Square Tallaght and The Pavilions Swords.
Eason Limited had a turnover of €109 million in the year ended January 2018, with a profit after tax and restructuring costs (€3.3m) of €700,000. The profit after tax for the year ending January 2019 is expected to be approximately €3 million bringing the balance sheet value to around €6 million. Full accounts for 2018 and 2019 are available on request.
Quite apart from securing an attractive initial yield of 6.25%, the purchaser of Eason’s Blanchardstown unit will have the benefit of a 10-year parent company guarantee from Eason Operations Limited (EOL). This guarantee will be limited in terms of financial exposure to three years’ rent. Full draft accounts for EOL will be made available to prospective purchasers of the Blanchardstown unit on request.
Eason’s sale of the Blanchardstown unit forms part of a wider disposal of 13 of its properties which it announced in 2018. The company estimated at the time that the sale of this property portfolio could generate a windfall of about €60 million. Some €20 million of these proceeds are set to be transferred to Eason’s retail business with the remainder divided among its 220 shareholders.
Warehouse
The first and most significant transaction in the process saw Eason secure €19 million from the sale in January 2019 of its 17,176 sq.m (184,886 sq.ft) St Margaret’s warehouse on 8.4 acres in north Dublin to Irish property company Iput. Eason’s flagship store on O’Connell Street remains on the market on a sale-and leaseback basis at a guide price of €24.5 million.
Commenting on the sale of Eason’s Blanchardstown unit, Rod Nowlan, director at Bannon, says: “This is an opportunity for smaller institutional funds and private investment houses to gain access to an asset quality usually reserved for super funds.”
Real estate investor Mel Sutcliffe of Quanta Capital has acquired No 10 St Stephen’s Green for around €4 million. Located immediately adjacent to the historic Hibernian Club and dating from the 19th century, the high-profile Georgian building extends to 465 sq.m (5,000 sq.ft) over four floors and was formerly the home, in part, to the Il Posto Italian restaurant which ceased trading in 2018 after more than 20 years in business. Separately, the ground and upper floors had been operating as a licensed premises since 2014 but these were vacated prior to the sale.
The subject property was offered to the market last September by selling agent Bannon on behalf of Antoine Xavier’s Xestra Asset Management. Xestra had, for its part, acquired the property in 2017 from developer Sean Mulryan’s Markland Holdings for around €2.5 million albeit subject to its existing tenancies. David Carroll of Bannon brought the property for sale with full vacant possession and with the further benefit of a seven-day publican’s licence.
Number 10 enjoys a prime location directly opposite St Stephen’s Green itself and just 100m east of Grafton Street.
News of Sutcliffe’s acquisition of the property comes just six weeks after The Irish Times reported on his company’s €40 million off-market purchase of the landmark Shelbourne House in Ballsbridge.
The Shelbourne House purchase is understood to have been supported with funding from Fairfield Real Estate Finance and its US-headquartered backers, Oaktree Capital Management.
Shelbourne House previously formed part of the portfolio of O’Malley Homes and Development, and has for years served as the location for its headquarters.
The combination of Dublin’s status as a location to deploy international capital and its standing as the city favoured by global tech giants for their European headquarters is expected to spur significant interest from European and international investors in the sale of Fitzwilliam 28.
Located on Fitzwilliam Street and at the heart of the traditional central business district in Dublin 2, the building, which has just been leased in its entirety to workplace collaboration tech giant Slack Technologies, is being offered to the market by joint agents Savills Ireland and Bannon at a guide price of €168 million.
Fitzwilliam 28 is one of two adjoining but independent blocks both being developed by Ireland’s largest utilities company, the ESB. The sister block to 28, Fitzwilliam 27 will be owner-occupied by the ESB.
Upon completion in the second quarter of this year, Fitzwilliam 28 will comprise 12,599.2 sq.m (135,617 sq.ft) of prime grade-A accommodation over eight floors with 50 car-parking spaces.
Slack Technologies have taken a new long-term lease of the entire building from practical completion. The rent roll will be in excess of €7.7 million per annum, reflecting an initial yield of about 4.2 per cent. Colliers International represented Slack Inc in the recent letting, while Savills Ireland and Bannon represented the landlord.
Slack’s decision to rent all 135,617 sq.ft of space at Fitzwilliam 28 will give it the capacity to add as many as 1,100 jobs in Dublin. The company currently employs about 180 people at its existing European headquarter operations at One Park Place on nearby Hatch Street.
In terms of specification, Fitzwilliam 28 will feature extensive landscaping and sunken gardens, a double-height reception with marble walls and natural stone floored area leading to a centralised core offering the occupier maximum flexibility. The A3 BER-rated building will also feature more than 1,759 sq.m (18,933 sq.ft) of rooftop, courtyard and terrace gardens, providing extensive views of Dublin, in particular Merrion Square.
The building is designed by internationally acclaimed Grafton Architects and O’Mahony Pike Architects. PJ Hegarty & Sons, who are the leading design and build contractors in Ireland, are the contractors. They have a strong track record of developing high-profile offices. Recent experience includes No 10 Molesworth Street, AIB’s new corporate headquarters, and No 40 Molesworth Street, Jet. com’s headquarters.
The Fitzwilliam scheme enjoys a prime location within close proximity to Government Buildings, the traditional retail core of Grafton Street and St Stephen’s Green and the city’s south docklands. The immediate area is well serviced by Dublin’s public transport network with both the Luas and Dart, and numerous Dublin Bus routes located within a short walk.
Fergus O’Farrell, director of investment at Savills Ireland, says: “Interest remains strong in the office sector. Dublin’s strong occupier market and economy, coupled with the quality of this asset and its central business district location, will attract interest from global investors.”
Rod Nowlan, investment director at Bannon adds: “As proven by recent lettings to the likes of LinkedIn, Twitter and Stripe, modern offices of scale situated in the traditional city core represent the focus of the current and likely future wave of occupiers. This reflects an increased emphasis by companies on “employee experience”, and there are few modern buildings that can deliver on this aspiration more than Fitzwilliam 28.
Stockbrokers Davy have revised upwards their GDP growth forecast for 2020 to 5.5% from 4.1% previously.
Davy said the upgrade came on the back of strong foreign direct investment, expansion in the multinational sector and an exceptional export performance.
The new forecasts puts Davy well above official projections including the Central Bank’s estimate of 4.3% and the Department of Finance’s forecast of 3.9%.
The stockbrokers also revised upwards their forecast for Irish GDP growth in 2019 to 6.2% from 5% previously.
In its latest Irish Economist forecast, Davy said that exports are set to grow by 11% in 2019 and 7% in 2020, due to continued strong foreign direct investment levels.
Davy also said it expects consumer spending to grow by 3.2% in 2020 and employment by 2.5%, with the unemployment rate falling to 4.4% and the Budget surplus growing to 0.8% of GDP.
On Brexit, Davy said that the UK’s planned departure from the European Union uncertainty depressed the Irish indigenous economy in 2019.
The stockbrokers noted that about 50% of SMEs postponed investment plans and the pick-up in liquidity in the housing market was delayed.
It also said that non-residential construction slowed sharply last year, with output in the distribution, transport and tourism sectors flat on the year.
“Now that a no-deal Brexit cannot occur in 2020, we expect output in indigenous sectors to grow by 3.5% in 2020, slightly faster than the 3% in 2019,” Davy said.
It also said it expected house price inflation to rise slightly to 2% during 2020 from 1% in 2019.
Construction began growing again in December following a three-month slowdown in the Republic, the latest figures show.
Ulster Bank’s construction purchasing managers’ index (PMI) shows that activity in commercial development and housebuilding increased last month, while work on public projects continued falling but at a slower pace than previously.
The pick-up in two of the industry’s three key sectors meant growth returned in December following a three-month slowdown in activity.
The index, which follows the sector’s performance every month, reached 52 in December, indicating that the industry grew during the month.
Ulster’s PMI takes 50 as its benchmark. Any reading above that figure means that the industry expanded on the previous month, while any result below that shows that it shrank. November’s reading was 48.2.
Simon Barry, chief economist for the Republic at Ulster Bank, welcomed the return to growth in building last month.
“Indeed, following a three-month sequence of falling activity the headline PMI index rose sharply last month to get back to above the 50 breakeven level for the first time since August,” he said
“Reduced Brexit uncertainty was cited as a source of support for the increase in overall activity at the end of 2019, while the improvement also reflected better performance across the three main sub-sectors.”
Mr Barry noted that housebuilding grew in December, supporting a view that Brexit fears were behind the slowdown over the previous three months.
“Meanwhile, commercial activity saw a further acceleration in its rate of expansion last month, in the process remaining the fastest-growing sub-sector,” he added.
Housing activity reached 51.8 in December, indicating that activity in that sector grew. Commercial activity, which includes building offices, shops and factories, was 53.6.
Civil engineering, mostly comprising work on State-funded projects such as roads, schools and hospitals, returned at 43.1, indicating that activity in this area slowed.
Builders were more confident about the future in December than they had been for six months, Ulster Bank said.
With 3 transactions in excess of 100,000 sq. ft. take-up reached an impressive 1.2m sq. ft. in Q4. This brings the year-end total to 3.29m sq. ft. across 204 transactions. Full report to follow.
The strongest ever quarter for the Irish investment Market with total turnover for Q4 2019 reaching a staggering €3.76bn and total turnover for the 12 months of the year in excess of €7bn. To put the quarter in context it is higher than the entire annual turnover of the last cycle peak in 2006 of €3bn+ and annualised smashes this cycles 2016 peak of €4.5bn. PRS remained the most active sector accounting for 41% of transaction value. Full Report to follow.
IRISH diner Shake Dog is set to open its first Dublin restaurant in the Ilac Centre on Henry Street in March 2020.
The popular American-style diner serves various comfort food dishes including burgers, fries, shakes, salads and chicken tenders.
The diner already has flagship restaurants across Cork, Limerick, Waterford, Tipperary, Galway, Wexford and Drogheda and uses fresh and locally sourced ingredients.
Opening in March 2020, Shake Dog will occupy a 308 sq.m. unit in the Ilac’s Central Square.
The restaurant also caters for vegetarians with various veggie friendly options.
Commenting on the news of the upcoming Dublin restaurant, Brian Dunne, founder of Shake Dog, said: “We are really excited to be opening our first Shake Dog in Dublin in such a central and busy location.
“The team at the Ilac Centre has been a pleasure to work with and we can’t wait for the centre’s customers to discover our menu.”
Billy Reid, General Manager at the Ilac Centre, added: “Shake Dog is an exciting Irish brand which will be a great addition to the new dining offering at the Ilac Centre.
“We look forward to introducing this new national restaurant to customers.”
MacDonagh Junction is the larges shopping centre in the South East. But that is a massive under-statement for the Kilkenny centre is so much more.
It is a cultural hub, an entertainment base, a tourist attraction and a place where people meet to eat and enjoy everything from a quick coffee to a leisurely gourmet experience.
MacDonagh Junction is Kilkenny city’s residential, commercial business and leisure quarter, with an architectural style that perfectly suits its historic surroundings.
It is home to 100 luxury apartments, 40 top quality retail units, and a landmark office building. It has restaurants, space for performances, a community youth centre and leisure facilities including a bowling centre.
MacDonagh Junction is a platform for leading Irish and international retailers. The anchor tenants include Dunnes, H&M, River Island, Next and TK Maxx.
“There has been a good uplift in our retail performance over the last six years with sustained measured footfall growth, resulting in improvements in performance across mos of the brands trading at MacDonagh Junction,” says the centre’s manager, Marion Acreman.
This, she explains, has enabled MacDonagh Junction to attract brands that enhance the tenant mix and offer customers an outstanding range of fashion, food and leisure services.
Shopping at MacDonagh junction is always a pleasure. “We have top class experiential services, including a baby -feeding suite, height-adjustable changing bench and free wifi,” explains Marion. “And we have a wheelchair and buggy loan service from our award winning Age Friendly Accredited business.”
The main event space at MacDonagh Junction is known as Workhouse Square. This is a covered outdoor space with access from the main street and direct access from the shopping mall itself.
It is a courtyard-style space with a number of food options, including the Courtyard Bar & Grill, a fully serviced restaurant operated by the award winning chef, David Rousse.
The built environment at MacDonagh Junction merges beautifully with the historic buildings of both the Famine Workhouse and Goods Shed of the old railway station.
And MacDonagh Junction is home to a unique heritage offering, the free Kilkenny Famine Experience Tour. “We have targeted uses that enable us to offer lifestyle services such as optician, beauty, art classes, youth centre, banking and bowling,” says Marion.
MacDonagh Junction offers a free personal shopper service throughout the centre. It’s great opportunity to get personalised style and fashion advice from Karen Morrissey. And here’s another little bonus – there are electric charging points in the Blue Car Park at MacDonagh Junction.
The run-up to Christmas is an exciting time at MacDonagh Junction where they have been celebrating the launch of the new Star Wars movie with a whole platoon of characters to meet, greet and entertain you.
Nore Valley Park are providing an immersive festive programme in Workhouse Square. You can meet Santa and his mischievous elves and see his reindeer. You may even get the chance to bottle feed a baby reindeer.
It’s all part of the MacDonagh Junction magic.
“The benefits of doing business in Kilkenny are immeasurable and we hear that from locals and visitors on a daily basis,” says Marion Acreman. “We are acutely aware of the changing retail environment and feel the way forward for us is offering the experience people are asking for to include being open when people have time for leisurely visits and enhancing the experience to ensure the customer is valued and heard.”
Consumer demand in Ireland is up, but new retail outlets are few and far between, and rental Growth is modest.
Before writing a piece on the retail market, I should address the elephant in the room: retail has become a dirty word in the property market. Investors are happy to buy private rental sector (PRS), sheds, hotels and offices without recourse to supply demand dynamics or potential technological disruption, but they are spooked by retail. The impact of technology on remote working is ignored in the office market, but the ability to buy from home has become the obsession of the investment community. Like many issues in the world today the narrative has drowned out the reality. Retail real estate, like all other markets, is driven by the dynamics of supply and demand. What has spooked the market is the arrival of a new element of supply it doesn’t understand – the internet. Online shopping is just another form of supply into the market, another conduit through which consumers can purchase products and services. It has a different impact on different products and services because some, such as music, are easily supplied online, whereas others like getting your hair cut or buying a cup of coffee are clearly not. Most things we buy fall somewhere in between and can be acquired through multiple channels, and it is in this non-binary world that retailers are targeting consumers. A simple way to think of the impact of online is as additional supply into the market because, as with all markets, the supply-demand dynamic will ultimately determine value.
The danger of comparison
Now that we have outed the evil internet, let’s consider what’s happening in Ireland’s retail market and how this compares to other markets in Europe. Except that’s quite difficult. Retail is local and consequently direct line comparisons expose different approaches across Europe and can be very misleading. For example, in Ireland we have retail parks – collections of large sheds beside big car parks where in most cases you can only sell bulky goods due to strict planning restrictions. In France they have a lot of retail warehouses but they can sell anything from shoes to deckchairs, and in most cases they are stand-alone boxes. In the UK, shopping parks with the same form of development but with much greater open use are more common. In Germany, the supermarket business is dominated by discounters who in large part rent their stores, whereas in Ireland around 90% of the supermarkets are owner occupied.
Searching for common statistics in such widely different markets is dangerous. In a recent representation to a European institutional investor, we were quoted vacancy rates that they had been sent indicating that Ireland suffered from similar vacancy rates to the UK. As Bannon is instructed on about 25% of Ireland’s stock of shopping centres and retail parks, we were able to advise that our composite vacancy rate was only 7%, significantly lower than they had been advised, meaning that either the stats they had been given were incorrect or the rest of the Irish market is having a torrid time and the owners of these assets should appoint Bannon quickly to sort out their vacancy issues. The same problems arise with respect to rates per square metre, growth in rents and yields. Euro-wide stats should be taken as a broad guideline only. We look beyond the statistical morass to what makes retail really tick, which brings us back to the supply-demand dynamic.
Stagnant supply
Supply in the Irish retail market has been stagnant for over a decade. Other than a couple of stragglers that were committed to construction when the lights came on in the casino in 2008, nothing has opened and nothing new has been started. This makes physical supply very easy to measure. During the recession Bannon data based the entire market, and keeping it up to date to accommodate new supply has been depressingly easy. There have been some stand-alone supermarkets but the pace of new development here has also been light and mainly focused on openings by the discounters Lidl and Aldi. The mainstream supermarket players are currently opening stores at the rate of one every five years.
Goodbody Stockbrokers measured the supply in the Irish market per capita in 2017, which showed us to be mid table in Europe, and 20% less than the UK. Strikingly, the US, where all the scary mood music is coming from that the internet is going to kill shops, has six times the supply of the Irish market. Think of the five biggest shopping centres near you and then imagine there’s five more of each of them within easy reach and you get a sense of the oversupply in that market. Since the Goodbody report the supply ratio has further improved as the population continues to grow, whereas new retail supply is minimal. There are now 500,000 more people in Ireland since we last built a new shopping centre and the pipeline for new retail centres is limited to the Special Development Zones (SDZs) where retail is required to match the large increase in housing supply.
UK woes
Since the low point of the recession in 2012, retail sales have grown by 34%, household disposable income has grown by 7%, and consumer savings are now at an all-time high, as is household net worth. Supply is stagnant but consumer demand has grown strongly, so rents should be charging ahead. But growth has been modest. The reason has been the poor demand for space from UK retailers. Traditionally, UK retailers dominated demand for Irish shops, in many cases squeezing out domestic players. By way of example, 11 shopping centres opened in Ireland in 2007 (Bannon let seven of them). They all opened fully let and UK retailers dominated, especially in the fashion space. In Athlone Towncentre over 70% of the space was occupied by UK-based retailers.
The current retail recession in the UK means that this demand has dropped dramatically. We lease a retail portfolio for Oaktree and Sigma Retail Partners, and recent analysis of their portfolio shows that only 18% of leasing has originated from the UK, with increasing presence from European retailers. This trend is likely to be reinforced by Brexit.
So, in summary, the Irish retail market is in good shape, largely full and supported by an excellent demand-supply dynamic in terms of consumer demand and muted development. However, rental growth is modest as we wean ourselves off an over-reliance on the UK-based retailers. When investors will get over their irrational fear of the sector is anyone’s guess.
The Irish economy looks set to register strong growth again in 2019 with GDP likely to increase by almost 6 per cent in the current year. While certain multi-national related transactions are distorting the headline figures, the large increase in taxation receipts and the continued strong performance of the Irish labour market means the underlying economy is performing well.
The persistent growth of the Irish economy is remarkable given the strong headwinds observed in 2019, the uncertainty about the Brexit process, and the moderation observed in global conditions, all of which are likely to have had a negative impact on the domestic economy. The Brexit process has merely been parked, with the possibility of a free trade agreement being negotiated between the UK and the EU in 2020. This will almost certainly result in further uncertainty in the years ahead. We expect to see the economy grow by a slower rate in 2020 of 3.3 per cent.
Another potential challenge for the Irish economy is the issue of corporation tax receipts, which are becoming an increasingly large share of the total tax receipts of the Irish exchequer. They now account for over 18 per cent of total tax receipts and there is concern that a portion of these receipts may be windfall revenues, which are not sustainable. ESRI economist Petros Varthalitis examines the implications for key fiscal metrics if there was a sudden reduction in the amount of corporation tax receipts available. It would likely require significant measures to be adopted by the Government in order to maintain fiscal discipline. The results underpin the need to quantify the potential windfall component of these receipts. They are also important given the recent proposals by the OECD for corporation tax policy.
The Commentary also examines the regional diversity of the Irish property market performance over the last 10 years. ESRI economists Matthew Allen-Coghlan and Kieran McQuinn note that both prices and rents have grown at significantly different rates in different areas of the country during this period. Areas of the country that had relatively high prices and rents initially experienced the fastest pace of growth subsequently. This suggests that different regions of the country have experienced varying economic growth rates over the past 10 years.
Barking Mad, who work with local Irish & renowned international producers to supply premium pet food & accessories are now open in The Swan Centre Rathmines.
Visit Barking Mad Pet Boutique today! Show them this image and get 10% off! T&Cs apply.
Some of the biggest retail names in Cork City centre have united to provide a sensory-friendly shopping hour.
The stores have all agreed to turn off their in-store music, dim the lights, switch off the till noises, and suspend shelf stacking to provide a quiet, calm and stress-free shopping environment for their first hour of trade every Sunday morning.
Their staff have also received specific customer service training to help meet the needs of those who decide to shop during the quiet hour.
The Cork Business Association (CBA), which is supporting the initiative, said while mainly aimed at those with autism, Down syndrome, Alzheimers, epilepsy, dementia, and people with acquired brain injury, it can also provide a very pleasant shopping experience for many others.
CBA chief executive, Lawrence Owens, described it is a great step towards making the city more family-friendly and inclusive.
“The response from businesses has been really positive and our objective is to grow and expand the provision of sensory-friendly shopping throughout the city,” he said.
“It will be available for the first hour of trade in participating stores on Sunday mornings, and longer where they can. We will monitor it as it rolls out and expand and improve as we go.”
Marks & Spencer, which has pioneered the initiative in its city centre store for about three years, has now been joined by other big retail names including Debenhams, Brown Thomas, Merchants Quay Shopping Centre, Penneys, Vibes & Scribes, Fitzgeralds Menswear, Casey’s Furniture and Diana O’Mahony Jewellers. Participating stores on Opera Lane include H&M, Topshop, Sketchers, and SpecSavers.
M&S general manager, Ray O’Callaghan, said their calm hour has become very important for some of their customers.
The CBA has encouraged other businesses to get involved, and will arrange free training for retail staff.
Ireland’s leading authentic sports retailer, Intersport Elverys opens new store in Crescent Shopping Centre.
A fund managed by Davy Real Estate has paid a total of about €175 million for Stephen’s Green Shopping Centre in Dublin.
The completion of the transaction in recent days gives the Davy investors full control of the shopping centre, following a period of nearly 13 years in which it had been owned jointly by several shareholders.
Davy Real Estate’s acquisition of the property involved the purchases of three separate shareholdings held by Madison International Realty (35.4%), businessman Pierce Molony (27%) and Irish Life (37.6%).
While the combined 62.4% stake of Madison International and Mr Molony was offered for sale quietly in a targeted process by HWBC in June, it is understood Irish Life had, until recently, intended to retain its interest in the centre.
Unsolicited approach
That position is said to have changed, however, after an unsolicited approach from Davy in early November. Having agreed a deal for the purchase of the majority of the St Stephen’s Green retail scheme, Davy informed Irish Life of its interest in taking full control of the property. Following a period of discussions between the parties, Irish Life agreed to sell its stake.
While Irish Life’s decision to dispose of its shareholding brings to an end its longstanding association with Stephen’s Green shopping centre, it continues to hold significant retail interests within its immediate vicinity, with 23 shops under its ownership in the Grafton Street area.
Stephen’s Green Shopping Centre was developed in 1988 by British Land. It has more than 90 shops over three levels with an overall floor area of 29,728 sq.m (320,000 sq.ft), and is currently producing rental income of about €8 million.
Bannon are delighted to welcome Quigleys Cafe, Bakery & Deli to The Square Tallaght.
The new cafe is now open for business just off the centre mall on Level 2.
Angel Nails are now open at Manor Mills Shopping Centre, located at Kiosk 4 (bottom of travelator)
Urban Eyes are opening in Pavilions shopping centre, Swords!
New Local Independent Sunglasses Store looking to bring the classic and new brands to Ireland.
When the total volume of investment in Ireland’s commercial property market hit a record €4.6 billion in 2014, any expectations of that figure being surpassed anytime soon were few and far between.
Just five years on, however, the consensus within the industry is that a new benchmark of around €5 billion will be set. While the number is eyewatering in and of itself, it is all the more extraordinary when one considers the various domestic and international factors that have served at different times during the year to give local and international investors pause for thought.
Here at home, Minister for Finance Paschal Donohoe’s Budget 2020 stamp duty hike and Reit policy changes served to shake investor confidence, while on the global stage, the known unknowns of Donald Trump’s US presidency and the UK’s self-flagellation over Brexit, weighed heavily on buyers and vendors alike.
But with international funds still looking for a long-term home in an era of record low bond yields and interest rates, Ireland and more particularly Dublin’s standing as a location to deploy capital came into its own, as the top 10 deals below illustrate.
1 The Green Reit portfolio, Dublin – €1.34 billion
The largest deal of the year and the largest direct asset sale ever in the Irish market has served to propel this year’s record investment spend to the €5 billion mark. Having assembled a portfolio comprising Horizon Logistics Park and prime Dublin offices such as One Molesworth Street and the Central Park campus in Sandyford under founders Pat Gunne and Stephen Vernon, Green Reit surrendered its stock market listing last month following the acquisition for €1.34 billion of its assets by UK-headquartered, Henderson Park Capital.
2 The “XVI” portfolio, Dublin & Cork – €285 million
In July, the Competition and Consumer Protection Commission (CCPC) cleared the way for Ires Reit’s €285 million purchase of the 815 homes in the “XVI” (16) portfolio from US private equity giant, Marathon Asset Management. Distributed across 16 high-end developments in Dublin and Cork, the portfolio largely comprises the 588 apartments for which Marathon paid Nama € 120 million in 2015 as part of the Project Plum loan sale process. Included in the Plum portfolio’s prime assets were 101 apartments at Beechwood Court in Stillorgan, 67 units at Time Place on Corrig Road in Sandyford, 39 apartments at Heywood Court at Northwood in Santry and 128 apartments at Northern Cross on the Malahide Road.
3 The Sorting Office, Dublin docklands – €240 million
In June, Pat Crean’s Marlet Property Group and its finance partner, M&G Investments, secured a significant return from the sale of the Sorting Office to Singapore-headquartered real estate investment trust, Mapletree. Located on a site in the Dublin docklands which Marlet and M&G acquired from An Post for €40 million in 2015, the 19,510 sq.m (210,000 sq.ft) office scheme represented Mapletree’s first acquisition in Ireland. Google is currently in talks to rent the development in its entirety to facilitate the expansion of its Dublin-based workforce.
4 Heuston South Quarter (HSQ), Kilmainham, Dublin 8 – €222 million
While Henderson Park Capital hit the headlines in a big way this year with its purchase of Green Reit, it made its first foray into the Irish market last May when it teamed up with developer Joe O’Reilly to acquire the landmark Heuston South Quarter (HSQ) in Dublin city centre from US property giant Marathon Asset Management for €222 million.
Widely acknowledged as one of the foremost mixed-use campuses in the capital, the HSQ scheme comprises 266 apartments, 9,877 sq.m (106,319 sq.ft) of Grade A office space, 4,463 sq.m (48,034 sq.ft) of commercial space, and a 1.47 hectare (3.63 acre) development site.
The price paid by Henderson Park represented a premium of 85 per cent on the €120 million HSQ’s former owners, Marathon, paid Lloyds Banking Group to acquire the loans associated with the scheme in 2014.
5 Four and Five Dublin Landings, Dublin docklands – €205 million
The success of Ballymore and Oxley’s Dublin Landings mixed-use scheme continued apace this year with the sale of blocks 4 and 5 at the sprawling docklands development to the Central Bank of Ireland for €98.6 million and €106.5 million respectively. Located next to the Central Bank’s existing headquarters on North Wall Quay, the blocks extend to a combined floor area of 200,000 sq.ft (18,850 sq.m), and will be used to accommodate the expansion of its existing 1,815-strong workforce by up to 300 employees.
6 Five Hanover Quay, Dublin docklands – €190 million
Targeted Investment Opportunities ICAV (a joint venture between funds managed by Oaktree Capital, Bennett Group and Nama) didn’t have to wait long to find a buyer for Five Hanover Quay. Having put the fully-let prime Dublin docklands office building on the market last May, they agreed its sale for “just over” €190 million to German-based fund manager, Union Investment, in August. The property, which comprises 14,864 sq.m of office space distributed across seven floors, is let to various tenants including technology company DocuSign and Aptiv, a global auto parts company.
7 Nova Atria, Sandyford – €167 million
With the ink barely dry on its €240 million purchase of the Sorting Office, Singapore-headquartered Mapletree hit the acquisition trail again, snapping up the Nova Atria office campus at Sandyford in south Dublin from US private equity firm, Blackstone, for €167 million. The closure of the deal in October brings Mapletree’s investment to date in the Irish office market to €407 million.
Nova Atria comprises two office blocks comprising a total of 320,000 sq.ft known as Nova Atria North and South. Nova Atria North is let to a number of tenants while all 15,939 sq.m (172,121 sq.ft) of space at Nova Atria South was let to Facebook by the scheme’s previous owners, Blackstone, earlier this year.
8 Reflector Building, Dublin docklands – €155 million
While several parties including German asset manager, Wealthcore, and South Korean bank holding company, Hana Financial Group, were linked to its purchase since it was brought to the market last February, another German investor, Deka Immobolien, came through to acquire the Reflector Building for €155 million.
Completed by Michael Cotter’s Park Developments in 2018, the Reflector is a six-storey over-basement building comprising 11,250 sq.m of office space and 329 sq.m of retail space, with 34 car-parking spaces. The property is producing annual rental income of around € 7 million from several tenants, including Airbnb, LogMeIn and web designer Wix.
9 Charlemont Exchange, Dublin city centre – €145 million
Developer Pat Crean’s Marlet Property Group landed the first major commercial real estate deal of 2019, when it completed the sale last April of its Charlemont Exchange office scheme to South Korean-based fund, Vestas Management for €145 million.
Marlet assembled the Charlemont Exchange development originally through the acquisition of Charlemont Blocks A, B and C in March 2017, followed by the purchase in December 2017 of Charlemont Block D. Marlet subsequently extended the combined footprint of the four-building scheme from its original 94,968 sq.ft to 121,270 sq.ft in the course of refurbishing the scheme.
Prior to selling the development, Marlet agreed a lease with flexible workspace provider, WeWork, for all four blocks at a rent of €55 per square foot.
10 DIT Kevin Street campus, Dublin 2 – €140 million
Developer Shane Whelan’s Westridge Real Estate signalled its intention to become a major player in the Dublin commercial property market last September when it paid €140 million to acquire DIT’s former Kevin Street campus.
Whelan’s acquisition of the 3.57-acre site represented the biggest development land deal of 2019, and was backed by a number of New York-based high net worth family offices. Debt finance for the deal was provided by Fairfield Real Estate Finance led by Chris Wilson and BentallGreenOak which was led by its Dublin-born vice-president Allen Crampton.
Westridge is in the process of preparing a planning application for a major mixed-use scheme comprising mainly Grade A office space alongside a large element of private rented sector (PRS) apartments, and food and beverage offerings. The former DIT campus is located just 300m from the Luas Green Line stop at St Stephen’s Green, and within walking distance of the city centre.
€100 million mark
Outside of the top 10 deals by value, numerous other transactions during the year eclipsed or at least equalled the €100 million mark. In the hotel sector alone, both the Marker and the Conrad changed hands for €134 million and €116 million respectively. Henley Bartra, a joint venture between UK private equity giant Henley and developer Richard Barrett’s Bartra Capital, meanwhile paid €125 million for 500,000 sq.ft of offices and data centre assets distributed across the Citywest Business Campus in Dublin and Cork Airport Business Park.
The fast-growing private rented sector (PRS) market was a hive of activity with notable deals including the sale to DWS for €108 million of 214 apartments at the Cosgrave Property Group’s Fairways scheme in Dún Laoghaire, and the sale to Patrizia of 179 apartments at Marlet’s Mount Argus scheme in Harold’s Cross for €100 million.
Among the deals understood to have been agreed but not yet finalised are Starwood’s sale for €535 million plus of five prime Dublin office properties, known collectively as the Cedar portfolio to US private equity giant Blackstone; Tristan Capital Partners’ sale for €214 million of the 382 apartments in the Vert PRS platform to Avestus Capital Partners, and the €185 million acquisition by a fund managed by Davy Real Estate of St Stephen’s Green shopping centre.
The seasonally adjusted unemployment rate for November 2019 was 4.8%, remaining unchanged from October 2019 and down from 5.6% in November 2018. The seasonally adjusted number of persons unemployed was 117,800 in November 2019, compared to 117,700 in October 2019. When compared to November 2018, there was an annual decrease of 17,600 in the seasonally adjusted number of persons unemployed.
Summary points for November
The volume of retail sales decreased 0.5% in October when compared to September on a seasonally adjusted basis and increased by 3.0% on an annual basis. When Motor Trades are excluded, the volume of retail sales decreased by 2.1% in October 2019 and rose by 3.2% when compared with October 2018.
The sectors with the largest month on month volume decreases were Other Retail Sales (-9.3%) and Fuel (-5.2%). The sectors with the largest monthly volume increases were Pharmaceuticals, Medical & Cosmetic Articles (8.1%) and Clothing, Footwear & Textiles (3.0%).
There was a decrease of 1.0% in the value of retail sales in October 2019 when compared with September 2019 and there was an annual increase of 1.4% when compared with October 2018. If Motor Trades are excluded, there was a decrease of 2.4% in the value of retail sales in the month and an increase of 0.5% in the annual figure.
Hollister is set to become the latest retailer to join the line-up at the Blanchardstown Centre.
The American clothing brand has agreed a 10-year lease for a 582 sq.m (6,265 sq.ft) unit at the hugely-successful Dublin scheme.
Hollister will join JD Sports who signed up last year for a 1,100 sq.m (11,800 sq.ft) store within a 55,000 sq.ft extension that is under construction. Distributed across two levels adjoining Blanchardstown’s central mall, the development will comprise eight new retail units upon completion next year.
Commenting on Hollister’s decision to locate at Blanchardstown, Pat Nash, managing director of Multi Ireland & UK, said: “This signing underlines the growth of our offering and our ability to provide the broadest retailing choice in both our retail parks and our covered malls.”
Separately, Fingal County Council has granted planning permission for the development of an additional 3,200 sq.m (35,000 sq.ft) extension at Blanchardstown’s Blue Mall entrance.
Existing eateries
This space is being earmarked for the provision of a number of new restaurants ranging in size from 142 sq.m to 861 sq.m (1,528 sq.ft to 9,267 sq.ft). The extension will be located within close proximity to the Odeon cineplex and several of Blanchardstown’s existing eateries including Nando’s Milano and Eddie Rockets.
Developed originally by Stephen Vernon’s Green Property in 1996, the Blanchardstown Centre is acknowledged as one of Ireland’s foremost and most successful retail and leisure operations with more than 16.5 million visitors annually. The scheme includes more than 180 stores and is anchored by Dunnes Stores, Marks & Spencer, Penneys and Debenhams.
Bannon are delighted to be part of the Blue Mall extension with strong interest from both National & International F&B operators.
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